On the other hand, ATM fees in destinations such as Malaysia, Indonesia, and Hong Kong are less than 1%. (Representative image)
Among popular destinations for Indian travelers, Thailand has an average ATM withdrawal fee of 2.62%, Singapore 1.41% and Australia 1.15%.
Forex financial technology company Wise recently revealed key insights into ATM withdrawal fees for Indian travelers visiting popular APAC destinations. Our latest research leverages our database to reveal the potential costs associated with cashing out abroad, helping travelers make the most of their holiday budget.
According to data focusing on APAC destinations, Turkiye topped the list for the most expensive ATM cash withdrawals in the region, with travelers being charged an average fee of 4.44% per transaction.
As the new year begins and the number of Indians planning to travel abroad increases, these insights provide valuable guidance for smarter financial planning throughout 2024.
Among popular travel destinations for Indians, Thailand ranked 5th with 2.62%, followed by Korea (2.55%) and Vietnam (1.85%). In contrast, mainland China and Malaysia have the lowest fees at 0.01% and 0.03% respectively.
ATM fees for major APAC travel destinations:
To put this into perspective, if someone withdraws Rs 10,000 per day from Turkiye for a week, they will pay a fee equivalent to Rs 3,108. On the other hand, if you visit Malaysia and withdraw the same amount of cash, you only have to pay a transaction fee of 21 rupees.
When trading in other currencies, it's important to be aware of potential hidden costs, including foreign transaction fees and undisclosed exchange rate increases. These seemingly small added costs can add up to a significant amount.
“It’s important to be aware of the potential hidden costs associated with international payments, which can include foreign transaction fees and undisclosed exchange rate increases,” said Surendra Chaplot, global head of product at Wise. This affects anyone who needs to move or manage money in another currency, including withdrawing cash overseas. Wise is committed to raising consumer awareness of the hidden fees in all forms of cross-border payments, so they can get the most for their money.”
To help Indian travelers make informed financial decisions and stretch their holiday budget while traveling abroad, Wise has compiled the following tips for holidaymakers to keep in mind.
- Research where to withdraw your money. It may be cheapest to do this before you leave, but you may want to avoid currency exchange booths at the airport. If you need to withdraw cash abroad, it's a good idea to compare ATM rates in several locations, as fees can vary from bank to bank.
- Check the fees charged by your credit card company for international withdrawals. Fees can be high.
- Some providers offer free ATM withdrawals abroad up to a certain threshold.
- Avoid dynamic currency conversion costs by choosing to pay in your local currency instead of rupees when paying with your card in stores.
- If you're traveling to visit friends or family, consider using a trusted platform/app to send money to people who can help you withdraw it from a local ATM. This way, you can avoid expensive ATM fees, foreign transaction fees, and poor exchange rates all in one fell swoop.
Research Methodology
Wise said the data is based on 8.4 million analyzed cash withdrawals made using Wise cards at third-party ATMs over a six-month period from May 2023 to November 2023. These ATMs recorded at least 500 transactions per country over a six-month period.