Several payment processors offer prepaid cards to withdraw cash from your account with them at ATM's. Usually these are Mastercard. What is the currecny exchange procedure when you withdraw with a Mastercard? As I know in Europe Mastercard uses Euro billing. So, what happens is when you make a withdrawal, the cash is first converted to Euro, in case your payment processor account is not a Euro account, and then converted to the target currecny, in case it is not Euro either, right? Or during the transaction the source currency is converted directly to the target currency, whatever they are, and that's all?
Currency conversion during ATM withdrawals with Mastercard
- Thread starter MonG
- Start date
The source currency, the money put onto the prepaid card (whether it is Dollars, Euros, etc.) will be changed into whichever currency the country uses where you are using the ATM. They are usually pretty good at following the current daily market prices, and on top of this they may charge you an extra fee for having to convert the currency. However, if the money on the prepaid card is the same as the currency you are going to withdraw, there should be no fee attached.
So, if you know there will be a fee attached and the exchange rate is not in your favor, be sure to withdraw the max allowed that day. You don't want to have to juggle with market prices. I have used it to exchange US dollars to Colombian Pesos, and other currencies, so this is pretty standard.
So, if you know there will be a fee attached and the exchange rate is not in your favor, be sure to withdraw the max allowed that day. You don't want to have to juggle with market prices. I have used it to exchange US dollars to Colombian Pesos, and other currencies, so this is pretty standard.
edgarf76
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I would check with each card to verify that.