HELP - Money in Europe
 

Hello,

Few questions regarding travel to the USA & Europe in the second half of 2014 regarding money.

We will be backpacking around both countries for a year are are trying to figure out the best form of money to take for each country. We are trying to hedge against the AUD dropping anymore as have budgeted it being at parity +/- 5% and the Euro being around $0.74.

1. Pre-paid Travel Cards

Are these widely accepted in the USA and Europe when booking hotels,hostels,tickets etc?

We know the exchange rate is poor and there is a risk it could be stolen and used as your name isn't on the card? Are there any with names on the card?

Also the withdrawal fees from ATM's are high but we can accept this if we are able to withdraw amounts greater than $1000 at one time ATM's in the USA and Europe...is that possible? We have heard most ATM's in USA don't allow large amounts to be withdrawn, not sure about Europe...

2. Travellers Cheques

We know this are old fashioned but we like the fact they are insured if stolen and we can take large amounts $10 000+. We know the exchange rate is average again but we would like to know if it's possible to cash travellers cheques overseas at American Express Travel Outlets for free? Are these outlets freely available across the USA and in Europe at all? Otherwise what price would I be looking at to cash travellers cheques?

3. 28 Degrees

We know this would be our first option if we could guarantee that the exchange rate won't keep dropping because of the many fees that aren't included with this card. We used this card for Asia placing cash on it before/as we went and withdraw cash from overseas. Therefore no ATM fees!

The real reason is we have most of the budgeted amount +50 000 AUD currently and want to be able to confirm the exchange rate and get as much as possible for our Australian dollar!

If you have any input or answers it would be greatly appreciated!

Thanks

Before addressing the money questions, can I ask if you have dual nationality passports or if you've researched visa's? If not then you need to familiarise yourselves with the Schengen countries as you may find that you can only stay in those countries for a limited amount of time. Generally you will be required to leave after 3 months and can't return immediately.

No to travellers cheques. You will get a poor exchange rate and have trouble getting banks to cash them for you.

I can't answer your question about which card to use but I do know that we were limited to about €400 each time we withdrew from an ATM but surely that's enough cash in one go? Pay by card for accommodation, trains etc.

I would not advice you to take out large amounts of cash from an ATM.
Travellers Cheques - are they still in use? You may find it hard to exchange them, and they are expensive.

Charges on ATM's are usually charged by your own bank. Withdrawal fees are zero or very low - but your own bank may charge you for withdrawing cash in Europe. Check with your bank.

You really need a credit card, or two. Visa, Mastercard are widely accepted. A credit card with a PIN is the safest way to pay. Use your debit card to get cash whenever you need it.

<< the withdrawal fees from ATM's are high >>

No they are not. I've only found 1 bank in Europe that charges ATM fees - La Caixa in Spain. No other European ATMs have charged fees. Any fees would be from your bank and from your Visa ATM card (foreign transaction fee).

Why not open a credit union checking account. My credit union allows 8 free withdrawals per month from non credit union ATMs and only a 1% foreign transaction fee rather than the 3% charged by Visa.

<< Travellers Cheques >>

You should call American Express to ask those questions as I doubt you'll find anyone on this board who has used TCs in the last decade. More than 10 years ago a friend called AMEX to ask about TCs for Europe and they told her to use her ATM card.

The exchange rate goes up and down and within a year you will find rates more favorable and less favorable than today. It will all average out over a year.

<< 28 Degrees... no ATM fees >>

Normally the bad exchange rate will cost you more than any ATM fees. Some people are ostriches and think because they do not see a fee on their statement they are not paying a substantial amount for these cards. They are wrong. How much they are paying is transparent but it's there if you do the math.

I thought you were worried about the AUD dropping yet you think that if you get these prepaid travel cards and don't see the drop it's OK? I don't get it.

Debit cards are preferable to credit cards for withdrawing cash from ATMs (and don't let anyone tell you differently) but watch you daily limits for using a debit card at an ATM.

I have not used travelers checks since 1997.

We have used ANZ travel cards loaded with Euros. The exchange rate is locked in when you load currency onto the card. There is a 2 euro fee for making withdrawals at ATMs in Italy, can't comment on other countries. Generally we have been able to withdraw 500 euro at a time, but not on Fridays or weekends, when a 250 limit aplies.

We also have Citibank Plus Transaction accounts, which give you a Visa debit card. The exchange rate with Citibank is about 2% better than the ANZ rate, and there are no withdrawal fees.

The exchange rate from NAB and CBA is worse than ANZ, and far wrse than Citibank.

Keep an eye on the Aus $ vs the Euro exchange rate. Whils the Aus$ may slip below parity with the US$, that does not mean that it is moving against the Euro.

