Gran Canaria is a paradise for Nordic tourists but also for street ATMs because of the commissions charged for exchanging money from Scandinavian currencies to Euros. The added cost of withdrawing cash from ATMs is crazy.
In recent years, fees for withdrawing money from ATMs have increased considerably, especially affecting those who use foreign cards. Depending on the bank and the type of card, fees can range from 3 to 7 euros per withdrawal, plus possible currency conversion fees if the user's account is not in euros. This situation has caused annoyance among Nordic tourists, many of whom prefer to pay in cash in local restaurants and shops.
When withdrawing money from any ATM, there is a fixed fee of 3,95 euros per transaction. However, it is very important not to choose the automatic conversion option. Instead, you should select the option on the left and allow the bank (e.g. Swedbank) to perform the conversion a few days later. Using this method, the exchange rate can be much more favorable. For example, on January 18, the exchange rate was 11,79 SEK per euro.
Some people recommend avoiding ATMs, but without clearly explaining why. The key is to never choose the automatic conversion (option on the right), as this results in a very unfavourable exchange rate. Instead, always select the option on the left, allowing the bank to convert the amount to Swedish Krona (SEK) a few days later, when the exchange rate is more normal, currently around 11,70 SEK per euro.
However, since each withdrawal has a fixed cost of 3,95 euros, it is advisable to withdraw a larger amount at once and not make multiple small withdrawals, to minimize the impact of the commission.
ATMs should be avoided as much as possible due to bank fees. However, if you need to withdraw cash, you should always choose to withdraw in the local currency (euros) and never in SEK to avoid unfavorable conversions.
The problem is aggravated by the fact that banks do not always clearly inform tourists about these charges before completing the transaction. In some cases, tourists only realise the extra cost after receiving their bank account statement. In addition, certain ATMs offer the option of dynamic currency conversion, a feature that, far from being an advantage, can increase the final cost due to less favourable exchange rates than those of Nordic banks.
Many travellers have chosen to look for alternatives to avoid these costs. Some Scandinavian banks offer cards with free or lower-fee withdrawals abroad, although not all customers have these. Other solutions include using fintech apps, such as Revolut or Wise, which allow cash withdrawals with reduced or even no fees up to a certain monthly limit. However, not all tourists are familiar with these options before travelling.
The commercial and hotel sector in the south of Gran Canaria has also adapted to this reality, promoting card payment as a more convenient solution. However, some small establishments and street markets still prefer cash, forcing visitors to resort to ATMs and, consequently, pay the high associated fees.