ATM fees seem to be going up to. Wachovia charges me $3, and even my credit union just went up from $0.50 to $0.75 per transaction. Wachovia also charges a 2% conversion fee and the credit union just started a 1% conversion fee on ATM transactions.

I, to am finding cash conversion a better option, and since I am based overseas and get paid in US$ (a real bummer!), I have to change money regularly. Other than late at night or on Sunday, I can find independent exchanges houses locally which will buy dollars for around 0.6% less than the interbank midmarket rate. In comparision the local banks which operate ATM's are the ones who actually make the exchange, and do so at the rate of their own exchange desk, which is typically about 1.5% less than the interbank midmarket rate.

The comparision then is:

Wachovia:
local bank currency exchange rate for ATM - 1.5%
Wachovia add on conversion fee - 2.0%
Wachovia ATM use fee - $3. (a bit over 1% of maximum transaction)
total cost - 4.5%+ of interbank midmarket rate

Credit Union:
local bank currency exchange rate for ATM - 1.5%
CU add on conversion fee - 1.0%
CU ATM use fee - $0.75 ( about 0.35% of maximum transaction)
total cost - 2.85%+ of interbank midmarket rate

local exchange house:
exchange rate 0.60% of interbank midmarket rate
(no commission)

I have already once decreased the deposit to Wachovia, and increased the CU deposit and the amount paid to me in dollars in the field. Next time I am in the home office I will further increase the portion paid to me in dollars in the field, as ATM's become less attractive all the time.