giannetta

I have been reading various theories re. the "BEST", meaning most economical way to procure Eu in Europe. I am totally baffled. Here are my usual methods and none seem particularly good at this time considering the value of the dollar.
1) take lots of $100 dollar bills and exchange at the European bank. The banks charge a percentage of the number of bills as well as assessing the exchange rate so it pays to have large bills and not a stack of $10s and $20s.

2) just use ATMs - BUT our BOA charges a percentage of total and so does the European bank owning the ATM so each $300 transaction cost me $8.00 last year - we will need lots of cash to pay for meals cooked at our villa and collecting $300 worth of Eu (about 150 Eu!) EVERY day at $8
per transaction seems painful. My BOA ATM is registered to allow me to take $500 from Eu ATMS - however, the Eu ATMs have never allowed me to do that. The largest withdrawal has been $300.

3) just exchange HERE in the US and go. How much would that really cost me over the other options? I know that getting Eu in the US is not going to be at a great exchange rate but is it SO bad that I should just put it out of my mind?

In terms of carrying cash I am not concerned as I am VERY careful - and, when we get to our hotel I lock the cash into my suitcase....yes, things do get stolen from hotel rooms but not suitcases - unless, perhaps, you are staying at huge chain hotel or a small very low end hotel...never had a suitcase stolen in the 55 + years I've been traveling!

Sorry this is so long - informed ideas would be appreciated.

Robert2533

Exchanging cash for euros is about the worst exchange rate you can get anywhere. Besides a poor exchange rate, you'll pay a banking fee. Expect to pay between 12% and 15% for an exchange.

Using an ATM is the best rate you'll find. The only thing to be weary of is if you use the ATMs for the Bank of Santander. They appear to be using the DCC (Dynamic Currency Conversion) scam in their ATMs.

Bank of America charges $5 for each transaction except at the BNP Paribas Banks in France.

Christina

so you aren't concerned at all about carrying the money (I sure would be), so it's just a matter of finding out the facts, then.

Find out what the exchange rate is at the place you think you can do it in the US, it doesn't matter what other places charge but the place you use. Then compare that to the exchange rate you pay by doing it at at European bank, that's all.

YOu are misinformed about charges at ATMs, however. The European bank owning the ATM does not charge you a fee, I'd be willing to bet anything on that. What bank are you talking about in which country that did that? Because no Eur. bank ATM ever charged me a fee, so why would they charge you? Maybe you have only been in some countries where I"ve never been where they allow that, I don't know but I think you have been misinformed. Did BOA tell you that?

just guessing, ATm is costing you 3 pct plus $8, so if you take out about $200 worth (wouldn't take out less for that fee), you are paying about 7 pct.

A bank in the US may charge about that same amount to give you foreign currency, but they might only charge 4-5. But you'd have to find it first and ask them.

You know what you pay in Europe, what is it? I would guess to walk in off the street you are paying probably around 5 to 10 pct for foreign exchange, but I really don't know as I have hardly ever done that so don't remember.

kayd

If the ATMs are conveniently located, I'd just pay the $8/transaction fee every few days, after getting my bank to raise my daily limit to $500. That costs only about 2 percent, probably better than the cost of exchanging one currency for another.

I don't like to have more than several hundred dollars cash on hand. If you can get several thousand in one trip to your US bank, don't mind paying more than 5 percent, and are comfortable having that much cash, go for it.

Michel_Paris

I can buy euro cash at my bank for ~4-5% above the currency rates but they have an inventory so no charge to ship bills to branch.

Big_Red

You might be able to get lower fees from a credit union or a different bank.

Capital One's credit cards used to have minimal international add-on fees, but that may no longer be the case. and it is a CREDIT CARD.

It sounds like your are paying about 3.0% to use the ATM and probably paying an additional 3.0% international add-on. That is a little steep.

My bank can provide Euros. They need a few days notice to get to the branch bank. I never considered using them for a large amount so I never studied the exchange rate.

If you do get involved in alot of exchange rate math, remember that there are tiers of rates used but typically only one exchange (the big bulk rate) is published.

yk

I have a BoA ATM card and have never been charged a fee by the European bank. BoA charges me a $5 fee if I use an out-of-network bank. So I'm not sure what this additional $3 charge comes from.

