A lot of travel experts don't know much about money. However, I think he was right that your local bank will cost less than an exchange booth within the airport on arrival. They are often about 10-12 pct in airports, and in the US, I don't think banks usually charge that much markup. They may, but I think that's pretty true.

However, an exchange booth within the city would be less and often can be less than a US bank.

A lot of people do stupid things and then generalize that there is no other way, and I bet that's what he did. He probably didn't even know the correct exchange rate, didn't shop around, maybe did it at the airport, and somehow is such a dumb traveler he doesn't know about ATMs. Paris is actually one of the cities where exchange bureaux give pretty competitive rates and the fees aren't that bad. YOu have to do something really dumb like exchange at some place that is the epitome of tourist rip-off, like at Place du Tertre. They have very high rates there. I think they are pretty high at some chain in St Germain around rue de Buci, also. But I have a place where I can exchange in Paris at interbank plus 2-3 pct.

Paying 4 pct as MichelParis does is pretty good.

No, Zeus, I'm not tired when I land. If I'm headed to the Dordogne I usually have another 6 or more hours of travel ahead of me, and then I go to the grocery store, make myself a nice supper, take a bath, build a fire, and read until 11 pm or so. If I'm headed elsewhere I go to my hotel, unpack, get out on the streets and enjoy myself until about 9-10 pm and am asleep at 11.

It's not a matter of being tired (and even if I were, what's it matter to you?). It's a matter of not wanting to take the extra 10 minutes to locate a machine, fumble around with ATM card while watching my purse and luggage, take the chance the machine will be out of service (it's happened to me in two countries) or that there will be long lines (also has happened to me).

And for people traveling with small children, as I did for many years, it's even more of a hassle.

And as I said, it's a moot point because I always land with plenty of euros in my pocket.

alanRow. Yes, for some, 250 pounds, $500 is a significant amount of money to have sitting around. Me, I'm retired and like a lot of my things, they are just sitting around.
No, really, it is nice when living in a rural area with no local bank it is nice to have foreign cash...one less thing to be concerned with. Now, having said all of that, I did the same thing when I was younger.

According to http://www.oanda.com/convert/fxhistory?lang=en, the interbank rate would have been 730-740€

My point to my post, and maybe I didn't make it clear: when in Paris this April the rate charged to me on an ATM withdrawal was $1.34 for 1 euro. When I checked my conversion widget back then that was the rate. When checking my conversion widget today it shows $1.42 for 1 euro. So my bank, Commerce, made the same conversion as my coversion widget shows.

So obviously an ATM withdrawal and the subsequent charge from Commerce is not the interbank rate. So what rate was/is it?

.....Changing $100 to foreign currency at the departing airport will cost <$5 compared to an ATM in Europe........

Always love this direct statements ---- as if absolute fact.

My experience was a good deal different. I always like hittng the airport with some local currency in my pocket. Had to be in London mid September so bought a 100# from the currency exchange in the Denver airport. Paid $2.22 for the pounds PLUS a $5 fee because it was a small amount. I paid nearly $20 more than I paid later for using an ATM in London. I knew it would be expensive -- cost of doing business -- but much more than the above statement suggested I should pay.

I haven't taken foreign currency to Europe the last few trips - just my ATM card, credit cards, and some US cash I can change in a pinch if I must. My ATM has worked every trip to Europe so I see no reason to change strategies now. This last trip to Italy, I zipped through Rome airport immigration and customs so quickly upon arrival that I was at the train station before I realized I didn't have any Euros. The ATM right at the train station didn't accept my ATM card (which worked everywhere else later) so I just paid for my train ticket with a credit card and got Euros at Termini in Rome.

I wound up bringing home only about 2.5 Euros. But the way the US Dollar has been falling lately, bringing back a lot of Euros might not be a terrible investment.

As I have posted before, I'm lucky enough to have a currency exchange place that charges 2% over the interbank rate with no extra fees, which is better than my ATM. So I always get some money before I go.

All it takes is one instance of one's ATM card inexplicably failing (as has happened to me) to make you want to arrive with some advance currency.

We always hold back about 50eu for the next trip.

I also take my American Express card. I've never had to do it, but they will arrange emergency cash if necessary.

WillTravel, where is that? I have never seen an exchange that low -- anywhere. Lets have your secret place.

The currency exchange place is here (in Vancouver):
http://www.vbce.info/

On the page, the rates are based on CAD.

Ira - you said "Changing $100 to foreign currency at the departing airport will cost <$5 compared to an ATM in Europe." Can you get that currency from an ATM at the departing airport or do you have to use an exchange booth (or whatever they're called)?

I just got euros from my local bank. They just had to automatically withdraw the money from my checking account to do so. I received the actual current rate of exchange posted in the WSJ that day, and the fee was $10 if I got less than $1000 worth. It was very convenient for incidentals when we first arrived.

I did run into the problem of my ATM card not working in a bank machine in Italy, fortunately DH brought along his card from a different account.

Generally an ATM will give cash only in local currency. A USA ATM will only give dollars.

Well i for one would not feel comfortable carrying around $1000 or such in currency on my trip.

my ATM cards have never not worked in say 15 years of using them

be sure your magentic strip is not worn as machines in europe may be more sensitive than at home

and carry as many cards as you can

another reason for not needing loads of cash carried around is that credit cards also get a great rate of exchange minus an up to 3% of the total charge.

>>Well i for one would not feel comfortable carrying around $1000 or such in currency on my trip.<<

We didn't either. My wife carried $500 in a money belt and I carried $500. That's the only time we've ever used money belts. The day we landed there was an ATM strike that had been going on for about a week, and we owed our Gite owner about $800 in rental fees & security deposit - in cash.

Not too many options!!

Stu Dudley

Stu - i agree in that situation - i was talking about carrying all your trip funds for dicey places like Barcelona, Madrid, Rome, etc. around for weeks - i'd probably not be robbed but would cause me undue concern

but your case i understand

and as for getting euros here it seems there are banks that pay a decent rate, which in my town, a fairly sizeable university town with many foreign students, just does not exist - no banks here and i've called change any money except Canadian and only travel agencies who charge high fees and give lower rates.

so if you know what you are getting it seems fine.

We just went to South Africa, and used the ATM in the airport, then bought something little just to get change. Just like we always do, and will continue to do.

An ATM strike? More info, I'm curious.

The people who deliver cash to the ATMs were getting robbed at an increasing rate. They wanted the French Government to provide more security - so they stopped delivering cash for about 10 days. This was late May or early June of either 2000 or 2003.

Stu Dudley

Stu - in that case could you go into a bank and use your ATM card to get money? Just like at ATM?