Converting to Euros?
 

I'm trying to get a little money converted before we go to Paris. The bank said they will use the daily conversion and then add $3 service fee onto it. Should we just get enough to cover food and transportation once we get there?

When we convert in Paris itself, do they just go by the daily conversion or do they add fees also? Is the best way to get euros in France by going to an ATM machine and just get Euros out of them?

Thanks!

"<i>the daily conversion . . .</i>" Yes, their daily conversion rate -- but exactly what is it. I have yet to see a bank that offers the official exchange rate plus just $3. My guess is they are charging their own "special" daily rate ;)

That actually sounds more like what they'll charge for your ATM transactions in Paris.

If you want - just for peace of mind - you can get maybe €50 or €100 from your bank and then use you ATM card in France . . . .

ATM's are the best way to get money. You can get euros at the ATM when you arrive in Paris. If you feel the need, get enough euros to cover your transport to your hotel/apartment. Check with your bank/cc's regarding daily withdrawal limits and any fees they may charge. Don't forget to let your bank and cc companies know when you are travelling.

Agree...that sounds too low for a bank conversion. I used to get 100 euros before going, but the conversion rates stink. Now I just wait til I get over the pond.

Have you looked into a credit union? I joined one before our last trip and there were no ATM or foreign transaction fees...considerable savings. I think their conversion rate was favorable also.

ATMs have now become ubiquitous, so no need to worry that you will not find a machine. I usually carry more than one ATM card, but have found that if one bank does not accept my main card the next one will.
I have a local currency exchange chain that I've used to get my "landing money" in case I'm zonked when I land (jet lag for example).
Also, as you have found, all currency transactions have two components...exchange rate and fees. You will see exchange bureaus that say "no fees", but that's only half a story.
ATM rates are quite competitive, but my bank does not charge a per withdrawal fee.

My rule of thumb is CCs only for large items, cash for rest.

Or get a Cap One account -- no ATM or Forex fees there either. Straight interbank rate.

And even CDG, as cruddy of an airport as it is, has ATMs in the terminal.

Most banks in the US I've heard about add on 7 pct to get what is their bank's conversion rate.

If you want any in advance, I wouldn't get any to cover food, only transportation.

We take a couple hundred in US$ as a backup, but otherwise just get money out of the ATM. I figure that if the airport ATMs don't accept our cards when we land, we can use the currency exchange booth to change a bit of money until we find another ATM.

<<Is the best way to get euros in France by going to an ATM machine and just get Euros out of them?>>

Normally, YES. But you need to understand you own home banks fees on international transactions.

Thanks for ALL your input. I thought it was too good to be true that I would get the true conversion rate plus $3. IF that is the case, I will just exchange enough to get us to our apt and then do the rest there. Good to know there are many ATM's there.

My ATM card has NYCE, pulse, Master Card and STar on the back. The bank said make sure the ATM machines have those on there too. Will I be able to find these in Paris?

>>Will I be able to find these in Paris?<<

yes - all over. (assume you mean "Plus" and not "pulse")

Master Card is everywhere so no worries. Avoid where possible exchange booths as they are pricey usually, especially in Paris. Usually banks charge a percentage of total, say 1.5% with a minimum and max fee and rate varies each day and will almost certainly not reflect up to the minute rate. I find the rate is usually about 100 ponts off real rate! Ask your own cc company what their charges are for ATM usage abroad and be sure to let them know when you will be abroad.
Bon voyage!

It is not necessary to "convert" any money before you go. If you want you can convert enough to get you to your hotel. But to get the best rates you should charge everything you can to your credit cards and pull walking around money from an ATM.

I'm sure your bank will charge youa $3 fee plus convert the money at their usual rate of exchange - which is 8 to 10% worse that the Interbank rate. If you use credit cards of ATM you typically pay 1 to 3% (dpending on card issuer) higher than the Interbank rate (the rate that banks use among themselves for currency transactions in the millions).

If you want to change $100 or so - just do it at the bureau de change at your departure airport. the rate won;t be any wore than at your bak and it will be less trouble. (And pull some cash from the ATM as soon as you get to Paris.)

Rule of Thumb: NEVER, EVER put a credit card into an ATM is there is any alternative whatsoever. Taking a cash advance on a CC is tantamount to a loan at whatever usurous rate the bank charges, with a fee up front and the interest accruing from the date of the withdrawal. My rules:

CC for hotel, train, plane, works of art
DC to get cash from ATMs for everything else
Check transactions at xe.com/ccc when I get home

is -> if

I'd be surprised if you found ANY machine in Paris (and they are just about on every block) that did NOT take your card.

