Exchanging Dollars for Euros - Best before leaving or after arriving?
Sep 13th, 2009, 07:54 PM
#23
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I have been in Spain where the ATMs weren't working one day - a day when I needed cash, and I have been in Greece when there has been a bank strike (no money in the machines for several days), and this summer when a lot of machines (again in Greece) simply weren't working. I will be a Luddite in future and go back to travellers' cheques at least in part. Also, I think it is "bloody daft" to rely on any one way of getting cash, whatever that is.
Sep 13th, 2009, 08:40 PM
#25
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There are several aspects to this question.
1. The rate, fee: The ATM at the destination is "usually" better. The "goodness" of this transaction depends on what you bank charges. What gets confusing are the battle of terminology. e.g. "The European banks don't charge transaction fees" which is true, but this does not mean you are fee from transaction fees. Your bank and Visa/MC charge them.
2. Whether your debit card actually works at foreign ATMs. There are several aspects to this.
The card itself needs to be enabled for oversea use. I have several debit cards with different levels of oversea restrictions. One always works overseas, other reduces fraud monitor threshold, while the third card is hard disabled for oversea use until I enable them for a specific period.
The ATM network must be functional including your bank. While you may be using an ATM at the destination's business hours, it may be a maintenance period at your home bank.
3. How critical that you need cash on arrival. If the lack of cash at arrival ruins your trip, paying a premium to convert into Euro beforehand can be a worthwhile insurance. Not everyone benefits from paying the premium, but each individual needs to decide what is relevant.
4. How much time you have to rectify a debit card issue. A bank coded my card incorrectly as "lost" instead of "enable for oversea use." It took a long phone call to rectify the problem. I always bring several debit cards from different banks because of this type of bank snafus.
1. The rate, fee: The ATM at the destination is "usually" better. The "goodness" of this transaction depends on what you bank charges. What gets confusing are the battle of terminology. e.g. "The European banks don't charge transaction fees" which is true, but this does not mean you are fee from transaction fees. Your bank and Visa/MC charge them.
2. Whether your debit card actually works at foreign ATMs. There are several aspects to this.
The card itself needs to be enabled for oversea use. I have several debit cards with different levels of oversea restrictions. One always works overseas, other reduces fraud monitor threshold, while the third card is hard disabled for oversea use until I enable them for a specific period.
The ATM network must be functional including your bank. While you may be using an ATM at the destination's business hours, it may be a maintenance period at your home bank.
3. How critical that you need cash on arrival. If the lack of cash at arrival ruins your trip, paying a premium to convert into Euro beforehand can be a worthwhile insurance. Not everyone benefits from paying the premium, but each individual needs to decide what is relevant.
4. How much time you have to rectify a debit card issue. A bank coded my card incorrectly as "lost" instead of "enable for oversea use." It took a long phone call to rectify the problem. I always bring several debit cards from different banks because of this type of bank snafus.
Sep 14th, 2009, 03:31 AM
#27
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Boy, I didn't know I would start such a lively decussion. Our credit union doesn't make currency exchange and the local big banks that do will only do so for those with an account with them. We do have 19 euros that one of my husbands co-workers just brought back from his Europe trip; so we are good until we hit the ATM. Thanks to all for your comments. Ireland, here we come!
Sep 14th, 2009, 09:55 AM
#29
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If the ATM at your arrival airport isn't working for some reason, there will be an exchange booth or a bank at the airport--assuming you are flying into a major airport. The rate won't be as good as at the ATM, but better than what you can get in the USA. We do carry some US dollars to exchange when we travel just in case we have one day when we can't access an ATM. It's never happened yet, but it could.
Sep 14th, 2009, 10:25 AM
#30
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Credit unions and CapOne cards are the way to go.
Chase sucks for ForEx. It charges a large exchange fee (3.5%) and $3 per transaction. I bring a couple hundred bucks in case of emergency and usually land in the US with that same dough.
US banks give awful ForEx rates because they do so little business in consumer-level foreign exchange. Mikes_girl got ripped off (evidently quite happily) because the ForEx rate she received at Chase was 8-10% worse than what she'd receive on the ground in Europe in a cash-for-cash "no fee" exchange.
If you buy Euros at $1.58 plus a 3% conversion fee and no "charge" for the transaction, but would get those same Euros for $1.50 per in Europe, you lose.
Chase sucks for ForEx. It charges a large exchange fee (3.5%) and $3 per transaction. I bring a couple hundred bucks in case of emergency and usually land in the US with that same dough.
US banks give awful ForEx rates because they do so little business in consumer-level foreign exchange. Mikes_girl got ripped off (evidently quite happily) because the ForEx rate she received at Chase was 8-10% worse than what she'd receive on the ground in Europe in a cash-for-cash "no fee" exchange.
If you buy Euros at $1.58 plus a 3% conversion fee and no "charge" for the transaction, but would get those same Euros for $1.50 per in Europe, you lose.
