We will be driving through Europe starting in Madrid, continuing France, Belgium, Amsterdam, Germany, Switzerland, Austria, Italy and back to Spain beginning Mar 23 thru April 23..would like to know how to receive the best exchange rate is to convert $'s to Euro'. Mostly I have read that ATM's give the closest exchange rate. Any and All advise on anything will be muchly appreciated. Carole

I think most people here agree with what you've read about ATMs.

Best rates are"

Use your credit card whenever possible (but check their rate in advance - some are 1% and some #%)
Pulling walking around money from you checking account only at ATMs

Cash or (god forbid) Trav checks will lose yuo about 8% on your money.

Charge all you can and get your cash from ATMs.
Understabd that CH does not use Euros but CHF.

Sorry, but what is CH and CHF?

CH = Switzerland
CHF = Swiss Francs

CH stands for <i>Confoederatio Helvetica</i> in Latin.
http://www.swissworld.org/en/politic...l_information/

Thanks!

The advice here is correct....use your credit cards whenever and wherever they are taken but it should be a credit card which does not surcharge above the official interbank rate for changing currencies. Visa and Mastercard add a 1% charge above the interbank rate for converting currencies and almost every bank passes it along, still much better than converting cash. Many of the large criminal banks such as Citibank, Bank of America, JP Morgan Chase tack on an additional 2% charge even though they have nothing to do with the conversion....(given the current economic problems, I can now call them criminal banks without any people here trying to defend them or theri policies)....some banks, say USAA only pass along the 1% fee...there is one bank, Capital One, that eats this fee and simply charges the interbank rate.

Be aware that two consumer protections that mc/visa write into their merchant agreements in the USA apparently do not carry over to Europe. Merchants can insist on a minimum purchase price for use of a credit card (even though many do not post a sign indicting that) and merchants apparently can charge a surcharge for use of a credit card, two practics like I said not alloed by merchants in the USA where customer protections against this garbage exist.

In any event, you will need some cash and the best way to get cash is with ATM's. There is no second best way. Again depending on the degree of criminality, some banks charge an arm and a leg in fees above the 1% take of mastercard/visa which own the shared teller networks. Find a bank, such as USAA, where you can open up a travel checking account, they give you a free ATM or debit card whichever you prefer and make no charge except the 1% visa/mc fee for cash withdrawals in euro. (as noted it will be Swiss Francs in Switzerland; using a credit card alleviates this problem but many many merchants in large Swiss cities price what they sell in both euro and swiss francs at a pretty okay rate and if you pay in euro they give you euro in change for the most part but that is not 100% true...only about 80% true.

Also watch out for a scam in certain countries called dynamic currency conversion (dcc)...in this scam the merchants either offers to bill you in your home currency (US$) or does it anyway without telling you. MC/Visa regualtions do not permit this scam without consent of the scamee. But this doesn't seem to faze many of the merchants who perpetrate this scam. You know they are attempting this on you if you see an amount in euro and also US$ on the receipt you are asked to sign along with the statement that you accept the conversion as final. Of course what they do is use a much higher rate than the banks use. The clerks are trained, if you notice you are being scammed, to lie with such statements as they have no control over it (wrong, the terminal follows mc/visa rules and before the transaction is completed asks the merchant to confirm the scamee wishes to be scammed by falling for this scam) or that the amount shown is an approximation (wrong you are signing a statement you agree with the conversion) that it is too late (wrong any transaction can be voided). If they try to pull this on you, tell the merchant in no uncertain terms your naume is Tucker not Sucker that he is required to offer you the choice of paying in euro (CHF in Switzerland) and after he tries these lies, ask to see the manager. If the manager persists in the lies, tell him you will sign under protect and when you dispute the charge when you get home, it will be a chargeback. Write on the charge slip local currency not offered. Of course one of the best responses by the clerk or manager is no speak English.

Haven't seen much information on this scam on this board in a while so I wonder how much it is still going on.

The effective exchange rate is only part of the equation when wisely converting dollars into euros. Many travelers often neglect to inquire at their bank what <i>out of network</i> ATM withdrawals will cost or what fees and charges will be assessed on foreign credit card transactions.

Some US banks will add 2-4% to the Visa/Mastercard 1% international transaction fee customers pay on all international transactions, even transactions in dollars if executed outside of the US.

