better exchange rate with travel's check
Apr 22nd, 2008, 12:53 PM
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better exchange rate with travel's check
We are traveling for 1 month in Europe (Germany, Italy , France) this May. My husband insist that buy traveling check (US Dollars, we cannot get Euro traveling checks here) and then exchanging to Euros in Germany will be a better exchange rate than bringing cash -US dollars and exchanging them to Euros.
He said that even with the traveler's check fees, it is a better deal ? Is he right ?
He said that even with the traveler's check fees, it is a better deal ? Is he right ?
Apr 22nd, 2008, 01:01 PM
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I don't think so, but I'll let others weigh in on that. I think it's the opposite, that you get a better exchange rate with cash than with TCs (both being in USD).
I don't know what kind of fees you pay for buying TCs, can't you get them free somehow? I can get them free either from AAA or from my bank. All the banks I've ever used gave me free TCs (granted, I keep more than the bare minimum in my account).
I take TCs with me, not cash, just because I don't want to carry around large amounts of cash with me in Europe and I don't use them that often, they are just for emergencies. I mainly use credit cards and my ATM card.
I don't know what kind of fees you pay for buying TCs, can't you get them free somehow? I can get them free either from AAA or from my bank. All the banks I've ever used gave me free TCs (granted, I keep more than the bare minimum in my account).
I take TCs with me, not cash, just because I don't want to carry around large amounts of cash with me in Europe and I don't use them that often, they are just for emergencies. I mainly use credit cards and my ATM card.
Apr 22nd, 2008, 01:01 PM
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ATM/Debit card withdrawls (not Credit Card withdrawls) will be better than either cash or Travelers checks.
I don't know if TCs are better or worse than cash. TCs are safer. Remember - banks are closed more often in Europe than in the US - and do you really want to spend much time standing in line at banks. TC exchange rates from Hotels & restaurants are a rip-offs.
Stu Dudley
I don't know if TCs are better or worse than cash. TCs are safer. Remember - banks are closed more often in Europe than in the US - and do you really want to spend much time standing in line at banks. TC exchange rates from Hotels & restaurants are a rip-offs.
Stu Dudley
Apr 22nd, 2008, 01:02 PM
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No.
Best deal is taking your ATM card and use it in Europe to withdraw from your checking account. Even if your bank charges foreign usage fee and loads exchange rates, you still pay less overall than using TCs.
Trouble with TCs is that fewer and fewer banks are taking them in Europe, and even if they do, they charge a high fee (often 10 euro per check!) plus lousy exchange rate. True, Amex checks are exchanged free of charge at Amex offices, but there are fewer of them in Europe, and exchange rate is still poor. Then you are limited to bank opening hours, while ATMs are 24/7.
Best deal is taking your ATM card and use it in Europe to withdraw from your checking account. Even if your bank charges foreign usage fee and loads exchange rates, you still pay less overall than using TCs.
Trouble with TCs is that fewer and fewer banks are taking them in Europe, and even if they do, they charge a high fee (often 10 euro per check!) plus lousy exchange rate. True, Amex checks are exchanged free of charge at Amex offices, but there are fewer of them in Europe, and exchange rate is still poor. Then you are limited to bank opening hours, while ATMs are 24/7.
Apr 22nd, 2008, 01:20 PM
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Also, note that when you are looking at currency transactions, there are always two components to consider. Fees and exchnage rate.
Many exchange bureaux will advertise "no fees!!!" but then make up for it by charign a worse exchange rate.
So if you do get TCs "free", verify what exchange rate they are using.
And yes, time to move TCs to the museum. Only use might be for emergency funds, but if you both have ATM and credit cards...
ATMs will give you the best overall rate. And you don't have to wate vacation time trying to unload TCs.
Many exchange bureaux will advertise "no fees!!!" but then make up for it by charign a worse exchange rate.
So if you do get TCs "free", verify what exchange rate they are using.
And yes, time to move TCs to the museum. Only use might be for emergency funds, but if you both have ATM and credit cards...
ATMs will give you the best overall rate. And you don't have to wate vacation time trying to unload TCs.
Apr 22nd, 2008, 01:21 PM
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I just call AMEX EX. There will be no fee since I am a gold member but there is a fee for non-gold members. Today's exchange rate to buy Euro Travelers checks here is 1.70 terrible ! so I have decided not to get TC and just use my ATM debit card over there and bring some dollars cash.
My husband on the other hand is bringing over TC in dollars.
My husband on the other hand is bringing over TC in dollars.
Apr 22nd, 2008, 01:41 PM
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In our experience of one major (five weeks) trip to some part of Europe or another every year, Alec is spot on. We have been unable to beat the use of our ATM card to take the local currency on demand. Every single negative written here about travelers checks is correct: poorer exchange rate, reluctance to accept, arbitrary fees, etc.
