Eddie

I was at AAA the other day and the lady told me that the best thing to do was to buy Euro's before leaving for Rome. She said there was no disadvantage --- and the advantage of NOT having to worry about getting them when you arrive. Do you agree?

Art

If AAA has no conversion fees than probably not.<BR>

Rex

Of course AAA has conversion fees. The disadvantage is a less favorable exchange rate. For many people, a small consideration for a modest amount of money.<BR><BR>Best wishes,<BR><BR>Rex<BR>

Eddie

I asked the woman if there were any fee's for purchasing the Euro's; she said as long as I was a member of AAA there would be no fee's. Does this sound reasonable?

az

eddie--yes, it's reasonable. but what exchange rate does AAA offer vs. what your bank can give you? shop around a little for the best rate. always a good idea to carry a little local currency when you arrive for taxi, tips, etc. just in case ATMs are out of order.

Bob Brown

this another one of those here we go again questions about exchange rates.<BR><BR>Just what is a fee? Most of the time the fee is hidden in the exchange rate.<BR>You don't see it added on as an extra charge. <BR><BR>Last year, I purchase a few German marks so I would have some when I got off of the airplane in Munich.<BR>I was glad I did because I was able to go straight to the Lufthansa bus, and get on into town without having to wait.<BR><BR>However, I paid 5% more for those marks than I would have had I gotten them out of an ATM machine at a bank in Munich.<BR>I paid for convenience, and I knew it at the time.<BR><BR>There was no "fee" per se charged by the bank.<BR>So what did I pay? I paid a less favorable exchange rate.<BR>There is only one way to know if you are paying a "fee": Compare the bank wholesale exchange rate with what you are paying. Any difference in those two figures is a fee whether is called that or not. If you don't know the bank wholesale rate, you have no idea what the transaction is costing you.<BR><BR>I don't know what AAA charges, but the last time I checked, I could not get euro currency; I could only get travelers checks at about a 2% premium. And those I can do without as my primary means of obtaining currency, particularly if the checks are denominated in euros. (And here we go again on the proper plural. I will write euros with an s until it becomes a federal crime.) <BR><BR>If I could get euro notes at only 2% over the wholesale bankrate, that might be worth considering. <BR><BR>But by using my charge card, I pay 1%, and from an ATM I get close to the wholesale bankrate. <BR>

Barb

Eddie--there may not be a fee, but the exchange rate will include a mark-up from the commercial bank rate. I agree with Rex that it's worth a little money to but a few Euro here in the US just to keep from worrying about being caught with no local currency. When you are there, do most transactions with credit card. For cash needs, use an ATM machine. If you want to know what the current bank exchange rate is, go to www.oanda.com Just be aware that bank rate is what banks and commercial institutions get, and no one is going to exchange your money for no fee and no mark-up. You will usually pay 1 to 4% mark-up, but I don't know what rate AAA uses.

holly

Just use the ATMs in Europe as you travel from city to city. You get the best exchange rate of the day when you do, and you won't be carrying a lot of currency with you at any one time.

Christina

It's easy to figure out -- ask them exactly what their rate is, you can even do this by phone, then look in the paper or online and see what the official rate is. As I recall, where I live, they take out about 3 pct over interbank rate, about the same as many credit cards. (I can't swear to that, but it wasn't over 5 pct, you'll have to figure it out) That's not too bad, and might be okay if you're there anyway for the convenience. However, I thought they wouldn't just give you foreign currency like a bank etc for the amount you want, but wanted you to buy some prepacked amount they call a tip packet which isn't that convenient an amount of money. Perhaps they just will sell you US$100 worth of euro, but I didn't think they did, you can ask. As long as it's real, there is no disadvantage beyond the cost. You can't ask the clerk about whether there are any fees and get the full story, you have to check the rates, they just mean there is no flat charge on top of the rate difference.

Rex

At any "no fee" exchange, the fee is half the difference between the buy and the sell rate.<BR><BR>Example: if it says: we sell euro $1.06 per dollar, we buy euro 0.94 per dollar, then the "fee" is 6% "each way".<BR><BR>If there were truly "no fee", then the buy and sell rates would be the same.<BR>

janis

Paying too much for your euro would be tje least of your problems. Buying them at home is crazy. You would have hundreds (or perhaps thousands) of euro on you throughout your trip.<BR><BR>So besides costing you too much, you will be scared spitless about losing your money. if you simply MUST have some euro before your trip get about $100 worth at AAA or at the airport, and then get what you need from ATMs as you travel.

Maggie

<BR>I just called AAA and asked them if there is any charge, conversion rate, fee of any kind for the exchange of USD to Eu or Eu to USD - they said that there is none - as long as you are a AAA<BR>member.<BR>I asked them what the exchange rate was for today and they said:<BR>USD to Eu is .9839<BR>Eu to USD is 1.016. Then I looked it up on "OANDA" and it was the same.<BR>Thanks for everyone's help.<BR>

xxx

Are there any big disadvantages? No...you lose somewhat on the exchange. Personally, I don't find it necessary as I can use the ATM's upon arrival but others feel more secure having Euro with them upon arrival.

katie

Thanks for doing "the work" Maggie. My credit card adds 3% and ATM card 3% plus machne fees. Since we have 2 trips planned, one in Aug. and another in Oct., I'll definately check AAA. And, thanks to those who have answered ATM and credit card questions, I'm getting a different credit card!

