Debit vs. Credit
 

Hi All

I am traveling to Europe in two weeks, and I've been reading that credit cards, which used to be the best way to get a good exchange rate, are now charging transaction fees. Is it cheaper to Debit purchases in Europe or Credit them?

Thanks

My debit card charges 3% for purchases just like my credit card. I am told there are credit cards that charge less than 3%, but I don't use credit cards overseas very often so I haven't looked into that. I prefer to get cash from the ATM, as that charge is only 1%.

Hi D,

Additional fees are bank specific.

Many credit unions do not charge anything other than the 1% Visa/MC fee.

((I))

I use my credit union's cash/debit card and the only fee I pay when getting cash is any charge the ATM's bank may charge..usually a couple of dollars per transaction.

Depends entirely on your bank. I don't have a credit card, but my check card (kind of a debit card, but works like a credit card to the merchants), charges me nothing besides a slightly less than posted exchange rate, albeit far better than I'd get anywhere else. Also check how much your ATM charges, it may be cheaper to pay in cash, or cash may be quite expensive (anywhere from free withdrawals to $5 I've heard).