Also, for several years we opted for a cash-only basis paying everything from hotels to fuel for cash obtained from local ATMs. In spite of the fees for ATM use, we have found that, in order to get the most enjoyment out of our trips with the least amount of hassle, we use ATMs for local cash and credit cards wherever we can.
Bon voyage,
BigBlue
Also, for several years we opted for a cash-only basis paying everything from hotels to fuel for cash obtained from local ATMs. In spite of the fees for ATM use, we have found that, in order to get the most enjoyment out of our trips with the least amount of hassle, we use ATMs for local cash and credit cards wherever we can.
Bon voyage,
BigBlue
Apr 22nd, 2008, 01:50 PM
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In 2004, in Edinburgh we could not find a bank that would exchange our US dollars for Pounds unless we were a customer!!
That was the first year we had taken our ATM card and we were finally forced to use it.
So easy and our bank only charged $3 per transaction and gave us a better rate than the so-called Exchange Bureaus.
Take TC's or a little extra cash for emergencies if you like, but use your ATM card.
You may want to check your daily withdrawal limit with your bank before you go and DEFINITELY let them know that you will be using your ATM card overseas.
That was the first year we had taken our ATM card and we were finally forced to use it.
So easy and our bank only charged $3 per transaction and gave us a better rate than the so-called Exchange Bureaus.
Take TC's or a little extra cash for emergencies if you like, but use your ATM card.
You may want to check your daily withdrawal limit with your bank before you go and DEFINITELY let them know that you will be using your ATM card overseas.
Apr 22nd, 2008, 01:52 PM
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When I said I got them free, I meant that literally and know I do -- because I only take them in my native currency (which is USD). You will know if they are free in that case. They wouldn't be free if I got them in euro, they charge a markup any place I know of in the US for that, but I don't do that and don't recommend it.
Out of curiosity, I checked with one bureau de change in Paris (where I am most familiar with the rates and practices), and today they charge $1.601 USD to buy one euro if you pay in cash, but $1.631 for one euro if you pay by USD TCs so they are worth less. Maybe it's different in other countries or even other places, but I thought I had noticed that. I don't know why TCs in USD would be worth more than actual dollars in Germany, as TCs are checks and there is some administation involved in cashing or depositing them for the exchange place.
Out of curiosity, I checked with one bureau de change in Paris (where I am most familiar with the rates and practices), and today they charge $1.601 USD to buy one euro if you pay in cash, but $1.631 for one euro if you pay by USD TCs so they are worth less. Maybe it's different in other countries or even other places, but I thought I had noticed that. I don't know why TCs in USD would be worth more than actual dollars in Germany, as TCs are checks and there is some administation involved in cashing or depositing them for the exchange place.
Apr 22nd, 2008, 02:41 PM
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You will pay at least 5% above the interbank rate to buy the traveler's checks and when you cash them you will not get the same rate as a general rule even if you have AE checks and go to an AE office.
If you have AE checks and do NOT go to an AE office you will pay through the nose. The checks could end up cost you 10% or more than the interbank rate of exchange.
With an ATM card for which you do not have to pay a fee, such as to Bank of America if using its card off net, you pay 1% above the interbank rate.
I don't think TCs are a way to go.
Besides they are lumpy. If they are in euro, what do you do with the leftovers? If you cash them there for dollars you pay the euro to dollar rate, and if you bring them back you have to redeem them into dollars. It will not come out even unless you budget very carefully.
At least using an ATM card you can take money in amounts closer to what you need to get you through the final hours of your trip.
If you have AE checks and do NOT go to an AE office you will pay through the nose. The checks could end up cost you 10% or more than the interbank rate of exchange.
With an ATM card for which you do not have to pay a fee, such as to Bank of America if using its card off net, you pay 1% above the interbank rate.
I don't think TCs are a way to go.
Besides they are lumpy. If they are in euro, what do you do with the leftovers? If you cash them there for dollars you pay the euro to dollar rate, and if you bring them back you have to redeem them into dollars. It will not come out even unless you budget very carefully.
At least using an ATM card you can take money in amounts closer to what you need to get you through the final hours of your trip.
Apr 22nd, 2008, 04:50 PM
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If you're trying to minimize
1) loss of funds due to bad rates of exchange
2) hassle of finding a place to change checks (very rare) or cash (open only certain hours)
you should simply pay for all you can with cc and pull cash from your checking account at ATMs.
Just as in the the US european banking is almost primarily electronic - and forcing them to deal with cash or paper in a foreign currency will cost you a lot extra, waste valuable time and be a mahor pain in the butt.
1) loss of funds due to bad rates of exchange
2) hassle of finding a place to change checks (very rare) or cash (open only certain hours)
you should simply pay for all you can with cc and pull cash from your checking account at ATMs.
