Cash in Europe
 

Hello Everyone-
I am going to France June 1st, first time over to Europe and I have been saving my money since January!! Very excited but kinda frustrated cause I am not sure what to do with the cash- I dont want to carry an excess amount in my wallet. I am going from June 1st- June 25th and plan on covering France as well as maybe a day in London and Barcelona.

I bank with Bank of America and I have a Capitol One card, I was looking into AAA Visa Travel Money but that seems to be a rip off.

Any good idea what to do with the cash I would like to take over there? If this helps out, the figure is around 6 thousand dollars....If I keep the money on my debit card, BOA charges a transaction fee as well as an ATM fee. Since this is my first time I dont know if that is normal or there are better rates/programs out there....

Any auggestions would be nice.
Thanks =)

Put your cash in your checking account and leave it there. When you need pocket money, use your ATM card to access the money in your checking account.

There are banks that charge fewer/lower fees than yours--consider opening another bank account and transfer your travel money there. See options in this article:

http://www.time.com/time/business/ar...0.html?cnn=yes

"Put your cash in your checking account and leave it there. " I meant "Put your cash in your checking account that has fewer fees and leave it there."

In France use PNB Parabas bank which is affiliated with BOA and either there are no fees or they are minimal. Traveler's checks are indeed a rip off and you should not carry lots of cash. Exchanging dollars for Euros at the Exchange places is also a rip off. Use your BOA ATM card for cash withdrawals and your credit card for large purchases.

I hardly think you'll need $6,000 for 3 weeks. that's enough for 2 trips. And I would recommend more than a day in Barcelona and London.

Since you already have a Capitol One card, you might want to consider using that as much as possible and using your cash to pay it off when you get home. Capitol One is one of the few credit cards that doesn't charge a foreign transaction/conversion fee.

I sure hope you don't plan on carrying $6,000 in US dollars around with you and exchanging it as you go!

Put it in a checking account that doesn't charge you for withdrawals in Europe. Shop around. Credit Unions typically have better deals than banks. Then use the debit card to get your cash (and a credit card for the big expenses like hotels).

European banks don't charge for withdrawals, so there will be no fees on that end.

You may want to check again with BoA. It was my understanding that BoA customers making ATM withdrawals from BNP (Banque National de Paris) ATMs did so without incurring fees (including the 1% currency conversion fee).

In principle, ATMs can be the best way to access funds while in Europe. The catch is that your bank can impose out of network fees which take away much of the ATM allure.

BOA also has a reciprocal agreement with Barclay's Bank in England. If you use their ATMs in London, you won't be charged a fee.

If you have a Bank of America ATM card - They have a contract with the following international banks

Bank of America | Checking and Savings | Contact Us
Travelling Internationally?

Use your ATM card or Check Card within our Global ATM Alliance in the countries shown with no fees.

Barclays (United Kingdom)
BNP Paribas (France)
China Construction Bank (China)
Deutsche Bank: (Germany)
Satander Serfin (Mexico)
Scotiabank (Canada)
Westpac (Australia and New Zealand)

We spend 2 months in France most years.

Get some Euros in the US. We usually take about $300 worth with us when we land in France. Exchange rates at US airports are horrible.

Use your BofA ATM card to get cash in France. The exchange rate you'll get (including the foreign transaction fee) will be better than any rate you'll likely to get from a cash exchange bank/office - here or in France.

I believe your Capital One credit card charges you a zero foreign transaction fee. Use that for all your credit card purchases. The Capital One card can be used for about 90% of your purchases.

Do not get cash on the Capital One card.

I can use my BofA ATM card as a debit card too, so that should be a good backup if your Capital One card is lost or stolen.

If you are traveling with someone who will use the same card, you should carry 1 card and the other person carry the second card - in case a purse or wallet gets lost or stolen.

Write down (on paper) your credit card number and the contact in case it gets stolen/lost & you need to cancel the card. Sometimes 800 numbers are hard to access from France. Keep this number in a safe place - obviously not in your wallet or purse with the card. We laminate our list of cards & numbers & my wife keeps it in her shoe.

Notify both card issuers that you'll be in France and using the cards there.

I don't know anything about the AAA Visa card.

