Reasons not to withdraw cash at the airport
Are you withdrawing currency in cash at the airport before going on vacation? That can be unnecessarily expensive. This applies regardless of what your local currency is.
Despite the fact that the summer has been unusually warm in Norway thus far, an ever increasing number of Norwegians spend their summer holidays abroad. Should you withdraw foreign currency before travelling, or wait until arrival?
The answer is that you are losing money when you withdraw at a Norwegian airport or at currency exchange offices in Norway.
These provide poor exchange rates for most currencies, the consumer portal Dinero.no reports in a press statement.
It pays dividends to wait until arrival
Most of Norwegian’s destinations have good infrastructures when it comes to payment technology – usually, they at least satisfy the needs we have as tourists.
It’s seldom difficult to locate the nearest ATM which accepts your debit card when you arrive at the holiday destination, and it is highly recommended to use these instead of using the currency ATM’s at for instance Gardermoen, Værnes, Sola or Kjevik. The same goes for currency exchange offices.
– It is costly to process cash, and the branches and banks’ expenses are ultimately covered by you as the final customer, when withdrawing currency in Norway, before going on a holiday. The exchange rates are therefore poorer here than the price you have to pay if you withdraw money abroad, says the CEO of Dinero.no, Anders Fagereng.
DNB and Nordea are among the banks that have currency ATMs located at airports across Norway. Dinero.no has analysed and compared these exchange rates with the rate you get if you let the payment network linked to your card determine the currency for you. For frequently used currencie such as the British Pound, Euro and Thai Baht, the exchange rate is poorer in Norway, according to the Consumer Portal’s survey.
Visa og MasterCard provide better rates
For Norwegian bank and credit cards, Visa and MasterCard are the most common payment networks. They are the ones that determine which exchange rate you get if you withdraw cash or pay using bank terminals with local currency abroad.
– If you compare the exchange rates, you’ll find that Visa and MasterCard provide more value for money than the banks and exchange offices in Norway do, Fagereng claims.
For example, if you withdraw 20,000 Thai baht in one of DNB or Nordea’s ATMs at the airport, it will cost you closer to NOK 500 more compared to if you do it using an ATM in Thailand. 20,000 baht equals in excess of NOK 5,000.
– This means that it is ten per cent more expensive to withdraw in Norway using this currency. And then both the card’s currency add-ons and the usual withdrawal fee of Thai ATMs is included in the cost, says Fagereng.
Examine the fees linked to the card itself
If you withdraw your pocket money for your vacation at the destination, you may already have avoided throwing money out of the window. That is of little avail if you use a card that incurrs a cash withdrawal fee.
– Some cards surcharge as much as NOK 30 to 40 per withdrawal, and often even more than that. We advise everyone to look up the price list of the card and see if you pay unnecessarily much to withdraw money abroad. If this is the case, we recommend that you switch to a card free of surcharge well ahead of time of departure, Fagereng wraps up.
© Dinero.no / #Norway Today