A summary of Ben Gentile's remarks in this second installment of our series on Money and Travel from the November, 2007 meeting of the Travel Club.
Advantages of ATMs:
• Arguably the safest & easiest access to money
• Better exchange rate: you get the wholesale bank rate, reserved only for very large bank (2 – 5% better rate than traveler’s checks)
• Avoid an additional 2% add-on from local banks and exchange booths
• More availability worldwide with each passing year; ATMs in over 210 countries
Disadvantages of ATMs:
• Usage is not free! As stated above, you save over traveler’s checks and exchange booths, however: your bank may charge you a percentage or flat fee/transaction ($1 - $5). Local bank may also charge you a small fee
• Many ATMs, particularly in Europe, do not accept PINs greater than four digits
• Use PINS with numbers only; many overseas banks do not have letters on their keypads
• In many instances, you can only access the primary account associated with your card
Before you leave home, do research:
• Does that country have ATMs?
• Where are they and what cards do they accept?
• “Plus” network is associated with VISA: http://visa.via.infonow.net/locator/global/jsp/SearchPage.jsp
• “Cirrus” network is associated with MasterCard: call (800) 424-7787 or http://www.mastercard.com/us/personal/en/cardholderservices/atmlocations/index.html
• Each network has over 1 million ATM locations worldwide; you can use above links to find ATMs
Alert your bank of your travel plans:
• Frequent overseas ATM usage can cause your bank to freeze your account
• Inquire about their fees
Many Common ATM Scams:
• “The Lebanese Loop” – an external blocking device “traps” your card; thieves are nearby to read your PIN and a “good Samaritan” offers to help; transaction not completed
• Cash Trapping – similar to Lebanese Loop, but transaction occurs and money is trapped inside; you assume transaction did not occur and leave; thieves steal your card info AND money
• Card Skimming – also similar to Lebanese Loop; device mounted on top of ATM; your card works, but thieves steal your ATM account number, balance & PIN. Quality skimmers can store info from 200 ATMs
• Hidden Video Camera – thieves videotape the transaction; with your account number & PIN, they can easily recreate magnetic strips and reproduce your card for later thievery
• Fake PIN pads – can be placed over actual PIN pad; transaction is “normal;” but you have been robbed!
• Fake ATM machines – thieves have actually resorted to placing fake machines in busy shopping areas; data collected and machine tells you it is “out of money”; again, your card info has been stolen
How to protect yourself overseas:
• Use ATM machines inside banks as thieves will have a harder time running scams
• Look for external devices; if ATM looks “funny” in any way, walk away!
• Never rely on the help of strangers and avoid having people behind you
• Report confiscated cards immediately; if you are a couple, one seeks help while the other stays at the machine
• Never use an ATM that has extra signage or warnings posted on it telling you to do unusual activities; an ATM is an ATM is an ATM, here or overseas
• Avoid outdoor deserted weekend locations where banks are closed
• Only 0.0016% of all worldwide ATM transactions are fraudulent; this is a very safe way of accessing money, but you only have to be ripped off once to think otherwise!
