How to exchange U.S. dollar to Euro

You definitely want to use ATM machines as it is the cheapest and easiest way to do it. It wont be the bank in Europe that charges you, it will be your home bank so be sure you check what the fees are. Because it is usually a flat fee at my bank I always take the most out.

ATM is best.
If using a bureau, avoid the ones which say "no commission charged on buying foreign currency.". You are buying local currency. Thomas Cook is OK.
Inform your bank you will be using ATMs or your cc abroad or they may freeze your card due to sudden unexpected foreign transactions.
Always have a plan B - you need 2 sources of cash.

Most banks in Italy will now under no circumstances exchange foreign currency so your options there will be limited. Exchange bureaus in main tourist sites are very expensive. ATM is the best way to go.

Pinglee, you have been given incorrect information. The safest---and usually cheapest---way to get euros is through an ATM in Europe. You can certainly get money from any big bank and with a wait from any small one, but while you won't be charged a "fee", you will get a really lousy exchange rate, which is usually worse than a fee. Expect to lose about 8% on the transaction.

There are many ATMs at CDG airport (I think they are mostly HSBC).

What you need to do is to find out which ATM network or bank your own bank is affiliated with and use that network almost exclusively. If you need a bit of cash on arrival, by all means take it out at CDG, but then take out what you need (probably no more than 200 or 300 euros at a time) from an ATM. If you use one in your bank's system, you may not have to pay an additional fee other than the 3% foreign exchange fee, which is annoying but better than the commission paid on almost any other currency-exchange transaction. The French bank will not usually charge an additional fee, so it's whatever your own bank charges plus 3% in most cases, so obviously, you'd like to get that down to $0 plus 3%.

Yes, there are ATMs at CDG.

To reduce the number of visits to an ATM, ask your bank to increase your daily withdrawal limit and take out the maximum each time. Put a few euros in your pocket for daily expenses and keep the rest in a money belt.

You might consider opening a separate account and getting an ATM card for it. That way, if one card doesn't work for some reason, you can use the other card.

Be sure to tell your bank when you will be in Europe or a computer is likely to freeze your account for suspected fraudulent activity. Do the same with your credit card providers.

Not all banks charge 3% for ATM withdrawals. We belong to 2 credit unions; they charge 1% over the interbank rate. Ditto for credit card charges.

Thanks all for your answers, it was helpful.

In all likelihood you don't even need to worry about which network your bank is affiliated with. It's likely to be affiliated with Cirrus, Plus, and/or Star, all of which are ubiquitous in Europe. Your ATM card should have the logos on the affiliates on it. Do check with your bank as to whether it charges for withdrawals - European banks do not charge any fees for using an ATM, with the exception of "independent" ATMs (such as those you might find at a 7-11 here in the USA - stay away from those).

Further to the post by mjdh1957, many French banks also no longer do over-the-counter foreign exchange. Using ATMs will save you time as well as money and the hours are certainly more convenient.

pinglee,
All the ATM charges come from your bank. To lower your expenses find a bank that charges less. Look towards the bottom of the page to see what some banks charge http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

As above, use ATMs. Maybe get 40-50 euro if you are worried about landing with no funds, ATM at CDG is off-line/busy,etc..

If possible, carry cards on different networks (PLUS, CIRRUS..). Note that you will not be able to choose which account to withdraw your money from (savings/checking), it will be your 'primary' account. The limit from your bank amy not match the limit on the machine. You can do multiple sequential withdrawals in that case.

If you scroll down to the chart on this link, you will see the various fees charged by most of the major banks in the US for ATM and credit cards.
http://www.flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

I withdraw the maximum from my ATM because my bank, Wells Fargo, charges $5.00 per transaction. I arranged to have this high a daily withdrawal specifically for overseas travel. I usually have leftover euros, so I just stick them away for my next trip.

I charge big expenses on my Chase Mileage Plus credit card. It does cost 3% for each transaction, but I earn miles on that card, and I have used those miles for numerous trips, so it's worth it to me.

If I didn't use those miles, it would be more economical to use cash.

As everyone else has said, bringing cash to change or buying euros at home are both bad ideas, as are traveler's checks.

In the past, I have bought $50 worth of euros from my bank at home, because I've felt insecure about landing at a foreign airport with no euros.

Like the others here, I may get a few Euros before leaving home, but I use an atm card for cash. I also take a couple of major credit cards for backup.

For any method you need to start with asking with your own home bank. Do they even offer foreign exchange? What are the fees and exchange rate?

If I were going to bother to do it at home I'd get at least a couple hundred dollars worth. Going to the trouble only to get $50 (hardly cab fare from the airport many places) seems not worth it.

ATMs are the way to go. But again you need to check with YOUR bank what are their transaction fees, exchange rates, what 'network' are they affiliated with, etc.

I always also carry a couple hundred USD tucked away somewhere, just in case of emergency. Not the best value, but I figure could get me out of a jamb. And I need it on the way home, if you transfer at a US airport and to get transportation home at the very end of the trip.

Another alternative to getting euros from a US bank before leaving is to think of your friends, and if any of them travel regularly to Europe. If so, they probably have some euros stashed away for the next trip, and *might* be convinced to swap a few for you.

Traveler's checks are virtually useless, especially since they'll likely be denominated in US dollars if you buy them here. Most local merchants would probably rather take dollars than traveler's checks, and they're not at all likely to take dollars even if it means losing the sale. However, nearly all merchants can take US credit cards, though automated systems usually can't.

And do be sure to bring some euros home with you, so you'll be ready for your next trip. (Assuming, that is, that the euro survives the next few years...)

Pegontheroad, which Chase Mileage card do you have? I have a Chase British Air Visa card. It used to charge 3% so I never took it on trips. But a year or so ago it canceled that charge. Now I bring it and use it a lot.

You can also exchange US Dollars for Euros through AAA (again; for a fee; but you can actually order through their website). I often might get something like $100 worth of a currency for a foreign country from AAA to feel I have something in my pocket when I arrive (taxi, train, food) etc; with thought of getting to an ATM as soon as possible on arrival.

AAA uses Travlex, to my knowledge, and you end up paying 10-15 percent more than you need to. VERY bad idea!

<Traveler's checks are virtually useless, especially since they'll likely be denominated in US dollars if you buy them here>

I agree that Travelers Checks are not useful, but it has nothing to do with which currency they are in. You don't want to purchase Euro TC's either.

Yes, banks in the US exchange for Euros. We go to a certain branch of ours and get them for no cost. We always start w/ $300 worth, then ATM from there at banks, and with our card, are charged 3%. We take out at least 200 Euros at a time. Travellers checks are no longer useful/handy/convenient.

When you get euros at your home bank for "no cost", you have to also consider the rate of exchange you are being given.

My mantra for currency conversions:

There can be two costs for every currency transaction: a conversion fee AND/OR the exchange rate. BOTH are under the control of the bank or exchange bureau.

Just because a bank/exchange bureau advertizes no fees does not mean...no cost to you. They can fiddle with the exchange rate to cover any cost they want.

Repeat: the exahnge rate is not a fixed number. There is a 'newspaper number', but banks take that and add on their costs and profit margin.

One of the many places to confirm real-time mid-market exchange rates:

http://www.xe.com/

Compare what XE quotes for euros with the rate your bank offers you.

There are several ATMS at CDG and one actual bank location I believe. You can check the locations of the ATMS on their website.