Best Multi-Currency Debit cards in Hong Kong for Overseas ATM Withdrawal

This post about Overseas ATM withdrawal fees is intentionally split from my post on the Best Multi-Currency Debit Card in Hong Kong because not everyone needs to or wants to withdraw cash when the world is increasingly cashless.

Quick Recap and Summary

Multi-currency debit cards are about minimizing the number of times (and cost) when exchange currency overseas, and avoiding the 1.95% foreign transaction fee typically associated with credit cards in Hong Kong. Without taking ATM fees into consideration, in my opinion:

HSBC offer the best multi-currency debit card in Hong Kong

Overseas ATM withdrawals add layers of complexity as the exchange rates depend on how the bank sets the rate for ATMs withdrawals specifically (as opposed to a retail transaction), whether the currency is supported or unsupported by the multi-currency account the debit card is connected to, whether there are sufficient funds, and which bank owns the ATM itself.

The global payment network exchange rate such as the "Mastercard rate" is usually the best. The table below lists the banks, currencies and exchange calculation, but not the ATM fees.

Intro to ATM networks

There are global ATM networks like Cirrus that provide interoperability between ATM networks, and local ATM networks such as JETCO in Hong Kong.

Cirrus

At over 1 million ATMs in 200+ countries and territories, Cirrus is the largest ATM network in the world. Cirrus allows HSBC customers for example, to use their Hong Kong issued card overseas at non-HSBC ATMs, and international non-HSBC customer to use HSBC ATMs in Hong Kong.

Cirrus is the ATM network that was acquired by Mastercard in 1987 to compete with Visa's "Plus" network. The ATM network allows cardholders to withdraw local currency from international ATMs by connecting their bank account to the machine.

Many banks use Cirrus as their international interbank network even if they issue other card types (like Visa), which is why you may sometimes see a Cirrus logo on a non-Mastercard product.

Maestro

While you may still see the logo and references to this in bank documents, this Mastercard sub-brand for debit and prepaid cards is being phased out globally.

JETCO

JETCO (Chinese: 銀通) is short for Joint Electronic Teller Services Limited, a major bank consortium and ATM network in Hong Kong and Macau, founded in 1982. All banks in Hong Kong are members, except HSBC and Hang Seng which owns the local ETC network and connect to Cirrus instead.

The ATMs are mostly in Hong Kong and Macau, and in major cities in Mainland China.

UnionPay

It is the only interbank network in China linking all ATMs across China.

Accepted in 171 countries, UnionPay (also known as China UnionPay or "CUP") is a Chinese state-owned financial services corporation and the primary card scheme in mainland China, functioning similarly to global networks like Visa or Mastercard.

Visa Plus

This is Visa's equivalent of Mastercard's Cirrus ATM network. I will not go into details here as all the multi-currency debit cards support Cirrus and not Visa Plus.

Free Overseas ATM withdrawal

The word "free" is very misleading, as there are many parts to the cost equation. The bank that issued you the card may not charge you fee(s) and charge(s) when withdrawing cash overseas, but it does not mean the overseas ATM owner ("overseas local bank") makes it free to you from surcharge. The surcharges notification will be shown on the ATM screen while processing the transaction. The charge will be converted into foreign currency and debited together with the withdrawal amount from your account. These charges are directly levied by the overseas ATM operators and are not charged by bank issuing your debit card.

e.g. your withdrawal is USD 1000 and the surcharge is USD 5. USD 1005 will be debited from your account.

It also depends on whether the currency you are withdrawing is supported or not, and how the exchange rate is calculated.

1. Supported currencies - These are currencies your multi-currency account supports. You can either convert currency upfront before you withdraw it from the ATM, or the exchange rate is determined when you withdraw.
2. Unsupported currencies - These are currencies you cannot store in your multi-currency account. You may either pay based on the exchange rate set by your bank or Mastercard, and your HKD account would be used to debit the amount. If you have in sufficient HKD balance, the withdrawal will be rejected.

As this post is about Overseas ATM withdrawals, I will not list Local ATM withdrawal fees. "Local" in the ATM network context means in Hong Kong. "Overseas" in the ATM network context means Macau, Mainland China and the rest of the world.

In the table below, columns:

• Supported Currency lists the exchange calculation method
• Unsupported Currency lists the exchange calculation method
• Free ATM Withdrawal (unless listed) lists the ATM networks. "Mastercard" in this column includes the Cirrus and/or Maestro networks.
• Yellow highlight is used to indicate best deal (i.e. free).

The Best Card is ....

HSBC Premier Elite, as shown by the most highlights for supported and unsupported currency exchange rates, and the large numbers of overseas ATMs where free withdrawals can occur.

Takeaway

HSBC Premier Elite is the best multi-currency debit card in Hong Kong, whether you perform overseas ATM withdrawals or not. ATM surcharges by the overseas local bank ATM are hard to avoid, so use card instead of cash whenever possible.

But wait, it is also possible to withdraw foreign currency at a local foreign currency ATM!