I know of three Exchange bureaus in Paris which trade US dollars for euros at a transaction cost of 2-3%. These is no worse, even slightly better than the 3% Bank of America charges its credit card holders:

http://www.bureaudechange.fr/
http://www.ccopera.com/
http://www.fcochange.com/

Some smaller banks and credit unions add no fees of their own but pass along the 1% Visa/Mastercard international transaction fee.

Only one bank, Capital One, not only imposes no fees of its own but they actually absorb the 1% Visa/Mastercard international transaction fee.

Careful consumers just might want to ask a knowledgeable representative of their financial institution exactly what customers will be paying for the privilege of using the banks credit and ATM cards.

<<< not alloed by merchants in the USA where customer protections against this garbage exist. >>>

So people paying cash should subsidise CC users

Just one word of caution in regard to credit cards: at least in Germany you often don't qalify for the most popular person award if you pay small sums with a credit card. It's still to a great extend a country using cash and and people don't understand why one might want to pay a 10 euro bill with a card instead of cash.

>at least in Germany you often don't qalify for the most popular person award if you pay small sums with a credit card. It's still to a great extend a country using cash and and people don't understand why one might want to pay a 10 euro bill with a card instead of cash.

More words of caution: Many shops in Germany, even some large chains like Saturn, do not accept any credit cards at all. Same with restaurants, pubs, hotels. Be prepared to carry some cash all the time.

Also you should be aware that in the Netherlands supermarkets, and a lot of other smaller shops, don't take credit cards, nor do the train ticket machines. Nobody's credit cards, even Dutch ones or those with a chip.
You can pay using your debit/ATM card though if you have a 4 cipher PIN and it is linked to the Cirrus network. "Pinning" as it is called here is a normal way to pay, and most shops will accept it for even very small amounts, indeed often they prefer it to having to have lots of cash around. I very rarely have any Euros actually on me.

Concerning credit card user protections in Europe, when I contacted MasterCard on the issue last year, I was told that merchants worldwide are not allowed to set minimum amounts for credit card transactions. Of course some do, even in the USA, and rely on customers not bothering to report violations (for which the merchant would pay a penalty to Mastercard).

We take a slightly different tact with regard to money - still get local cash from the ATM, but pay for almost everything in cash. We only use our credit cards for larger things like hotels, cars, etc. We find this to be easier and it helps keep us from overspending day to day. Plus, as others have said, everybody takes cash, not everybody takes credit cards.

We also don't use our debit cards for anything except ATM transactions - we figure that debit card fraud can be quite damaging on a trip because the theives can actually get our money that way and it could be a real hassle to sort it out. With a credit card, even if we are a victim of fraud, the thieves haven't actually gotten our money - they've gotten the bank's money. We've always got cards for more than 1 credit account with us, so we can switch to another one until the issue is sorted, still enjoying our trip as planned.

Re Yostwl's point about the expectation that merchant's worldwide will always accept a card I think the big card companies do not want to lose the merchants. It is not like the early days, it is a competitive market, there are a large number of card providers. Warning American Express is not always accepted in England especially in smaller shops and I believe many theatre box offices. It is just one observes them being rejected from time to time.

The smaller the volume of business the higher the percentage the merchant pays to the credit card company. Working with tight margins it becomes unaffordable to aid the customer who wants to make a small purchase

In the UK if you use a credit card to take cash from an ATM there is an automatic surcharge for the credit, this is why most people use Debit cards to withdraw cash, or are American cards dual function?

We now use mostly the ATM and pay cash. We make our hotel reservations with our credit card before leaving home and then pay with cash in the local currency. We make sure we have a signed receipt that we paid the hotel bill.

It is easier to pay cash - especially in restaurants. I have read where you should insist that they take your credit card info at the table and not take the card to some other area. But this doesn't seem to be a workable idea.

Some banks, such as BofA, charge a flat fee ($5) for any withdrawal from a non-member bank in Europe. On the other hand, my credit union charges no fees from any ATM withdrawal in Europe. So I deposit a certain amount into a credit union checking account and use that when I am in Europe. You might want to check your local credit union if there is one.

Another thing to keep in mind is that the merchant also pays for your credit card transaction. He doesn't like paying it any more than you do. I am one of those who use cash from ATM's as much as possible and use my Capital One card for major purchases only.