Is everyone aware that credit card transactions in Europe automatically entail a transaction fee?(Amex-2% and most others 3%). While it seems like you've received a good exchange rate after returning to the States and getting your charge card statement, the card co. actually adds in 2 or 3%, but never tells you this. I'll probably use my charge cards less, now that I know this. But my question is this. How can I get the best exchange rate at a bank in Italy or France - by exchanging American dollars, or Travelers checks? Or is there another alternative? Please help.

Frugal

Search this forum and you will find a gazillion Q&As about this very subject. In a nutshell, you have to shop around and query your charge card and debit card company. My credit union, BellCo, does not add any fee over and above Visa's one percent. I think that's the best deal you will find anywhere. Shop around next time.

Visa charges the card issuer (bank or credit union) a one percent International Service Assessment. Passing this fee through to the cardholder is at the issuer's discretion.

Salomon Smith Barney charges neither currency markup nor Visa's ISA. Cash withdrawals are charged a flat one dollar transaction fee.

Just use an ATM debit card. No fees (unless your bank charges one, and if it does, change banks) andbest exchange rate. You'll do much better than exchanging US dollars or (even worse) Traveler's checks (which are a complete dinosaur IMO).

Good advice above.

I think you should not worry that much about using a credit card versus cash (my credit card charges were closely the same exchange rate as my cash withdrawals). Yes, it's cheaper (barely) to use cash (my bank ATM charges a fee) but after a month of withdrawing money - (approx. 3X it was $7.50 - draw as much as you can) but we're talking about so little cents difference. The advantage of a credit card is that you can question a charge. Personally I've never had a problem.

To go to the trouble of changing banks, etc. for the difference seems to me silly.