Exchanging money
Oct 15th, 2010, 06:36 AM
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Exchanging money
My mom and I leave on November 4th for a week in Rome. She thinks we should change our money to Euros before we leave. I disagree and think we should use ATM's there. A lady in my office who travels to Europe a lot says she brings dollars and exchanges to Euros at a bank there? I am really confused and would appreciate any advice.
Oct 15th, 2010, 06:44 AM
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You do not need any advice because you are correct. The lady in your office is getting ripped off and your mom wants you to get ripped off.
The exchange rate is currently bad so save where you can. You'll get the best rate for cash at an ATM in Italy, period. Check with your bank regarding their fees (if it's Chase, they suck; if it's Capital One, you're in good shape). Inform your bank you will be in Italy from XX to XX so they don't put a fraud-stop on your card. And Fiumicino will have ATMs -- google the airport and you should be able to find its website and map.
If you have time (and you may, ask for a rush on the card), you can set up an account at Cap One (online) or a credit union and obtain a bank card that charges low or no foreign exchange fees.
To recap: (1) exchange rates in the US for foreign currency are terrible, so buying Euros from your bank will mean a large surcharge; (2) exchanging money at European banks or foreign exchange offices is a waste of time because they offer far worse rates than the standard Interbank exchange rate (the "true" foreign exchange); (3) ATMs are best and available throughout Italy -- they certainly were the last time I was there 14 years ago and ATM supplies have not decreased since then.
The exchange rate is currently bad so save where you can. You'll get the best rate for cash at an ATM in Italy, period. Check with your bank regarding their fees (if it's Chase, they suck; if it's Capital One, you're in good shape). Inform your bank you will be in Italy from XX to XX so they don't put a fraud-stop on your card. And Fiumicino will have ATMs -- google the airport and you should be able to find its website and map.
If you have time (and you may, ask for a rush on the card), you can set up an account at Cap One (online) or a credit union and obtain a bank card that charges low or no foreign exchange fees.
To recap: (1) exchange rates in the US for foreign currency are terrible, so buying Euros from your bank will mean a large surcharge; (2) exchanging money at European banks or foreign exchange offices is a waste of time because they offer far worse rates than the standard Interbank exchange rate (the "true" foreign exchange); (3) ATMs are best and available throughout Italy -- they certainly were the last time I was there 14 years ago and ATM supplies have not decreased since then.
Oct 15th, 2010, 06:51 AM
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You are correct, mom is not, and lady at office is not.
The electronic age has arrived, ATMs are global. I have used my ATM card for a few years to access my cash. There are networks (look at back of your card) that ATM machines belong to, like Cirrus and Plus. When I was in London May last year, my card did not work at natWest, so I walked two doors down and used Barclay's ATM.
The ATMs in Europe do not have the choice of checking or savings, they link to your primary account.
There may be a fee to withdraw money, but thus fee is from YOUR bank, not the ATM machine. Some banks do not charge for international withdrawals, some a minimum fee. So, when withdrawing, I take out enough for a couple of days. You also get a good exchange rate
Sanity wise, some people like to have enough local currency when they land, so if there is any ATM issue (or long line-up) they can just get go to hotel and withdraw cash later.
Getting cahs at home will cost you extra, converting $$ over there will cost you extra. Carrying around cash, some risk, Why not just use your card like you would at home?
The electronic age has arrived, ATMs are global. I have used my ATM card for a few years to access my cash. There are networks (look at back of your card) that ATM machines belong to, like Cirrus and Plus. When I was in London May last year, my card did not work at natWest, so I walked two doors down and used Barclay's ATM.
The ATMs in Europe do not have the choice of checking or savings, they link to your primary account.
There may be a fee to withdraw money, but thus fee is from YOUR bank, not the ATM machine. Some banks do not charge for international withdrawals, some a minimum fee. So, when withdrawing, I take out enough for a couple of days. You also get a good exchange rate
Sanity wise, some people like to have enough local currency when they land, so if there is any ATM issue (or long line-up) they can just get go to hotel and withdraw cash later.
Getting cahs at home will cost you extra, converting $$ over there will cost you extra. Carrying around cash, some risk, Why not just use your card like you would at home?
Oct 15th, 2010, 08:44 AM
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In the past, I have used the ATM for cash, and I have charged my larger expenses, like hotel and meals, to my credit card, which earns miles.
I've decided to change that--to pay as much as possible with cash (from the ATM, of course). The reason is that my bank charges $5.00 for a withdrawal, no matter what the amount. My credit card charges 3% for each charge.
Thus, to withdraw $500 worth of euros=$5.00, whereas
$500 worth of expenses with the credit card=$15.00
Before my next trip, I will call my bank and have them raise my daily limit so that I can get the maximum the European bank allows.
