currency conversion question
 

Planning a trip to southern Ireland in early November. We are still debating the best way to have money on our trip. Here's my question today :) Would it be cheaper to obtain our euros in the US before we leave or to use ATM's in Ireland? Really hesitant to carry a large amount of cash, but want the most economical way to get euros. Thanks for any advice!

You need to see what your bank charges for foreign withdrawals from ATMs. Normally the rate is within 1% of the rate banks charge each other so you aren't likely to get a better deal on rate alone. Besides US banks don't really understand ForxEx and unless you strike lucky you'll pay through the nose. Note however some banks charge extortionate amounts for any withdrawal via an ATM, others will have a minimum charge which makes withdrawing small amounts a very expensive experience.

BTW credit cards are widely accepted and it's not unknown for the net rate (ie including charges) to be better than withdrawing the cash from an ATM and paying for things with it.

As you rightly point out carriny

Recently discussed on TA
http://www.tripadvisor.ie/ShowTopic-...ty_Dublin.html

There are many, many threads about this and it's always best to use your ATM card over there. Do check out charges and inform your bank in advance.

We loved Ireland but in our experience it is the worst place for Dynamic Currency Conversion attempts. If you are paying with a credit card and they offer to charge you in US$ be sure to say NO and insist on being charged in euros. If you let them charge you in US$ they will use a horrible exchange rate and you will lose money. You might have to stand your ground on this as merchants really love to charge you in US$ since they are making money on the deal. Be firm and insist on being charged in euros.

In Ireland, you need to beware of shops (in particular, but also hotels, restaurants, etc.) that ask if you wish to pay in US Dollars. They may even tell you that you'll get a better price that way. Not so. ALWAYS insist on paying in the local currency. Otherwise, the price in USD (already converted at the exchange rate of their choice) is converted back to the local currency, then converted again when it is posted to your account.

Do find out what fees your bank will charge for ATM withdrawals - transaction fee? currency conversion fee? Regardless, it's more economical to acquire foreign currency that way than from your bank before leaving home. Resist the urge to save on a transaction fee by withdrawing a large amount. The transaction fee is cheap insurance versus carrying a large amount of cash around.

And if the merchant says they are unable to run the transaction in the local currency as opposed to USD they are lying.

Don't buy Euros from your home bank - the exchange rate will be awful. Don't buy a prepaid currency card either for the same reason. Just use ATMs. Your card will be on the Cirrus or Plus network and you just need to find the same network in Ireland for the ATM.

Note that this comment "Besides US banks don't really understand ForEx" is basically nonsense - US banks understand Foreign Exchange extremely well because they know how to hammer you with fees and rate differences in their favor. The general behind-the-counter teller may not know this and the folks you reach at the call center may not, but because the dollar is still the world's reserve currency, US banks know what they need to make money.

That said, AlanRow is right that using your credit card on small transactions where and if you can will be cheaper than ATM withdrawals because the credit card will charge you 1-3% but the ATM withdrawals will usually include a fee PER TRANSACTION (so don't check your balance unless you absolutely must) and another 3%+ of the amount converted as an exchange fee. This holds true unless you have a card that has low or no forex fees.