Stu Dudley

The ATM with your debit card is your best bet. If your debit card has a Visa or MC logo it will work in virtually every ATM in Europe (and they are everywhere). Most banks charge a fee for the withdrawal and exchange the currency at the best possible rate.

Before you go, you need to do some bank research.

I read recently that B of A will charge $10 per overseas withdrawal (versus an industry standard of $3). If that's true, you should look for other choices.

I've also read Charles Schwabb money market accounts allow debit card withdrawals with no fee, even overseas. USAA, if you have a military connection, also has a bank account that refunds some overseas withdrawals (don't know all the details). Some credit unions may have better deals.

I'm not positive that these are true statements but it's worth a look to make sure no more of your savings go to bank fees than necessary.

The OP will be in France in less than 2 1/2 weeks. That's not enough time to obtain another card or set up a new bank account - especially for a first timer.

Use the BofA card for cash & the Capital One for credit card purchases. I recall some recent changes to my BofA debit card too & there may be some large fees if I use it as a Debit (not ATM) card. I'll have to check more thoroughly.

I have never been charged a usage fee by a French bank.

Stu Dudley

Stu-
You said you spent 2 months in Europe every year- awesome- do you think 6k in cash is sufficient, if I use my Credit Card for larger purchases? I definately plan on using my BOA Debit Card in France, should I use it at BNP only? Also, if I want to get cash- where should I exchange it? I plan on taking over about 300 in Euro and when I am over in Paris, getting maybe a few hundred more in Euro- should I exchange it at the bank?

Thanks for all you help everyone =)

katiem201-

Please read this:

NO NEED to exchange Euros in the US before your trip. You'll lose a lot of money due to the poor exchange rate you get from your bank at home. All banks mark up the exchange rate, so even though they tell you "no fees", the exchange rate they give you is usually 5-7% above the interbank rate.

The BEST WAY to get money is use any ATMs at the <b>BNP banks</b> in France. You get the best exchange rate that way. BNP ATMs are everywhere. I have used my BofA debit/ATM card at BNP's ATMs in France many times before, and the only fee you'll be charged is the standard 1% foreign conversion fee.

DO NOT exchange USD to Euros at banks in France, unless you have no other choice and it is an emergency. Again, you will lose a lot of money due to the poor exchange rate they give you.

Thanks YK!!

So just cause Iam very new at this let me get this straight:

Take my Capitol One card for larger purchases and NEVER take cash out.

Use my debit card for other transactions like supermarket, restaurants, small shopping etc...
Use the ATM at BNP for cash withdrawls and avoid exchanging USD for EUR at all costs.

Is this correct so far??

Also, one question, for example, if Iam at a restaurant and the bill is 50 Euro, should I pay in cash or on my debit card or does it not matter at all?

Thanks =)

I would use the Capital One rather than your debit card for small charges as well as large ones. As I said before, Capital One doesn't charge a fee, your debit card will. Again, anything you charge can be paid off with your cash when you get home, in order to avoid interest charges.

Also, the more you charge, the less cash you have to carry around.

Good point. Thanks.

Some smaller shops or establishments in small towns may not accept CC, so for small purhcases, I usually just pay with cash. In fact, I tend to pay cash for most things... that's just the way I am. Having said that, I tend to travel solo, rarely do any shopping and rarely eat at expensive restaurants; so I'm not talking about paying a €100 dinner bill in cash.

When you pay with Credit Card, make sure that the final charge is in EUROS, not USD. Some places use DCC (dynamic currency conversion), and instead of charging you in EUROS, they automatically convert the charge (at a poor exchange rate) into USD as to "do you a favor". INSIST on having that charge reversed and make them re-charge you in Euros, otherwise you'll lose out another few percentage points.

Just to clarify, I know that BOA charges a 3% foreign transaction fee on their credit card. My guess would be that they charge that same fee on their debit card when used for purchases overseas. Capitol One <i>will not</i> charge you that fee.

Just a thought, I assume you are aware that Euros will work in Spain and France but in UK you still need Sterling (so don't take out too many of what ever before moving on).

The euros look slightly different in Spain and France (don't panic only slightly and it will not cause a problem.

