Hi all--

Going to London tomorrow. Getting contradictory advice about the exchange rate and ATMs. Is it generally better to use ATMs to get a better exchange rate?

Also, my bank (wells fargo) says that my ATM cards should work in England. I'm still nervous about it and hoping for some validation and guidance.

Thanks!!!

Chris

I have used a Wells Fargo ATM card with no problem. They do not give you the choice of withdrawing from either your savings or checking, but rather always withdraw from your checking. You are also limited to your US daily limit in US dollars (if you want 200 Euros and have only a $200 limit, the ATM will "bounce" your request. I stopped at my WF bank this week and upped my daily withdrawal limit to $1000 per day so I wouldn't have that problem. Wells Fargo uses that day's exchange rate but get their $$ from charging you a $5 fee for each withdrawal - plus the ATM bank may also charge you a fee. It's still better to use an ATM than take dollars and try to find a bank that will exchange them for you -- for a fee which is usually awful. I also asked Wells Fargo about getting some Euros before leaving the US (to have for taxi to hotel, etc. if I don't see the ATM at airport).... they will do this, however, their exchange rate has a fee built in -- I calculated the difference in rates quoted from WF to the NYSE rate and it amounted to 6.62% fee. There was an article posted very recetnly on this subject by the Fodor's editor..... do a search.

If you read any of the other ATM postings you'll find that they mostly say that ATM gives a better overall rate - ie including any fees / commission charged.

The only exception is when you withdraw small amounts as you may find that there is a fixed minimum charge made by your bank.

There's also a VERY recent (ie under 5 hours old) that points to an article on "good bank" "bad bank" as regards withdrawing money abroad

Hi K,

>Is it generally better to use ATMs to get a better exchange rate?<

Yes.

>my bank (wells fargo) says that my ATM cards should work in England.<

If you don't trust your bank, why would you trust a bunch of strangers?

Q says,
>Wells Fargo ...get their $$ from charging you a $5 fee for each withdrawal...<

You both need a different bank.

<<< plus the ATM bank may also charge you a fee. >>>

You do not get charged a fee by the company running the ATM - except in the UK where ATMs at gas stations, pubs & small shops in which case you will be told the fee before attempting to withdraw money.

But anyone in a normal tourist area will not have difficulty finding a fee free ATM

In most cases the only fees charged are by YOUR bank

FYI: I recently changed the pin on one of my cards. The customer service rep advised me that a pin# that starts with 0 will not work on many ATM's in Europe.

The "0" thing is old hat and normally they do work with leading zeroes.

BUT ensure your PIN number is numeric as there is no guarantee (ie no chance) that European ATMs will have letters on them

I don't know why but a couple of years ago I stepped up to the first ATM of the trip and my brain froze. I could not remember my PIN for the life of me... It took me 1/2 day to remember it!! Kind of freaked me out!

I had that with an alarm system a couple of weeks ago

I think if a person travels out of the country a lot, then the $5 per transaction fee charged by WF could definitely add up and make it worth changing banks. You've got to look at the overall cost versus convinience though. I used to bank at another bank, but they aren't nearly as plentiful as WF in my area, so it was more of a hassle on a day to day basis. To me, the extra $20-30 paid in fees during my infrequent trips overseas is worth the trade off of having WF ATMs all over the place at home.

alanRow,

I have tried to find that reference to "good bank - bad bank" discussion, but can't seem to locate it. I scrolled back some 200 posts, but nothing jumped out at me. Can you recall the title?

Thanks,

http://www.fodors.com/forums/threads...p;tid=34959991

So what should be considered a reasonable fee? My credit union told me the fee would be 1%...is that out of line?

I spoke to a Royal Bank representative regarding conversion fees on ATM withdrawals. He insisted that When US banks state a percentage they are talking about the amount that they add to the interbank rate. He said that the actual rate is set by the bank associated with the particular ATM in Europe. These, he said, vary and there is no way to tell how much they are above the exchange rate at time of ATM use. Sound reasonable?

Thank you, janisj, and all who contributed to this thread! Just the kind of information I was looking for.

Hah, hah! Good one!

Hi Deb,

>So what should be considered a reasonable fee? <

My local bank charges 75 cts for an "out of network" transaction.

It charges no conversion fees above the 1% from MC/Visa.

try AAAvisa cash passort prepaid card if you want to see some fees, if you can find them.

Econ notes: Debit or Check card transfers cost less because there is no risk to the operator. Credit cards involve a third party who assumes the risk of payment default. The least expensive change is with cash to cash at market rates. Banks and money lenders are all in business. And we all know that the purpose of a business is to make money! So far I have not read of anyone buying gold in the US and selling it in 'where ever'. Maybe another thread?

Ira,

My ATM card is strictly a debit card (must enter PIN number) on my credit union account and is not related to MC/Visa. So with that said...is a 1% charge from my bank for a cash withdrawal reasonable.

And...do you still live in Madison.