Travel

Tangerine best CAN debit card outside Canada without transaction fee !?

  • Last Updated:
  • Nov 6th, 2018 9:16 am
Sr. Member
Feb 1, 2018
975 posts
1119 upvotes
Montréal
I always recommend that everyone have two accounts / ATM cards when travelling overseas, one that operates on the PLUS/Visa network and one that operates on the Cirrus/MasterCard network, just in case. You just never know, and sometimes, one works but the other doesn't. Being stuck in a foreign country without cash really, really sucks. (Trust me on this; I was in India in November 2016 during demonetization. Not fun.)

You also might want to check out this thread, where I list bank accounts in Canada and the fees they charge for using an ATM card overseas to withdraw cash:
https://forums.redflagdeals.com/list-ca ... #p29110420

I'll try to keep the list updated as much as possible. FWIW my current main account is a TD All-Inclusive (no transaction fee, but 3.5% FX) and my backup is a Tangerine Chequing ($2 transaction fee + 2.5% FX; $0 fee if on global ATM alliance).

Also, $100 in USD or Euros in "sock cash" is always a smart idea, just in case.
Member
Nov 27, 2013
274 posts
154 upvotes
Canada
louisvz wrote: I'm pretty sure you were charged the 2.5% since Tangerine has always had that fee. The 2.5% fee is included in the main withdrawal charge and is separate from the $2.00 Maestro network charge.
Tangerine also uses Mastercard's network which has a small markup of around 0.188%. Therefore, it would be really rare to have the same exchange rates shown on sites like XE, even with a 0% fx card. You can see this small markup by using Mastercard's online currency converter (leaving the bank fee as 0%) then comparing it to a conversion on XE.
Yeah but I checked my statements and they are exactly the exchange rate I see on Google for that period. It is weird.

Since 7/11 now charges 108 yen apparently...does anyone know if Japan post office charges no fees?
Deal Addict
Jul 13, 2016
1232 posts
693 upvotes
On a side note.

Back in the days Tangerine USD/CAD exchange rate used to be 1.5%. They increased it to something like 2.5%/3% on July 25, 2014 without notifying anyone.

On July 25, 2014 the spread between the Buy/Sell exchange rate stopped being 3% (1.5% times 2). See the historical rates:
https://www.tangerine.ca/en/rates/histo ... index.html
Member
Nov 27, 2013
274 posts
154 upvotes
Canada
As a follow up, Tangerine confirmed what I said when I called them today. They don't charge 2.5% on debit cards, only for credit card. They charge $2 and the exchange rate that you can find on Google, I literally used that wording. And last year that appeared true for me.
Jr. Member
Jun 6, 2018
142 posts
193 upvotes
Spain
JohnBay wrote: As a follow up, Tangerine confirmed what I said when I called them today. They don't charge 2.5% on debit cards, only for credit card. They charge $2 and the exchange rate that you can find on Google, I literally used that wording. And last year that appeared true for me.
According to their debit card terms:
A Permitted Transaction in a foreign currency will be converted to the currency of your Account at an exchange rate determined by Tangerine on the date the Permitted Transaction is processed. This rate may differ from the rate in effect on the date of the Permitted Transaction.
Therefore, who knows what their policy and rates are for foreign conversion.

In my case, I withdrew Colombian pesos using my Tangerine debit card last month and was charged exactly the Mastercard rate + 2.5% + $2.

Using Mastercards calculator, if I were to make the foreign transaction fee 0% for my transactions last month, I would have saved around $84 CAD in total. If I used Google or XE's exchange rate, I would have saved even more.

My guess is that they might charge different rates depending on the currency. I'm curious to see more data points with different currencies.

According to an article by The Points Guy, Mastercard and Visa also charge different rates depending on the currency.
Deal Expert
User avatar
Aug 18, 2005
21223 posts
5939 upvotes
Burlington-Hamilton
JohnBay wrote: As a follow up, Tangerine confirmed what I said when I called them today. They don't charge 2.5% on debit cards, only for credit card. They charge $2 and the exchange rate that you can find on Google, I literally used that wording. And last year that appeared true for me.
louisvz wrote: According to their debit card terms:


Therefore, who knows what their policy and rates are for foreign conversion.
Judging from my withdrawals in China earlier this year, the 2.5% conversion is indeed charged by Tangerine debit.

For example:

June 02, 2018
Withdrew 600 RMB (from an ATM at Oriental Pearl Tower!!! Astonished Face)
Actual charge, not including Tangerine $2.00 fee: CAD $124.64

Exchange rate from XE.com for this date: 4.95496

This is almost exactly a 2.5% premium.
Of course a mid-market rate was probably used, and the XE.com rate is probably the end-of-day rate. This explains the discrepancy of a few cents.

I don't find the 2.5% a big problem in this case. Before my trip, I got CNY at a specialist currency shop in Canada to avoid bank rip-off rates.
But the China ATMs were still waaaay cheaper. I saved about CAD $14 per 1000 RMB when using a Chinese ATM, compared to the money I changed in Canada.
- casual gastronomist -
Newbie
Apr 30, 2018
46 posts
50 upvotes
I love Tangerine bank but its not my main debit card to use abroad for withdrawal in ATM but i have used it many times over the years.

