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-   -   buying the euro/pound (https://www.fodors.com/community/europe/buying-the-euro-pound-877260/)

alienor Feb 9th, 2011 01:19 PM

buying the euro/pound
 
My bank will very kindly sell me the Euro before I go to Paris -- at .07 cents more than the current exchange rate. I suppose I can just wait and use the atm at CDG but I'd like to have some cash. Ditto the pound.

spaarne Feb 9th, 2011 01:24 PM

Don't amuse your bank. Use one of the ATMs at CDG. Bring some greenbacks as reserve.

alanRow Feb 9th, 2011 01:50 PM

"at .07 cents" - Do you mean $0.07 - which is 100 times as much. And what "current exchange rate" are they using?

I'll also point out that exchanging $ to € to £ or $ to £ in France will cost you a lot of money as 2 sets of fees will be applied - $ to € & € to £ even if you don't see the €

Judy Feb 9th, 2011 02:06 PM

Your best exchange rate will be at an ATM. You need to negotiate the charge over the exchange rate with your bank to avoid excessive fees for withdrawal.

Michael Feb 9th, 2011 02:06 PM

$.07 is close to a 5% charge on the exchange rate.

janisj Feb 9th, 2011 02:59 PM

absolutely use your ATM card once you get there. If you simply <i>must</i> have some cash in your pocket first--just take $100/$200 cash to the Bureau de Change in your departure airport. No need to pre-purchase.

But even that is unnecessary unless you are super nervous about things

nytraveler Feb 9th, 2011 04:14 PM

If you want a little cash then change $100 at the Bureau de Change at your departure airport.. the rate will be awful - but it doesn;t matter for $100 and it's lot less trouble than dealing with a bank. Then just pull money from your checking account at the first ATM you see in your arrival airport.

We have about that in euros and pounds and bring it back from one trip and save it for the next. Other than that we do credit cards, ATM for walking around money and $200 is US $ in 20s - in case of emergency. (Haven;t had a financial emergency in more than 70 trips to Europe though.)

bobthenavigator Feb 9th, 2011 06:08 PM

ATM, ATM, ATM
Anytime you use the money lenders they will get you for 7 to 12%--it is in their DNA.

ira Feb 10th, 2011 04:34 AM

Ditto NYT

Michel_Paris Feb 10th, 2011 05:34 AM

A 'kind bank', how nice :)

I can see getting a few pounds and euros in order to get from airport to hotel, or in case ATM at airport is out of commission.

Otherwise thank them for their kindness and move on.

innocentspirit Feb 10th, 2011 06:13 AM

Try out the various prepaid foreign currency(EURO) travel cards that can be bought (online?) for free - it basically acts as a debit card at your holiday destination and you can even top it up if it runs out by going online & through phone. Look out for the ones that have zero charges for atm withdrawls and online/phone topping. I've been using them for a few years without any trouble.

Your debit card from home is bound to attract bank charges if you use it at an atm while on your holiday.

Mimar Feb 10th, 2011 06:22 AM

So, innocentspirit, do you have a link? I'm suspicious of travel cards that are "free." No upfront charge? No conversion fee? No ATM fee?

I have debit/ATM cards from 2 credit unions that charge no ATM fees and only the system 1% over the interbank conversion rate.

innocentspirit Feb 10th, 2011 06:50 AM

Look up for Travelex - The particular card used to be called Cash Passport or something similar when I used to use it around 4 - 5 years back, but then I think these days they charge for online topping or was that for atm transaction (not sure - haven't checked in a while now).

Now a days since I'm more locally based I use Caxton which gives me the the aforementioned qualities.

Hope this helps.

kayd Feb 10th, 2011 06:50 AM

Innocentspirit, are you in the US or elsewhere? I ask because what you describe is absolutely contrary to all I know about US banking practices, but I have no doubt it could be true in another country.

innocentspirit Feb 10th, 2011 06:54 AM

@ kayd - I'm currently based this side of the pond.

kayd Feb 10th, 2011 06:56 AM

Now if the original poster is outside the US, all the advice we are giving here ( ATM all they way) may not apply. The only thing that I'm sure is accurate for everyone is that banking practices and regulations vary greatly from one country to the next.

kayd Feb 10th, 2011 06:57 AM

innocentspirit -- where in the US are you getting these banking products at no cost?

innocentspirit Feb 10th, 2011 07:06 AM

@ kayd - my bad - should have been more specific in my earlier reply - am currently based in UK

Dukey1 Feb 10th, 2011 07:21 AM

all these responses and the OP has YET to return and they didn't even ask "should I?" Trolls are getting easier and easier around here

Michel_Paris Feb 10th, 2011 07:28 AM

Sorry, but no card you can load is "free". It reminds me of the Currency exchanges that advertise' no fees"!!! Wow, I am getting currency for free.

