ATMs

Getting the Best Exchange Rates

An impending trip the the UK has me re-investigating exchange rates. With the dollar falling all the time and being especially weak against the euro and pound, it is even more important to do research.

So, how do you get the best exchange rates? Well it seems in the past few years weighing your options has gotten more complicated.

Credit Cards- The credit card has been the way to go but the banks have decided to cash in on the popularity of that choice. Many credit cards now have a surcharge of 1-3% on your purchases and the fee is not separated from the purchase price, so it is difficult to spot after the fact. “it’s a good idea to contact your bank and credit card issuers a couple of weeks before an overseas trip.” recommends bankrate.com. “For example, American Express and Juniper Bank charge just 2 percent, and Capital One is especially traveler-friendly, with no additional surcharge, not even the 1 percent charged by MasterCard and Visa.” says David Kelly of the NY Times.

Also, many European and British retailers offer dynamic currency conversion, charging you in dollars rather than their currency. This waives the conversion surcharge on the US side but they often charge a percentage of your purchase for this service- if they offer it, ask what the added charge is, it might be more that what the US banks charge.

ATMs- When using your ATM bank card you might be subject to the conversion surcharge, a charge from your bank for using an ATM outside their brand as well as that bank’s ATM charge.

Cash- If you must exchange cash, stay away from the money exchange bureaus and hotels, as they have the worst rates and highest fees. Instead go for banks, post offices and American Express branches.

The bottom-line: do your homework. It seems that using your credit card is still the best bet, with the most competitive rates from inter-bank exchange. So call all your credit cards and figure out which one has the lowest surcharge and use that one for all your big purchases (hotel, car rentals, etc). Use your ATM infrequently and plan your withdrawals accordingly. For cash exchanges- go to banks and government post office. Bon voyage!

CRM in ATMs and MACs

Customer Relationship Management (CRM) is a blanket term for better coordinating the interactions between “systems” and customers and prospects. Still a little vague? I don’t blame you! Let’s consider the ATM (automated teller machine) and compare that to visiting a traditional bank teller at an actual bank branch.

Bank Branch Teller Transaction

You walk into a bank branch, and there is a person who says hello. You wait in line, and then your usual teller greets you by name. He or she is familiar with the type of transactions you do, so the process is efficient, pleasant and friendly. You leave with a better feeling about the bank and its brand in your subconscious.

ATM Transaction

You walk up to an ATM, insert your ATM card, and enter your PIN to identify and authorize yourself. Even though the “system” now knows who you are, the ATM asks you if you speak English or another foreign language. This step alone takes 5 seconds, and is uneccessary. The next menu presents you with options that you are unfamiliar with, and have no need for because, for example, you don’t have a line of credit or mortgage to make a payment on. This makes choosing the desired option a little more difficult. The system then asks you if you would like a receipt for the transaction. You press no, because you don’t want to waste the paper, and you always say no. You walk away feeling a little annoyed when being asked such obvious questions, the answer to which should already be known.

Those are just a generalized scenarios, there are many better and worse examples of both situations. Customer service representatives can be rude or make mistakes, and ATMs can be very convenient in a pinch. However, it continues to surprise me that an ATM can’t remember what language I speak. Its great that ATMs can support multiple languages, but wouldn’t it be better to be able to save your preferences?

Supposedly Wincor-Nixdorf is coming out with ATMs that have CRM software built-in. I’ll believe it when I see it, and have to ask: “What took you so long?”