I'm not from Australia but the same holds true from wherever you are...

Hotels may be listed on websites in Euros but they charge you in their local currency.

I take an ATM card (which has no foreign transaction fees nor ATM withdrawal fees) in order to extract the local currency for cash purchases from bank ATMs.

I also take a Credit Card with no foreign transaction fees to pay for larger purchases such as hotels, dinners, etc.

Have a great trip!

I would use your Mastercard to pay for hotels, restaurants, etc., in all of your destinations.

When cash is needed, I strongly suggest using an ATM card. That way, you can get the local currency that you will need in the Czech Republic and Hungary as well as Euros for Germany and Austria. While some places in the CR and Hungary would probably take Euros, you probably would get a lousy exchange rate.

We will have the same issue when we take our River Cruise next May as we will be in the same countries as you.

I use www.oanda.com for currency conversions. A lot of businesses also use Oanda.

Currently the Czech czk is 21.2366 to the Australian dollar.

When trying to figure out prices, I round it to about 20 to the Australian dollar.

The Hungaring florint is 239.993 to the Aussie dollar. It's trickier when it's higher, so round it to 200 florint to the Aussie dollar, and know it's a little bit cheaper than that.

Always contact your bank and credit card companies as to what countries you will be visiting and when. That helps to ensure that everything goes more smoothly.

I'm going to both places in September, and I understand that English is widely spoken and there should not be a problem. Most restaurants have English language menus. If you research restaurants, most have and English version of their site.

If you take a river cruise, there is a small book called "the Danube to Budapest". I bought it at www.abebooks.com A site someone in the Forums recommended. I paid a whole $1.60, including shipping from the UK. Brand new book. I buy all my tour books from there. Damn cheap. I also bought a brand new, 2008, Moon book on Prague and Budapest, for $3.00 including shipping.

We found that in the Czech Republic that English was not nearly as common outside of Prague and the main tourist areas, although if you know a bit of German that's a huge help. We always managed to find people who spoke enough English and were willing to help that we got along fine, but just beware if you go out into the country at all that English is not the norm.

ATM is definitely the way to go, and getting a card with no foreign transaction fees can save you heaps.

Joannyc
Which country are you in ? I've yet to find both no ATM and no foreign transaction card here. THanks

I'm not sure why you'd only want answers from Australians as the whole world uses the same method for getting cash. ATMs!!

Of course, you can get cash any way you want but prepaid travel cards offer really bad exchange rates. Getting foreign currency at home is the same - bad exchange rates.

Check with your local banks or credit unions on the foreign currency transaction fees (not sure if you have credit unions in Australia). Often smaller banks offer better services than larger global banks. You also need to check to see if there is a per transaction fee such as Bank of America charges.

Here's a thread that may be helpful to you.

http://www.fodors.com/community/europe/here-are-credit-cards-wout-foreign-fees.cfm

Denise_McMahon, I'm in the US.

I have a Cap One checking account with an ATM card which refunds any ATM fees worldwide up to $18/month (or so).

My Cap One and Chase Visa Priority Rewards credit cards do not charge any foreign transaction fees.

Hi Denise, I am Australian and we went to Prague last year. We just used our normal credit cards for accommodation and withdrew crowns (koruna?) from the ATM, and spent the last few we had left getting food and souvenirs at the railway station before we left so we didn't have spare defunct cash floating around. But if you are stressed about exposing your credit card to potential fraud (I never worry about this, probably I should more), there is a pre-paid debit card you can get from Australia Post. I think it's a Visa and you just load it up with a finite amount of money before you go. It's not linked to a bank account and thieves can't siphon off more than you have loaded on. I know one person who used this for travelling last year, and another person I know just bought one to use for internet purchases. I am not sure what it costs (I assume you pay something for it, nothing's free anymore) but it seems quite a sound idea and you just load it up with Australian dollars, so no worrying about what currency to take. Plus you can use it again after you get home. For Austria and Germany you will obviously need euros, and you could take maybe 100Euros as just-in-case money, but otherwise again, ATMs are the way to go.

Lavandula

Thanks Lavandula for the reply. It's mainly the fees I'm trying to avoid which can amount to many $s. I'm taking credit and my debit card attached to account (both with charges of course) but also want to think about the cash passport system - similar to the Australia Post idea. My bank told me that I could upload the cash passport with Euro and wouldn't be charged the conversion then when I arrived. For those who suggested ATMs - so far all I've found here in Australia WILL charge a conversion rate in Europe, unlike it seems those from the US. Usually I just use my credit card when away. However, there are fees on all withdrawals, plus in some instances conversion rate charges as well. Then the vendor/merchant can charge a fee as well I'm told. Things have changed somewhat since I last visited Europe. No use uploading with Euro if I'm not in countries which use it. So therefore carrying some as you suggest lavandula is the way to go for me. I am of the opinion, whatever I do, carry cash, or card, I'm up for fees. No way around it except to have more than one cash passport with currency of the countries with no Euro. The bank suggested Euro without knowing which countries I will visit and when I return I should wait until the exchange rate is good (which it is at the moment, high as it has been) to cover the cost of converting back to Aust $. I will investigate the Post Office one further thanks. Yes, for internet use a brilliant idea and one we are going to use. I guess if one goes away one should accept the inevitable.

