oh, I know AAA does not charge 15-20 pct markup, it's about 7 percent. I don't know about delivery fees as I'd just go do it in person. AA isn't "overcharging" at all, it's a business, they can charge what they want, there is no law about it. Their charge is very typical for US banks/currency exchange places.

>>>Christina on Aug 25, 09 at 01:24 PM
That's true, AAA does use another service, but they never exchanged it for free, I don't know why anyone would think that.<<<

The OP was looking at AAA because it was posted on another thread that it was free.

>>>Christina on Aug 25, 09 at 01:26 PM
oh, I know AAA does not charge 15-20 pct markup, it's about 7 percent. I don't know about delivery fees as I'd just go do it in person.<<<<

If you tack an overnight FedEx fee (as stated above)which will run about $15-20 on to the 200€ purchase plus the lousy 6-8% exchange markup then you are getting close to 20% you are losing on this type of exchange. As the OP said, most AAA's don't offer the service so you would have a mailing fee. You wouldn't be able to do it in person.

"<i> . . . their response was never very reassuring -- something like, they'd try to OK it, but nothing could be guaranteed. </i>"

That seems absolutely ridiculous to me. I can either do it by phone or in my local branch. The tellers (or in some banks a supervisor/manager) can enter the info right fromm their terminal at the window.

Don't talk to the bank's customer service call center - talk in person to a teller or personal banker in your branch.

I made a SWIFT xfer from my account to an Italian bank, paid the transfer fee & have now incurred a cashing fee charged by the receiving bank in Italy. The transfer was made in euros & I would have expected any further costs should have been charged on the rental company I was paying. Bank advised it was in the small print of the xfer agreement I had signed & further cost may be incurred.

I transferred about $500 US dollars to Euros a couple weeks ago through my local AAA. I believe the previous day's exchange rate was $1.41 and they charged me $1.51, so it was about a 7% markup. There was no delivery or shipping fee and the money was available for pickup in 2-3 business days.

I'm sure an ATM withdrawal in Italy would net you a better exchange rate, but I want to have some local currency on hand when I get there.

>>> the fee that the local (in the foreign country) ATM will charge for the transaction (pounds or euro).<<<

The foreign banks do not charge fees for that or set the exchange rate. Your bank you have your card with does.

Only goes to show how little travel agents know about travel. You would think they would be better informed.

>>>The most important thing to do is, shop around. Here's a few names, good luck.
www.foreignmoney.com, www.travelex.com, www.ezforex.com, and of course, American Express, ICE at most airports. Have any questions, feel free to contact me.<<<

None of those will give you as good a rate as an ATM machine with a card from your credit union. Mine charges the exact interbank rate at the time I use the ATM.

Noe: Unfortunately, some of your info is just plain wrong. "<i> . . . the fee that the local (in the foreign country) ATM will charge for the transaction</i>"

That <i>might</i> possibly be true in some parts of the world. But since you specifically mentioned £ & € we can assume you mean Europe. The banks do not charge you to use their machines.

And it is sorta doubtful a credit union can offer discounted exchange rates when they have to pay to get the £/€ in the first place.

martad,
insist on paying for accomidations in full before your trip.
this has worked for us.

Well I did a bit more checking. Spoke with both the local manager of our banch, and our host in Rome. Both were very accommodating. Our host indicated we could pay one-half on the day we arrived and one-half the next day, which works out just fine. I told host that if we could obtain full euro on the day of our arrival, we would pay in full on that day. Our local bank was more helpful than in the past. Possibly because of a new manager, possibly because banks are trying more than in the past to retain good customers. In any event, she was able to change our ATM daily withdrawal limit. It's not without risk. She simply increased it unti further notice, rather than picking, say two days when we are allowed higher cash withdrawals. But in any event, we can now withdraw more cash and when we return to the US, will simply reduce the limit to the standard $500. per day. She also adivsed me that our bank always charges a 2% foreign transaction fee. Annoying, perhaps, but not horribly high. So I am satisfied! I have not told our host we are certain of being able to pay the entire balance in full upon arrival because I am not entirely confident that the we will in fact be able to withdraw more than the standard daily amount. If we can, we will pay. If not, the next day will have to suffice.

Someone stated "Credit cards: you will be charged 3% to 5% on the exchange rate, depending on the issuing bank, then the "convenience fee" that will be applied just because you were able to use your card abroad, followed by a fee they tack on because you charged something in a foreign country."

I don't know of any VISA or MC credit card that charges as much as 5% on the exchange rate plus any sort of convenience fee or some other fee. All of the cards I'm familiar with charge somewhere between 0% (refunding the standard VISA/MC 1% fee) and 3% on the exchange rate with no additional "fees" at all.

The last time we purchased foreign currency through AAA, they did not give us a great rate AND they charged a flat $12 fee.

The advice to talk to a local teller to get your daily limit changed is not consistent with my experience. Around here the local tellers are not familiar with this subject, and have to go to a manager, who calls the main office, who makes the change.

We faced the same situation posed by the OP in May of this year; while I had a few euro in my pocket from prior trips (absolutely unneccessary in my opinion, as we have always been able to get local currency at an ATM on arrival), we needed 1200 euro to pay for our apartment. We use a joint checking account, so both my wife and I have debit/atm cards. My bank increased our daily limit, but we were still faced with the limits imposed by the ATM (in the EEU, always use a bank-owned atm, as they do not charge a usage fee). I was rather surprised, but it was not easy to find the ATM at the Rome Airport, and when we finally did, a line quickly formed behind us. So we made multiple withdrawals, alternating cards, until we had enough to pay for the apartment.

So my experience is that having a joint account with two cards allows each card to draw up to the daily limit, and that when faced with a limit imposed by the ATM, which is fairly common, you can just make a second withdrawal at the same ATM, assuming it doesn't run out of money. As a precaution, we keep only a small balance in our checking account, and transfer funds from our savings account via the internet when we need to replenish our checking account.

There's more than one ATM in FCO. Most people head to the one right outside of baggage claim and there is usually a line. There is another in a quieter more private area if you head right after you come out of baggage claim past all the shops. Go down the hallway and after the floor slopes up there is an ATM on the right. The Commune di Roma booth is down this hallway also on the left.

Noe, the only time I am aware of that any US credit card will add any fee besides the currency conversion fee is if you have a transaction processed outside the US in dollars due to dynamic currency conversion. There are some credit cards that will now add a fee to those even though the currency conversion was not done by the bank. I have never encountered a convenience fee for using the card out of the country.

More to the point, there are credit cards that do not add any currency conversion fees at all, such as Capital One. Using such credit cards is equivalent to using an ATM card that charges no fee for currency conversion, such as Schwab (which also refunds any ATM fee charged by the bank that operates the ATM).

typically on any credit card cash advance you will be charged interest from the day you take the cash. And unless you pay off your credit card balance and not use it for a month you will be charged interest. It happened to me. It's a credit card scam. I will never use a credit card again for taking cash.

>>>It's a credit card scam.<<<

It's not a credit card scam. When you get cash on a credit card you are taking out a loan and being charged interest on that loan just as you would on any loan from any bank. It's all spelled out in your credit card agreement.

"<i>I will never use a credit card again for taking cash.</i>" Well - duh! No one who has any other option uses a credit card to get cash (if they have any sense)

kybourn, I know it's not a 'scam' but although you pay it back at the end of your statement cycle, unless you pay your balance AND the amount of which you 'borrowed' from the cash advance (although that amount is included in your balance) you will be charge additional interest.

Janis J your statement is extemely RUDE. duh yourself
You don't know the circumstance we had to use our CC and yes it was unusual for us to do so.