I am considering converting my Australian dollars to Euro before I go from a local bank. They are offering .63 for an Aussie dollar. Is this a good idea or should I wait and convert in Spain?

>> Is this a good idea<<

No

>>or should I wait and convert in Spain?<<

No

Don't 'convert' currency anywhere. Use your ATM/debit card to get € as you need

Consider using an ATM machine to obtain whatever cash you need. Forget exchanging cash.

You always need cash, just not large amounts.

Ok so u would suggest carrying only a small amount of cash and do most transactions via card. So if a meal is 15 Euro for example is that what I will be charged on my card or is there extra charges?

If your meal is only 15€, you should be paying cash. If paying with a CC, demand that the transaction is done on Euros, otherwise, because of the dreaded DCC, you could wind up paying up to 12% more, a real scam.

I am not sure you understood the options.

I presume Spain is your destination? I presume you have BOTH ATM/Debits cards and Credit cards?

Recommended:

Use your ATM/debit card, use ATM machines in Spain to extract Euro cash from the ATM machine. DO NOT SELECT getting charged in you home currency. You will be hit with at least 3% more fee. There is NO need to do this. Let your bank do the Euro->Australian dollar conversion. If you are transiting through other EURO country airport, such as Frankfurt airport, Amsterdam airport, etc, you can also get Euro cash at ATM machines in the airport before you land in Spain.

For larger purchases, use you Credit card preferably with least foreign transaction fee. DO NOT allow merchants to charge you card in Australian dollar. You get hit with at least 3% fee for getting NOTHING in return.

NOT RECOMMENDED:

Australian cash -> Euro cash in Australia. You get hit with a large fee. Just do a simple computation.

Australian cash -> Euro cash in Spain. You also get hit with a large fee.

Get Euro cash using you Credit card. You get hit with large cash advance fee plus interests.

You almost always get a worse deal trying to buy foreign currency at home rather than selling your own currency in the country you're going to. And you almost always get a worse deal changing actual currency than using your ATM debit card to draw money in local currency directly out of your bank account. You may want the reassurance of knowing you have some euros to start you off, but that's a different question.

BUT: tell your bank/card provider you will be using the cards abroad (so they don't think someone's stolen them), and check with them what charges they impose for foreign currency transactions (it may very well be better to draw a large amount of cash in one go on your debit card rather than lots of smaller ones - and it will always be cheaper to get cash using your debit card rather than your credit card)

Before you leave, make sure you notify your credit/debit card companies of your overseas travel plans. Or your cards may not work.

If you feel more comfortable arriving in Spain with some euros, sure, get some ahead of time. Just know you won't be getting a great exchange rate.

Don't "exchange" money anywhere.


Once there, use your ATM card to get cash for daily expenses. Use your credit card for big purchases like hotels, train fares, etc.

A meal that costs only 15€ is something I would normally just pay cash for. Not sure what "extra charges" you'd expect; service charges are included and no tip is expected, so if you put a 15€ food tab on your credit card it would show up as however many Aussie dollars that was at the time of the charge. Obviously, the exchange rate fluctuates, but not typically very much. There are hundreds of online sites where you can check exchange rates. You should so, so that you have a realistic expectation of how much money you'll be spending.

The current interbank rate is around 0.66 euro to 1 AUD, so you are losing about 4.8%. For cash, 0.63 is not a bad rate but as stated, you should do better with debit card in ATM in Spain or other Euro country. If you have a card with no overseas fees, you should get close to 0.66 or around 0.64 with a typical 3% charge levied by your bank. The rate is likely to move before you get to Europe, either for or against you.
I suggest you change about 100 AUD now so that you have some euro when you get there, and if there is a big queue at ATM or because your card doesn't work (make sure you take at least two different debit cards for cash withdrawal, preferably on two different accounts), you have enough cash to get into town and withdraw your cash later.

Oh, and inform your bank that you'll be in Europe so they don't suspect fraud and freeze your account.

Personally, I always get a few euros from the local bank or AAA before I go. I like to land with about 100 euros on me.

Then take a debit card and use ATMs to get cash while there.

Also check your credit card and see if they charge foreign transaction fees. Some do, some don't.

And yes tell your bank and your credit card company you are traveling. Have your husband and you both take different cards in case one gets lost or stolen.

And definitely always choose euros when using the credit card.

My husband had just activated his new chip card before leaving last month and went to withdraw cash and realized he picked up the old card instead of his new card. He called our bank and they transferred money from his account into my account so I could withdraw pounds for him. I carry two atm cards and one charges me zero for withdraws so use cash more than a credit or debit card. They charge me if it is used as debit. Anyhow, love having a backup card and would have loaned husband money but he was so upset with himself. His credit cards were fine but he is a cash king.
A freind traveling for the first time messaged me yesterday from Edinburgh about what did I say about charging in pounds versus USD? They had already encountered the DCC when shopping. I explained once again so hoping she understood.

I see no point in buying Euros ahead of time, because my ATM card is free to use in Europe, not a per-use fee, not even a currency conversion fee. And I carry credit cards, too. I have a few hundred USD with me in case I need to change it in an emergency, but I've never needed to.

But I understand that people from other countries may have to pay more to use their ATM cards abroad than I do, so changing currency may actually make sense for them. For Americans, the ATM card is almost always the best deal. For others, not sure.

I like to have some euros in my wallet when arriving in a Eurozone country, most of the time € left over from my last trip. Many ATMs issue only large notes, e.g. €50, which is embarrassing when all you want is to buy a bottle of water at the airport. It won't cost much to buy, say, €50 or €100 at home, preferably in €10 and €20 notes so you have some handy when stepping off the airplane.