Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

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pubman
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Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by pubman »

I had always assumed that using the VanguardAdvantage Visa Debit card would give me the best overall rates for the withdrawal of foreign currency at ATMs abroad. But, on a recent trip to Canada, I was very surprised to see that a Canadian Dollar cost me about US$0.83-84 with the Vanguard card and only US$0.80 with my TD Bank's (my local bank's) Visa Debit card. My Vanguard rep sent me an info packet which mentioned that Visa charges a 1% transaction fee and that I also might be liable for extra fees charged by the owner of the ATM, which is exactly what happened. I had also spoken with a TD Bank rep who said that not only do they not charge a foreign transaction fee, but they waive all 3rd party ATM usage fees at all ATMs worldwide (obviously only for those that take the card - those that display the VISA or PLUS logo). I knew TD Bank waived all ATM machine fees if used in the States but did not expect this policy to apply worldwide. The take-away: If you are fortunate to have a local (U.S.) bank that refunds third-party ATM fees, check if they also do so internationally. BTW, I told my Vanguard rep that if TD Bank waives these fees for those of us who carry a minimum $2,500 in our checking accounts that Vanguard could do the same as a client benefit since most of us carry far more in our Vanguard accounts. As usual, I don't expect that comment to have an impact at Vanguard.
neilpilot
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by neilpilot »

Were your 2 ATM withdrawals at the same time? I ask because the Canadian exchange rate has been changing significantly over the past 4 weeks. As one more data point, on July 25 my local bank Debit card delivered CD$ at a Vancouver ATM at $0.804 exchange, and charged an additional $1.55 fee.
Topic Author
pubman
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by pubman »

Only 2 days apart and the the published exchange rate then was 0.80 with an estimated swing of less than +/- 1/4 of a percent during that period. The ATM hit I got using the Vanguard card was $5.00 Canadian (US$4.00). The ATM was in a mall adjoining our hotel in Vancouver. Of course the percent loss in the exchange rate is impacted by how much you take out since the ATM fee is a constant amount.
neilpilot
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by neilpilot »

After giving this some more thought, I suspect (but don't really know for sure) that while the fees maybe influenced by your card's issuer, the exchange rate is a function of the ATM you use. I always try to use a major bank's ATM. Did you use the same ATM for both withdrawals?

PS - we were in Vancouver 7/24-8/5, and went to the first 2 Honda Celebration of Light displays. We left before the 3rd and last, but were later very surprised that Japan won the competition. We thought the UK display on Aug 2nd was far superior.
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pubman
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by pubman »

Possibly, but I believe that all CC providers (Visa MC, AMEX etc.) use the current real exchange rate and then charge their foreign transaction fee (which varies depending on the card). For Vanguard VISA it's 1% (see below, pasted in from the VanguardAdvantage new account kit that my rep sent to me for reference.


3.6 Foreign Transactions.
3.6.1 Foreign Transactions. These are transactions completed outside the United States through
your Account. All debits will be posted in U.S. dollars. Payments to Payees outside the United
States or its territories through the Billpay Service are prohibited. Checks will generally not be
accepted by banks outside of the United States. All Checks must be made payable in U.S. dollars.
See Section 4.4 for more information about Card Transactions made in a foreign currency.
3.6.2 Foreign Transaction Fee. For each Foreign Transaction made with a card, a fee (currently 1%
of the Transaction amount) will be charged to your Account
whether or not there is a currency
conversion.
3.7 Fees. See the fees and charges associated with the Services listed in the Vanguard Brokerage Services
commission and fee schedules. Not included are fees that may be charged by third parties. Any
applicable fees will be charged regardless of whether you use the Service during any billing cycle. You
agree to pay such charges and authorize us to deduct the calculated amount from your Account. Any
other fees associated with your Account will continue to apply. You are responsible for any and all
telephone access and/or internet service fees that may be assessed by your provider.
4. Card Transactions.
4.1 Conveniences.
4.1.1 ATM Withdrawals. You can use your Card to withdraw cash from your Account at ATMs
displaying the Plus® System or Visa name and logo.
4.1.2 Cash Advances. You can use your Card to receive money (Cash Advances) from your Account
through financial institutions that honor Cards bearing the Visa logo.
4.1.3 Purchases/Authorizations. You can use your Card to buy goods and services (Purchases) from
merchants honoring Visa, to authorize others to place a hold on your Available Balance to ensure
future payment, and to make balance inquiries.
4.1.4 Pay Bills: If the merchant is agreeable, you can pay bills directly by telephone from your Account in
the amounts and on the days you request.
4.2 Out-of-Network Surcharges. These may be imposed for ATM Transactions and balance inquiries.
4.3 Cancellation of Card. The Card can be canceled by any of us at any time without prior notice and
will remain the property of the Bank. Also, your Card will be canceled effective with the closing of
your Account.
4.4 Foreign Currency. Card Transactions made in a foreign currency are converted into U.S. dollar amounts
by Visa using its then-current procedure and rate. At this time, the rate is generally either a wholesale
market or government-mandated rate in effect the day before the Transaction processing date. The
conversion rate used on the processing date may differ from that in effect on the Transaction or periodic
statement posting date.
student
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by student »

