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ATM withdrawal fees from overseas

RobotFX Member Posts: 5
Can someone explain how/why the ATM exchange rate is so high and how to make is lower? I am not referring to the withdrawal tax. Let me explain in numbers. By the way, my card is in $$.
I've withdrawn 20000THB while in Thailand. According to the ATM's bank, the dollar was 32.xx. So the amount of dollars (in a fair world) would have been around 606$. Now I made this 2 times, with different options:
1. The ATM asked me to convert at its rate. I believe it was 31.xx. I chose YES and in the end I was charged (as I can see in my Payoneer logs) 664$.
2. Second time withdrawing the same amount (20000THB) from the same ATM, I didn't use the ATM conversion rate. And I was charged 635$.

In neither of these situations I was close to 607$, the ideal rate. Or let's say 613$ (the fair amount + the 6$ ATM transfer fee).

So, in the end, answer these if you can:
A. is it better for me to refuse the ATM conversion rate, every time I withdraw?
B. in the second situation, where is OR who took the difference of 22$? This being the difference between how much I was charged on Payoneer, as seen in my transactions logs (635$), and the bank's exchange rate (200000THB/33=606$)+ the transaction fee (aprox. 6$)


  • Adam_Payoneer
    Adam_Payoneer Administrator Posts: 1,021 ✭✭✭✭✭✭✭

    Hi @RobotFX,

    To me it sounds like you were given the option to be charged in the same currency of the card, subjecting you to the currency conversion fees of the processor and not your card provider. This method is known as "Dynamic Currency Conversion".

    On paper it sounds great as you get to complete the purchase in the same currency of the card, however you run the risk of paying a higher fee, sometimes double the amount of the fee set by your card issuer.

    I recommend you read up on "Dynamic Currency Conversion" online to get more information on this topic. My personal recommendation, if you are giving the option for this type of transaction when traveling (or when using your Payoneer card), always opt for the standard charge.

    If you ever wondered how Payoneer calculated the rates and fees for the transaction, you can check out their FAQ page to learn more.

    Happy and willing to answer general questions.

    For any inquiries directly associated to your Payoneer account, please contact Payoneer's Customer Care Support Center.

  • RobotFX
    RobotFX Member Posts: 5
    edited November 2017
    Sorry, I'm still confused. Let me make it shorter and hopefully easier to answer:
    - Whenever the ATM "asks" me whether to use the MasterCard conversion rate, or the bank's conversion rate, what option should I choose so I won't lose too much on commissions and taxes? (I never saw a "standard charge", only the MC's and the bank's)
    Thank you.