Currency for travel
 

We are talking our first trip to Europe in April and would like opinions on how to handle using money in Italy. Is it best to use credit cards, atms, travelers checks....what does everyone do? We have heard there are panhandlers and pick pockets in Rome and other larger cities, is this true, what are your experiences?

Hi PC,

I exchange about $100 at the dearture airport in order to have cash on me when I land.

From then on, I use credit cards whenever possible and ATMs when I need cash. This gives the best exchange rate.

>We have heard there are panhandlers and pick pockets in Rome and other larger cities, is this true, ..<

Do you know of any large cities where this is not true?

This subject gets kicked around often.
The normal consensus is that traveler's checks are good only for an emergency reserve. They are hard to use because merchants often do not accept them even if denominated in euro. That means converting them at a bank where a hefty fee is charged.

Most of us use ATM cards while over there for spending money while using credit cards for major expenses. Two cautions on credit cards: (1) find out if your card issuer tacks on a 2% surcharge for using it overseas (not all issuers do), and (2) know the difference between an ATM card and a cash advance using a credit card.

I, like others, prefer to arrive with some local currency in my pocket. I do not keep my finanial instruments in my hip pocket. We can argue neck wallets and money belts later, but pockets are vulnerable, and pickpockets are magicians.

My normal approach is this:
1. arrive with enough local currency to get me to a bank ATM machine.
2. use my ATM card for enough currency to meet daily small expenses and purchases.
3. use my credit cards for major purchases.
4. carry a few traveler's checks strictly as a doomsday backup.

I have needed 1 check in 6 trips. I was in Zürich, my train was leaving in a few minutes, I wanted to buy some items to eat on the train, the concession stand did not take charge cards or debit cards, and the bank ATM was out of order. The man at the window of the little branch bank happily exchanged my check for folding money.

On 9/12 I was glad to have a few dollars in reserve because no one knew what was going to happen. Would banks be shut down? Airports were.

As a general rule, you need to be sure in advance if you can withdraw from a savings account from overseas if you intend to use it, or have a little extra in the checking account.

Just remember that in Europe, your most valuable possessions are your passport and your financial plastic.

I'll offer the countervailing view. Getting foreign currency before you leave is usually expensive. I have never arrived at a foreign airport that did not have multiple functioning ATMs, which give you the currency immediately at a good exchange rate. You never need the foreign currency before you get to their ATM, and I have never been so rushed that I have been unable to stop at the ATM. Usually, my wife waits for the luggage while I visit the ATM. Check with your bank to insure that your card and PIN will work where you are going, and all will be well.

The advice on using credit cards is good, as long as you have cards issued by a bank that doesn't impose an additional exchange fee. One limitation on credit cards is that many smaller merchants and hotels don't take them.

When you return, keep your foreign currency for the next trip. We came home from France last year with a pocket of what I thought were expensive Euros, but they have been appreciating quite well in my safe.

As to pickpockets, anywhere there are crowds of tourists, there will be pickpockets. We have those soft leather pouches you can hang inside your shirt, and they have worked well.

I agree

There are panhandlers and pickpockets in every city in the world - and Rome and other major Italian cities certainly have no more than most other places - and fewer than many.

For finances, take at least one ATM card (make sure you have a europe friendly 4-digit secret code and find out which chains of ATMs your card is good at) as well as a couple of different credit cards. Always divide cards between the two of you - so if someone loses a purse or wallet you still have funds. I like to have about $100 in local currency before I arrive - but it's not really necesary. I also always take at least $100 US in small bills for use on the plane, in airports, etc.