joannyc - thanks, I've never heard of one of these here in Australia. Sounds brilliant!
Adrienne - yes like Bank of America our system here it seems now charges the fees for withdrawals and for conversion - this is what I'm looking at avoiding by using preloaded cards. Yes we have smaller banks and credit unions here. I shall check out the link to that thread you mentioned - thank you

Preloaded cards usually charge yuo fees to start up, fees to withdraw at the end, have the use of you money while it's sitting there - and give you a terrible rate of exchange.

When considering foreign exchange there are 3 factors:

1)Fees charged to use one of these prepaid cards - understand all of the and how they add up.

2) ATM fees (bank ATMS in europe do NOT charge fees; commercial ATMS - as in a store or hotel do charge a small flat fee - just as in every other country). Your bank may also charge you an out of network fee (if they do get a different bank). Fees - charged by your bank for each foreign transaction (if your bank does this get a different one.)

3) Exchange rate. No one will give you the Interbank rate (used for transactions in the millions). If they did they would be losing money. What ou want is a card or bank that will give you the Interbank plus 1 or 2% (much better than the Interbank versus 5 or 6% that you get with prepaid cards) or Interbank plus 8 to 10% that you get changing cash at a bureau de change or a bank (if the latter will do it).

There is NO free lunch. the objective is to get the best deal possible after considering all of the costs involved.

Prague and Budapest is generally more expensive that the surrounding countryside (but still pretty cheap compared to OZ) English is spoken a lot in the two capitals, Bruno, Eger and maybe a few others, other than that it will be a struggle.

Good news though, if you slow down and use the top 50 words from any good travel guide you can get by. Czech and Hungarian are both writen in English letters (though Hungarian has a whole of accents), however while Czech follows English (Indo-european family of languages) basic structure, Hungarian only sits with Finish, Basque (a part of Northern Spain) and some odd Siberia languages as a result it is the tougher one to understand.

I want to thank all for the contribution. We've made a decision now, thank you. It was interesting to read the different approaches in different countries. I believe it certainly is more expensive in Australia. We do have to be more careful here which account, terms etc we use as we shop, travel here etc. and use our cards in order to save bank fees etc. The options are endless.
One thing while planning this trip and doing research I have noticed is that cruises such as the one we are doing, from Australia (not counting airfare) is dearer than from the US or UK for the same cruise/cruise company! Much dearer! Also after having been contacted by a travel agent in USA I find that airport transfers to hotel/cruise ship are included in same cruises for those leaving from US - transfers are not included for those who book from here. Anyway, regardless of all this, we're looking forward to the trip - not so much the 26 hour flight, but wouldn't live anywhere else!

Denise you may be surprised that in Australia we've got the perfect travel card - 28 Degrees MasterCard from GE Money. It has no annual fee, no international transaction fee, no ATM fee, and you get interbank rates with no surcharge.

When I travel I get the card into credit balance by prepaying into the account, then I just withdraw cash at any foreign ATM (select Credit account). As long as the account is in credit, I won't incur any cash advance interest.

I've used this card in Asia, Europe and N. America without a problem. Anyone I know who's travelling and doesnt have one already I tell hi m/her to get one ASAP.

Correction - close to interbank rates prob 1-2%

I don't know if you can use this, but when I am traveling outside the Euro zone, I make up a little chart with my local currency opposite the new currency so I know how much things cost in my currency. For example, since I am from the U.S., I'd list the Czech or the Hungarian equivalent of $1.00, $5.00, $10,00, $15.00, etc.

I started doing this after I was unsure whether I'd given a waiter a $.10 tip or a $10.00.

You could also do this with Euros, if prices are listed in Euros.

trinijy - thanks..that's news to us and travelling friends! As you know most charge for this and that and something else! While I don't anticipate I'll be spending a lot as most things are already paid for, I was curious to find the best. Thank you again. Thanks Pegontheroad also - I do have a system for working how much things would cost if in our $. Strangely - my bank when I advised them of our pending trip told me to avoid using cards if I can! All's well. While we've made our decision I may still look into the GE Money.

Wholesale currency exchange would not be for tourists. "Wholesale" implies business transaction in tens of thousands of dollars - if not more - and up.

And no exchange service gives you the BEST rates. Best in comparison with what? The same as Interbank.

And there is no expertise involved - my cat could do it.

This post is filed with such nonsense I assume it is advertising and will report it as such.