Wow, lots of info. Thanks! I did ask my bank about the fees and they said I have to bring in my card and they can tell me. Thanks for sharing your vast knowledge.

My ATM card does say pulse, strangely enough.

Anyway, as long as it says MasterCard, that is enough. Every single ATM in France takes both MasterCard and Visa.

Make sure to notify your bank that you'll be using your card overseas; some banks/credit unions actually have "blocks" on ATM usage in certain countries, thus, disallowing you to make ATM withdawals. Speaking of credit cards, make sure to charge in the local currency--do not allow vendors to convert charges into USD (it'll cost you more.)
Safe travels

<i>My ATM card does say pulse, strangely enough.</i>

Not strange at all. Pulse and Cirrus are for ATM transactions what Visa and MC are for credit card transactions - networks authorizing and executing the requests.

Like Visa/MC, Pulse/Cirrus charge a 1% fee on all transactions they process. What your bank may charge you for out-of-network withdrawals is another matter and worth the effort (sometimes a sizable effort) to find someone at your bank who can knowledgeably explain the fees.

Thanks again for the additional info. I'm off to the bank to inquire.

wordteacher,
I need to tell each place I shop that i wat to charge in the local currency? I thought they would do this automatically. Good to know. THx.

Thanks for clearing up the pulse Sarastro!

Ok, I went to the bank to get some Euros. Today's conversion rate is 1.413. I asked the bank what their conversion was? They said 1.51130. So, you're right, their rate is different. Not as bad as I thought it might be though.

Robespierre, what is DC in your reply,
"DC to get cash from ATMs for everything else"

Now to try to find out what the fees will be when I use the ATM in France-was kinda like pulling teeth. I talked to 3 people and this is the best info I got:

Using an ATM will cost 2% foreign currency fee, then some might charge a 0.2% cross the borders fee plus what the Paris ATM machine will charge.

Can you tell me what the Paris ATM machine charges for using it with an ATM card from the US? They had no clue.

They said if I use it as a debit card, there would be a 0.8% fee+ 2 % currency fee. That actually is less than Visa and MC which charge 3%.

I was allowed to pick my amount I'm allowed to withdraw daily and also to charge as a debit. But then you have to consider if you lose the card, anyone could go charge happy with it. So it's a double edged sword. They said if you don't tell them you lost the card within 2 days of when you lose it, you are liable for the entire amount they charged on the card. Sometimes you might lose one of your cards and just not be aware of it for 2 days I would think.

DC = debit card (your ATM card)

"<i>Using an ATM will cost 2% foreign currency fee, then some might charge a 0.2% cross the borders fee plus what the Paris ATM machine will charge. </i>"

As usual - your bank staff knows nothing. The ATM in Paris will not charge you anything -- the ONLY added costs are added by mc/your bank. A "cross the borders fee" - I suspect they are making that up.

I basically would not rely on much of anything they said since US banks seldom know what they are talking about when it comes to foreign currency . . . . .

DC = debit card.

Your bank will be the one charging you ATM fees. My ATM card is from a credit union and gives me the interbank rank (the 1.41 you mentioned above as shown on sites such as xe or oanda) as does my credit card (also from the credit union).

Re: credit cards: Visa and Mastercard charge 1%, not 3%. A few banks, like Capital One, eat that charge. Most credit unions pass it on but charge no more. Most banks charge an additional 2% or so.

And, as Janisj says, in general the personnel working at your local branch have no idea about what is charged on overseas purchases.

Simplest solution....credit cards for most everything. Personally have never understood this only charge large items on a credit card bit.....more and more places in Paris take credit cards, no questions asked.

Used my credit card to buy a single ticket from zone 1 to zone 3 on the RER (€2.30), no questions asked. Used it at McDonald's (sorry guys, sometimes you just want to eat something in a hurry and don't have the time to plop down for a meal and an hour and a half to eat)....no questions asked. When we stopped at the autogrills or whatever on the motorways, used the credit cards for goodies.

Then as necessary to replenish the cash, use the ATM's.

Be aware different banks have different policies regarding fees but in 99.9% of the cases, no matter what the fees the credit card companies charge, you'll do far better than exchanging cash whether it be at home or in Paris.

You are absolutely right that the banks just don't know about what goes on outside the US.

Ohhhh DC= debit card. Of course, duh. My bad. Thanks for the clarification. I thought of Discover Card right off the bat. BTW, Discover Card said they are accepted in France wherever Diner's Club is accepted.

As for Visa and MC, i called both of mine and they both said 3%. So, Mimar you are saying MC and Visa charge 1% but the banks charge an additional 2%?

The networks charge a 1% International Service Assessment. Many banks rebate it to the customer, as Schwab does.

