KUALA LUMPUR: Malaysians may encounter steep ATM fees when withdrawing money overseas, potentially putting a strain on their travel budget and impacting their overall experience, according to a recent study by Wise.
Malaysians intending to travel abroad this year should consider an often-overlooked aspect of international travel— the hidden costs associated with ATM withdrawals.
Wise banks and interbank networks commonly impose charges for using their ATMs in different destinations.
The study highlighted that Malaysians who plan to travel to Argentina lose out the most, as the country charges 14.8 per cent on ATM fees per transaction.
"On average, South American countries have fees ranging from three to seven per cent based on withdrawal amounts.
"Meanwhile, popular destinations for Malaysians such as Australia, the Philippines, Singapore, South Korea, Thailand and Vietnam charge between 1.15 per cent to 2.85 per cent per withdrawal.
"On the flipside, Malaysians travelling to Japan, Taiwan and the UK can expect to be charged less than one per cent when they use an ATM," it said.
Besides ATM fees, the study also noted that Malaysians abroad may face hidden charges in the form of an undisclosed exchange rate markup when using traditional credit or debit cards.
These hidden fees often results in many travellers spending more than they expect to.
Commenting on this, Wise Malaysia country manager Lim Paik Wan said the disparities in ATM fees abroad underscore the importance of strategic financial planning for Malaysians.
"Withdrawing money overseas can be convenient, but the costs vary significantly. It's crucial for travellers to know when they'll be hit with hidden fees and consider cost-effective alternatives while abroad.
"To stay informed, travellers may look to Wise, which emphasises transparency and fair pricing by utilising the mid-market exchange rate – the one usually reflected on Google – and details all fees for each transaction," she said in a statement.
On tips to minimise ATM fees abroad, the study emphasised that Malaysians are strongly encouraged to explore digital payment alternatives to reduce dependence on ATM withdrawals.
Notably, a substantial 50 per cent of payment methods across Southeast Asia have transitioned to digital platforms.
Travellers are encouraged to consider the following ways to reduce unnecessary spending by being cautious of withdrawal fees, always paying in local currency, and conducting research before traveling.