Beware ATM exchange rate on Citi Plus account

[Duffa]

From what I am reading, the ATM did not charge a fee. From what I am extrapolating, the user pressed a button which converted the amount into AUD and thus the poorer exchange rate. Always press local currency.

It was an ATM. I haven't seen the local/home currency option on one of those yet - restaurants and petrol stations yes - but not at ATM.
My take on it - unless it's a Citibank ATM, it's a lottery what exchange rate you will get. And you only find out when you get home!

 

[medhead]

Given how useless Citis staff are... I'd say the comment regarding the other banks exchange rate was false and a result of a call centre worker trying to pass the buck. The Citi Plus may be a good product... But it's still a Citibank product!

None of which changes my comment. Citibank did not charge an ATM fee. That is true and reflected above. If they made up some story about exchange rate, that supports the point that citibank can't see if the other bank charges a fee.

Here is my last ATM withdraw. There is no ATM fee from Citibank and the amount withdrawn matches the amount I keyed into the ATM. Perhaps the OP could verify that the amount listed is the same as the amount keyed into the ATM.

INTERNATIONAL ATM WITHDRAWAL TST East MTR Hong Kong HK HK JUN xx_XX 120055 REF:xx_xx_ ICCExx_xx_xx_ HKD500.00 INCL INTL TRAN FEE AUD0.00

 

[Cynicor]

It was an ATM. I haven't seen the local/home currency option on one of those yet - restaurants and petrol stations yes - but not at ATM.
My take on it - unless it's a Citibank ATM, it's a lottery what exchange rate you will get. And you only find out when you get home!

For balance for others in this thread who may come here form a google search etc.- I believe your take on it is wrong, I have seen DCC options on plenty of atms and have always recieved the visa rate of the day (i.e. the day prior) no matter what ATM I use. I don't think I've ever used an international Citi ATM and wouldn't suggest others go out of their way to find one.

 

[cove]

We find that we spend very little cash when we travel around the US. With the Citi card it is not too hard to find a Citibank ATM.
It is always disappointing to get done over especially by a bank regardless of where in the world you are. We all learn from our mistakes.
I have had wonderful dealings with Citibank US and the people I have dealt with are a credit to that bank.

 

[Chicken]

For balance for others in this thread who may come here form a google search etc.- I believe your take on it is wrong

Too many people have tested and confirmed Citi AU does not charge fee.

I have seen DCC options on plenty of atms

Even Westpac ATM in New Zealand would try to convert your cash withdrawal to AUD.

I agree this is what probably happened to OP.

 

[medhead]

Just to follow up on the exchange rates. My last few transactions are not as good as expected. Details as follows.

Statement Date	Currency	Citi achieved rate (/AUD)	XE.com historic
24 March	USD	USD 0.7639	0.778-0.7877
12 March	Euro	Euro 0.707	0.7133-0.7257
10 March	Euro	euro 0.705	0.7119-0.7133

There were a few days between purchase and statement date making it unclear when the payment was processed. Hence the range of exchange rates. but I don't recall suffering a difference as big as USD0.015 in the past.

 

[coriander]

We find that we spend very little cash when we travel around the US. With the Citi card it is not too hard to find a Citibank ATM.

+1
I was surprised how little cash I required on our last visit to the LOTFAP with cards being just about universal (and Mickey Bands in the Disney Parks). I found Citi ATMs in 7-Eleven stores (with no ATM fee) on the two occasions I needed some cash.

 

[serfty]

Just to follow up on the exchange rates. My last few transactions are not as good as expected. Details as follows.
...

Being a Visa, try this: TRAVEL TOOLS - Visa

Having posted that, purchase date should be the go, but I am finding more and more that Citi (and Amex) seem to hang on to a Forex transaction for several days before applying the most beneficial (for them) rate.

