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%."