Travellers cheques are a thing of the past.

When you are traveling, be sure to get a sim card for your smartphone with a dataplan and if you do not already have it, install the xe.com currency converter app so you can monitor exchange rates easily. The rate it shows matches very closely with the rates I get when withdrawing money from foreign ATMs.

Hi
I am an Aussie also looking to travel to Europe in 2014 and have been watching the exchange rates for the past couple of months.I also buy a "travel card " and load the money when I an happy with the rate. This time I have purchased a "Mult currency cash passport" from Australia Post (walked in no appointment required) and requested Euro to be converted.You can have up to 10 different currencies loaded on it including USD,CAD and Euro.There are no atm withdrawal fees and I intend to check the www.auspost.com.au website and add to it by walking in the door, to the place I purchased the card ,(again no fee) You can also Bpay but there is a charge.
Check out www.cashpassport.com/multi for all term,conditions and fees.
I always take a credit card and my australian debit card with me to use only for backup.
Our banks charge us so much for overseas transactions (eg CBA $5 plus 3%) we resort to travel cards.We also tend to holiday longer when travelling far away and these cost can add up fast.
Traveller cheques might still be available to buy but they are not popular with retailers.
Last suggestion- don't watch the news for exchange rate ,go directly onto the foreign exchange site (banks,Austpost) to get the exact rate offered.
Goodluck!

Since this is posted on the German part of the forum, here is the deal with travelers checks. No retailer will take them. No bank will take them. The only place you can cash them are the Money Exchanges at the airports, cleverly called "Reise Banks" just to fool unsuspecting travelers, at the large train stations and a few other tourist hot spots. You will not only pay an extra fee to do so, but also get the very worst exchange rate possible. Every time I walk by their window, their prices shock me.

So, all of your planning ahead to save money by locking it into cards, Travelers checks, etc. will be quickly frittered away by these other costs and bad exchange rates.

Don't do travelers checks. Your bank at home should have insured your deposits against theft and a bank run, so you should just use ATMs.

In the USA, you will be charged fees on most ATM withdrawals but you will find no place convenient to accept or change travelers checks.

And why would you get prepaid travel cards instead of using a regular credit card? Good luck with using an Aussie prepaid card in the US.

Traveler's checks are a thing of the past, and as already noted, banks in the EU will not cash them unless you are a client of the banks or know someone who is.

In one word, prepaid cards are a rip-off, designed for those without bank accounts or poor credit. If you have a bank account at home, just use your bank's ATM debit/cash card to withdrawal cash as needed. And make sure you have a daily limit that's reasonable.

You might want to check about opening an account at BNP Paribas, or Deutsche Bank. Both have a presence in Australia. You can also check with Barclays Bank about setting up an international bank account (http://www.barclayswealth.com/intern...nk-account.htm). Barclays has a presence in both the EU and the US.

I wonder if some people do enough research on what type of accounts are available in their own countries. Here in Canada we have a bank ( TD) that has a certain type of account that charges me nothing for foreign ATM withdrawals... I do have to keep a minimum balance but its not too high ( for me anyways) . I have noted even other Canadians on forums not aware of this account, so I urge you to shop around a bit to see what your banks offer..

I haven't used TC in over 15 yrs. They are close to useless, my bank doesn't even sell them anymore.

I also am leery of prepaid cards, I just think they would be difficult to use in some places, small cafes etc.

I use my Credit card for hotel and train tickets, and cash ( withdrawn from ATMs with a debit card from my chequeing account ) for everything else. I would never take a cash advance on my credit card unless I was in a dire emergency.

I've heard horror tales of credit cards getting locked because the foreign activity on the card looked suspicious to the credit card company - even after the card holder informed the company that they would be traveling. What can be done to prevent this situation?

Big Russ, a prepaid travel card looks just like a regular credit card such as Visa. It is in fact a debit card that holds a balance in a currency such as USD or Euro.

I imagine that some hotels and retailers accept Visa even in the USA.

If your card is locked just call the bank or credit card company fraud dept and get them to unlock it. There should be a number on the back of your card to call. I have never had to wait on hold longer than a few minutes because its the fraud department who dont want to be blamed for fraud being more than it could have been because you were on hold to report it.

In the UK my bank always calls right away if they think something looks suspicious.

I go into my bank and make sure a travel advisory it put on my account and cards, AND I phone the number on the back of my credit card. I do this about 2 weeks before I go.

I then call and check a few days before I go to make sure notation was put on file. Only takes a few minutes and I have never encountered the locked card dilemma.

