How do I minimize cash advance fees when withdrawing from a foreign ATM?
When withdrawing money from a Japan Post ATM using a card (which can act as either a credit card and or an ATM card) from Westpac, the withdrawal is from my credit card account, and I get charged a "cash advance fee"
131313 CASH ADVANCE 1000.00
xxxxxx/JAPANPOST BANK( TOKYO JP
xxx,xxx JPY
xxxxxxxxxxxxxxxxxxxxxxx
131313 FOREIGN TRANSACTION FEE 30.00
131313 CASH ADVANCE FEE - ATM 20.00
What's meant by "Cash advance fee - ATM"? Is it a fee charged by the ATM I'm withdrawing from? How can I minimize it?
Best Answer
It turns out that even though "Cash advance fee - ATM" has "ATM" in it, it doesn't mean that it's being charged by the ATM you're withdrawing from. It's still being charged by the bank of your home country.
And depending on your bank, that fee can be minimized by having a positive balance in your credit card account. This isn't just for cards specially marketed at globehoppers and globeshoppers (mentioned in an answer to a similar question), but even for ordinary credit cards:
An administrative charge of 2% of the value of the transaction will apply to each cash advance made on your card account, where your account has a negative (debit) balance after the transaction has been posted to it. A minimum charge of $2.50 and a maximum charge of $150 will apply in these circumstances. Where your account has a positive (credit) balance after the transaction has been posted to it, a charge of $2.50 will apply to the transaction. Any such charge will appear on your credit card statement directly below the relevant cash advance.
A $2.50 charge if your account is positive, versus $20 if the account is negative? That's a bit of a difference!
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How can I reduce my cash advance fee?
Borrow as little as possible The ideal way to minimize cash advance costs is to borrow only the absolute minimum you need. The smaller your cash advance amount, the less you'll have to pay in fees and interest. Remember, a cash advance is simply a loan from a bank.How do I withdraw money from foreign currency at ATM?
The PIN that you will use to complete a POS terminal transaction or at a withdrawal at an ATM will be the same as what you have set it to be in India. When using a foreign ATM, you will be given the choice of choosing your preferred language to make the withdrawal.How do I get around ATM fees?
How to Avoid ATM FeesIs it better to withdraw cash abroad?
If you want to withdraw cash from an ATM when you're abroad, always do it in the local currency. This guarantees the mid-market rate. However, your bank may charge ATM fees and foreign transaction fees (more on this later).With or Without Conversion: How to Avoid Hidden Fees When Taking Out Money Abroad
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