Currency exchange
 

My daughter is leaving for a trip to Spain and France in about 10 days and I'm having a hard time figuring out where to exchange the money. Use my bank where they can't figure out how long it will take to get the euros. Should she do it at the airport when she lands? Find a bank and exchange it there? Everything I have been reading says use an ATM but I can't get her an ATM card for my account because she isn't 18. I was going to try a prepaid card but they have crazy fees and some can't be used internationally. HELP!

Give her your ATM card to use. Why does she need her own?

Using currency exchanges will give a very bad rate. Banks are not going to exchange currency for her.

>>but I can't get her an ATM card for my account because she isn't 18<<

Are you sure? I know several teenagers who have debits cards linked to a parent's account. Or - can she open a bank account of her own?

Exchanging currency isn't a great idea - not only is it expensive but there is the extra security issue of carrying lots of cash.

If your bank won't let you put her on your account or have her own account, then a pre-paid debit card is likely the next best option. Yes there will be fees, but they won't be any more than what you'll pay buying €€ at home. And she'll only have to get cash as she needs it and won't have to carry excess cash around.

Was posting the same time as adrienne -- and her response is even simpler than mine . . . what is to prevent you from letting her use YOUR card?????

If you do give her your ATM card don't forget to tell your bank that you'll be out of the country so the account is not blocked.

If she's going to college she'll need a bank account so she can withdraw money. What are you going to do then? She can't have a stash of money hanging around at school.

Your bank sounds like they do not have their act together or perhaps you were speaking to the wrong person at the bank.

I tried to have her added to my account but because she is only 16, they said they couldn't add her. I guess my only other option is to give her my card. I stopped at two different branches, one said it would take 2-3 days to get the euros and today I stopped at another branch and was told 5 days.

Is she going with a school group? If so, there will be limited times when she can stop for a currency exchange. ATMs are everywhere and it only takes seconds to get cash.

It's not a bad idea for her to start with some Euros. Do you have an AAA near you? They have (or used to have) starter packets of Euros.

I would think carefully before giving her your card.

If the bank found out that someone not named on the account was withdrawing cash they would be within their rights to cancel the card. So if you go down this route don't tell them your daughter is using your card.

@Adrienne<<<Is she going with a school group? If so, there will be limited times when she can stop for a currency exchange.>>>

If she's on a school trip then the school ought to have issued a comprehensive letter containing lots of good advice for parents, including on money matters.

You can't get currency exchanged in France unless you are a customer of the bank. Your bank here is telling you nonsense. my 16 year old daughter has had bank accounts for years and has a debit card. We bank at Citibank. Don't give her your card and your PIN. That is a big banking no-no. You will have compromised the security of your account. The first question that the bank will ask you if there is ever an unauthorized withdrawal is if you have shared your PIN. Answer yes and you will have a very hard time getting the funds credited back to your account even after you prove that the person who had the PIN could not have done it (sadly, i know this from experience). Why don't you open a UTMA account for her and put the money for the trip into that account and get a debit card for the account. Or you could open an account in your name and put the money for the trip in that account, which is better than giving a teenager (or anyone) access to your main bank account not because she would do anything to your account but because teenagers (and adults) lose things or get pickpocketed, etc. and it would be pain if someone drained your main bank account. The card should get to you within 10 days. You can tell (note I said tell not ask) the bank to rush the card to you. Also, many banks can issue you a temporary debit card on the spot when you open up an account. Usually those cards will be good until the permanent card is activated. The only thing is that they are usually only ATM cards and have no debit capability so she could withdraw cash from an ATM but could not use the card to pay for things from a merchant.

Open up an account for her (you can make it a joint account). If the bank you bank with doesn't do so then find another bank. Or you can open a bank account on the internet. There is still time to open the account and get a debit card. Frankly I would get her a vanilla ATM card which for the most part she can't use to make purchases. Fund it will what you feel she will need in euro so you can monitor it. Most internet banks allow free withdrawals with their ATM cards and debit cards. Should she need more money, all she needs to do is contact you and you can transfer more money into the account if you feel it is necessary.

Voila. Problem solved.

There are many banks & other Money transfer company those are helps to transfer money in area of country. Search them on google.

Definitely give her an ATM card. Ask for a duplicate for you and giver the card and the password. No one's business who is using it. This is not only least expensive but also the safest.

Just make sure she knows how to use the card and there's enough money in the checking account.

Your bank is nutso. And so are the school tour organizers if they haven't given explicit directions to everyone involved about obtaining and using money overseas.

Add your daughter to your account and get her a debit card or open a new account with a real bank that knows what it's doing. This isn't rocket science.

<<No one's business who is using it.>>

Simply wrong. The card remains the property of the bank, not the account holder. If a bank believes a card is being used by someone not named on the account they can/will cancel it.

Sorry - but there are tens - if not hundreds - of thousands of college students who are using extra debit cards on their parents accounts. And I don't believe that most banks know or care.

And there are many couples who share accounts, issued in one name, but each having their own car - with their own (different) signature on the back. All of my mothers credit cards were on accounts opened by my father (since she wasn't working when they were opened) and she just signed with her own name.

DH and I must get 2 or 3 offers every month asking if we want more cards on our accounts for other family members. If that doesn't mean kids I don't know what it does mean.

