Foreign Exchange
Sep 7th, 2005, 07:43 AM
#21
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Grace...
If the interbank rate is $1.22 to €1, the shared teller networks which are controlled by visa or mastercard generally add 1% so for the most part you would pay $1.2322 via the ATM for €1. Yes banks add extra charges but the trick is to find a bank that doesn't and there are lots of them around.
Do things go wrong every so often? Yes but then there is always a need for back ups such as cc advances (expensive yes but in an emergency it would probably mean you pay the same as what you paid exchanging cash in the US), an Amex card where Amex offices will cash personal cheques and a couple of hundred US dollars in nice crisp $20 banknotes.
The modern 21st century way, IMHO of course and not to bad mouth anybody who disagrees, is to use cc's everywhere they are taken. The RATP takes credit cards for fares as low as 1,20€, many restaurants other than fast food places take them, the hotels take them, the shoppes take them. I can go through a week in Paris with a 50€ withdrawal from the ATM with no sweat whatsoever.
TC's are a pain as most are finding in this day and age including those in local currency as nobody wants to touch them...exchanging cash means throwing away 9 to 10%. Why wouldn't anybody want to do things the 21st century way?
But then again, in all due respect, to each his or her own.
If the interbank rate is $1.22 to €1, the shared teller networks which are controlled by visa or mastercard generally add 1% so for the most part you would pay $1.2322 via the ATM for €1. Yes banks add extra charges but the trick is to find a bank that doesn't and there are lots of them around.
Do things go wrong every so often? Yes but then there is always a need for back ups such as cc advances (expensive yes but in an emergency it would probably mean you pay the same as what you paid exchanging cash in the US), an Amex card where Amex offices will cash personal cheques and a couple of hundred US dollars in nice crisp $20 banknotes.
The modern 21st century way, IMHO of course and not to bad mouth anybody who disagrees, is to use cc's everywhere they are taken. The RATP takes credit cards for fares as low as 1,20€, many restaurants other than fast food places take them, the hotels take them, the shoppes take them. I can go through a week in Paris with a 50€ withdrawal from the ATM with no sweat whatsoever.
TC's are a pain as most are finding in this day and age including those in local currency as nobody wants to touch them...exchanging cash means throwing away 9 to 10%. Why wouldn't anybody want to do things the 21st century way?
But then again, in all due respect, to each his or her own.
Sep 7th, 2005, 07:43 AM
#22
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gracejoan, you have a right to do as you wish with your money. But since you asked about ATM fees, I will answer.
I recently visited the UK and used the ATM exclusively. The conversion fee was 1% and I paid no withdrawal fees, as I used a partner bank. If there had been no partner banks in the UK, I would have used my ATM card from my credit union. The conversion fee for that card is 1%, and the withdrawal fee is $1. I have never had a problem using ATMs in Europe, although I do take TC's as a back-up just in case.
I recently visited the UK and used the ATM exclusively. The conversion fee was 1% and I paid no withdrawal fees, as I used a partner bank. If there had been no partner banks in the UK, I would have used my ATM card from my credit union. The conversion fee for that card is 1%, and the withdrawal fee is $1. I have never had a problem using ATMs in Europe, although I do take TC's as a back-up just in case.
Sep 7th, 2005, 07:46 AM
#23
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My home is in central Mexico - a nearly all cash economy for daily essentials including Pemex and utilities.
Very many merchants (appliances, furniture, better jewelery and other high end stuff) offer 10% discounts for cash and the discounts apply to the VAT as well.
No fee ATMs and no/low fee CCs are the way to go here unless one has a MX MM or bank account which can be refilled when the USD is strong and depleted when the USD is weak (playing currency conversion games is iffy at best).
I continue to use my AA Citi MC for my few US bills/purchases (but the Citi and Amex 4% currency conversion fee is most unattractive imho).
M
Very many merchants (appliances, furniture, better jewelery and other high end stuff) offer 10% discounts for cash and the discounts apply to the VAT as well.
No fee ATMs and no/low fee CCs are the way to go here unless one has a MX MM or bank account which can be refilled when the USD is strong and depleted when the USD is weak (playing currency conversion games is iffy at best).
I continue to use my AA Citi MC for my few US bills/purchases (but the Citi and Amex 4% currency conversion fee is most unattractive imho).
M
Sep 7th, 2005, 07:53 AM
#25
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None of this will make any sense until we know something about the amount of money each person has available to use or spend. Costs of funds as a percentage of say monthly income would be enlightening. If the cost is very low or of no consequence, then why not go the most convenient route? If money is 'tight'; certainly seek out the least conversion cost. I have known people who discard underwear after wearing it once!
Sep 7th, 2005, 07:56 AM
#26
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Gracejoan3--I still don't see where the advantage is in your strategy. As you said yourself, there is no benefit to using cash at home, so why do you think it is a good thing to carry so much when traveling? Why is it worth $200+ (you said $108 for 1000E, but that you were taking 2000E) to not use CC and ATM when traveling? I'm really wondering about this...