Rex

To Maggie,<BR><BR>I don't know who quoted you those rates; they appear to simply be one the inverse of the other of the current international rate.<BR><BR>I just called the Coumbus 9North) AAA, and I was quoted the following rates:<BR><BR>Sell (i.e., get euro in exchange for USD) - - 1.0442<BR><BR>Buy (i.e., get USD in exchange for euro) - - 0.9570<BR><BR>These terms are sometimes confusing, depending on whether "sell" or "buy" refers to the seller or the buyer. Each party is always both a seller and a buyer.<BR><BR>In any event, the "conversion fee" in this case is roughly 4.5% each way. You can do better (most of the time) from ATMs or bank counters in Europe - - hopefully under 2%. You can also do worse, MANY places - - most notably at airport "Bureaux de change".<BR><BR>As I said before, this is not meant to dissuade you from buying a modest pocketfull of euro currency before you go. Just trying to help clarify what are the costs at AAA or for any other "no-fee" conversion.<BR>

Bob Brown

I think there is too much loose terminology being used in the postings above exchange rates and fees. In fact, the talk is so loose, I don't know what is being discussed. Also, I think some of the statements are not accurate. <BR><BR>Here are few facts that pertain to the matter under discussion: Namely, exchange rates.<BR><BR>As of 2:40 PM EDT on July 2, 2002,the bank wholesale rate is 98 cents, US, for 1 euro.<BR><BR>AAA is selling today traveler's checks denominated in 100 euros for $101.00 US. I just called the Buckhead office of AAA in Atlanta and verified that figure. <BR><BR>Now if the bank wholesale rate is 98 cents US for 1 euro, and I have to pay $101 for 100 euros, then I just paid a markup of 3% in round figures per euro. <BR><BR>You can call it no fee or what ever you want, but you just paid 3% more than the bank wholesale rate. <BR><BR>So tell me, if you pay more than wholesale, what are you paying? Profit to the seller? <BR><BR>Moreover, AAA in the Atlanta area does NOT, repeat does NOT, sell euro currency. It sells only traveler's checks denominated in euros! Perhaps AAA in other parts of the nation do it differently. <BR><BR>If you have traveler's checks in euros, then the fun is just starting. What are you going to do with them once you arrive?<BR>You cannot pay a cab driver in all liklihood. A cab driver in Paris might take one, but I doubt it. He might, but as a general rule, traveler's checks are not easily passed.<BR><BR>If you take your traveler's checks to a bank to get spending money, you are going to pay more in bank fees. By the time you get through your euros are going to cost you at least 6% or more.<BR>And you don't just turn up at 19:00 hours on Saturday at a bank and expect to find a teller on duty.<BR><BR>Yes I know, you can take them to the American Express office (assuming you have AE checks) and convert them at no extra fee. But, AE offices have office hours too.<BR><BR>And what do you do for money to buy a bus ticket to get there?<BR><BR>Also, if you are paying your credit card company 3% to use your credit card outside the USA, then you are being taken for 2%. (No way to escape the 1% Visa or Master Card charges.) You might argue that it is a trivial amount.<BR>On a trip where you charge $4,000 worth of merchandise and services, that is $80. BUT, you can just as easily use a credit card that does not impose that fee. OK, so $80 is trivial. If someone took it from you at knife point, you would not call the cops, right? Sure you wouldn't. $80 is trivial. You just said it was. <BR><BR>Oh its not? If you give it away, it is trivial? If someone takes it, it is not trivial? Is that what you are telling me??<BR><BR>Fine, your choice. Do it your way.<BR><BR>

Eddie

Thanks for everyone's help .<BR>Eddie

cd

Eddie<BR>I don't know where you live but where I live, AAA only has Euro travelers checks. I had also called to ask if they had Euro and was told yes. When I went there to purchase, I found out they only deal in Euro travelers checks. You might want to check before making the trip to your local AAA.

Eddie

cd-<BR><BR>Good suggestion - I will do that and thank you!<BR><BR>Eddie

Rex

The regional differences is something I would NOT have guessed. Again, it was a surprise for me to learn that the AAA here in Columbus DOES indeed sell euro currency. I didn't ask about traveler's checks. <BR><BR>So it's interesting that the TC are a "better deal" at $101 USD for 100 euro - - compared to $104.42 for the same quantity of currency. It leads me to a conclusion that I always suspected - - TC issuers count on a certain amount of "checkholder loss" as revenue (i.e., stick them in a drawer for a year, or lose them and fail to report them - - either way, they never pay out anything for the cashing of the TC, or have the use of your money, interest-free for a long time).<BR>