lhenry

Hello,

I've tried searching on this topic but can't find many specifics. I have a Bank of America debit card that I will be bringing to France, and am wondering is it cheaper to make large purchases with a debit card directly or cash from an ATM (BofA offers no ATM fees if taken from BNP Paribas ATM)

Ex. If I want to buy something for $2000 at x place, should I pay with my debit card or cash?

Thanks

raincitygirl

If it is a large purchase such as $2000.00 I would use a credit card. I am not sure that a debit card from the U.S. will work in France for making point of sale purchases.

Maybe here in Canada the cards are different but what I call a debit card is what I use to make point of sale purchases in stores, gas stations etc, it also allows me to take money out of ATMs.

I can use this debit card to take cash out of ATMs in Europe but can't use it for point of sale purchases anywhere but my own country.

Generally it is safer to take out a few hundred euro in cash at a time for incidentals and small purchases and use your credit card for large purchases and hotels.

d_claude_bear

Use a credit card from one of several major issuers who charge no currency conversion fee, often 1% to 3% on cards that make that charge. We use a Capital One credit card and, for ATM withdrawals, a Schwab checking account card that charges no ATM fee.

greg

This kind of info is not found here at least in most up-to-date form. You find this info at BofA. Trying find this online is usually a chore. I ask this info when I call their customer service before the trip to inform an intent to use their card overseas. When I asked them four months ago, it was 3% for purchase using the debit card (I don't do this) issued by BofA from my state. Now compare this to 0% if you get cash from BNP ATM. Can you figure out whether you want the 3% or the 0% fee if your are only looking at the cost?

There are other factors. Carrying $2000 in cash is risky unless you have to do this such as paying for a cash only apartment. For this kind of amount, credit cards with 1% or 0% eliminates need to carry cash and offers better protection than using your debit card.

Looks like you are doing the trip in December with other people?

lhenry

I just found out my Capital One credit card has no foreign transaction fees, so this should work out fine.

@greg Thank you for telling me this info, I have been searching EVERYWHERE for it.

Dukey1

Here's some information for you. Whether or not it is "up to date" enough I'll let you decide:

About four weeks ago I used my BofA debit card to make a train ticket purchase in Rome. I was charged 3% of the purchase price of the tickets as an additional fee by BofA.

You can certainly make direct purchases with the debit card but as you have been told there will be a foreign transaction fee.

Now, is it possible that policy has changed within the last 30 days? I kinda doubt it.

ira

Hi lh,

>If I want to buy something for $2000 at x place, should I pay with my debit card or cash?<

Use your credit card.

Why do you want to use a debit card, which immediately takes money from your bank account, when your credit card allows you a 30 day float plus protection from erroneous charges?

Ditto for cash.

That is so 20th C.

Ackislander

CC for purchas whenever possible IF you pay it off monthly. As Ira says, why would you lose the float?

ATM card when you need cash. Never use a credit card for cash. There is no float, and the interest begins immediately.

I don't understand debit cards. Your bank will hate giving you a plain old ATM card since they make _lots_ more money from your debit card. But they will do it.

aliced

-Debit card - use to get cash in small amounts
-Credit card - use for purchases, small & large -- you pay with dollars not euros and have better protection

If the purchase is $2,000 get VAT refund-- easily processed and $ will go back on credit card used

Nuf said on this topic..... See your bank on the differences!

StuDudley

>> Now compare this to 0% if you get cash from BNP ATM.<<<

As Dukey1 stated - I don't think that is true. There is a currency conversion fee of 3%. No ATM "use" fee will be charged - but that's the law in France. We've used an ATM to get cash (BofA ATM Card or Morgan Stanley debit card) hundreds of times - and have never been charged an ATM fee. We have been charged a fee in Spain.

We also carry a BofA chip & signature travel card. About 4-5 times this year and 4-5 times last year, our Cap One swipe card was not accepted (or the hand-held reader had no place for a swipe) so we had to use the chip card. Three years ago before we had the Chip card, we had to pay over 100E to a grocery store that would/could not take a swipe card.

Don't use your swipe card on a autoroute toll booth - they only work about 70-80% of the time & I've been "trapped" in a long line with people honking & gesturing at me until a person from an adjacent toll booth came over & took my cash (machine had no cash capabilities). There are fewer & fewer human-manned tool booths each year (we go twice a year for about 2 months). This year there seemed to be more machines that accepted cash - but that is very awkward & we always seem to leave some euros on the road below the car that fall out as we're putting them in the machine or as we're trying to get our change from the machine.

Stu Dudley

nyse

Ackislander, I totally agree re debit cards.
Both my bank and credit union switched me to new debit cards from ATM cards and I had to specifically request that they reissue ATM only versions.

I don't want to carry a card that could drain my account even for a short time.

Patty

According to BofA, the conversion fee is 1% for ATM withdrawals https://www.bankofamerica.com/deposi...m-fees.go#qn45

<i>Withdrawals, transfers, and balance inquiries made at ATMs in foreign countries outside the Global ATM Alliance, China Construction Bank (China), or Banco Santander (Mexico) will be charged a $5 Non-Bank of America International ATM fee. In addition, an international transaction fee may be charged for debit card purchases and ATM cash withdrawals in currency other than U.S. dollars, regardless of whether the transaction is performed at an ATM within the Global ATM Alliance, China Construction Bank (China) or Banco Santander (Mexico). The international transaction fee is 1% of the U.S. dollar amount for each converted ATM cash withdrawal. The international transaction fee will appear as a separate item on your banking statement for each international transaction. Many ATM Operators charge a higher rate. To avoid the higher rate, we recommend you choose to have the currency conversion by Bank of America. Otherwise, you may be assessed a higher conversion fee.</i>

This is for CA accounts. Perhaps it varies by state.

aliced,
Not sure what you mean by "you pay with dollars not euros".