Converting change back is impossible so again you need change for automatic machines (car parks etc) but you don't want too many

UGH. Some of the better advice you got is from CAPH. But if you really want to save money, here's what to do:

(1) Open a Cap One Savings account fast and get them to send you a debit card. Use the Cap One account for cash transactions overseas -- Cap One does NOT charge ForEx fees. I think Bank of America will still charge the ForEx fees even if you pull the money out at BNP/Paribas -- the issue the others are talking about are transaction fees for using the ATM as opposed to fees for converting dollars to Euro. Cap One charges neither! Most European banks do not charge for out-of-network ATM usage -- that's primarily an American ATM issue. Cap One is on the Plus cash network, which is affiliated with Visa. You should have no problems finding ATMs that accept your card. And you won't be limited to BNP/Paribas to avoid fees, so you won't have to hunt around for a preferred ATM.

(2) Use the Cap One credit card for credit purchases. Again, Cap One charges no ForEx fees. If you actually drop all $6K, the savings from Cap One will be worth about $180 at minimum -- that's about 2-3 nice meals.

(3) Take only the dollars you think you'll need for use when you arrive home. I haven't exchanged cash dollars to European currency in eight years and only did that on an emergency basis.

You will spend less cash, and you'll use your Capital One card more than you presently anticipate.

Do not use the BofA Debit/ATM card at restaurants, gas stations, etc - because of the 3% Foreign transaction fee.

Use the Capital One card for restaurants, hotels, etc.

DO NOT (like yk said) pay in Dollars on your credit card. You'll get hit with a double exchange rate/foreign transaction fee.

Make sure your car is gassed up on Saturday. Many gas stations close on Sunday.

When you charge dinner/lunch at a restaurant, the paper you sign has no place to add a tip. Put a few Euros on the plate if you want to tip (5% for good service at most nice restaurants).

>>NO NEED to exchange Euros in the US before your trip<<<

That's what my cousin did (or didn't do). He landed in Nice with no Euros. Picked up a rental car & headed out to meet us in Provence. First thing he hit was a toll both - which needed Euros. Credit card did not work. He had to get out of the toll both line, convince the toll attendent to let him get off the freeway without paying, get off the freeway, find a town, find an ATM, and get Euros.

About '02 there was an ATM strike. When ATMs ran out of cash, everyone went to the bank/Post Office for cash. Long lines, and they soon ran out of cash too. We arrived with $2,000 worth of Euros because we immediatly had to make a Gite payment of about $1,000.

Last year we arrived in Paris. Met friends for lunch the first day. Our Debit Card did not work (Morgan Stanley Debit/ATM card - 1% fee). It had been "compromised" a few days before we left home in the US. We did not know about this until the issuer sent us new cards with new numbers, which arrived after we left home. We paid for lunch in Euros and then went to investigate. We had to use a different issuer's card and our BofA ATM card to get further cash.

What if you need a taxi???

Want any more reasons to land with Euros????

Personally, I hate trying to find an ATM at the airport after 18 hours of traveling.

Stu Dudley

BigRuss, like I said, Bank of America ATM card charges <u>1%</u> foreign exchange fee, and NO ATM fees if the OP uses BNP banks' ATMs. This is a reasonable option for her without needing to open a new bank account with Capitol One, esp she's leaving in 2 weeks' time.

Since the OP will be using credit card for most things, so if she ends up spending €50 a day of cash for 25 days, we're talking about a total of $1600 of cash, which means she'll pay $16 of foreign exchange fees if she sticks with BofA and BNP's ATMs.. A drop in the bucket considering the total cost of the trip.

<<USAA, if you have a military connection, also has a bank account that refunds some overseas withdrawals (don't know all the details)>>

As a USAA member for over 35 years, I can say that for foreign purchases, USAA:

1. Credit cards incur only the 1% Visa/MC currency transaction fee.

2. ATM withdrawals incur only the 1% Cirrus/Pulse currency transaction fee.

3. reimburses the ATM withdrawal fee (with some limitation caps) charged by ATM hosting banks on domestic withdrawals. This is not an issue in France as French banks do not impose withdrawal fees.