Also, the ATM allows €300 per withdrawal. I don't think it's $300.

As for meals at restaurants, why not just pay with a CC then if you're so worried about using ATM.

Travelnut

Easy answer: get a different bank checking account, especially at a credit union, Capital One, or Compass Bank. Most of the above do not charge for ATMs out-of-network (CapOne will but maybe only $1.50) and most of above pass on, at most, 0-1% foreign transaction fees on ATM Withdrawals.

I haven't used my CapOne DEBIT card yet but will in April. I am expecting:
- 0% for foreign transactions
- $1.50 per ATM withdrawal
we'll see.

Patty

Travelnut,
Are you using the debit card for the CapOne HYMM account? The FAQs state that there's no per withdrawal fee. I'm interested in this account so would like to hear your experience after you try it out assuming we're talking about the same product.

Travelnut

No, only the regular basic checking account.

Patty

Thanks, I didn't even know they had checking accounts. It appears that's not available in my state.

AtlTravelr

Just got back from France and used my new Schwab account debit card. There was no transaction fee and no charges for ATM withdrawls. They will also refund ATM fees if another bank charges them to your account. This doesn't happen in Europe but they have refunded the fees charged by US banks that I have used. The account is the Investor Checking Account and this is also the account we opened for my daughter who is studying abroad for the year.

I'm with those who can't imagine carrying so much cash (US or otherwise). I took out 250 Euros at a time and tried to use my credit card for as many charges as I could.

Michel_Paris

One thgin to bear in mind, when looking at what your bank charges you, you would need to look beyond just whether there was a fee or not and compare the rate used to the exchange rate at the time. They can bury overhead in the exchange rate

No fee does not mean no charge.

AtlTravelr

Oh - one other thing. We too have a BofA account and I take great offense to their charging more for a withdrawl from an International Bank ($5) than they do for other withdrawls from a non-BofA account ($2). With the foreign transaction fee on top of that of course.

Travelnut

re: CapOne checking accts - right, you have to complete the account opening in person at a branch. I visit Texas several times/year, so I got it done over the holidays.

Compass Bank is a regional, probably southern/eastern US. Most credit unions are good, too though.

StCirq

I have never, in hundreds (probably thousands) of ATM withdrawals all over Europe, been charged any sort of fee by the European bank.

I just don't think you're right about that.

dickensdad

I obtained an ATM card through my brokerage account (Fidelity). Because this ATM card is a VISA product, there is a 1% foreign transaction fee. However, Fidelity rebates all ATM fees. In addition, the cash account that funds the ATM earns more interest than the typical cash account. The card has a daily $500 ATM withdrawal limit.

We did not obtain any euros before our last trip (March 2008), waiting until we arrived at the Rome train station before withdrawing cash.

We also used a Capital One credit card, which has no foreign transaction fees. On our last trip, we found ourselves using more cash than on previous trips, since one of the B&Bs did not accept credit cards. Also, we noticed more restrictions on credit card use in stores (ie. minimum purchase requirements). We used cash most of the time at restaurants, since we didn't like the credit card to leave our sight.

AtlTravelr

Sorry - just to clarify what I meant with my Schwab account refunding ATM fees. They do not refund European ATM fees because, just like StCirq, we have never been charged a fee by a foreign ATM. And checking my recent transactions against the historical rates listed on xe.com, I see that they are right in line with the rate given - or perhaps the "fee" is so low that I can't really see it. When I first opened the account with them I thought the foreign transaction fee would be 1% but I think it is actually 0.

worldview

Does everyone agree that by using your credit card as much as possible (obviously first I would need to check to make sure that there are no foreign transaction fee's) is a fairly safe way to do business in a foreign land? I'll be in Prague, Budapest, and parts of Poland, all of which use different currencies. I know i'lll need to do some ATM withdrawal, but i'm wondering if anyone has any problem with the idea of using a credit card as much as possible?

Viajero2

I travel quite frequently to Europe, both business and pleasure, and use the CC (both mine and the business) as much as I can.

The one card you DO NOT ever want to use for paying hotels and restaurants is your DEBIT CARD. My bank (a Federal Credit Union) warned me against ever doing this.