Cash, Traveler's checks or c.c.
 

Dear Fellow Travelers,
I have been saving cash for about 4 years to get back to Italy. With the Euro being so strong against the dollar; should I exchange it for Euro's here or exchange it for Traveler's checks? Also, I have a VISA but not an ATM (I have never needed one). Can a Credit card do the same transactions in Europe. Forgive this stupidity but I'm so unclear at this point.
Thanks again!

Now you do need an ATM card. Take that cash to a bank and open a checking account. You will always get the best rate of excange by withdrawing Euro from an ATM (about 1% over the official rate). Any transaction involving the exchange of one currency for another (or trav checks) will cost at least 5% over the official rate.

Use "ATM" as a search term to read zillions of messages on this topic. The consensus of these experienced travelers is ATMs.

NO to exchanging money before you travel OR traveller's cheques. Get an ATM card, and use both cash machines and visa on your trip - this way you'll get the best rates for your money. It's also a heck of a lot more convenient.

Credit cards are accepted widely, but you might want to check with smaller hotels and small restaurants, as occasionally you may find one that prefers cash.

Oops, I sent too soon. To continue . . .
Credit cards are widely accepted, but you will still need some cash, and ATMs are the cheapest and easiest way to get it.

Hi Cinzia,

I suggest that you open a checking account and put your travel money into it.

Get an ATM card to go with the account.

Bring this and a credit card with you.

Charge everything you can and use the ATM for cash.

This way you will get the best exchange rate.

TCs are useful only as an emergency reserve.

Do NOT use a CC to get cash from an ATM. It is a "cash advance" and you are charged interest.

Do exactly as kayd says!!!

Use your credit card for purchases, pay for hotel/rental car, meals, and major purchases. Use the debit card for getting and using cash. It will cost you a big transaction fee to exchange your travelers checks, plus you get a crapy exchange rate.

Take a few dollars or travelers checks only for emergencies. ((b))

Cinzia~ Most people agree an ATM card is a necessily for travel these days and I'd encourage you to get one.

I play it safe with this combination: $3-400 U.S. cash in 20's to change into local currency at a bank once I arrive; an ATM card with a 4-digit pin to withdraw from my checking account (usually the only charge is the international fee from your home bank, typically $0-3US) every few days; a credit card for the hotel bill and possibly expensive meals or a splurge purchase; and, travelers checks only if I'm traveling for a long time or need them for a hotel that won't accept credit cards.

Do not use a credit card in an ATM unless it's an emergency, as already mentioned it will be charged as a cash advance, which is an expensive way to get funds.

As you have heard from all posters above, open a checking account and get an ATM card. Charge everything you can and use ATMs for needed cash. I seldom take more cash in local currency than that amount necessary to get from the airport to our hotel in case there is a long line at the airport ATM. I feel quite certain we haven't bought travelers checks for 20 years.

Thank you all. I am much clearer now and am on my way to get an ATM card!

And just as a final "fail safe" you might get a PIN for your credit card just on the off chance that your ATM doesn't work sometime. The post that said NOT to use a CC for cash is correct--it is a "loan" and incurs interest immediately. But in a total emergency that is preferable to being stranded.
If your ATM doesn't work at some point don't panic. It may be when the banks are reconciling in the US--or any of another myriad things. Go to another ATM and try again.

I definitely have a pin for my credit card, and I use it frequently, especially if I don't want to drain out my checking account. It depends upon your own particular situation.

Yes, you accrue interest the day you take the cash advance, but if it's your intention, like mine, to pay it off when the statement comes in, the interest accrued is minimal.

For example, on a 12% annual rate credit card (which is high in this day & age), you take a $300 cash advance and pay it off in 30 days (when you get your statement), it will only cost you $3.00 or 1% -- That's about the same some on this board say is the transaction fee for use of their credit card. My M/C doesn't have a transaction fee.

I'm not advocating that credit cards are the best way to get cash, but it is an inexpensive option should you desire to chose it and pay off the balance right away. ((b))

Hi all, I know this topic as been talked to death, but as usual, i just need some confirmation that what I'm understanding is correct (I know, I'm an idiot) So... do not bring TC b/c they charge you a lot more to exchange them...but aren't traveler's cheques accepted as cash? Therefore no need to exchage at banks? Also, can't you get TC's in Euros instead of $$? So then you would not need to cash them?? The reason why I'm asking is b/c my bank (Fleet/BOA) will charge me $5 every time I take cash out of an ATM machine that isn't theirs. I will def. be using my CC also, but I know that a lot of places don't accept them (like rinky-dink hotels) so I will need cash.... Can anyone explain this to me? Thanks for putting up w/the annoying questions! :)

