A Hungarian person had to pay nearly 500 HUF for 1 EUR

If one does not want any unpleasant surprises, it is worth paying attention. Some ATMs abroad convert HUF to EUR at an exchange rate of nearly 500. 

In Slovakia, 1 EUR was nearly 500 HUF

A reader wrote to pénzcentrum.hu about the unfortunate incident. Last week in Slovenia he suddenly needed to withdraw money, as the IFA can only be paid in cash, and he went to the nearest ATM for EUR 60. Unfortunately, he only found a so-called non-bank ATM, and he was quite shocked at the exchange rate.

He paid HUF 29,227 HUF for EUR 60, even though on that day, 6 July, the average official exchange rate was HUF 409.98.

So it was HUF 77 more expensive as the machine changed it for HUF 487.

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How could have this happened?

Firstly, one needs to be careful with non-bank ATMs. Not only at home but also abroad. The exchange rate at these ATMs is 10 to 15 percent less favourable compared to banks or street money exchangers. They are actually not money exchangers, but DCCs, i.e. dynamic currency conversion facilities. This means that they provide a kind of convenience service and are, therefore, subject to different regulations. In case of foreign purchases or cash withdrawals, in addition to the local currency, the system also offers the deduction of the amount in HUF from one’s account. The exchange takes place in both cases. Although one does not pay in HUF, when choosing the HUF, the system uses an extremely unfavourable exchange rate from the customer’s point of view. Therefore, in almost all cases, it is worth choosing a deduction in EUR.

Be aware of the costs of ATM use abroad

Before travelling, one should be fully informed about the costs of using ATMs abroad. If someone withdraws money abroad with a Hungarian HUF card, their home card-issuing bank may charge them a significant amount in addition to the handling costs of the foreign bank. Moreover, it is worth checking the current policies of the bank that issued the bank card for purchases and cash withdrawals abroad. For example, there may be more favourable fees for cash withdrawals at foreign ATMs operated by the bank group.

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Source: pénzcentrum.hu