dollar to euro exchange rate question
 

I recently converted dollars to euros in advance of my europe trip in june. My exchange rate was 1.65 at an american express office while the published rate was running 1.56. I realized afterwards that I had never paid attention to the the exchange rates on previous trips when using my ATM and credit card. So, if I had used my ATM in europe the same day I exchanged the money here would I have gotten a similar rate or did I get a bad rate here? thanks for any info.

You would have gotten a rate similar to the published rate ($1.56:1 euro) with the ATM card.
However, you have to take into account any fees that your bank may charge you for using an out-of-network ATM in the overall cost.

If the published (XE) rate was $1.56 (it must have been VERY recently), then you should have gotten that rate via an ATM. Perhaps your own bank would have added 1% and maybe even up to a $5 charge to that. So let's say you withdrew 300 euro from an ATM. That would have cost you $468, or adding 1% --$472.68, or with an extra fee as much as $ 477.68. But presumably you paid American Express $495 for that same 300 euro. So it cost you as much as $23 extra. Was it worth it to you for the convenience? If so, fine.

Is Elliot Spitzer an acquaintance of yours?

You got bitten! Depending on which ATM card or debit card you use in Europe, expect to pay the wholesale bankrate plus 1%.

That said, I caution on the "which card" remark because some of the greedy card issuers sock you with a surcharge for using their card off net.

For example, I have a Bank of America ATM card. If I use it offnet, i.e. at a non correspondent bank, I get whopped with a $5.00 charge. Needless to say the Bank of America card is the last choice; one I use only in desperation unless I am in a country that has a correspondent bank.

For example, using B of A again, its correspondent banks that I know of are Barkclays in the UK, Paribus in France, Deutsche Bank in Germany, and Scotia Bank in Canada.

I have not made anything like a comprehensive survey, but some credit unions are more forgiving on the fee they charge for offnet ATM use. Because of B of A's policy, I set up a money market account with Fidelity Investments so I could have a debit card. Fidelity does not charge those kind of fees.

Other investment firms do likewise, but it does mean having an account with them. My account with Fidelity must have a minimum amount but it draws money market rate interest.

Also you must watch out for credit cards markup fees. I use Capital One as my card when out of the country because they charge virtually no markup as far as I can tell. On the other hand, my B of A Visa card stays in the back pocket because it charges 3%.

So yep AE is expensive. You paid about 5.8% over the wholesale rate. You could have done better at an ATM in most of Europe. On $2,000 worth of exchanges that is $120. A little on the steep side. Even at 1% you are paying $20 to get your own money.

OOPs Baclays. I was barking up the wrong tree.

Don't get me wrong. I carry the B of A cards, but they stay zipped away unless nothing else works!