I was wondering if the published exchange rates on newspaper are the interbank rates (rates that banks charge each other). For example, I recently saw a USD$1 to HKD$7.80 rate published in a newspaper and when I withdrew money from a HK ATM using a US ATM card, the rate I calculated is 1:7.7999. I knew I won't get hit with ATM fees because I checked with my bank already, but I thought (at least I was told by other FTers) that ATM withdrawals are also subjected to the universal 1% foreign currency conversion fee. If the published rates are not interbank rates, then where can I find those numbers? Thanks in advance.

LAX

Using the OANDA Currency Converter, you can see the interbank rates, as well as Interbank + varying percentages (use the pull-down menu underneath the currency name box on the left side):

http://oanda.com/convert/classic

Credit cards are usually subject to 1-2% surcharge on foreign currency. Most ATM cards are not.

The "interbank"rate is not a fixed rate, but just like the stock market, subject to bid & asked, and fluctuates continously through the day.

The newspaper reported rate is the rate at some particular time.

I recently withdrew a ton of euro in venice, and my wife, standing behind me informed me she was planning to go shopping, so I withdrew another ton of euro. The two transactions, same amount, same machine, within however fast one can enter pin #, was at a significiently different(for euro-dollar exchange) rate.

With this little exercise, I think I have confirmed that my ATM card is not subjected to the 1% conversion fee. I guess I will continue to use my ATM card (thus cash) for most of my purchases rather than my credit card. I have had second thoughts about this ever since I read a thread on here that said ATM cards are not immune to the fee.

By the way, I have heard from some where (not here on FT) that MC will do away with the conversion fee. Anyone else heard this?

LAX

My husband has had a $5 charge using his ATM card in Rotterdam and in Montreal. It seems there are a lot of banks starting to charge a flat fee.

LOTS of gripes related to credit cards and foreign currencies, and recent changes have been WAY underreported by the consumer media.

Visa, for example, recently decided to change its exchange rates to ones it decides on, rather than wholesale or government rates. Then the banks like Wells Fargo or Citibank will pile on 2%, 3% or flat fees, sometimes both.

It's yet another case of big banks inventing fees and then trying to see how much customers will tolerate. None of it is even remotely driven by costs (the industry has been a declining cost industry for years, with all technology investments well offset by labor cost savings).

Fortunately my credit union doesn't play along. I can do unlimited Visa cash advances outside the U.S. with no cash advance fee and no "conversion fees."

I think CapitalOne is also still a major holdout on not charging the "conversion fees," as are many smaller issuers. On the ATM side, check out online banks like State Farm Bank, which can do unlimited ATMs with no fees from their side and even rebates (up to a limit) if the ATM surcharges.

Definitely vote with your feet. In my case if I had the same activity with a company like Citibank the extra cost would be like having to pay about a $200 annual fee on the card!

I think anyone who wants can pretty much charge a fee, and it is not easy to tell who did it.

I got a $20(approximate) charge for using a particular ATM in Florence. I don't know who regulates non-US ATM's.

May I ask which bank you bank with? It would be good info to know considering I do a lot of international travelling. If you'd prefer not to share, I completely understand. Citibank charges me a 1% conversion fee i.e. USD1 = HKD7.72 and I intend to vote with my feet. Thanks!

In addition to Capital One, MBNA doesn't charge conversion fees either (above and beyond the 1% Visa charges by default). I use it exclusively for international travel.

Depends on where youre looking. If youre looking in the Travel section of the Daily News or LA Times, they are whatever the paper decides what they want them to be. I seem to remember them being about 5-10% "cost" built in. If you look in the Business section, usually it lists where the rates are from and usually it's interbank. In the case of the Hong Kong dollar, it will be the same or very close because the HKD is pegged to the USD and the conversion costs are extremely low for most banks because they are trading large amounts anyway.