tolondonwego

Before my trip to Europe, will I get a better rate at a bank, the airport, or elsewhere?

Once in Europe, any sugestions???

P_M

If you want to get some currency before leaving home, it doesn't make a huge difference whether you use a bank or airport exchange facility because the exchange rate will be terrible either way. Personally I don't think it's necessary, but if it makes you more comfortable to have cash in your pocket upon arrival, then get about $100 worth of the currency of the first country you where you will arrive. After that use your ATM card once you get to Europe. The ATM will provide you the best exchange rate with the lowest fees. It would be wise to notify your bank in advance that your ATM card will be used overseas. You can use your credit cards for large purchases. If you want to take traveler's checks as a back-up to your ATM card that's fine, but the exchange you will get for those is also terrible so don't cash any unless it's an emergency and your ATM card will not work. The chances of that happening are very slim.

suze

P_M's covered it completely for you!

At home pre-trip start with your own bank if you want cash in hand upon arrival.

For "best rates" and "once in Europe" use an ATM.

GSteed

Least expensive? Direct conversion. Consider carrying USA dollars. Airport rates are highest, hotel rates may be the same. Bank rates are fixed and available. Independent licensed money changers are least expensive.
ATM Debit cards. I used an ATM debit card Friday. Effective cost was 4%. Dollar value at 3.24 and I got 3.12 units (Polish Zloty). Price included ATM fee and currency conversion charge.

clevelandbrown

I think the only time paying in US currency is advantageous is when you are in a country where they don't trust their own currency. I seem to recall the USSR was that way, but usually the transaction is also illegal, so there can be some risk. If you try to pay in US dollars in France, for example, you are just putting the burden of doing the conversion on the merchant, and all but the dullest of merchants will charge you for that. In other words, they will call and find that a euro can be traded for, say $1.25, so they will use something more than that as their exchange rate, like $1.30 or $1.35.

It is true that some ATMs will cost you up to 4%, but only if you have not gone to the trouble of finding a bank that has a lower rate. My bank passes on the 1% conversion rate charged by the MC/VISA networks that most ATMs use, but there is no further charge. I have never seen a currency exchanger, licensed or not, that charges such a low fee. My wife and I used to watch the currency exchangers; they all have their rates posted, and the rates were always much more than we were paying at the ATMs. It was surprising, and sad, how many people would be lined up to deal with the currency exchangers.

The banks in my area, Cleveland, no longer do foreign currency exchange, and I found a lot of expenses (exchange rates, fees, delivery fees, etc.) when I looked into getting some foreign currency before departure, and I didn't think the benefit of having some currency on the plane, where you don't need it, was worth the expense, so we just get some local currency on arrival at an ATM.

One other source: people often bring home a little foreign currency, so if you have friends who have some, borrow it and replace it on return.

rogerb

Open an account with USAA.COM and use their ATM and credit card - no ATM fees and just the 1 % mastercard fee - and you do not need to be military to join

mikemo

rogerb,
Amen, anything other than a no fee ATM and CC is "nonsense" in terms of better rates.
There are scores if not hundreds of posts here and on tripadvisor.com/forums in the last 15 or 16 months when many banks started to gouge for currency conversions.
M

Christina

Perhaps you haven't seen it, but that doesn't mean it doesn't exist, Clevelandbrown. I have been in a couple countries where private currency exchangers were as cheap as ATMs, and better than banks, etc. However, that would be in-country, not before you go.

clevelandbrown

Christina,

What countries are those? I have read that there are some very good rates at certain currency exchanges in Canada, but that was not the case in the towns we visited quite a few years ago.

Senga

We just returned from Greece and I had been told by friends that the ATM was the way to go. Being nervous I took 700 euros with me and ended up withdrawing 300 more at an ATM. The rate, including service charge, was slightly LESS than what I paid for the cash. It was convenient and easy to use.

Christina

I did not see this before, but the specific countries I have found very good rates at private currency exchanges are France, the Czech Republic and Mexico.

tuckerdc

A different problem...one I just posted about. We goofed and ended up leaving London with 65 GBP tucked away and forgotten. Any creative ideas on how I could spend or convert it w/o taking such a hit?

P_M

Here's a wild idea, tuckerdc. Post a thread stating your home city and ask if anyone would like to buy your £ at the market exchange. It will benefit both you and the buyer.

Carolina

Here's a voice against relying on ATMs. They are fine as long as you don't want to draw out much cash in any one go. Also, I found bank charges made the fees higher than changing cash or travellers' cheques. This summer, I took travellers' cheques in dollars (commission free from AAA for members) and changed them to euros and pounds as necessary. It was great being able to change a week's expenses at once and worked out cheaper as well. While I was in Greece, there was a bank strike and many ATMs weren't working. I was extremely glad that I hadn't relied upon them.
Carolina

Patrick

Carolina, I don't mean to argue with your personal experience, but assuming you only took out $250 worth of euro at a time and assuming your bank charged you as much as $5 for doing it (which is the highest I've heard of a normal bank charging for using a foreign ATM, that's still only 2% total charge. Where can you get a better deal than that "changing cash or traveler's cheques"?

I've never heard of being able to cash and exchange dollar TCs in Europe for euros at a decent exchange rate plus a low fee that would total less than 2%. But maybe you found a "magic" place.

janis

Carolina: "They are fine as long as you don't want to draw out much cash in any one go."

I really don't understand what you mean by this. I can draw out as much as I like - well not thousands - but hundreds of £/€/$ per day.

And if you do withdraw a lot at one go it makes an ATM an even better deal since the small fee your bank charges is per transaction, not based on the amount.

jlm_mi

Carolina means literally just what she says. Many, many banks impose limits as to how much one person can withdraw from an ATM at one time, or during one day. Often these limits are in the range of just a few hundred dollars, so if you need more cash than that to pay a hotel bill it can be difficult to get. Apparently, since you don't have such limits, they're not universal, but they are common - at least with US banks.

janis

jlm_mi: "Many, many banks impose limits as to how much one person can withdraw from an ATM at one time, or during one day"

That is true -- but those same banks will raise your limit if you ask them. My daily limit is normally $300, but every trip overseas I have them raise it, usually to $500. And the few times when I knew I need a LOT of money - like paying for a flat in cash, I've had it raised to $1000.

suze

To Carolina's post,

While the TC's are free from AAA... isn't there still a charge imposed by the bank where you cash them?

Also there are ATM cards available with no or nominal fees for international transactions. Ask around.

clevelandbrown

I would want to see some precise figures before accepting that TCs can be cashed at a better exchange rate than one gets at an ATM. Too many people think they are getting a deal when no fee is imposed, but don't realize that they are paying a dime or more per euro above the ATM rate because of the exchange rate imposed.

One argument against TCs is that fewer and fewer places will cash them. I think stores no longer will take them, but some hotels will, and of course banks, but that means you have to get to the bank when it is open.

Christina, I'll look at some currency exchanges next time we visit France. I don't think I will be converted, however, as I don't like to carry large wads of cash anywhere, especially after reading all the postings about pickpockets. If they get my cash, its unrecoverable; if they get my plastic, that is easily remedied.