Aduren: No, TC's are not always accepted as cash. TC's in US$ are worthless except when you exchange them at a bank or exchange counter, and then they charge huge fees. TC's in euros aren't much better. I was in Spain in January and a few people in my group had bought TC's in euros. They said it was a complete waste because they had such a hard time cashing them that they ended up doing it at banks and paying fees. Stick to the advice about ATM's. I still bring a few hundred in US$ TC's as a back-up in case something weird happens w/my ATM card, but I am beginning to wonder why because I never use them.

ira, Budman, I and several others have "slaughtered this horse" scores of times in the previous 3 or so weeks.
Please, please, please read those!
What is it about ATM for cash and low/no cost CCs for other expenses that you "don't get" or "simply refuse to accept"?
We're trying to save you some USDs in today's mostly expensive travel world for we paying with USDs.
M
Also, be sure to check your CC receipts overseas - pay only in stated local currency: not USDs - the "foreign" bank may attempt to convert your bill to USDs (read the small print @ the bottom of the statement you sign) and you'll get screwed on the exchange rates if you sign same.

sorry! let me clarify - I read that TCs are of the past and ATMs are of today. But if I"m getting charged $5 every time I go withdraw money from an ATM by my own bank, I'm either going to have to withdraw a LOT of money and carry about hundreds of euros and hope I don't get robbed, or take the Traveler's cheques to the bank and exchange them for what might be about the same cost - factoring in that if I lose them it's not as big of a deal. As far as the other questions, I was trying to understand why there would be a need to exchange the TC's when they are already in Euros...

Ooops, I missed PM's reply! Exactly what I was looking for, just some confirmation.. Thank you!!

I'm happy to help, aduren. May I offer another word of advice? $5 per w/d seems excessive. When I use another bank's ATM, my bank gives me 2 free w/d's per month, then charges me $2 per w/d after that. You might want to shop around for better deal. If you don't want to move all of your accounts, maybe open an account for use while travelling.

aduren, if you are being charged $5 for every ATM transation, get another bank. You are getting screwed!!!

Here in the States, my bank doesn't charge me anything to use the ATM at another bank. I only have to pay the $1 or so to the ATM's bank that I use.

There are banks where you pay nothing. ((b))

USAA Fed'l Savings Bank has 10 free (actually rebated) ATM W/Ds a month.
Bank One charges $1.25 per.
It's alway best to get the max cash you'll need in a single transaction.
M

I just found out that my other bank only charges $1.50 for transactions. I think Bank of AMerica charges $5 b/c there are *supposed* to be tons of BOA atm machines in Europe (anyone run across any?)

I use B of A and I have never seen any of their machines in Europe, but they do have partner banks there so you can use those machines for free and you will get an even better exchange. Those partner banks in Europe are Barclays, Deustche Bank, and BNP Paribas. If you travel Canada, their partner is Scotiabank and in Australia/NZ their partner is Westpac.

When I was in Spain earlier this year I was surprised to find Barclay's ATM's there because I thought Barclay's was only in the UK. I used those machines and was charged no fees.

Correction from my prior post--the charge is $1.50 per w/d after the 2 freebies, unless I use a partner bank, then it's free.

My comments re: USAA and Bank One referred to overseas ATM w/d's.
If your ATM is in the "Plus, Pulse, Star, etc." systems "all" overseas ATMs will accept it.
You must have a four digit PIN!!!!!
M

Sorry, I failed to specifically answer your question--if Bank of America charged $5 per w/d, I would have moved my accounts years ago. However, they are located in so many states that fees may vary from one state to another.

As everyone else said you want to get your cash at an ATM not by using traveler's checks. If you don't have a an ATM debit card and don't want to get one you can go to AAA and get a Visa Travelcard. You load money onto the card in advance and then draw off of it at any Visa ATM (these are everywhere in Italy). They are good only at ATMs, not for purchases and if someone got your card and PIN number your loss would be limited to the balance on the card. We used one last year in Italy for the first time and it worked great. I didn't have an ATM card and have no use for one so this worked out great.

BoulderCO, just out of curiousity, how much did AAA charge for this service? ((b))

Budman

I don't recall what they charged but I don't think it was a whole lot. I am going to get another card in a couple weeks for our trip to Italy. It may not be the cheapest approach but for people like me that don't have an ATM card and don't want one it seems like a pretty good way to go.

