Credit cards are not widely accepted at smaller vendors in Taiwan that I often go to, so I'm forced to use local cash. Upon calling my bank (Chase), I learned that they charge $5 plus 3% for withdrawing money overseas at another bank's ATM. I know that the Taiwan bank also charges a fee for using their ATM on top of what Chase charges. What I'm unable to get a clear answer for is how the rate at which the money is transferred is determined. I'm told by Chase that I should get the XE rate, but I'm not convinced.
This is a two-part question:
The first part deals with the conversion and transfer process itself.
- How does the process of transferring and converting money between two banks in different countries work? Is the money converted from USD to TWD at Chase and then sent to the Taiwan bank, or is the money simply sent as USD to the Taiwan bank to let them do the converting. If it's the first case, then I can believe that I'll get Chase's rate, but if the money is sent as USD and converted by the Taiwan bank, I would assume that I get the Taiwan Bank's rate and not Chase's.
The second part of the question deals with the foreign ATM's own fees.
- How do foreign ATMs charge fees? Is it like using any other banks debit card at their ATM? For example, if I use Taiwan Bank A's card at Taiwan Bank B, Taiwan Bank B will probably charge me a fee because I'm using a different bank's card in their ATM. If I use a Chase card at Taiwan Bank B, do I get charged the same as if I used a Taiwan Bank A card, or do I get charged some other fee because Chase is a foreign bank in Taiwan?
Any insight as to how this works would be greatly appreciated. It has been frustrating trying to calculate real exchange rates with all these entities that take their piece out of the whole pie.