I think if you give your ATM card to someone else and some fraud occurs on it, you are responsible, not the bank. So I would be leery of that if she is not officially on the account, although I'm not sure when that applies or not (ie, if stolen, I would think you wouldn't be liable no matter what). I don't know if the bank is nutso or not, or if that's typical or unusual to now allow debit cards to 16 yr olds on parents accounts. I'd also be leery if it is really a debit card, and not just an ATM card as it can be used for more stuff. But I did just check with a bank near me (TD) and they do allow minors to have ATM cards if jointly on their parents account.

Of course you would have to really trust your daughter if you do that. I'd also be monitoring my bank account very very frequently.

I think lots could have been done but not with only 10 days left, such as opening an account elsewhere that allowed it. I don't think the OPs bank is telling her nonsense, they are just telling her their rules. And most college students are not under the age of 18, anyway.

Not only are there tens of thousands of college students using debit cards issued to their parents, there are tens of thousands of high school students, too. In this day and age, that is simply par for the course. You can pretty much add anyone to your account, as long as you're willing to be responsible for any fraudulent activity. Obviously, you don't do this if you don't trust the joint account holder, and yes, you should check the account daily for transactions and report immediately anything that seems suspect.

Debit cards can be rushed to you - often for a small fee - so 10 days should be plenty of time to get her a card.

"I think if you give your ATM card to someone else and some fraud occurs on it, you are responsible, not the bank."

Fraud is covered, regardless of who uses it, even if the number is stolen, you're covered for the $50 maximum. But you have a duty to notify the bank if the card is stolen.

We've found the best way to deal with money is to charge everything you can, which gets you the best exchange rate, and carry a few hundred Euros for those times where credit cards are not accepted. Never exchange money at any money changer, no matter where they are located. Use your ATM card to get what you might need for cash.

As for her not having an ATM card, as other posters have noted, what will she do in college. Can you go to your bank to have them issue you a second ATM card as a backup. We do that so if one gets lost, or eaten by the ATM machine (as just happened two weeks ago at the Madrid train station), we still can get cash.

Lastly she should be aware, it seems especially in Spain, to always request all credit transactions to be in Euros, not dollars. A lot of p[laces we charged at offered us the DCC (Direct Currency Conversion) option, which adds 2% to your bill to get the charge in dollars. That's a ripoff. Refuse it.

<< A lot of p[laces we charged at offered us the DCC (Direct Currency Conversion) option, which adds 2% to your bill to get the charge in dollars>>

It's Dynamic currency conversion and it's not limited to a 2% upcharge on the interbank rate.

BigRuss, you're right. I misremembered the name. We looked at the DCC's we were offered and all were at 2%. But I agree, they can charge whatever the merchant, or his processor,wants.

I cannot understand why anyone would want this, but obviously many do, or everyone just gets caught, because they still do it.

I've always wondered why DCC has been legalized, per international banking laws, there's very limited benefit, if any at all, to the consumer while the potential for abuse and misrepresention on the part of the merchant is high.

From many of the countries we have visited, both in Europe and Asia, certain countries tend to pull it off more frequently on the unsuspecting and unguarded consumer/tourist. As an example, I have observed that it tends to occur more in Amsterdam or China than in Germany or Japan.

I would advise your daughter to read the credit card invoice carefully before signing if she uses her credit card. Many of the vendors I've encountered who tried to pull it off on me didn't even "offer" the choice, they were quick to re run the card however, when I pointed out I want the cc charge to be in local currency. And there was once a store clerk who told me that she can only process my cc payment in US dollars, they don't have a local currency option! There is a lengthy discussion on here regarding DCC.

I have never seen DCC at such low premium as 2%. When offered, it is something around 6-7%.

What is even more annoying about DCC is that you don't avoid foreign transaction charges at your bank, either. You get <u>double</u> hits: once from the DCC processor then again from your bank even when processed in "dollars."

Look at the fine prints such as
http://promo.bankofamerica.com/busin...nsaction-fees/
<i>*You should also be aware that even if a transaction is in U.S. dollars, this fee applies if the transaction is made or processed outside the U.S.</i>

or http://www.ricksteves.com/travel-tips/money/card-fees
<i>The dollar price is usually based on a lousy exchange rate set by the merchant — and to make matters worse, even though you’re paying in “dollars,” your credit-card issuer may still levy its standard foreign-transaction fee. </i>

When offered with verbiages, it comes with ominous message that if you refuse the DCC, all sorts of unpredictable exchange rate will hit you, blah, blah, blah.

Why is it allowed? It is one of a classic example between free market "innovations" vs. consumer protection. It is difficult to hit the balance, and it often tilts to the company side as they define the terms of offering.

The OP said he couldn't add his daughter to his account. kucks, did you ask if she can have her own account, with a debit card? That would be a better solution any way. Your funds are protected. You can put money into her account as needed.

Update: I went back to my bank and spoke with someone that I knew would give me some straight answers, she suggested that I head over to Chase bank as they could expedite a card for a smaller cost than my bank. She was a little upset that no one at the first branch I went to suggested opening her own account, which I could have done and had the card in plenty of time before her departure date. I did exchange some money into Euros so when she lands she has some in her pocket and is not searching for an ATM on day one. The only thing worrying me now is the ATM machine eating her card! I'll tell her to make sure not to try and get money on her last day in Madrid just in case anything happens and there is no time to get her card back.

She is also traveling with a friend who will have a couple of credit cards so if she gets into a jam she has that as backup. I did speak with the other girls mother who was fine with with that scenario.