How can I get the best currency exchange rate?
 

Hi all! I am traveling to France in a few weeks and I'm wondering if anyone can give advice on how I should convert my money or make purchases when I am there. The credit cards charge a 3% fee on foreign purchases so I am wondering if the best bet is for me to get travelers checks? Or wait till I get there and just get cash from an ATM maybe? Thanks in advance for the advice!!!

I would suggest using an ATM. Best exchange rate. Many places do not take travelers checks and if they do, the exchange rate could be bad.

See our trip report and photos here:

http://www.slowtrav.com/tr/tripreport.asp?tripid=1259

http://www.kodakgallery.com/Slidesho...p;conn_speed=1

ATM after arrival

1. Best way to deal with cash is to use a credit card without a currency exchange fee for all purchases large or small. If you're in the USA, see Capital One.

2. Second best way to deal with cash is to use a credit card that only passes along the 1% surcharge imposed by visa/mastercard for currency exchange. See USAA.

3. Third best way to deal with cash is to use a credit card that imposes the 3% currency exchange fee.

When exchanging cash, they impose no matter what they try to tell you a fee close to 10% above the interbank rate.

Travellers cheques are a thing of the past...banks charge very large commissions to cash them and many banks and merchants won't touch them even if they are in local currency.

For those very few places that do not take credit cards or have a minimum to be able to use a credit card (a practice that thankfully is against visa/mc regs in the USA but apparently not so in Europe, use an ATM which does not charge fees for withdrawals to access your cash as needed. See USAA which does not impose any fees, in the USA it eats the fees banks charge for having the audacity to use their machines to access your money (this practice is not allowed on European bank withdrawals according to regs of the shared teller networks; whatever fees you pay for ATM withdrawals are those imposed by your bank and your bank only).

Have been to Europe for weeks at a tme and spent only about $20/week in cash; everything else is credit card.

By all means, read up about dynamic currency conversion a cancer growing throughuot Europe where some of the American banks charge you the 3% anyway even if you are charged in your currency.

ATMS are everywhere, so why not use them. Fees (for my bank) are minimal, and exchange rate good.

So...ATM for your day to day expenses, credit card for large expenses (hotel, $$ souvenirs). Ditto on what was said about TCs. You might consider getting a small amount of euro back home, so that when you land you have some contingency $$ (e.g. ATM at airport broken ,lineups long...)

Be aware that most <b>credit</b> cards charge a Cash Advance Fee (in addition to currency markup and transaction fee) for withdrawing your money from an ATM. Only a <b>debit</b> or <b>check</b> card should be used for this purpose.

Credit cards should only be used for purchases.

True, it doesn't quality for the &quot;best currency exchange rate&quot; but I usually do order a few hundred dollars worth of euro from my own home bank.

You are best using your credit card for as much as possible and your ATM card (linked to saving account only) to pull cash for walking around money. What this wil cost depends on your specific bank - but will not be more than 3%.

If you try to change cash or Trav Checks you will be paying from 7 to 10% above interbank exchange rates - way more expensive than credit cards and ATMS. (They don;t show the fees - and may say no fees - but give you an awful exchange rate.)

Plus - Trav Checks are also becoming more difficult to exchange - few stores, restauants or hotels will take them and now some banks will change them only for depositers.

An ATM in Europe will almost certainly draw from a CHECKING account only; a card linked to a savings account only may not work at all; a card linked to both accounts will withdraw from checking only and will not allow transfer between the accounts.

And...use a 4 digit PIN

All my ATM cards are linked to my checking accounts.

If you are on the East Coast, NY/NJ/PA/VA areas, Commerce Bank is among the best. They charge no ATM fees, no transaction fees, and no conversion fees. Actually, they charge no fees at all to use the card to get cash from a Bank ATM in Europe, and you get the interbank exchange rate. ((b))

I always arrive in Europe with a few Euros so I can get out of the airport quickly, by taxi, rental car, or public transportation.

I also tell my bank, before I leave home, which countries I will be visiting so I don't cause any bank security alerts when using the ATM card in strange places -- ditto for credit cards.

Budsman--good to know on Commerce bank, Chase charges 3-7% on int'l withdrawals. It is painful considering the US dollar is so poorly valued!

Sorry - my brain was out of gear - it is a CHECKING account only.

ATM's in Europe will usually withdraw from the PRIMARY account, and the primary account is usually your checking account if you have one. I've had ATM cards from several banks where I've only had savings accounts, and I've never had trouble using them in Europe.

HSBC is another bank that charges only 1% and no transaction fees. Some banks add a percentage AND a per transaction fee.