Sep 15th, 2009, 09:19 AM
#32
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WOW! I went back to get more advice regarding how to and where to exchange money. Is it my imagination or are many of the answers/comments a bit harsh? This is really not a good representation for reading Fodors (and I just recommended it to one of my students
Sep 16th, 2009, 05:24 AM
#38
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This is always a hot topic. Not quite as hot as air-conditioning or use of the word "quaint" but still magma hot.
We europeans genunely can't believe how hard it is to get foreign money in America. Seriously, we have no idea.
Our high streets all have at least three or for Cambio of Weasels, plus all our retail banks and the Post office does it. From where I'm sitting in a sleepy suburb of london I have at least ten options.
So everytime a yank comes on and asks about this we tend to roll our eyes and wonder whats wrong with them when we don't really understand why they're asking what seems to us a silly question.
But the digest is this:
Use your US ATM card (if it has a 4 digit pin) to get euros from the cashpoint.
If not that - use your credit card (ideally chip and pin) to get cash.
If not that bring your money in cash and swap it here (as I say there are so many places that do forex the rates are competitive and you won't get striped like you do in the USA)
The last, and stupid, option is either traveller's cheques or a pre loaded payment card.
ps Fodors isn't fierce. Well I am, and Thin is, but the rest are either pussycats or barking mad.
Let us know how you got on - it will help others with the same query.
CW - suprisingly helpful. I must be ill.
We europeans genunely can't believe how hard it is to get foreign money in America. Seriously, we have no idea.
Our high streets all have at least three or for Cambio of Weasels, plus all our retail banks and the Post office does it. From where I'm sitting in a sleepy suburb of london I have at least ten options.
So everytime a yank comes on and asks about this we tend to roll our eyes and wonder whats wrong with them when we don't really understand why they're asking what seems to us a silly question.
But the digest is this:
Use your US ATM card (if it has a 4 digit pin) to get euros from the cashpoint.
If not that - use your credit card (ideally chip and pin) to get cash.
If not that bring your money in cash and swap it here (as I say there are so many places that do forex the rates are competitive and you won't get striped like you do in the USA)
The last, and stupid, option is either traveller's cheques or a pre loaded payment card.
ps Fodors isn't fierce. Well I am, and Thin is, but the rest are either pussycats or barking mad.
Let us know how you got on - it will help others with the same query.
CW - suprisingly helpful. I must be ill.
Sep 16th, 2009, 05:53 AM
#39
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Was I harsh? Hope not. CW, tells it like it is, which I like.
Your ATM money will come out of your checking account, you won't have a choice at the machine.
My point with currency exchanges is that there are always TWO parts to the transaction. The fees and the exchange rate. Many currency exchange outlets will advertise in large print NO FEES...but then just adjust the exchange rate to blend in the fees. Banks in the US are not in a comeptitive consumer foreign exchange business, so they charge fees for this. In my case, I've seen a markup of ~4-5% for currency at my bank.
Just like you would (hopefully) not get $CDN at home before coming to visit us, there is no need in Western Europe to worry about not finding an ATM to get cash. I have multiple ATM cards with me anyways, so in case some machine does not take one card, another machine or another card is available. In London in May NatWest did not take one of my cards, walked over to the Barclay's machine. When I went to Turkey in 2007, I landed with US$100 to pay visa, and no local currency.
From my experience, the ATM exchange rate is one of the better ones..but keep in mind any fees your bank may add to the withdrawal...making bigger withdrawals will help mitigate.
On my holidays, the thought of having to plan any of my time around finding somewhere to convert currency is not fun, I prefer the "walking down the street, oh, there's a machine I'll get some cash"
Your ATM money will come out of your checking account, you won't have a choice at the machine.
My point with currency exchanges is that there are always TWO parts to the transaction. The fees and the exchange rate. Many currency exchange outlets will advertise in large print NO FEES...but then just adjust the exchange rate to blend in the fees. Banks in the US are not in a comeptitive consumer foreign exchange business, so they charge fees for this. In my case, I've seen a markup of ~4-5% for currency at my bank.
Just like you would (hopefully) not get $CDN at home before coming to visit us, there is no need in Western Europe to worry about not finding an ATM to get cash. I have multiple ATM cards with me anyways, so in case some machine does not take one card, another machine or another card is available. In London in May NatWest did not take one of my cards, walked over to the Barclay's machine. When I went to Turkey in 2007, I landed with US$100 to pay visa, and no local currency.
From my experience, the ATM exchange rate is one of the better ones..but keep in mind any fees your bank may add to the withdrawal...making bigger withdrawals will help mitigate.
On my holidays, the thought of having to plan any of my time around finding somewhere to convert currency is not fun, I prefer the "walking down the street, oh, there's a machine I'll get some cash"
Sep 16th, 2009, 05:54 AM
#40
CW - Actually for an American to use a credit card to get cash they would likely pay more than using travelers checks since it's considered a loan with interest (high - 10%-25%) starting the moment you withdraw the money.