I have noticed that banks in the UK do not even take Euros to change into pounds, if you are not a customer of that bank. And even if you are a customer, they will not take a 100 euro note. Which is not really that large, considering there are also 200 and even 500 euro notes (not that anyone uses the latter).

Just to say that nowadays; you use a CC in restaurants, shops, hotels (either regular or prepaid, doesn't matter as long as it's Visa, Mastercard) and a debit card to get cash from an ATM.

"I've heard horror tales of credit cards getting locked because the foreign activity on the card looked suspicious to the credit card company - even after the card holder informed the company that they would be traveling. What can be done to prevent this situation?"

It can happen even if you have a long history of using the ATM card while traveling. We always carry a backup (two separate accounts) to be sure.

If British banks are reluctant to change euro or dollars into pounds, there are plenty of other places who will. This includes Post Offices, travel agents, bureaux de change and branches of big chains like W.H.Smith and Marks & Spencers. There will be such a place on every high street, and you can check the exchange rate before you start the transaction.

However, the exchange rate may not be very favourable, and you will find them reluctant to accept large denomination notes because of the risk of forgery and problems with money laundering. You may have to show your passport (original, not a copy). Using an ATM is probably better and cheaper.

Anyone who provides you with a service will expect to be paid for doing so. You just need to work out which method is the best value.

<<Big Russ, a prepaid travel card looks just like a regular credit card such as Visa. It is in fact a debit card that holds a balance in a currency such as USD or Euro.

I imagine that some hotels and retailers accept Visa even in the USA.>>

Thank you for telling me what I already know. The question was about RESERVING hotels with such cards and that is not necessarily universal.

Thanks for all the replies.
Still haven't 100% decided what form to use yet.
I'm tossing up against a prepaid travel card and just using my regular ATM card.
The prepaid travel im coming to terms with accepting that there may be a cost to withdraw from ATM's and they give you a crappy exchange rate but if the exchange rate was to drop by the end of next year for the USD to say 90C then the crappy exchange rate they give me in the beginning would be worth it but then again who can guess the FOREX rate i would be a millionaire if i could lol. Anyway have any problems booking hotels over the internet with prepaid travel cards??
If i take my regular ATM i will be at the mercy of the exchange rate...its all a gamble!

You're kind of always at the mercy of the exchange rate when you think about it. I'd go with ATMs and credit cards. Pre paid cards are just not a good idea.

Most hotels want a credit card number to book online. A few small places still go on honor system.. but most want a Credit card.

OK ... so here's another horror story I've heard (told by the seasoned teachers that took my kid's Spanish class to Spain and recommended travel cards) - there's some scam; I think it's called skimming, maybe. When a card, credit or debit, is inserted into an ATM the account identity can be stolen. If you've told your bank foreign activity on your card is legit you could be in for a lot of trouble.

Please don't judge me by my last two posts ... I'm actually a fun person to hang with.

Card skimmers exist here in the US too. Just look at the ATM or gas station thing or whatever to make sure it doesn't have anything that looks extra glued to it. That's what they do, they glue an extra piece to the front of the slot that takes your card and use it to skim the info off of the card. This is more usually found on gas station pumps because they're easier for the crooks to access to get the gizmo on.

The gas station thing scares me. Never heard of that before...

Just sayin' it's an endorsement for using a preloaded moneycard so there's no identity to steal and you only lose what's on the card.

Just sayin'.

Mistyschwab, My ATM card was skimmed and drained of 500 bucks,,... HERE in lovely old Victoria Cananda,, lol It can happened anywhere and its not the least bit "new"... its an old scam and everyone should watch for it anywhere. I lost nothing of course, my bank simply replaced the money...

I see no endorsement for a preloaded card, just fear of what you aren't familiar with..

mistyschwab, if your ATM card gets hacked, you don't lose a thing. If your preloaded rip-off card is stolen, you lose it all, including all the extras you paid for the silly thing.

<just using my regular ATM card.>

I don't understand why that wouldn't be your first choice method... using a regular bank ATM card at an ATM machine to withdraw local currency as you go.

Preloaded cards have loads of extra fees and are just not that safe.

You could use TCs as a backup/emergency plan, but know you'd have to cash them at a bank, not try to spend directly in a business.

