FlyerTalk Forums - currency exchange: US dollars or ATM card?

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Quote:

Originally Posted by Skyman65 (Post 20488201)

A few thoughts...

If your bank charges you a per-transaction fee, be aware that most ATMs we used in India limited us to 10,000INR per withdrawal (less than US$200). So if you need to get a large amount of money, you'll have to do multiple transactions, and the fees will add up quickly.

Also, the ATMs will most likely only issue 500INR notes, which can be difficult to use for small transactions (though we did find some that offered the option to mix 500s and 100s). One problem we encountered in India is that NOBODY likes to give change. So if you need to buy something for 100INR, and you give them a 500, they will hem and haw and ask if you have anything smaller. Only when you threaten to walk away will they finally give in and give you change (or sometimes they will have to go to another shop to get change from them). It was weird. 500INR doesn't seem like a lot of money (less than US$10), but we had difficulty passing them in many places.

If you use a money exchanger, ask for a lot of 100s, 50s, and even 20s or 10s, as it will make purchases a lot easier if you have them.

Thanks. ATMs spitting out big denomination bills is a problem the world over. I usually break them at hotel front desks. Would that work in India?

Quote:

Originally Posted by iahphx (Post 20489051)

Thanks. ATMs spitting out big denomination bills is a problem the world over. I usually break them at hotel front desks. Would that work in India?

Yeah, you could probably break larger bills at your hotel. If you're staying at a smaller guesthouse (as we did for most of our trip), they might not be as willing (though we were still able to do it a couple times).

The other piece of advice I can offer is to inspect any bills that are given to you in change. If anyone tries to give you a bill that is very old or torn, refuse to accept it, because no one else will accept it from you. We had this happen to us a couple times before we learned our lesson.

while on the topic of ATM usage in India for international, I have encountered a Rs.10,000 limit per withdrawal and my bank charges me a $2 or so per txn

the only bank ATM that has allowed me more than 10,000 is Citi - per txn is 40,000 but Citi loads a charge of Rs200 per txn.......

does anyone know of any other bank ATM which has a Rs.40,000 limit per transaction for an international card)

(I am referring to the per transaction limit - not daily limit - my card has a high daily limit (set by the issuing bank) but i wish to avoid carrying out multiple transactions)

HAPPY HOLI FOLKS

Quote:

Originally Posted by iahphx (Post 20486912)

At least the rebirth of the no-foreign-transaction-fee credit card makes the need for cash a little less.

Keep in mind that there are two fees: one charged by banks and the other by visa/mc. Banks will typically charge a flat dollar amount for using another bank's atm plus a ~3% conversion fee. Visa/mc usually charge 1%. Only the bank fee is waived for no-foreign-transaction-fee cards. They still charge the visa/mc fee.

Quote:

Originally Posted by iahphx (Post 20486912)

FWIW, I find it harder and harder to just pay 1% at ATMs when I travel. The golden age of easy ATM money seems to be over, as everybody is fee happy and trying to make a buck on the foreigner.

Well, you can't expect someone to provide you with a service (currency conversion) for free. You have to pay something. Paying an ATM 1% for this service may not be such a bad deal. Typical money lenders will charge at least as much, unless you know the right guy to go to in the entire city of Delhi.

Quote:

Originally Posted by Keyser (Post 20486540)

while i have never had the need to use a foreign card in india, i do have a lot of clients who do & they all complain about getting terrible exchange rates when withdrawing from the atms....

I think exchange rates per se are fine. What hits them is the fees their credit card company charges them. Using a no-fee credit card/debit eliminates these issues.

Quote:

Originally Posted by hyderago (Post 20485038)

Honestly, I have never been offered dynamic currency conversion in India. But I agree that if you have a choice, always choose to be billed in INR.

I had DCC offered to me using a CAD card at an Axis Bank ATM last week.

The offered DCC rate was INR 50.71 to the CAD. In the end, the bank gave me INR 51.64, so the savings was about 2% by declining.

Quote:

Originally Posted by Skyman65 (Post 20489178)

I actually got what appeared to be a counterfeit 500 rupee bill from a Punjab bank ATM. By the time I realized it -- after 3 or 4 merchants refused to accept it (at first I thought it was just because it looked "old") -- I was in another city and the local branch of the bank refused to help me (I couldn't "prove" I got the bill from them). Not sure what others can do to avoid this. From my conservations with locals, it appears to be a relatively rare problem.

With regards to other ATM issues, I did find that some of the better known banks (like Citibank) levy ATM surcharges, while most of the local banks don't. Fortunately, my ATM card worked at every ATM I tried. A few banks tried to do the DCC trick, but as long as you look at the screen for a second or two and know about this problem, it's easy to spot the trick and opt for the "normal" withdrawal. It was hard to predict which denomination bills would pop out. Obviously getting some smaller bills is good. You can generally change/use 1000 rupee bills at hotels and the fancier restaurants you're likely to use as a tourist. My biggest problem was getting bills smaller than 100 rupees from some hotels for tips and such. I always tried to break my 500 and 100 rupee bills at merchants and tourist sites to get change.

Strange... the cash for ATMs is usually loaded centrally and only verified bills/notes loaded. The counting machines usually spot counterfeits easily.

I have learned to ask for an odd amount for the withdrawal. Instead of say 10,000, I'll ask for 9000, so I can get some slightly smaller bills. Of course the ATM may not be loaded with smaller denominations.

Someone mentioned ICICI Bank, they will probably be the most effective, even if they have a charge, which is not definite, as you will be able to exchange currency in any of their banks at competitive rates, if, and when is necessary. Best to have a look on the websites before hand.