smilinsnoboarder

Heading to Paris in less than 2 weeks! Trying to figure out a more economical way to obtain cash while there this time. Last summer, I used my credit card to pay when possible, but also used it to obtain cash at ATM's...only to find out that I was actually charged daily interest/finance charges on these transactions until my bill came!
Have any suggestions on how to get cash for those purchases that don't accept credit card? The traveler's checks are kind of outdated now, as you often have to pay for them and are charged to convert them anyway.

nytraveler

It's very simple- take the money from ATMs with your debit card - attached to your savings account - then the cost should be minimal - just the 1/2% for the currency exchange - no interest.

teacherCanada

No doubt in my mind that using a debit card at the ATM's is the most effective way to obtain cash. Do try to chat with your bank before you leave and ask them what the transaction fee will be each time you use the ATM. If you balance this approach with wise credit card purchases, you can spend most of your money on you - and not enrich the banks. Avoid using a credit card for cash advances - as you have found out, the banks charge interest from the date of transaction, no grace period.

brookwood

You used a credit card to get cash out of an aTM machine? You don't know that constitutes a cash advance and you pay the highest interest rates allowed in the US of A?

That is like buying a house and paying 27% interest on the loan!!

P_M

As stated previously, using a credit card for cash advances is one of the most expensive ways to get cash. In fact, it's probably even more costly than exchanging TC's. Getting cash from a credit card should only be done in an emergency.

But that's OK, you live and learn, and you did the right thing to come here for help. Use your DEBIT card at the ATM next time and it will be a lot more economical. Also make sure to notify your bank that you will be using it overseas.

smilinsnoboarder

Thanks for the replies. A friend also highly suggested a bank "check card"/Debit card. Apparently, this must be the best!

5alive

I think traveler's checks are a good backup. I never pay to get them; that's a ripoff. We have two credit unions and neither charge for them.

pays for traveler's checks?

5alive

Sorry, I wasn't done with my post when I bumped Send.

That should have been
"Who pays for traveler's checks?"
You do pay overseas for cashing them, and you need to be very aware of the current exchange rate. Also ask around about places with good rates from your hotel, etc. The Vatican Museums have good rates, for example.

If I don't use my traveler's checks while there, there is no charge to use them at restaurants, etc here in the States.

And I also wanted to add that some debit cards may not work overseas and you might to call your bank and confirm that yours will be fine.

NYerr

Many US banks have arrangements with overseas banks. Check with your bank and see which bank's ATM's will be the best for you, and if they are near your hotel. I have always found that hotels do not have very favorable exchange rates.

You can now buy travelers checks in Euros in the US if you like. Then again, if charging a hotel on American Express or Visa, they will take a 2% commission (at least!) on the exchange. Then if you don't pay it off, you pay interest on the commission. That one I love.

Never take a cash advance on your credit card. First, if there is a regular charge balance, your payments will be applied to that first (they always apply payments to the lowest rate first, remember they make the rules). Second, as previoulsy posted, the credit card companies get away with incredibly high interest rates, usually 25% or more.

greg

You want ATM or DEBIT/CHECK card attached to your CHECKING account.

fisches

definately your debit card...with your checking account...it is the way to go in Europe these days...Don't mess with Traveller's checks..this generation of Europeans won't know what they are.

Don't take an American Express credit card. Very few places take them.

arbegold

We're currently living and travelling in Europe. The best exchange rate usually is at the "hole in the wall".You've already been told not to use a credit card. We use a cash card from our credit union. Most of the time we're charged 1% of the amount withdrawn,which is better than the 3% most credit cards are adding as a transaction fee. Whatever banking institution you're using tell them you'll be in Paris, France or where ever for several weeks so they won't become suspicious of the number of withdrawls you'll be making. Also see if they can temporarily raise your limit so you won't have to make as many withdrawls. Don't use ATM's near/at the rail stations as thats where pickpockets congregate and can see exactly where you're placing your cash. Finally TC are still a good way to go. AAA issues them free to members, as do some credit unions. Bon Voyage

suze

#1- Use an ATM card that takes money from your home checking account. Check with your home bank, they control the fee you will be charged per transaction (typically $0-5USD).

As others clarified, using a credit card in an ATM is a cash advance therefore expensive!

TC's are OK as an emergency back-up, just know you will need to cash them at a bank not spend them direct in a business (not the most economical but another option).

You can also take US/Canadian cash and exchange it somewhere (not the most economical but another option).

SuzieC

American Express does work at lots of places; I paid for several meals and my impromptu hotel with it...
But no, not "all places" but it is a darn good "back up"

ed

If possible have two ATM Debit cards. I was told that ATM machines never "ate" the cards. One of mine was "eaten" by the ATM machine in the railroad station in Venice on the first day of a three week trip.

Fortunately I had a spare.

I contacted my bank as instructed. That was an exercise in futility. :-B

platzman

Europeans no longer even write personal checks, let alone mess around with traveler's checks. Expect the banks to charge a premium commission to handle them.