Minimize ATM Foreign Transaction Fees

ATM and Credit Cards I Use in the Philippines (Travel Tip #03)

I do not bring dollar bills whenever I travel to the Philippines; I just use my debit cards in any local machine and get Philippines pesos. However, you are just limited to 10,000 pesos per transaction and charged with foreign transaction fees by the local bank and your USA bank. My cousin even commented: “Ate, lechon manok na ang katumbas ng charge na yan” (that charge or fee can buy one roasted chicken). In this post, I will share with you how I minimize foreign transaction fees with advanced planning and choice of cards to use while visiting the Philippines.

Find Cards with Minimal or No Foreign Transaction Fees

There are credit and debit cards with minimal or no foreign transaction fees. You just have to call your bank to find out which before you travel. I use Schwab because “does not assess foreign transaction fees (i.e., a fee to convert US dollars to local currency) to debit card holders.” The other card I use is relatively unknown called Revolut because it has less international fees and has safety features and other benefits. I also brought my PenFed Platinum Rewards Card for emergency purchases because it does not charge anything if used outside US. However, these fees are just for your USA bank. There are still fees on the Philippine side.

Disclaimer: Only my link to Revolut is an affiliate link. I only recommend services or products that I personally use also.

Maximize Withdrawal

Even if you only need a few hundred pesos, take out the maximum allowed which is 10,000 as of this writing. The Philippine bank charges you for using their network to access your foreign bank whether or not it is the maximum or less. Nomadic Backpacker claims that “HSBC is the only bank in the Philippines with no ATM withdrawal fees.” That’s great if you find one. I rarely see HSBC machines.

Open a Peso Account

The best way to beat fees is to open a Peso account if that option is available to you. I was able to open one because I am the beneficiary of my relatives’ government benefits (and yes, the banks have many questions before they let you open one - I will share what I experienced in future posts). For only $1.99, I am able to transfer from my dollar to my peso account using bank to bank transactions via Moneygram. I had to wait for a few business days but it was okay. As a result, I do not pay any other transaction fees when I use it in the Philippines. I my future posts, I will share with you the challenges and requirements when opening a peso account if you are not a Philippine resident. Next week, I will continue this Philippine travel series and talk about a convenient budget, but full service hotel in Metro Manila that only cost $25 per night. Subscribe so you’ll not miss a post.