My 2 daughters and I each took our ATM card on our recent U.K. trip. We only used mine but had theirs as emergency backups. What I didn't realize was that the card is hooked to one's chequing account, so I had put all my travel money into the savings account! Fortunately, my husband was at home and able to deal with this for me. Also found that some ATMs state that they do not issue receipts so you must record this info somewhere for future reconciliation. Only took VISA as car rental agreement required production of credit card that had made the reservation, but did end up using it for restaurants and things when cash running low and I was too lazy to find an ATM.

I have not tried them myselves, but from reading posts here on Fodors was warned that the pre-loaded travel cards have very hefty fees associated and are not as widely accepted as an ATM card.

You could open an ATM account (yes the money needs to be in checking not savings portion of it) just for your trip and close it when you return.

I do carry travelers checks in my own currency as backup and I know where to get good rates in many countries. I would never buy them in euro, however. You still have to pay a fee to cash them at many places, even when in euro. They are not cash, they are checks. Besides, many people don't understand the fee they pay to get them in euro (at least at any place I've seen doing that, they charge about 10 pct or so to make them in euro).

In Paris, there is only one B of A I know of any more, on the Champs-Elysees.

Budman has an unusual credit card if it charges no transaction fee for cash advances, and only about 1 pct interest in a month. A lot of cards charge a flat fee just for doing that (eg, a minimum of $5 or 2-3 pct of the amount, whichever is more) in addition to the interest, which can be about double the normal card's interest rate. I thought all credit card's charged a transaction fee for that.

I think some people assume there is no fee for cashing travelers checks because there generally isn't in the US, if they are in USD. That's how I use any leftovers I have -- I easily can use them to pay for groceries, etc., and there is no fee here.

Those prepaid $ travel cards do have hefty fees for them. I read the fees from AAA and they are quite high (didn't used to be as bad a year or more ago, though, they've raised them).

I don't know why someone wouldn't need or want an ATM card. They don't cost anything to have at any bank I know of -- if you don't want to use it at home for some reason, leave it at home in a safe place. I wouldn't be able to function very well at home without one as my paycheck is direct deposit and it's not convenient to get to the bank for cash during weekday hours (impossible for me).

These are the fees for the AAA Travel Money Card (it's ridiculous):

No annual fee
The minimum card load is $250, the maximum card load amount is $2,999 and account balance is $9,999.99
Card purchase fee of $4.95 for AAA members
A second card can be taken for a fee of $2.00 (1 only)
Card life up to 24 months
A optional monthly statement can be ordered for $0.50 per month
Online balance inquiries are free at www.aaa.com/prepaidcards
Inquiries by phone are $0.50
Monthly maintenance fee of $1.25 after 12 months of inactivity
Card cash out fee is $15.00
Cash advance fee (in-bank) $10, $350 limit per advance
ATM withdrawal fee: Domestic: $2.50 International: $2.00
Reload fee: Free (maximum of 3 reloads per card life)

Christina, nothing unusual. I have a USAA Plat M/C, and they don't charge any fees for use or cash advance. M/C itself charges a 1% transaction fee.

You are right, the interest rates are a bit higher for a cash advance. Mine is 6% on normal credit card balances, and 7.25% on cash advances. That's still just a tad over 1/2 % per month if I pay it off when I get my bill when I return. On a $300 cash advance, that is just a little over $1.50, which from what others have been saying, just their transaction fees and ATM fees are much more. ((b))

I have a stupid question:

I have been using a Visa Check-card - but on my last trip (to Vancouver) I discovered I was charged (by Visa)a "International Currency Exchange" on every transaction. (even ATM withdraws) ... would it be better for me to go to my bank and ask for an ATM card and then use that to get cash (and pay for everything with cash) ... I don't have a credit card anymore. (and having one is not an option)

A Visa check card is an ATM card. You can use it as a VISA and the funds come out of your checking account. You can use it as an ATM with a 4-digit pin, and the funds come out of your checking account.

Looks like your bank is ripping you off with fees. ((b))

An ATM card is only an ATM card; a Check Card is an ATM card + POS (point of sale not requiring a PIN#).

AAA sells travellers checks in Euros. Ny personal experience was that I was charged a fee by one bank to cash them, many stores refused to accept them, and some banks in Ireland would not cash them because I did not have an account with them!

How come no bank or such ever defends itself on this site? AX is a consumer friendly service. And it charges for its services! Major cities in Europe all have AX offices. ATMs and such are for the economy minded. Currency systems are changing. In a few years travellers will have an inplanted device that can only be activated by the owner. Owners will deposit funds into it. A business will scan it and debit the account.