Christina

The point is some credit cards, including B of A, charge their own ATM use fee when you use an ATM that isn't theirs. So the fact that the foreign ATM doesn't charge one doesn't mean B of A won't. From what I've heard (I dont' have one), B of A doesn't charge that flat ATM fee for BNP ATMs in France, but would if you used CIC, for example. It is pretty hefty too I think $5.

Now the 3 pct fee on top for a foreign transaction is another issue, and I don't know of B of A charges that or not if you are at one of their "partner" foreign ATMs. Their website implies they do not.

StuDudley

Patty - thanks for the info. I'll start using my BofA ATM card instead of my Morgan Stanley debit card for cash.

I assume that the BofA 1% is on top of the Visa/MC 1%.

Stu Dudley

Sarastro

Anytime your financial dealings are in a currency, euros in this case, which differs from the currency of your bank account, probably dollars for most of us, there is a currency conversion which is handled by large volume specialists, i.e. Visa/Pulse or Mastercard/Maestro/Cirrus. These specialists take 1% for their efforts. It doesn't make any difference if your purchase is paid for in cash taken from an ATM at 1% paid to Maestro or Pulse -or- if your purchase is paid by credit card and you pay 1% to Visa or MC.

However, the picture becomes less clear as local banks add fees if for no other reason than because they can. For credit card purchases, some banks add up to 2% making foreign purchases cost 3% just for bank fees. Some banks absorb the 1% charging you nothing - Capital One and PenFed are two examples.

For ATM withdrawals, some banks only pass along the 1% conversion fee, such as USAA, and impose no other costs to the user. Other banks add fixed fees, such as Wells Fargos $5 per withdrawal and add transaction fees of their own. Bank of America charges $5 and 3% but if you use a BNP ATM, they waive all but the 1% currency conversion fee from Pulse (which they own anyway). Some B of A customers have the 1% waived as well.

What this all means is that to know exactly what you will be paying for ATM withdrawals and/or credit card use, you must ask your financial institution. Sometimes you must be persistent to find the answers because not everyone who works at your local bank will instantly knowledgeable about foreign transactions.


_____


In reference to pin and chip credit cards, venturing outside of well worn tourist pathways can mean that establishments, both restaurants and hotels, may no longer use processing equipment which accepts magnet strip credit cards. Those traveling around France would be well advised to either carry large amounts of cash or get a pin and chip, even a pin and signature credit card.

The only no-annual-fee credit card, to my knowledge, which is a true pin and chip card are the Mastercards issued by USAA. These cards pass along the 1% currency conversion fee but they are available in a 1% cash back on all transactions making them effectively free to use with foreign transactions.

PenFed, Andrews FCU, State Department FCU, and Wells Fargo By Invitation have pin and signature cards that have no annual fee and no transaction fees of any kind.

Frequent visitors might save money by shopping around if they are using banks with higher costs than those mentioned above.

Patty

Stu,
It should be 1% total.

nytraveler

I don;t agree that a debit card is just to get cash. I use for smaller purchases (drug store, market etc) - where in previous years I would have used a check. I use CC for larger charges (hotel and rest) and where I want the protection it provides (car rental and merchandise).

However - a debit card may not be accepted by all hotels, rest etc.

Mimar

As I understand it, ATM only cards don't work abroad because they aren't on one of the large networks, like Cirrus or Plus. Debit cards are on the network(s) so can be used in ATMs in Europe and elsewhere.

In an emergency you can get cash from a credit card, but interest is charged starting immediately.

I would never carry large amounts of cash. There are ATMs everywhere.

Mimar

Look on the back of your card to see which networks it uses. There should be one or more logos.

xyz123

nytraveler.....in all due respect to you, it doesn't make sense to me to use a debit card for small purchases and a credit card for large purposes. My own feeling has always been and I see no reason to change my opinion is that using a debit card as if it was a credit card is of no advantage whatsoever to the cardholder. As soon as the transaction is process, the money come out of your checking account. And should the card number be compromised, well actual money c omes out of your checking account and some legitimate checks and/or monthly transactions might turn to rubber. Yes you will eventually get your money back but in that time, you are out real money.

Should a credit card be compromised, you don't actually lose any money. As soon as you become aware of what has happened, you notify the bank and the fraudulent charges are removed from your account. You lose nothing (except time if it is a h primary use credit card of notifying all the automatic payees such as cable television and utilities you may have on the card but then again you have to do the same thing if the expiration date changes or the ccv code changes). I'm sorry; it makes no sense. If you're gong to use a debit card for small purchases then you might as well use a credit card. After all, the merchant basically has no way of knowing whether you're using a dbit card or a credit card!

BTW I see the expression above pin and signature card. There are chip and pin cards and chip and signature cards. The cards issued by the DC area fcu's (Pen Fed, State Department and Andrews) are advertised as chip and pin and will operate as chip and pin at unpersonneled kiosks but operate as chip and signature at all personneled pos terminals sometimes leading to a merchant refusing to take the card ( a growing but as of now an insignificant problem) and as of now there is no way to force the terminal to process the transaction as a chip and pin transaction and the merchant does not know if a card you present is chip and pin or chip and signature till the transaction is processed.