Think Before You Click: The “With Conversion” ATM Trap
When withdrawing local currency abroad using an international Debit, Credit, or Prepaid card, we almost always see one option on the ATM screen:
With or Without Conversion?
In all cases, you should select “Without Conversion.” Otherwise, you may end up paying a significantly higher amount in fees.
These two options are often like a trap set by banks. Many people even compare this system to a scam or a hidden trick.
What happens if you select With Conversion? Why does this option exist?
- The exchange rate offered by the foreign ATM operator is almost always worse than the rate from your home country bank. In many cases, an extra 10–30% markup may be added.
- ATM screens often use confusing language, design, and button placement to influence your decision. For example, the “Without Conversion” option may appear in red, making it look like a “Cancel” button, pushing you to choose “With Conversion.”
- Although ATM operators are required to disclose their exchange rates and extra charges, this information is often shown in small print, making it difficult to compare with your bank’s actual rate.
- Selecting With Conversion still counts as a foreign transaction, and in countries like Bangladesh, banks may apply additional or excessive charges on top of that.
In the first image, withdrawing 100 GBP cost 154 USD. The mistake was selecting “With Conversion.”
In the next one, by selecting “Without Conversion,” withdrawing 100 GBP cost only 4 GBP extra.
This is nothing but a banking trap.
MTB Master Debit Card.
So always make sure to select “Without Conversion.”