How to exchange U.S. dollar to Euro
 

Hi all, my wife and I are planning to travel to France and Italy this summer. is it possible to exchange US dollar to Euro at a bank in the U.S.? If not, what is the best way to exchange money when I am in Paris? I have heard from ATM is expensive due to the fees and that i should go to a bank. However, is it hard to find the banks or are there places to exchange money at the CDG airport? Thanks.

You definitely want to use ATM machines as it is the cheapest and easiest way to do it. It wont be the bank in Europe that charges you, it will be your home bank so be sure you check what the fees are. Because it is usually a flat fee at my bank I always take the most out.

ATM is best.
If using a bureau, avoid the ones which say "no commission charged on buying foreign currency.". You are buying local currency. Thomas Cook is OK.
Inform your bank you will be using ATMs or your cc abroad or they may freeze your card due to sudden unexpected foreign transactions.
Always have a plan B - you need 2 sources of cash.

Most banks in Italy will now under no circumstances exchange foreign currency so your options there will be limited. Exchange bureaus in main tourist sites are very expensive. ATM is the best way to go.

Pinglee, you have been given incorrect information. The safest---and usually cheapest---way to get euros is through an ATM in Europe. You can certainly get money from any big bank and with a wait from any small one, but while you won't be charged a "fee", you will get a really lousy exchange rate, which is usually worse than a fee. Expect to lose about 8% on the transaction.

There are many ATMs at CDG airport (I think they are mostly HSBC).

What you need to do is to find out which ATM network or bank your own bank is affiliated with and use that network almost exclusively. If you need a bit of cash on arrival, by all means take it out at CDG, but then take out what you need (probably no more than 200 or 300 euros at a time) from an ATM. If you use one in your bank's system, you may not have to pay an additional fee other than the 3% foreign exchange fee, which is annoying but better than the commission paid on almost any other currency-exchange transaction. The French bank will not usually charge an additional fee, so it's whatever your own bank charges plus 3% in most cases, so obviously, you'd like to get that down to $0 plus 3%.

Yes, there are ATMs at CDG.

To reduce the number of visits to an ATM, ask your bank to increase your daily withdrawal limit and take out the maximum each time. Put a few euros in your pocket for daily expenses and keep the rest in a money belt.

You might consider opening a separate account and getting an ATM card for it. That way, if one card doesn't work for some reason, you can use the other card.

Be sure to tell your bank when you will be in Europe or a computer is likely to freeze your account for suspected fraudulent activity. Do the same with your credit card providers.

Not all banks charge 3% for ATM withdrawals. We belong to 2 credit unions; they charge 1% over the interbank rate. Ditto for credit card charges.

Thanks all for your answers, it was helpful.

In all likelihood you don't even need to worry about which network your bank is affiliated with. It's likely to be affiliated with Cirrus, Plus, and/or Star, all of which are ubiquitous in Europe. Your ATM card should have the logos on the affiliates on it. Do check with your bank as to whether it charges for withdrawals - European banks do not charge any fees for using an ATM, with the exception of "independent" ATMs (such as those you might find at a 7-11 here in the USA - stay away from those).

Further to the post by mjdh1957, many French banks also no longer do over-the-counter foreign exchange. Using ATMs will save you time as well as money and the hours are certainly more convenient.

pinglee,
All the ATM charges come from your bank. To lower your expenses find a bank that charges less. Look towards the bottom of the page to see what some banks charge http://flyerguide.com/wiki/index.php...reign_Exchange

As above, use ATMs. Maybe get 40-50 euro if you are worried about landing with no funds, ATM at CDG is off-line/busy,etc..

If possible, carry cards on different networks (PLUS, CIRRUS..). Note that you will not be able to choose which account to withdraw your money from (savings/checking), it will be your 'primary' account. The limit from your bank amy not match the limit on the machine. You can do multiple sequential withdrawals in that case.

If you scroll down to the chart on this link, you will see the various fees charged by most of the major banks in the US for ATM and credit cards.
http://www.flyerguide.com/wiki/index...reign_Exchange

I withdraw the maximum from my ATM because my bank, Wells Fargo, charges $5.00 per transaction. I arranged to have this high a daily withdrawal specifically for overseas travel. I usually have leftover euros, so I just stick them away for my next trip.

I charge big expenses on my Chase Mileage Plus credit card. It does cost 3% for each transaction, but I earn miles on that card, and I have used those miles for numerous trips, so it's worth it to me.

If I didn't use those miles, it would be more economical to use cash.

As everyone else has said, bringing cash to change or buying euros at home are both bad ideas, as are traveler's checks.

In the past, I have bought $50 worth of euros from my bank at home, because I've felt insecure about landing at a foreign airport with no euros.

Like the others here, I may get a few Euros before leaving home, but I use an atm card for cash. I also take a couple of major credit cards for backup.