From Wikipedia, the free encyclopedia

Skimming
Skimming is the theft of credit card information used in an otherwise legitimate transaction. The thief can procure a victim's credit card number using basic methods such as photocopying receipts or more advanced methods such as using a small electronic device (skimmer) to swipe and store hundreds of victims’ credit card numbers. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view.[10] The thief may also use a small keypad to unobtrusively transcribe the 3 or 4 digit Card Security Code which is not present on the magnetic strip. Call centers are another area where skimming can easily occur.[11] Skimming can also occur at merchants such as gas stations when a third-party card-reading device is installed either out­side or inside a fuel dispenser or other card-swiping terminal. This device allows a thief to capture a customer’s cred­it and debit card information, including their PIN, with each card swipe.[12]
Instances of skimming have been reported where the perpetrator has put a device over the card slot of an ATM (automated teller machine), which reads the magnetic strip as the user unknowingly passes their card through it.[13] These devices are often used in conjunction with a miniature camera (inconspicuously attached to the ATM) to read the user's PIN at the same time.[14][15] This method is being used very frequently in many parts of the world, including South America, Argentina,[16] and Europe.[citation needed] Another technique used is a keypad overlay that matches up with the buttons of the legitimate keypad below it and presses them when operated, but records or wirelessly transmits the keylog of the PIN entered. The device or group of devices illicitly installed on an ATM are also colloquially known as a "skimmer". Recently-made ATMs now often run a picture of what the slot and keypad are supposed to look like as a background, so that consumers can identify foreign devices attached.
Skimming is difficult for the typical cardholder to detect, but given a large enough sample, it is fairly easy for the card issuer to detect. The issuer collects a list of all the cardholders who have complained about fraudulent transactions, and then uses data mining to discover relationships among them and the merchants they use. For example, if many of the cardholders use a particular merchant, that merchant can be directly investigated. Sophisticated algorithms can also search for patterns of fraud. Merchants must ensure the physical security of their terminals, and penalties for merchants can be severe if they are compromised, ranging from large fines by the issuer to complete exclusion from the system, which can be a death blow to businesses such as restaurants where credit card transactions are the norm.

just sayin'

Er , yes we know what skimming is, but as we said, you lose nothing by using your ATM debit card ( I don't use a credit card to take money out , that's never smart) , while with a preloaded card there are no safe guards if you lose it or it is stolen , right ?

Also , don't know how long its been since you have been to Europe, but we found most places use hand held devices they bring to the table now in cafes etc to scan your card.. so your card is never out of your sight.

We went to Thailand (know its not Europe) but we had a prepaid travel card from ANZ which was locked and had minimal fees with a back-up card in case of theft or losing it. It also enabled us to add more money later in the trip. But when we were over there the exchange rate was much higher than what we had on our card so we ended up using our Visa Debit card which had a much higher exchange rate and the fees were next to nothing. I think whatever you decided will be fine - just do your research, test your cards and be happy!!! You're travelling :)

I have no idea of Australian direct banks, yet the bank/the account I use at home/my daily bank account at a german direct bank (in this case, DKB-cash, but others offer the same) comes automatically with a free visa card that allows me to withdraw money worldwide for free at any ATM with Visa symbol (virtually all of them).
I simply use the same credit card at home and when traveling, no hassle thus far, no fees charged.
Shouln't there be a similar offer available at an Australian (direct) bank?

>>>Big Russ, a prepaid travel card looks just like a regular credit card such as Visa. It is in fact a debit card that holds a balance in a currency such as USD or Euro.<<<

Prepaid travel cards are simply modern day travelers checks just like debit cards are modern day checks. You get the same lousy rates/fees with prepaid cards as you do with TCs. Fee to buy, fee to load, fee to use, bad exchange rate, fee to cash in when finished traveling.

I only encounter people from Australia using these travel cards(or teenagers from the US that can't have their own bank cards). I think their banking rules for ATM's/credit cards must be different from other countries making ATM cards not as easy to use/get (?) or tacking on fees that other countries don't.

I met an Australian at my hotel in Rome and we decided to go to dinner together. We both needed cash and went to an ATM. I used my credit union ATM card (no problem) and she attempted to use her preloaded travel card. No success. She tried again. Still no success. She was very upset as she was being charged a fee for every attempt.

I have experience with travelers checks.

Our first trip to Italy Four years ago I bought American express Travellers checks. (I do not have a debit card). My first stop was Rome and no one would accept travel checks. Italy does not have many American express stores but we were lucky Rome did but Florence and Venice does not. (Unless this has changed in 4 years.) So I had to cash in all of my checks before departing Rome and carried cash the rest of our trip. I was very disappointed with American Express as they charged in Rome a hefty fee to cash them in. I didn't want any problems so I payed the fees. This was such a nuisance I wouldn't advise getting travelers checks.

We went to 3 or 4 banks in Rome and had no luck with cashing them. Matter of fact my hotel told us which bank we should go to and we still had no luck even with our passport.

Joy , my bank does not even sell travellers checks anymore.. they really are a pain in the patooty as you learned.