Stu:
Laminated and in her shoe? Wow. I was thinking about where to put that info last night. All scenarios running through my head and imagining my suitcase stolen (unlikely but possible. My Mother's was stolen right out of the late luggage dept. at CDG some years ago). I opted for the last 4 digits, phone numbers,etc, in my journal. Left the rest of the info and another card at home should someone need to overnight it to me.

I know the rates for using the cards are high (yet I thought there was a law passed against that?) but I add that into my expenses instead of driving myself crazy and carry a little Euro cash from the U.S.and use ATm's, which are everywhere. I've decided on this trip to pay with cash as often as possible to avoid the charges.

There's no law in the US about ATM rates or foreign transaction fees not being allowed or fees for debit card not being allowd, what are you referring to. The fees for using a debit card are never that high, but some people call 2-3% high, I suppose. B of A is the only bank I've hard of that had really high ATM transaction flat fees ($5 or something).

When people say there is no reason to take euro with you to Europe, they are presuming someone doesn't rent a car and drive off without getting any at the airport. That is kind of dumb.

Sorry to offend. I did say "thought" and had a question mark. Nothing was stated emphatically.

I agree with Christina, the story about the cousin didn't give me any reason to get euros in the US instead of at an ATM. That story told me only told me that the cousin is an idiot. But it sounds like he'd still be an idiot wherever he got his euros.

I've been to Europe a dozen times without getting euros in advance. I can understand why someone who needs a large sum in euros to pay for an apt. might need to get them in advance, but most people don't. If the ATMs were all out of service, I'd go to the exchange desk, but that's never happened.

If someday the ATMs are all out of service and the exchange desks all have long lines, then at that point I will probably say "I guess I've learned my lesson. I should have driven all over town looking for a bank branch that will sell me euros at inflated rates, instead of standing in line at the airport for 20 minutes."

I'm like cheryllj. I have gone on 13 European trips in the last 6 years and have never exchanged Euros or Pounds beforehand. Sure, sometimes I have some leftover euros or pounds from the trip before, but I have never had a problem NOT finding a working ATM on arrival (be it airport or train station). In fact, I NEVER call my bank beforehand to alert them of my overseas trip, and I have yet to have my card frozen.

I guess I've been lucky, and perhaps some day my luck will run out and I will "learn my leason" as well. In any case, I always bring a few hundred USD with me, so worse come to wosre, I'll go to an exchange booth to get money, but that hasn't been necessary yet.

Sure, if I'm expected to hand over €1000 for an apt rental upon arrival, I will get the money in the US beforehand.

What if the place you're traveling to doesn't use Euros? I recently went to Hungary, and would you have gone to your bank to get Hungarian forints beforehand? I don't think any regular branch carries forints... so that may mean a trip into the downtown branch to get it. With all that hassle, I'd rather take my chances and wait until I get there. For the record, we had no trouble finding and using the many ATMs in Budapest (including at least one at the Keleti station).

I have made many trips to Europe with my Schwab Investor Checking debit card. Here is my direct experience:

0% ForEx (currency exchange markup)
0% Visa International Service Assessment
$0 ATM withdrawal fee (any bank fees are rebated)
$0 Annual fee

I verify these facts each time I return using xe.com/ccc

I think the cousin story was just an example of why I may need Euros, I really dont think the "idiot" comment was necessary.

Like I stated earlier, we've spent 2 months traveling in Europe every year starting in '99 (mostly France). Before '99, we spent 3-4 weeks vacationing there, starting in '77 (we're old). The stories I mentioned really happened - I'm not making them up. Why in the world would anyone risk starting a vacation on a downer by not having access to cash when they arrive in France - just to save maybe $5-10 by waiting for a better exchange rate in France???? That's stupid.

My cousin (actually my real cousin's husband) is one of the smartest and most successful businessman I know. Why is he an idiot because he did the same thing you are proposing????? I guess that makes you an idiot too??? He was not aware that his Credit Card would not work on the Toll roads just out of Nice. Not sure he even knew there were toll roads there. Does katiem know that there are toll roads in France and that US credit cards might not work to pay the toll. Does anyone positively know if there is a working ATM machine at the Nice Airport??? An exchange office isn't any benefit - because you'll let lousier rates than you would at the BofA at home!!!