I called my bank (Fleet/Bank of AMerica) and like P M said earlier, you can use Deustche bank and BNP and not get charged, but there are - literally -about 15 other banks in France, Switzerland, and Italy that will not charge you for using your bank of america debit card at their ATM's. I made the woman research it for me and give me the name of every bank. So go get a Fleet or Bank of america card and you won't have to worry about paying anything! (except the obvious)

Ok, maybe someone wasn't understanding what I was asking. Of course I know what a Check Card is. I have been using it for quite a few years! I know it is an ATM card ("check" meaning checking account) ... The problem is because Visa is associated with it, I am now getting fees from Visa NOT my Bank. Visa is charging me a currency exchange fee ... believe me, I already had words with my bank after I got my statement from my Vancouver trip. (It was very unexpected)

So, I answered my own question, I will just ask for a regular ATM card and talk with customer Service at my bank and see what-if any- the fees are for using it in Europe. I can always open a "vacation only" checking account at another bank if need be.

Golly....people just never get it but here goes...

1. Visa has and always has had a currency exchange fee. It is 1% above the interbank rate. It is not a new fee. The interbank rate is the official rate published in newspapers and is the rate used by large banks in exchanging millions and millions of dollars each day. The interbank rate is not available to the general public.

2. When you exchange cash, you never get the interbank rate. You pay about 8 to 10% above the interbank rate.

So if the UK£1 = US$1.80, if you do it with a visa card you pay $1.818 for £1. If you exchange cash, it costs you about $1.92 for £1.

It is hard to compare different rates as different fees might be applied depending on whether you are exchanging TC's or cash etc. There are also some good exchange booths found at say Marks & Spencer which might go down as low as $1.86 still far more than Visa charges.

3. Visa and MC control the largest shared teller networks called respectively Plus and Cirrus. Thus when using ATM's you will incur the 1% fee noted above. This is nothing new.

Now this is where it gets dicey and confusing.

4. Some banks now impose their own currency exchange fees on top of the 1% fee. This is almost criminal as they have nothing to do with the exchange. It is just an obnoxeous fee that they feel consumers won't rebel against. They also lie through their noses as to just who is imposing the fee. Sometimes they list the fee separately on statements, sometimes it is buried in the exchange rate. That is why some fools will write things like Citibank doesn't charge any extra fees; it sure as hell does. It adds 2% but just doesn't tell you.

4. Some banks even charge you an additional fee for having the audacity to want your money from another bank's ATM. These fees range from the proper fee of $0 to as much as $3 or $5.

5. This is unclear. It is my understanding that Plus and Cirrus regulations prohibit the bank who owns the ATM from imposing a further fee on foreign i.e. out of country transactions. Others claim the machines in convenience stores in the UK do exert an additional fee like they charge you £51.50 and give you only £50. That info has to be checked out.

5. Finally a debit card with a visa logo is not a visa credit card. To the merchant it is as it clears through the visa system; but on your end it is a withdrawal from your chequing account. You do not receive any credit. It is a very dangerous card to use this way for reasons that have been described in other threads.

So, the best way to handle it is the following:

1. Use a credit card issued by a bank that doesn't impose the additional 2% fee (such as USAA, MBNA or Capital One) for all purchases no matter how small.

2. Supplement that with withdrawals from ATM's using a bank that does not impose any additional fees for accessing your money.

3. If absolutely necessary, you can use a debit card in lieu of #1 but be aware of the dangers inherent in its use.

TC's in this day and age are nearly worthless. Bring some US cash just in case the ATM's are down but realize that every time you exchange cash, you are losing 5 or 6% at the least.

Finally do not fall for the con of some merchants telling you they will save you the visa exchange charge by writing up the charge in USD and show you how much better their rate is than the rate at the currency exchange places. It is a growing scam; especially in Ireland. Insist, knowing you are using a credit card from a bank not pulling this 2% garbage, the charge be written in local currency and allow the international exchange system to use the interbank rate + 1% to save you money.

Hope this 100% correct information helps you realize the proper way to do things.

xyz123,

At first I thought you were talking to me ... but I don't think so because you talked about things that I never asked about. Regardless if you were talking to me or not, why would you have to be so rude? You gave wonderful explanations of everything - why would you feel it is necessary to start of such a nice and imformative post with an insult to people's intelligence?

This is a very touchy subject with me because I used to be very intelligent. I mean literally - I had a very high IQ - but ever since I became ill (fibromyalgia), it has deeply affected my brain and I am the first to admit that I am no where even remotely close to being as sharp as I used to be. (and that is very difficult to live with!)

But if I come on this message board to ask a question that is confusing to me, what gives someone the right to call me stupid?