So TD Bank reimbursed you for fee charged by the bank that you took money from in Canada. I am a bit surprised but good to know. BTW, TD Bank is Canadian company so they may have special arrangements with other banks in Canada.
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LiveSimple
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by LiveSimple »

Research to use Fidelity and Charles Schwab debit cards for foreign cash transactions. Those s seems better.

Capitalone credit cards seems better for credit card use.
dbr
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by dbr »

Fees for ATM use are a consideration as is the exchange rate, but the first has nothing to do with the second.
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Artsdoctor
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by Artsdoctor »

I could be wrong about this because I have no experience with the Advantage debit card. But I've used the VanguardAdvantage account since it was introduced.

I view the VanguardAdvantage account as a banking account run through BNY Mellon, not Vanguard. If you take a look at your checks, they're subject to Mellon's rules, technically. I am guessing, but I suspect that any debit cards would go through Mellon and all of its rules as well.

If you're going to compare your TD Bank account, I'd compare TD Bank with Mellon and not with Vanguard.
Cash
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by Cash »

student wrote: Sat Aug 19, 2017 10:58 pm So TD Bank reimbursed you for fee charged by the bank that you took money from in Canada. I am a bit surprised but good to know. BTW, TD Bank is Canadian company so they may have special arrangements with other banks in Canada.
No, this is an advertised feature of a couple of their checking accounts:

https://www.tdbank.com/personal/premierchecking.html

https://www.tdbank.com/personal/relatio ... cking.html
student
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by student »

Cash wrote: Sun Aug 20, 2017 6:30 pm
student wrote: Sat Aug 19, 2017 10:58 pm So TD Bank reimbursed you for fee charged by the bank that you took money from in Canada. I am a bit surprised but good to know. BTW, TD Bank is Canadian company so they may have special arrangements with other banks in Canada.
No, this is an advertised feature of a couple of their checking accounts:

https://www.tdbank.com/personal/premierchecking.html

https://www.tdbank.com/personal/relatio ... cking.html
Thanks.
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Lancelot
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Location: Philippines

Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by Lancelot »

I used to use my Vanguard Advantage card in Thailand -Eightish years ago- and I received a rate about 10 basis points lower that xe.com

Then Thai banks began charging a 200 baht withdrawal fee for foreign bank cards so I switched to Schwab and Fidelity because they rebate fees.
No Where for Very Long...
Topic Author
pubman
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Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by pubman »

student wrote: Sat Aug 19, 2017 10:58 pm So TD Bank reimbursed you for fee charged by the bank that you took money from in Canada. I am a bit surprised but good to know. BTW, TD Bank is Canadian company so they may have special arrangements with other banks in Canada.
I spoke to a customer service rep at TD Bank and he said that with my checking account type ("Premier Checking") where I need to have a minimum $2,500 daily balance, that TD Bank refunds the ATM fee at ANY ATM worldwide that would accept my VISA debit card (displaying the VISA or PLUS logo).
student
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Joined: Fri Apr 03, 2015 6:58 am

Re: Use of VanguardAdvantage Visa Debit Card at Foreign ATMs for Cash Withdrawals

Post by student »

pubman wrote: Sun Aug 20, 2017 10:20 pm
student wrote: Sat Aug 19, 2017 10:58 pm So TD Bank reimbursed you for fee charged by the bank that you took money from in Canada. I am a bit surprised but good to know. BTW, TD Bank is Canadian company so they may have special arrangements with other banks in Canada.
I spoke to a customer service rep at TD Bank and he said that with my checking account type ("Premier Checking") where I need to have a minimum $2,500 daily balance, that TD Bank refunds the ATM fee at ANY ATM worldwide that would accept my VISA debit card (displaying the VISA or PLUS logo).
Thanks.
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