The ATM strike lasted for several weeks. There was NO CASH at most ATMs, Banks, Post Offices, Rip-off exchange offices, etc - unless you wanted to spend the day driving/walking around, waiting in lines, and looking for ones that have cash when you finally reach the front of the line. Remember - unions in France respect each other, and if people who deliver cash to the ATMs go on strike - so might the people who deliver cash to other providers.

>>I guess I've been lucky, and perhaps some day my luck will run out and I will "learn my leason" as well.<<

Yep - and is saving $5-10 worth the hardships if you can't pay for a cab, can't pay a toll at a toll road, can't pay for admission to a castle, etc. How paniced would you be if you had zero Euros and couldn't even obtain Euros easily within a couple of days.

>>In any case, I always bring a few hundred USD with me, so worse come to wosre, I'll go to an exchange booth to get money, but that hasn't been necessary yet.<<

It would have been necessary in June of '02 (it might have been a year either way) - and USD would not have done you any good because there were no Euros/Francs available at the exchange booths.

Be prepared !!!!!

Stu Dudley

4400€ isn't a lot of money. I'd just have that in cash in my pockets. :-). Cash is always preferred.

Stu, I didn't say you made things up. I believe every situation you described. It's just different strokes for different folks. What works for you, works for you. What works for me, works for me, so far at least. As I said, when it happens to me in the future, I will change my ways.

As for the ATM strike that went on for weeks, I'm not sure how bringing Euros with me would have made a difference, unless I bring thousands of Euros with me from the US to last me for several weeks.

And it's not just extra $5-10 fee I'm talking about, but the time and effort to go to a bank (during operating hours) to get the currency exchange. When I was working 10 to 12 hours a day, 10 days in a row before my trips, I simply didn't have the luxury to take time off to get this done.

My only advice is to remember to have fun. Don't get all caught up in the tangle of "this card charges 2%, but if I hit the ATM it only works out to 1.5%". Pay attention to money and fees, but remember that you're there to have fun and see a different country and don't get too frazzled about So-and-So said to do it this way, but Whats-his-face said to do it this way and it's a whopping 1% difference. It all ends up as what works best for you.

Personally, I put most everything on my credit card and pay it off when I get home. I use the airport ATM for cash when I get there and try to estimate what I'll need for the first week. I don't like to carry a large amount of cash and don't want to hit ATM's all the time. It's what works best for ME, but not necessarily for others.

You'll learn different tricks along the way. You'll do things on your first trip that on your next trip you'll know a better/easier way to do. Remember to have fun :)

Right on Stu.

It's interesting how bold and extremely rude people can be when they don't have to do it to your face. The woman who started this rant about 9 posts ago, does that throughout the forum and has for years. Now it seems she has company.

Don't take the bait because that's all it is.

Stu: I'm sorry about the "idiot" comment -- I didn't mean it literally, I was being facetious.

But I do agree with Christina that it's sort of a dumb thing to get in a rental car and drive off with no cash in your pocket, and that's true in any city, foreign or domestic. Not just tolls, but food, taxis -- you need cash for all sorts of things and one should never depend on carrying a credit card for minor expenses. I think that was poor planning on your cousin's part and it's a good lesson for everyone in that respect.

I personally have never needed euros in advance, but the main issue for me (like yk) is HASSLE, not expense. I'd have to take off work and schlep a good ways to buy euros in the US -- it's not worth the time, money or hassle to me, but I understand that the security of having euros on hand is worth it to other people and that's fine for them. I will continue to live life on the edge! ;)

I have never had a problem getting cash from ATMs in Western Europe — except for the time we landed in Vienna from Atlanta on a Sunday. The ATMs would not accept my card, even though I had notified the bank well in advance. Everything worked fine the next morning and for the remainder of the trip, but some banks seem to have a problem making that first connection on a Sunday. We spent a hectic day trying to come up with enough cash to buy food, but we survived. Just to be sure, I now try to have some euros with me before I leave the states even though I am taking a loss on the exchange.

Living life on the edge... Someone asked me, if I could change a 50€ bill. I couldn't, Actually, I never carry more than 2€ to 5€ in my wallet. Use an ATM to get a 20€ bill, spend bill, repeat as often as needed. If you're lazy get more money in one session from ATM. If you're super lazy, carry a few 1000€ with you, who cares :-)