Sep 7th, 2005, 08:04 AM
#28
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XYZ123,
Got your message about the rate. As for AMEX, I don't even take it with me..so many places don't want it. The TC's are only for MAJOR emergencies. I have never used them..and I hope I never do have to use them. Might be helpful if you ended up in a hospital until the travel medical insurance kicked in...to me these little "extra" costs for convenience and travel and medical coverage are all a part of my trip planning..if I can't afford them, then I should stay home! It goes with spending $150 for lunch for 1, or $600 for dinner for 4! To some it is nuts..to others it is pleasure! To some it is, "how cheap can I do it"..I say, whatever makes you happy, to do it your way and enjoy what you are doing! That is certainly what I am going to be doing!! Enjoy.........
Got your message about the rate. As for AMEX, I don't even take it with me..so many places don't want it. The TC's are only for MAJOR emergencies. I have never used them..and I hope I never do have to use them. Might be helpful if you ended up in a hospital until the travel medical insurance kicked in...to me these little "extra" costs for convenience and travel and medical coverage are all a part of my trip planning..if I can't afford them, then I should stay home! It goes with spending $150 for lunch for 1, or $600 for dinner for 4! To some it is nuts..to others it is pleasure! To some it is, "how cheap can I do it"..I say, whatever makes you happy, to do it your way and enjoy what you are doing! That is certainly what I am going to be doing!! Enjoy.........
Sep 7th, 2005, 08:07 AM
#29
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I agree completely about arriving in Europe with euros in hand - I'm one who doesn't like to bother with hitting an ATM machine upon arrival. BUT, since you say you travel to France often, you could save yourself both time and money by simply taking out a few hundred euros from an ATM machine before you fly home and use that for the next trip. I've been doing that for years.
I wonder, too, why you are simply throwing money away needlessly.
I wonder, too, why you are simply throwing money away needlessly.
Sep 7th, 2005, 08:10 AM
#31
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I can see why one would use more cash in Europe than in the USA. Many off the beaten path hotels and restaurants are cash-only. But I cannot understand why one would need to carry around 2000e at once AND pay a large premium to get that money before arriving. If it's simply preference, that's fine but it costs an arm and a leg to indulge that preference and if a pickpocket strikes you've lost a real bundle.
Sorry, but I cannot in good conscience counsel anyone to follow this stupidity.
Sorry, but I cannot in good conscience counsel anyone to follow this stupidity.
Sep 7th, 2005, 08:14 AM
#32
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g33grl,
This offer of a place to obtain funds has really changed....I DO take credit cards to europe..I do use credit cards in europe. I DO NOT use ATM's in europe! The cash that I use in europe I obtain BEFORE I leave by purchasing usually via my bank..this time I decided to give Wells Fargo a try, just to see how it worked....I also had to use my bank as WF could not give me the amount I wanted by ordering online. My lodging will be in cash(euros) as they have not made credit card arrangements as of this date. So, you see, a good deal of my euros will be for my lodging!!
I am happy with the extras that I might have spent..for MY convenience!
This offer of a place to obtain funds has really changed....I DO take credit cards to europe..I do use credit cards in europe. I DO NOT use ATM's in europe! The cash that I use in europe I obtain BEFORE I leave by purchasing usually via my bank..this time I decided to give Wells Fargo a try, just to see how it worked....I also had to use my bank as WF could not give me the amount I wanted by ordering online. My lodging will be in cash(euros) as they have not made credit card arrangements as of this date. So, you see, a good deal of my euros will be for my lodging!!
I am happy with the extras that I might have spent..for MY convenience!
Sep 7th, 2005, 08:44 AM
#35
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I agree, if it makes you happy and comfortable and you don't care about the extra expense, then do it. It sure isn't for me, as I'd be a nervous wreck carrying around several thousand dollars in cash -- heck, I'm nervous at home if I have over $100 in my wallet.
But you didn't tell us how much you got total. Since you mention the $2000 limit and getting the balance from your bank, I'm guessing something like $4000. So the total cost of getting that much money in advance is something like $432.? Again, if it makes you happy, fine, but when there are so many people struggling to save a couple of euros here and there between types of transporatation or where to eat or which hotel will save them 10 euro -- I suspect your method is not for most Fodorites.
I too am so much happier getting cash as I need it so I don't have so much on me and saving that $400. I'll stick with ATM's thank you.
But you didn't tell us how much you got total. Since you mention the $2000 limit and getting the balance from your bank, I'm guessing something like $4000. So the total cost of getting that much money in advance is something like $432.? Again, if it makes you happy, fine, but when there are so many people struggling to save a couple of euros here and there between types of transporatation or where to eat or which hotel will save them 10 euro -- I suspect your method is not for most Fodorites.
I too am so much happier getting cash as I need it so I don't have so much on me and saving that $400. I'll stick with ATM's thank you.
Sep 7th, 2005, 08:52 AM
#36
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I have to say that some of the posts are unbelievable! What does ATMS rule mean?? Is there some kind of contest going on?