Tangerine doesn't specify like other banks what they charge on FX. When i called in they confirmed that they don't charge on FX conversion only a $2 fee. Here is what they mention in their agreement:

"A Permitted Transaction in a foreign currency will be converted to the currency of your Account at an exchange rate determined by Tangerine on the date the Permitted Transaction is processed. This rate may differ from the rate in effect on the date of the Permitted Transaction."

Now i always noticed a $2 charge and sometimes a FX charge can be as low as 1% to as high as 2.5% and i found that it really depends on which ATM you use. The FX rate is charge from the bank u withdrew the money from if its not part of the Global Alliance expect to be charge 1%-2.5%.
Deal Addict
User avatar
Nov 23, 2010
1575 posts
798 upvotes
Toronto
JohnBay wrote: Yeah but I checked my statements and they are exactly the exchange rate I see on Google for that period. It is weird.

Since 7/11 now charges 108 yen apparently...does anyone know if Japan post office charges no fees?
Im travelling to Japan shortly and usually have brought cash in the past, though this time I would like to try and use Tangerine to withdraw cash 'as needed'

Would it be fair to say that I can expect $2 charge per transaction from Tangerine + foreign currency rate? Then on top of that if I were to withdraw from a 7/11 there would be another $1-$2 charge approximately?
Newbie
Oct 13, 2011
30 posts
25 upvotes
Saint-Laurent, QC
It seems like there is a lot of misinformation out there from users and even Tangerine representatives not knowing the answers. This is what has been confirmed through reading through all the agreements and talking to multiple users and some more knowledgeable Tangerine representatives

If you use a Canadian Scotiabank or Tangerine DEBIT card at an ATM outside of Canada there will be a 2.5% FX + an ATM fee.

If you use a Canadian Scotiabank or Tangerine DEBIT card at an ATM outside of Canada that is part of the Global ATM Alliance there will still be a 2.5% FX fee but NO ATM fee.

The only difference is the ATM usage fee. As for the 2.5% FX fee, it is the same for every debit card that I know of in Canada. If you want to avoid the 2.5% FX fee the only way is to use a service like Transferwise if you have a foreign bank account or when you are travelling overseas and with local friends, and you are all paying for something ask if you can pay on your CC, and they give you the cash instead. Depending on the FX fee or CC rewards, using a CC might offset any FX fees that you would have incurred by using a debit card at the establishment or from funds withdrawn from an ATM.

Back to the Tangerine debit card... Always call Tangerine to tell them you will be using the card outside of Canada otherwise the card is blocked. On recent trips to the USA, Mexico and Trinidad I had difficulty using my Tangerine debit card at Global ATM Alliance ATM`s. On my last trip to Dominican Republic my card was blocked when I put it into a Scotiabank ATM and unblocked when I called Tangerine. I have used the card successfully in the past with just the 2.5% FX fee at Bank of Amerca, Scotiabank Mexico & Domican Republic, Deutsche Bank in Germany and Spain. Using the the card at ATM`s outside of the Global ATM Alliance in these countries always had the 2.5% FX fee plus ATM fee dependent on the ATM. After my last trip to Mexico and the USA when I called in about my Tangerine card not working they said it was unblocked... but it still would not work. Since returning to Canada I have used it at a Canadian Scotiabank machine and it did work so on my next trips to outside of Canada I will call to notify about my travel plans before using the card and try again on a Global ATM Alliance ATM to see if it`s still working.

My tip is to always use a CC first when overseas... for food and grocery store purchases I always try to use my AMX Cobalt first which charges 2.5% FX fee but 5% in rewards. If it`s not a restaurant or grocery store or either of those places will not accept my AMX Cobalt I use my Rogers Bank MasterCard which charges 2.5% FX fee but 4% in rewards on foreign purchases. I am now looking to try the new HSBC & Scotiabank Passport credit cards which will offer the 0% FX fees, but with annual card fee may not be worth it.

Here is a list of the bank ATMs that are part of the Global ATM Alliance
https://www.scotiabank.com/ca/en/person ... iance.html

One thing I`d like to see improved is the ability to alert Tangerine through the online portal about travel plans. Mine are always changing and it`s a huge hassle to have to call in every time and wait 20 minutes on hold just to make changes. I usually use Google Hangouts to make the free telephone call to the Tangerine collect call number... but sometimes around the 20 minute mark the call cuts out, and so you have to call in again.
Deal Expert
User avatar
Aug 18, 2005
21223 posts
5939 upvotes
Burlington-Hamilton
Davidd419 wrote: One thing I`d like to see improved is the ability to alert Tangerine through the online portal about travel plans. Mine are always changing and it`s a huge hassle to have to call in every time and wait 20 minutes on hold just to make changes. I usually use Google Hangouts to make the free telephone call to the Tangerine collect call number... but sometimes around the 20 minute mark the call cuts out, and so you have to call in again.
Um. Tangerine has, IMO, one of the better solutions for notifying of travel.

For their MasterCard, they have a dedicated online interface where you can enter the dates and countries, with no need to phone in. (I confirmed with their support, this affects the MasterCard only!)

Their debit card is more annoying, though. You must call in or use chat. I used the chat last time and it worked perfectly. But I agree it would be a huge win for Trangerine to have a specialized interface for notifying of travel use of the debit card.
- casual gastronomist -

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