ATM withdrawal fees in Indonesia

Sorry to disagree. US banks have every right to use foreign exchange rates as they see fit (but within some parameters of “acceptable greed” I hope).

Sure, while you enter in IDR the amount of ATM transactions here, the amount of the withdrawal expressed by US dollars on your account in the US is solely at the discretion of the bank. BI has nothing to do with that aside from the bank to bank rate (which will not necessarily be the rate reflected in your account). While the bank here in Indonesia will get its money from the US bank based on the day’s BI rate, that is not necessarily what is likely to show up in your account…viz, the US bank gets more dollars for the IDR from YOU!

In other words, the US bank is “selling” you IDR.

Try ordering up some IDR from a US bank prior to a journey from the US to Indonesia. You won’t even get close to the BI rate in effect at that time.

On two occasions involving bank wires from the US to Indonesia that we experienced, and to be sent to our US dollar account here in Indonesia, the bank in the US converted the US funds to IDR at ridiculous rates and then sent the US funds based on THEIR selling rate! Once challenged, they “fixed their error”…ma’af, ma’af flowing like the Ayung, but their game was clear.

Sorry if my attitude is that most all US banks are criminal in their business ethics, but with over 14 years of dealing with the likes of Wells Fargo, aka Jessie James, etc. etc., I have very good reasons to have that opinion.

If your bank in the US is not charging you a transaction fee for out of country ATM withdrawals, then they are making up that loss of revenue some other way…and the most common way to do that is by currency games.

I don't really follow what you're saying. The other day, I withdrew 2 juta from BNI with my Capital One card. When I checked my account online, $217.90 had been deducted. So, as always, my rate was exactly the amount listed on Bank Indonesia's website, which my bank uses as their benchmark. I'm not sure how it would be possible to get a better rate than that.
Of course, I'm not arguing that banks aren't greedy. I'm just saying, I don't incur any extra fees or penalties in the exchange rate when I withdraw from an ATM with my Capital One account. Or at least, this is the cheapest of all ways to get money from my US Bank account, that I know of. If you know of a better way, please share!
Maybe I'm not understanding what it is you're saying.

I think I said it but it is gone. You will find that withdrawing bigger amounts saves money in general.

Luke, maybe Capital One is the singular “non greed based” bank in the US…I don’t know, as I don’t bank with them.

When do they account for bank fees…at the end of your monthly statement cycle, by day, or what?

Sorry Luke, but there is no way I can believe that Capital One is not receiving its “pound of flesh” from you for your ATM use of your US bank card abroad in one way or another unless perhaps you are in some sort of ultra rich client category…personal banker sort of status, in which case they are making enough money out of your deposits with them which is the “vig” between interest they credit your balance with them, and what they loan your funds out at.

Personally I’m happier knowing what my charges as a bank fee, even when I know it’s highway robbery. The known enemy is always preferable to the unknown enemy, especially when the war is over money.

"You will find that withdrawing bigger amounts saves money in general."

For certain...but the daily withdrawal limit is set by YOUR bank, not the bank in Indonesia who owns the ATM.

That amount can be very little per day...thus adding up those per transaction fees...or a lot because you own a piece of the bank.

"Prior posters here on TTT have stated that Capital One Bank does not charge fees for withdrawals of foreign currency abroad."

Does that also mean, (in your view), that Capital One Bank doesn’t profit in some way from such transactions?

In other words, is Capital One Bank in the US, and apparently also CS, one of, or the only "good guy" (fair) banking institutions left in the US?

A 3% ATM transaction fee is something I am not aware of by US banks. My own personal (and daily experience) is that the transaction fee is based on a per transaction basis, having nothing to do with the amount of funds involved.

Prior posters here on TTT have stated that Capital One Bank does not charge fees for withdrawals of foreign currency abroad. I did not know that Charles Schwab Bank doesn't charge either. All other U.S.-based banks appear to charge, most typically with a 3 percent foreign transaction fee and, depending on the bank, some charge additional fees on top of that.
Of course you can bring a lot of cash with you, and some travelers checks, and 2 bank cards, all of which can be used as necessary or as desired.

Their business philosophy is probably that they will make their profits from the customer in other ways on other banking services, but not so much from fees for foreign exchange transactions like most banks do.
There is no rule in business that a profit has to be made on all services provided by a company. In fact, many companies provide certain services where they make little or no money, or even lose money.
Capital One may feel that they value highly the customer who travels abroad -- who, on average, is probably far wealthier than those customers who don't go overseas and spend a lot of money, and Capital One is willing to forego the big profit margins on the foreign transaction fees to keep the valued customers to sell them mortgages, a home equity loan, a car loan, a business loan, and other profit-making services. You don't have to go to Harvard Business School to figure that out.
Get the Picture, MisterInsuranceMan?

“Their business philosophy is probably that they will make their profits from the customer in other ways on other banking services, but not so much from fees for foreign exchange transactions like most banks do. There is no rule in business that a profit has to be made on all services provided by a company. In fact, many companies provide certain services where they make little or no money, or even lose money.”

And that makes sense…except for the last part which reads, “many companies provide certain services where they…even lose money.” For certain they (the bank) is making money…copious amounts of money from all their clients, one way or another but I do agree that most banks with personal banking services are smart enough to not nit pick their prime customers to death…or worse yet, get them angry. Prioritizing clientele importance by a myriad of factors is part and parcel of any business, even here on Bali!

“Capital One may feel that they value highly the customer who travels abroad -- who, on average, is probably far wealthier than those customers who don't go overseas and spend a lot of money…”

Ah, you mean like the budget or backpacker tourist from Los Angeles? With less than 8% of Americans even holding a passport, I highly doubt that foreign travel EVER factors into any profit models used by ANY US bank. A bank in Asia, or the EU…a whole different matter.

Actually Steve, I went to “B” school, and while I never earned my MBA I am still an Associate of the Society of Actuaries, so yes, you can count on me “getting the picture” quite nicely.

@ #19:

"US I guess must be really broke."

Is that new news for you? The US is bankrupt now, and the only thing holding back total acknowledgement of that is other world economies that still have some reliance on the US.

"But would anyone have a limit of less than 500$s? Which would mean some 9 withdrawls at lesser ATMs in Indo."

Nine withdrawals to get to $500 US? What ATMS are you using where the withdrawal limit (unless the ATM is near or out of cash) is only 500,000 IDR?