Corporate America Loves Europeans

Avoid these ATMs-forever

Avoid this American Corporation at all cost

     The Mayor was recently traveling around western Europe and the southern areas including Portugal and Italy. In Italy, Tuscany and Firenze were our two locations for a stay. Our group spent a week in the sun in the hills above Lake Trasimeno, the shallow lake that provides ample water for the many farms and ranches in the Montepulciano area in eastern Tuscany.

      After leaving Italy, the Mayor left the group and flew to Brussels; a first visit in this famous country: Belgium. It was not far from Brussels where a battle occurred during the First World War: Passchendale, where tens of thousands of Allied soldiers died  in a very short time, a matter of days during the trench warfare at the site. However, we could not venture far from Brussels despite our good intentions. Brussels Airlines cancelled our flight and we had to alter our plans. We left 2 days early; spent a night at the Brussels airport; then spent another night at the Firenze airport. Then after a week, we left for Lisbon, Portugal.

      Another first in this coastal country that nudges up to Spain's western reaches and touches the Strait of Gibralter and its famous "Rock". While traveling within the country, the Mayor needed some Euros, and these are found not just in banks, but most conveniently at ATM machines which these days are most abundant. And now the heart of the story. Having been a frequent traveler in these parts, the Mayor is aware of various charges related to exchange rates and fees applied to any foreign transaction(withdrawing one's own cash from your own bank). But it had been a few months since the last transaction, and we were in a civilized western European country with a fine reputation. We were located in the city of Lagos, on Portugal's southern shore. It's a lovely city and is a destination for many Portuguese and many Europeans of all nationalities. While walking about the beach areas, one can find numerous ATM machines, sprinkled like flowers all over the neighborhoods frequented by beach goers and tourists. The most numerous are those owned and operated by EURONET. This is not a banking company. This is not a European company. This is an American Corporation, headquartered in the USA, in the midwest. It was founded several years ago when two enterprising Americans decided that Europeans would greatly appreciate access to ATM machines no matter where they were vacationing, whether in large cities or small resort locations. These two also figured out how much travelers trusted ATM machines because they were used to their bank's ATMs at home. They also found that travelers didn't like to waste time, especially if the area was crowded with travelers. 

         Hmmmmm. How could this scenario be a source of profit for an American company.? The Americans figured out that foreign exchange rates were not easily understood by retail bank customers. There are 5 basic rates: inter bank, wholesale bank rate, atm rate, kiosk rate, and retail convenience rate-the highest generally @ 5%. Then there are fees on top, and these vary, too. EURONET over time figured out that when it comes to immediate cash, the retail customer rarely studies the rate or the fees: cash is needed, and they trust the machines to be like a "bank", which in EURONET's case, it is not a bank. Bottom line: these despicable businessmen lure the average European to their machines which can be located steps from each other depending on the foot traffic known in the area. The machines are attractive and look much better than some bank machines: bright colors-blue and yellow, and they are easily spotted from a distance. The tourist walks up, puts in his/her card, taps the PIN and is confronted with language choice(s), then an amount choice, and then it gets a little fuzzy. One can option for another screen with another rate or not. Somewhere buried is the actual rate, and the actual fee, and then the actual mark up on the total requested. With EURONET, this can soar above 21%. Yes 21%. And thousands upon thousands of Europeans have been getting bilked of their hard earned money by unscrupulous American corporations for years. How much you ask? How about in excess of $500 million Euros in one year. That's right: almost one half a billion Euros flows directly to Wall St. in the USA. They bankers there applaud Europeans for sending these euros into our country. And President Biden then sends some of it back to aid various small nations there. Goldman Sachs, Bain, Berkshire-Hathaway, they are all in. Thank you, Europe.

        Several European countries have sued EURONET for falsification of transactions. However, The European Central Bank has not seen fit to kick these interlopers out of the Eurozone. Think about it: Blackrock, the Wall Street Giant, owns almost 8% of the company. That says it all.

     So, on your next trip across the pond, avoid EURONET like the proverbial plague, or else it will cost you big time.