ATM fees or hidden pitfalls that can cost you hundreds of crowns
Cashless payments are growing in popularity in the Czech Republic, with approximately 80% of the population preferring them. However, ATMs for cash withdrawals still hold their ground. However, many are unaware of the potential pitfalls associated with withdrawing money, particularly the fees that may be charged.
ATM withdrawals may not always be free
YouTuber Janek Rubes, for example, knows this, having been charged CZK 169 for withdrawing CZK 200 from a Czech ATM. However, the situation was not entirely normal – Rubeš used a foreign payment card at an ATM of Česká spořitelna, where such a transaction is charged.
However, fees can also apply to Czech cardholders if they withdraw money from another bank’s ATM. For example, ČSOB and Česká spořitelna charge CZK 40 for this service, Komerční banka CZK 39 and Air Bank CZK 35. Some banks, such as mBank or UniCredit Bank, also charge fees for small withdrawals. For example, mBank has a minimum limit of CZK 1,500, UniCredit Bank CZK 2,000, while withdrawals of lower amounts are charged CZK 29 and CZK 40 respectively.
Dangers of Dynamic Currency Conversion
Another risk is posed by the Dynamic Currency Conversion (DCC) service, which converts the amount withdrawn into the domestic currency, for example Czech crowns. However, this process tends to be disadvantageous for customers as the conversion rate is often significantly worse than a standard bank transfer. The difference can be as much as 10% compared to the usual 3-4%. This means that the use of DCC can lead to unnecessary expenses of hundreds of crowns.
Caution when making withdrawals abroad
You need to be cautious when withdrawing cash abroad, as using DCC services can cause unnecessary financial losses. Experts recommend that customers should always pay in the local currency and leave the transfer to their bank, which offers a better exchange rate.
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