I simply passed on the information that funds could be purchased from Wells Fargo. People have asked where they could be purchased. I was being kind and passing that information on. I expressly stated that the post WAS NOT to get into a discusssion of fees etc....so what happens, most only want to talk about fees and rudely say I'm crazy..when THEY were the ones that became involved in something that was NOT asked of them and was NOT any of their business! How I wish to spend MY money for MY convenience is MY business. If I spend $150 for lunch..some would say I was nuts for doing that..which would also be rude and none of their business. Some do get way out of line on this site. I have read unbelievable stuff that I could not possibly agree with, but I most certainly maintain the proper courtesy that it is none of my business how someone else wishes to spend their money! I most certainly would not say that someone was crazy...those who have such poor manners shouldn't even be posting on a site that is supposed to be helpful and to pass on information. I think many of you are disgusting and should be ashamed..........
I simply passed on the information that funds could be purchased from Wells Fargo. People have asked where they could be purchased. I was being kind and passing that information on. I expressly stated that the post WAS NOT to get into a discusssion of fees etc....so what happens, most only want to talk about fees and rudely say I'm crazy..when THEY were the ones that became involved in something that was NOT asked of them and was NOT any of their business! How I wish to spend MY money for MY convenience is MY business. If I spend $150 for lunch..some would say I was nuts for doing that..which would also be rude and none of their business. Some do get way out of line on this site. I have read unbelievable stuff that I could not possibly agree with, but I most certainly maintain the proper courtesy that it is none of my business how someone else wishes to spend their money! I most certainly would not say that someone was crazy...those who have such poor manners shouldn't even be posting on a site that is supposed to be helpful and to pass on information. I think many of you are disgusting and should be ashamed..........
Sep 7th, 2005, 08:55 AM
#37
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Grace, I don't want to be judgemental but I am really curious about how you manage without cash at home. How would you buy a newspaper/drink/ice cream ? Presumably you never travel by bus or other short-distance public transport ? What about tipping e.g. hairdressers ?
Sep 7th, 2005, 08:58 AM
#38
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I also agree there is no point in everyone telling gracejoan how bad this is, as she was just trying to offer advice of a place to get money if one really wanted to. I don't get it, either, but I wouldn't even be comfortable with having thousands of dollars being delivered by Fedex. I have had packages delayed or lost a while by Fedex.
As for the TCs, I get them free at AAA and take them as backup, also. I've had to use them several times, and there is no cost for me to do that, so why not. Gracejoan explicitly said she used those as backup, so why try to argue about those, either. In fact, there are actually some countries (despite what people claim on here), where you don't lose 10 pct by using TCs, and can get a decent exchange rate. France is one of them, as is Czech Republic. I was just in Canada over Labor Day, and the rates there are outrageous for TCs, however, some of the worst I've ever seen (I think you lost about 25-33 pct).
However, I do have a comment on the AAA TCs in that if you get them, you should not be charging them to a credit card as grace did. That is considered a cash advance and you pay a lot for it. It's not like buying a product. When you get them, you should pay by check (or by cash if you only want a few hundred $) to avoid high credit card cash advance fees.
As for the TCs, I get them free at AAA and take them as backup, also. I've had to use them several times, and there is no cost for me to do that, so why not. Gracejoan explicitly said she used those as backup, so why try to argue about those, either. In fact, there are actually some countries (despite what people claim on here), where you don't lose 10 pct by using TCs, and can get a decent exchange rate. France is one of them, as is Czech Republic. I was just in Canada over Labor Day, and the rates there are outrageous for TCs, however, some of the worst I've ever seen (I think you lost about 25-33 pct).
However, I do have a comment on the AAA TCs in that if you get them, you should not be charging them to a credit card as grace did. That is considered a cash advance and you pay a lot for it. It's not like buying a product. When you get them, you should pay by check (or by cash if you only want a few hundred $) to avoid high credit card cash advance fees.
Sep 7th, 2005, 09:04 AM
#39
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Patrick,
I guess you missed my post of the cost..Wells Fargo charged me $1328.40 including the $8 FedEx delivery for 1000 euros...I guess I should deduct the free gas I will get for using a gas CC..my bank charged me $1327.40 for 1000 euros. I have no problem with 2000 euros. I probably only carry about 400 with me each day, along with my credit cards. It is just my way of doing it...I have never suggested it to others..I think it is quite a personal matter how people want to arrange their money, or to spend their money...you can NEVER have people agree on that...to buy or not to buy trip insurance, luxury hotels/cheap hotels, Michelin starred meals/how cheap can we eat meals..to each his own with various budgets and various likes...whatever makes you happy!!
I guess you missed my post of the cost..Wells Fargo charged me $1328.40 including the $8 FedEx delivery for 1000 euros...I guess I should deduct the free gas I will get for using a gas CC..my bank charged me $1327.40 for 1000 euros. I have no problem with 2000 euros. I probably only carry about 400 with me each day, along with my credit cards. It is just my way of doing it...I have never suggested it to others..I think it is quite a personal matter how people want to arrange their money, or to spend their money...you can NEVER have people agree on that...to buy or not to buy trip insurance, luxury hotels/cheap hotels, Michelin starred meals/how cheap can we eat meals..to each his own with various budgets and various likes...whatever makes you happy!!