At present, my daily limit is $500, but that's less than $350 euros.
I've decided to change that--to pay as much as possible with cash (from the ATM, of course). The reason is that my bank charges $5.00 for a withdrawal, no matter what the amount. My credit card charges 3% for each charge.
Thus, to withdraw $500 worth of euros=$5.00, whereas
$500 worth of expenses with the credit card=$15.00
Before my next trip, I will call my bank and have them raise my daily limit so that I can get the maximum the European bank allows.
At present, my daily limit is $500, but that's less than $350 euros.
Oct 15th, 2010, 08:50 AM
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There is often a different limit between the ATM machine and what your bank allows. People then just do two withdrawals in a row.
As with any transaction, be aware that there are two components to any currency exchange...the fee and the exchange rate. No fees does not mean a better deal, you need to know the rate also.
As with any transaction, be aware that there are two components to any currency exchange...the fee and the exchange rate. No fees does not mean a better deal, you need to know the rate also.
Oct 15th, 2010, 04:34 PM
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We knew better but I insisted on having euros when I arrive in less than 2 weeks. We used travelex and it has been terrible. If you order over the web the exchange is better but in person it is awful Don't make the ridicuous mistake my husband made. I told him not to get so much, just enough for a day or so--what did he do exchanged $1200. My bank charges no sur charge at all I could return them but it is a 2 hour drive. I am stuck. well I got the euros at least.
Oct 15th, 2010, 04:40 PM
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What, pray tell, is the exchange rate you consider good if you order over the web, diann24?
And what is the exchange rate your bank wants to charge you, surcharge or not? You'll get a double whammy - the exchange rate to buy euros is different than the exchange rate to sell them back. You'd likely get back closer to $1000-1100 if you tried to sell the euros back to the bank.
And what is the exchange rate your bank wants to charge you, surcharge or not? You'll get a double whammy - the exchange rate to buy euros is different than the exchange rate to sell them back. You'd likely get back closer to $1000-1100 if you tried to sell the euros back to the bank.
Oct 15th, 2010, 04:53 PM
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I checked travelex.com to answer my own question.
$1000 gets you 678.10 euros. Add in $10 shipping, price is $1010 from travelex.
If I were to use my credit union debit card today in Italy, it would cost me $946.76 to get the same 678.10 euros, plus a 1% fee brings it $956.
Thus, travelex = a 5.6% premium. Not a bad deal if get $100 or $200 worth, but it adds up to over $67 on the $1200 purchase. You can buy a lot of gelato for $67.
$1000 gets you 678.10 euros. Add in $10 shipping, price is $1010 from travelex.
If I were to use my credit union debit card today in Italy, it would cost me $946.76 to get the same 678.10 euros, plus a 1% fee brings it $956.
Thus, travelex = a 5.6% premium. Not a bad deal if get $100 or $200 worth, but it adds up to over $67 on the $1200 purchase. You can buy a lot of gelato for $67.
Oct 15th, 2010, 05:05 PM
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Totally agree with the other posters that withdrawing cash from an ATM once you arrive is the way to go.
I just wanted to add that when I arrived at Rome/FCO airport earlier this year, it wasn't obvious where the ATMs were! (This has not been my experience at other airports.) We traipsed around for a while, and if the lines at the two (ripoff) exchange kiosks weren't so long I'm sure my BF would have made me go there-! Fortunately we discovered the Help phones that are scattered throughout the terminal: pick up the receiver, ask your question in English and problem solved! (In the terminal we were in, the ATM was located down a corridor behind a row of check-in counters, nowhere near where we'd been wandering...)
Buon viaggio!
I just wanted to add that when I arrived at Rome/FCO airport earlier this year, it wasn't obvious where the ATMs were! (This has not been my experience at other airports.) We traipsed around for a while, and if the lines at the two (ripoff) exchange kiosks weren't so long I'm sure my BF would have made me go there-! Fortunately we discovered the Help phones that are scattered throughout the terminal: pick up the receiver, ask your question in English and problem solved! (In the terminal we were in, the ATM was located down a corridor behind a row of check-in counters, nowhere near where we'd been wandering...)
Buon viaggio!
Oct 16th, 2010, 05:38 AM
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J62: I just returned. Exactly the rate on line was 813.00 for $1200 US dollars plus the $10.00 for mail. I called there office 2 hours rd trip for us, and decided to send my husband in person. He comes home with 761 Euros for $1200. I called them and they explained about how the rate was .65 with a "walk in" exchange. I did not know this. Oh but the pitch is if we take them back don't use them all (as if that will happen!! Yeah right!) then we would get a better exchange then mail. At any rate the point is don't be a fool. Yes I could have purchased quite a bit of gelato with that extra money!! My first trip to Europe---file it away with lessons learned. I have grown children and am a granmother.
