Originally Posted by
sbedelman
This is a very good point. I've yet to figure out exactly what the forex fee or spread is for an ATM withdrawal and how it compares with a charge, whether for goods or cash advance since they are processed the same way through the VI/MC system.
Does anyone know?
I've kept track of a lot of credit and ATM transactions on my and my friends' trips, and haven't found any consistent rate trends distinguishing ATM withdrawals from POS purchases.
The only difference I'm aware of is timing: when you make an ATM withdrawal, the rate is calculated on that day; when you make a POS purchase, the rate is usually calculated when the transaction posts to your account. So in theory you're better off using credit if you think the local currency is falling vs. the USD and the ATM if you think the local currency is going up.
But since none of us can reliably predict exchange rate movements, practically speaking I'd say it's a wash.