Just as in the the US european banking is almost primarily electronic - and forcing them to deal with cash or paper in a foreign currency will cost you a lot extra, waste valuable time and be a mahor pain in the butt.
Apr 22nd, 2008, 06:47 PM
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IN the 21st century of traveling,take two ATM cards from two different bank accounts along with two different credit cards-all you will ever need. Then don't use the credit cards and when you get home you won't have the VISA bill from hell!
Apr 22nd, 2008, 07:17 PM
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It depends on where you're traveling to. For folks to say not to take travelers' checks at all, well I don't agree with that at all. I personally am a travelers' check person and have been for 30-plus years,of almost annual trips to Europe.
I also take along two credit cards for big charges like hotels and shopping. I also take along cash.
And this last trip to Paris, a few weeks ago, I took along my credit union ATM/ debit card...NOT my bank ATM card since it charges $5.00 per transaction, plus that card is connected to my direct deposit salary, so I won't use it overseas. I didn't use my credit union debit card at all.
I got on the bus and hopped over to the Amexp Office, on rue Scribe,Paris... that I've been going to for decades and cashed the money that I needed for the whole week. Then I was finished with money exchanging as I can exchange whatever amount I want and not a fixed daily limit as on an ATM card.I got a rate of 1.62 per US dollar.
I also like to take travelers' checks because if they are lost or stolen, then I can get new ones, which once I had to do. I can't do that with cash and who knows how one would replace a lost, stolen, or ATM machine-eaten card overseas. So, I only take the ATM/Debit card in case of an extreme emergency for getting cash, but have never used it.
Now, if I get into a situation where there's no AmExp office nearby
that I can hop over to, then I'd have to move on to Plan B. I never take only one means of money anyway.
If you do decide to use your ATM/debit card, be sure to call the bank or credit union to make sure that it will be good in that country. Last summer, I took my credit union visa debit card with me to Bangkok where I rent an apartment twice a year for vacation and although I had gone in person to my credit union and told them that I would be using it, for the first time to pay the rent, and they made a notation of it in the computer that I'd be away, when I got to Bangkok and tried to pay the rent upon check in, but the card was declined. I had no idea why so I used my Amexp Platinum card. I also had plenty of travelers' checks and cash.
When I got home, and called the credit union, I was told that Thailand was one of the countries on their high theft list and that no card issued from their credit union could be used there. The person who had okayed it screwed up and later admitted that she didn't realize what country Bangkok was in. I could have been stranded. But AmExp came through once again!Happy Travels!
I also take along two credit cards for big charges like hotels and shopping. I also take along cash.
And this last trip to Paris, a few weeks ago, I took along my credit union ATM/ debit card...NOT my bank ATM card since it charges $5.00 per transaction, plus that card is connected to my direct deposit salary, so I won't use it overseas. I didn't use my credit union debit card at all.
I got on the bus and hopped over to the Amexp Office, on rue Scribe,Paris... that I've been going to for decades and cashed the money that I needed for the whole week. Then I was finished with money exchanging as I can exchange whatever amount I want and not a fixed daily limit as on an ATM card.I got a rate of 1.62 per US dollar.
I also like to take travelers' checks because if they are lost or stolen, then I can get new ones, which once I had to do. I can't do that with cash and who knows how one would replace a lost, stolen, or ATM machine-eaten card overseas. So, I only take the ATM/Debit card in case of an extreme emergency for getting cash, but have never used it.
Now, if I get into a situation where there's no AmExp office nearby
that I can hop over to, then I'd have to move on to Plan B. I never take only one means of money anyway.
If you do decide to use your ATM/debit card, be sure to call the bank or credit union to make sure that it will be good in that country. Last summer, I took my credit union visa debit card with me to Bangkok where I rent an apartment twice a year for vacation and although I had gone in person to my credit union and told them that I would be using it, for the first time to pay the rent, and they made a notation of it in the computer that I'd be away, when I got to Bangkok and tried to pay the rent upon check in, but the card was declined. I had no idea why so I used my Amexp Platinum card. I also had plenty of travelers' checks and cash.
When I got home, and called the credit union, I was told that Thailand was one of the countries on their high theft list and that no card issued from their credit union could be used there. The person who had okayed it screwed up and later admitted that she didn't realize what country Bangkok was in. I could have been stranded. But AmExp came through once again!Happy Travels!
Apr 22nd, 2008, 07:23 PM
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I'm not sure what American Express offices logos is referring to. The last time we took US dollar TCs to an American Express office (in Geneva), they were charging well over 10% to exchange them to local currency! Although they were proudly saying "no fee" to do so. If they are in euros, then there is NO charge at all, but of course you've paid something like 7% usually at home for the exchange rate to buy them in euros. Still -- that seems to be cheaper than cashing them in Europe if they are in dollars. Where are you IM? You don't have a AAA office?