Unless they are a currency charity :)

EVERY currency transaction has two potential costs to you: the fee and the exchange rate. You need to know about BOTH before you can decide what is a deal.

There was along discussion last year about prepaid VISA cards. Once you dug into the fine print, it was an atrociously expensive option

It can also be like a Seinfeld episode...they can "take your card and load it for free" they just can't 'give it back to you" for free.

Buyer beware

innocentspirit Feb 10th, 2011 07:39 AM

@ Michel_Paris - Of cos, one needs to pay the exchange rate - I thot that was a given when one is converting currencies. AFAIK there are no other fees that I pay(at least for the latest one I use). For Eg you pay $x and load the equivalent Euro based on that days exchange rate. Then we are free to use that card in the eurozone with no extra charges to yourself.

Mimar Feb 10th, 2011 07:40 AM

I looked up the card innocentspirit mentioned. It charges a conversion rate of $1.46US/1 euro -- vs. the interbank rate of $1.36. That's a surcharge of about 6.5%. SO that's how they make their money.

There is no free lunch.

kayd Feb 10th, 2011 07:44 AM

It looks like that card is the new electronic travelers check -- similar cost to purchase but easier to spend.

Michel_Paris Feb 10th, 2011 07:49 AM

innocent....THEY set the exchange rate they want to use. That is how they make their money. It is also hoe the banks make their money when you go to get euros. If you compare their counter rate to the 'newspaper rate', they charge ~5% more.

It is like me saying to you...I will buy all of your leftover euros, no charge to you, I will pay your postage to send it, I will fedex your money back to you, no fess for this service...but I will set the exchange rate :)

you lose.

innocentspirit Feb 10th, 2011 08:03 AM

@ M_P - I understand that they set the exchange rate that is advantageous to them - after all it is a business and they are not in it for charity.

all I said was - for me personally I loose a lot less by using one of these prepaid foreign currency travel cards than I would by directly using my bank's credit/debit card while on a holiday in eurozone.....hope this clarifies

Michael Feb 10th, 2011 08:04 AM

innocentspirit,

For the day's rate, so that you can compare what you are paying, go to http://www.xe.com/ucc/. And if you are interested in what you were charged by your credit card, go to http://www.xe.com/ccc/.

Michel_Paris Feb 10th, 2011 08:12 AM

nnocentspirit,

Not to harp on this :)...

Could you provide what the costs for this card are, and conditions of use?

VISA prepaid euro cards were slammed, justly. Be interested in knowing the facts on yours.

kayd Feb 10th, 2011 08:49 AM

innocentspirit -- the difference must be that your bank charges rates and fees that greatly exceed the average by most US banks. Mine is 1% plus $3 for an ATM withdrawal, that is $6 for $300 or 2% total, far better than the 6.5% you say is better than what you'd pay using your bank's ATM card. The highest cost I've hear of for US banks was 3% plus $5 -- or $14 for $300, but that still under 5% total.

Christina Feb 10th, 2011 09:00 AM

I don't think 7 cents is so bad if you want some in advance, it sounds better than what you'd get at the airport bureau de change. Of course it depends which way you are quoting the rate, euro to $ or $ to euro as to what percent that is. It's only 5 pct if you are quoting USD to euro but I think banks usually quote the reverse, in which case it is closer to 10 pct (ie euro to USD which is about .74 now).

alienor Feb 10th, 2011 11:15 AM

Wow! no contest here. I'll tell my American bank to stuff it & take a few hundred dollars with me. Thanks everyone.

StCirq Feb 10th, 2011 11:19 AM

innocentspirit is precisely that.

Travlex, no matter which side of the pond it's on, charges an arm and a leg for every single one of its products.

alienor Feb 23rd, 2011 10:10 AM

Scratch taking US

alienor Feb 23rd, 2011 10:11 AM

dollars and changing at a bank. The banks won't change currency, I had to go to American Express which gave me a rate as bad as my US bank and then charged me 5%. Stick with the ATM and it's horrid 3%; there's no other way I've found.

Mimar Feb 23rd, 2011 10:24 AM

alienor, again get an account at a credit union. They're not-for-profit. And withdrawals from your credit union account at foreign ATMs are charged at the interbank + 1%.

J62 Feb 23rd, 2011 12:01 PM

"Stick with the ATM and it's horrid 3%; there's no other way I've found."

Look no more. I echo mimar's comments. My local credit union charges only the 1% over interbank rate, and no per-transaction fee.

kayd Feb 23rd, 2011 12:14 PM

If you do not want to look for a bank or credit union with lower costs, accept that 3% as your least "horrid" alternative and stop worrying about it. Really, it is a very small percentage of the expense of your trip. Just go and have fun.


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