 

[medhead]

Being a Visa, try this: TRAVEL TOOLS - Visa

Having posted that, purchase date should be the go, but I am finding more and more that Citi (and Amex) seem to hang on to a Forex transaction for several days before applying the most beneficial (for them) rate.

That's a much better match. within tenths of a cent.

 

[woodborer]

That's a much better match. within tenths of a cent.

One thing that you can do with the Visa calculator is work out the spread that Visa use on Buy and Sell of currencies. It's small, but it's there. So Australia->US rate is not the exact inverse of US->Australia. Since Visa do have a small spread, it will never quite match up with the mid market rates of XE.

 

[medhead]

One thing that you can do with the Visa calculator is work out the spread that Visa use on Buy and Sell of currencies. It's small, but it's there. So Australia->US rate is not the exact inverse of US->Australia. Since Visa do have a small spread, it will never quite match up with the mid market rates of XE.

In theory comparing with the mid market rate will show the spread. This is my usual approach. I don't recall seeing such a large variation (1.5 cents) from mid market in the past. That variation suggests a 3 cent spread.

 

[serfty]

Note that the Visa rates are based on the market rates of the day before. There has been some volatility with the AUD revelry with some days having changes from the day before of over 2%.

 

[knasty]

There's definitely an issue here. 2 withdrawals in Nzd last weekend, neither displayed a bank charge when withdrawing and both appeared on my statement in NZD . 20/3 was 1.0052 when the visa rate for 19/3 was 1.035 and 20/3 was 1.031. That's a 3% spread on one side!

 

[knasty]

Ok I just spent 40 minutes chatting to various people at Citi. After 35 minutes of "it must be right it's automatic " the supervisor can see that there is a discrepancy between the posted rate and the visa rate. He confirmed citi has not added anything so has referred it to Visa. Will wait and see. I think he must have wanted to.go home as he offered me $10 for my inconvenience. The issue is minor for me but must be big for others.

 

[Isochronous]

Ok I just spent 40 minutes chatting to various people at Citi. After 35 minutes of "it must be right it's automatic " the supervisor can see that there is a discrepancy between the posted rate and the visa rate. He confirmed citi has not added anything so has referred it to Visa. Will wait and see. I think he must have wanted to.go home as he offered me $10 for my inconvenience. The issue is minor for me but must be big for others.

Would $10 have compensated you the difference?

 

[knasty]

Would $10 have compensated you the difference?

It was closer to $15. Not a big deal but I did deliberately choose to use cash for some transactions instead of credit with the sole purpose of avoiding FX charges.

I told them initially the money isn't the issue for me here; the system is broken and it affects a lot of people in a much bigger way. I didn't want them to just throw me a bone and forget about it. I do love the intellectual challenge of calling Citi; it satisfies my masochistic tendencies.

 

[Mark3000]

It was closer to $15. Not a big deal but I did deliberately choose to use cash for some transactions instead of credit with the sole purpose of avoiding FX charges.

I told them initially the money isn't the issue for me here; the system is broken and it affects a lot of people in a much bigger way. I didn't want them to just throw me a bone and forget about it. I do love the intellectual challenge of calling Citi; it satisfies my masochistic tendencies.

Did they ever call you back to explain?

 

[knasty]

Did they ever call you back to explain?

Of course not...it's Citibank....

 

[Jeffrey O'Neill]

Withdrew some money in Malaysia last week and found the exchange rate very competitive. Was getting about 2.86RM to the AUD which was in the ball park for the wholesale rates on xe at 2.88.

Money changers were also offering around that conversion rate. Not sure how they make money.

Anyone know if the ATMs in Bali charge a fee??

 

[Cynicor]

In Malaysia they make money on volume. Around 1% or a bit less on any transaction. Much better than anywhere in AU, but ATM still better if you need MYR.

In Bali, most ATMs do not charge a fee. There is a little sign on them with 20 000 or 50 000 generally, this indicates the denomination of currency contained, and not a withdrawal fee.