Libbier--Mothers always know best--in this case, tell her she is best waiting for the euros in Europe for sure. (smile!)
Libbier--Mothers always know best--in this case, tell her she is best waiting for the euros in Europe for sure. (smile!)
Oct 16th, 2010, 07:44 AM
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There is no need to pay 3% foreign transaction fee (note that foreign currency fee; even if you pay in your currency and fall for the dcc scam you pay it to most of the near criminal large credit card banks). Get a credit card from Capital One..they even eat the 1% visa/mc fee and you pay the exact interbank rate, no fees whatsoever here.
As far as cash withdrawals from ATM's, there is no need to pay a red cent (whether US or euro)..many banks on the internet feature free debit or ATM cards and do not charge foreign transaction fees (for the most part the Italian machines do not charge fees on non Italian debit/atm transactions by the rules of the shared teller networks)...open up an account with such a bank (rarely has any fees) transfer money from your main checking account (you can usually do it as a bill pay through a bill pay service) and when you get home transfer the money back to your main checking account. I keep $1.01 in my account and transfer just before I leave.....if you mis-calculate find an internet cafe and do a transfer....piece of cake and most economical way to go by far. There is no second best.
My other comment...maybe I'm missing something and if so I apologize. But what is this fixation in this day and age of having euro when you arrive? Most means of public transportation take credit cards in Europe. I know one of the exceptions may be people who rent an apartment and the landlord wants the money up front but for other purposes, why do any hassling or running around or whatever. When you get there, just find an ATM. Done. (if you have prepaid transportation to your hotel, even less reason. On your first day of touring, it will be easy to find an ATM.)
As far as cash withdrawals from ATM's, there is no need to pay a red cent (whether US or euro)..many banks on the internet feature free debit or ATM cards and do not charge foreign transaction fees (for the most part the Italian machines do not charge fees on non Italian debit/atm transactions by the rules of the shared teller networks)...open up an account with such a bank (rarely has any fees) transfer money from your main checking account (you can usually do it as a bill pay through a bill pay service) and when you get home transfer the money back to your main checking account. I keep $1.01 in my account and transfer just before I leave.....if you mis-calculate find an internet cafe and do a transfer....piece of cake and most economical way to go by far. There is no second best.
My other comment...maybe I'm missing something and if so I apologize. But what is this fixation in this day and age of having euro when you arrive? Most means of public transportation take credit cards in Europe. I know one of the exceptions may be people who rent an apartment and the landlord wants the money up front but for other purposes, why do any hassling or running around or whatever. When you get there, just find an ATM. Done. (if you have prepaid transportation to your hotel, even less reason. On your first day of touring, it will be easy to find an ATM.)
Oct 16th, 2010, 08:23 AM
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It's not a good idea to log in to your bank account from an Internet cafe. That is not a secure place. Probably worse than a WiFi connection.
If I had to get into my bank account to transfer money, I think I'd ask to use a hard-wired computer in my hotel.
If I had to get into my bank account to transfer money, I think I'd ask to use a hard-wired computer in my hotel.
Oct 16th, 2010, 08:24 AM
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For my daughter's trip last summer I opened a savings account with ATM card and a Visa account for her at my credit union. She used them in France and Italy with no withdrawal fees and no foreign transaction fees. The banks, as you know from watching the news, are criminal organizations.
Oct 16th, 2010, 08:32 AM
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Definitely ATMs! However, if you want to play it really safe, bring some emergency US dollars with you. Then if for some reason your debit card won't work in an ATM at the Rome airport, pay the high fee and get euros at an airport exchange bureau. If you only exchange a small amount, it won't cost you a whole lot.
Oct 16th, 2010, 01:09 PM
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xyz123: as for myself when I arrive we are being met by a private tour guide where we will begin our tours. I might want a caffe latte or something, and no he doesn't take credit cards so before the day is over I must have enough money to pay henceforth my insistance of having some euros when I arrive. Understand also this is my first time to europe, as well so I am somewhat stressed I would suppose. It just stresses me out to go to another country where euros only accepted, without any---it is just "me."
Oct 16th, 2010, 01:39 PM
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diann24 we were the same as you the first time we travelled to Europe. We arrived there with a few hundred euros and also some pounds. After that we used the ATMs.
The next time we just found an ATM when we arrived at the airport.
xyz123 there's no need to be a smart alec. I think that arriving without the required currency is something that bothers people before their FIRST trip. After that most of us realise how easy it is.
The next time we just found an ATM when we arrived at the airport.
xyz123 there's no need to be a smart alec. I think that arriving without the required currency is something that bothers people before their FIRST trip. After that most of us realise how easy it is.