Card issuers tack on whatever Currency Conversion fees they want to. Sometimes 2 or 3%, but I've seen as much as 5%. Schwab charges 0%.

just returned from vacation in paris. went with NO euros in hand and was concerned, but being that we had shuttle service prepaid, we decided to hope for the best. we ended up needing NO euros at all and didn't even use ATM in bank, but converted money in at ATM on the street as soon as we arrived. if transportation is already covered, don't worry and just use ATM after settling in to your hotel.
banks charge big fee for ordering euros and exchange rate is terrible here. so go and enjoy and not to worry.

I wouldn't say "many" banks rebate the 1%. Mainly Schwab and some credit unions. Some other banks will refund the fees for their very best customers but not for general accounts.

oops, i meant to say...didn't use ATM in AIRPORT! no time, and tired.

>>>Simplest solution....credit cards for most everything<<<

I am always surprised at the number of places that only accept cash in Italy including major tourist sites such as Herculaneum.

Thanks!

Germany is very much that way too.....France used to be that way until a strike by the employees of the armed car companies that deliver cash to merchants. In short, there was little cash available throughout Paris. So they began accepting credit cards even for small amounts (at one time the RATP had a rule they would not accept credit cards for fares worth less than 45 Francs or something like that but during that strike, they were forced to accept credit cards for all rides and it stuck so in France, today at least, you can use credit cards for the most part for purchases no matter how small.

That day will come too in Germany and Italy. The UK is already like that!

<I>But then you have to consider if you lose the [debit] card, anyone could go charge happy with it.</i>

Here's what we did. My regular debit card is attached to a checking acct with automatic deposits flowing in & out during the month. I didn't want to take a chance of someone getting access to the acct when there was a large balance sitting there.

Went to a credit union and opened a ck acct just for the trip. Deposited $3000, more than enough for planned w/drawals (apartment was prepaid). Set a daily limit of $500.

As a backup, I also carried my AMEX card. And I left a signed check with my sister: drawn on regular ck acct, blank amount, made out to me. Also gave her a cr union deposit slip. In an emergency, I would tell her how much to make the check for and she would deposit it at the credit union.

The ATM fees were minimal, like $4 for a $500 withdrawal. And the exchange rate was very close to the official one. Thankfully, the emergency backup plan was never needed....but it was nice to know it was there.

The <b>real</b> moment that tipped the balance for France and some of the other countries was January 1, 2002 when the euro began to circulate. Stores were so afraid that 1) people would be afraid to spend cash and 2) the cashiers would get all mixed up giving change that many stores said they would accept cards for ANY amount with no minimum. That has remained in place in most of the normal every day stores, and I still see people paying amounts like 3.50€ with a card when they never would have dreamed of doing so in the past.

1) Card issuers use computers that scrutinize every transaction that goes through them, from the authorization phase to approval.

2) This allows the issuer to block any transaction that "doesn't look right." You've probably had it happen to you when you used a perfectly good card. Remember, it's the bank, not its cardholders, that is liable for fraudulent use of the card above some specified threshold. So the issuers will always err on the side of caution.

So read your User Agreement until you understand it, and quit screwing around with separate accounts. They are simply unnecessary.

All great suggestions, thanks!

I'm glad France allows you to charge for almost any amt now. I think we will use that to the hilt unless I get stopped by the problem Robespierre mentioned.

Disney, just remember what was said initially by Robes:
Keep your Credit Card well away from ATMs

your comment:
" They said if I use it as a debit card, there would be a 0.8% fee+ 2 % currency fee. That actually is less than Visa and MC which charge 3%. "
nearly reads that someone at the bank has said you may be able to use your credit card as a debit card!

Some banks [at least here in Oz] do have cards like that for I have a single card that I can use either as a CC or to withdraw from savings with, but some ATMs did confuse the action once and so I never use it like that now.

But seems the credit/debit card fees may be higher in US or they have gone up in recent years for in Oz it is generally just a 2% bank fee for overseas creit card purchases or withdrawing with debit though latter can be more as some have a structure like 1% + $5 to withdrawals limited to $500.

If you take 500 $ or Eu out you'll pay 2% but take out 100 and you'll pay 1 + 5 and that gets to 6%.

So do check detail of your bank charges to work out what's best and you might even want to ask at the local if they have an international section at HQ you can check with.

Bushranger,
No, the bank didn't say I could use the DC as CC. They just said if I use the DC to buy something in a store, those would be the charges.

You lost me here:

"If you take 500 $ or Eu out you'll pay 2% but take out 100 and you'll pay 1 + 5 and that gets to 6%."