For any method you need to start with asking with your own home bank. Do they even offer foreign exchange? What are the fees and exchange rate?

If I were going to bother to do it at home I'd get at least a couple hundred dollars worth. Going to the trouble only to get $50 (hardly cab fare from the airport many places) seems not worth it.

ATMs are the way to go. But again you need to check with YOUR bank what are their transaction fees, exchange rates, what 'network' are they affiliated with, etc.

I always also carry a couple hundred USD tucked away somewhere, just in case of emergency. Not the best value, but I figure could get me out of a jamb. And I need it on the way home, if you transfer at a US airport and to get transportation home at the very end of the trip.

Another alternative to getting euros from a US bank before leaving is to think of your friends, and if any of them travel regularly to Europe. If so, they probably have some euros stashed away for the next trip, and *might* be convinced to swap a few for you.

Traveler's checks are virtually useless, especially since they'll likely be denominated in US dollars if you buy them here. Most local merchants would probably rather take dollars than traveler's checks, and they're not at all likely to take dollars even if it means losing the sale. However, nearly all merchants can take US credit cards, though automated systems usually can't.

And do be sure to bring some euros home with you, so you'll be ready for your next trip. (Assuming, that is, that the euro survives the next few years...)

Pegontheroad, which Chase Mileage card do you have? I have a Chase British Air Visa card. It used to charge 3% so I never took it on trips. But a year or so ago it canceled that charge. Now I bring it and use it a lot.

You can also exchange US Dollars for Euros through AAA (again; for a fee; but you can actually order through their website). I often might get something like $100 worth of a currency for a foreign country from AAA to feel I have something in my pocket when I arrive (taxi, train, food) etc; with thought of getting to an ATM as soon as possible on arrival.

AAA uses Travlex, to my knowledge, and you end up paying 10-15 percent more than you need to. VERY bad idea!

<Traveler's checks are virtually useless, especially since they'll likely be denominated in US dollars if you buy them here>

I agree that Travelers Checks are not useful, but it has nothing to do with which currency they are in. You don't want to purchase Euro TC's either.

Yes, banks in the US exchange for Euros. We go to a certain branch of ours and get them for no cost. We always start w/ $300 worth, then ATM from there at banks, and with our card, are charged 3%. We take out at least 200 Euros at a time. Travellers checks are no longer useful/handy/convenient.

When you get euros at your home bank for "no cost", you have to also consider the rate of exchange you are being given.

My mantra for currency conversions:

There can be two costs for every currency transaction: a conversion fee AND/OR the exchange rate. BOTH are under the control of the bank or exchange bureau.

Just because a bank/exchange bureau advertizes no fees does not mean...no cost to you. They can fiddle with the exchange rate to cover any cost they want.

Repeat: the exahnge rate is not a fixed number. There is a 'newspaper number', but banks take that and add on their costs and profit margin.

One of the many places to confirm real-time mid-market exchange rates:

http://www.xe.com/

Compare what XE quotes for euros with the rate your bank offers you.

There are several ATMS at CDG and one actual bank location I believe. You can check the locations of the ATMS on their website.

You should check with you banks to see what they will charge YOU for ATMs. Banks have different rates for differnt depositrs based on the amount and type of business. (For instance, my primary bank is Citybank and last year they started all sorts of charges linked to ATM usage - but only for some customers. I got a letter listing all of these changes and then saying - but thee fess are waived for anyone with a qualifying amount of business with the bank - can be deposits, mortgages, credit cards etc - and all were waived for me.)

So check the rates for you banks - and fo ryou variuos credit cards - for your accounts - to see the cheapest waay to get money. In any case, CC and ATM are way cheaper than doing anything with cash.

So I guess, I should use my Cap One ATM card (cirrus)--(no fee) and Cap One Venture Visa (no for trans fee) in Paris when I land at CDG and not pay $10 fee to get euros ahead of time from my bank? Yesterday they said the rate was 1.22 something(plus the $10 and $300 minimum exchange) Thanks!

Don't use a credit card to get cash, use your ATM card. A credit card starts charging interest immediately on cash withdrawals. But certainly do use your credit card for charging purchases, your hotel, etc.

Are you sure about that rate? According to XE (URL above in thread), the interbank rate is 1.31 right now.

I always just get cash at the airport -- at an ATM. Some people feel more comfortable having some euros already. But $300 is a lot.

How would you handle needing cash, in Euros for a longer trip, 2-3 weeks with several tours for a family of four that require cash payment at the end of each tour? What is the usual daily ATM limit? Some tours for a family may be 400 Euros, or if we include my parents, if we just pay for the 6 of us at one time, 600 Euros.

We'll be in Rome for a day, then on a cruise, and then spending time in Venice and then Rome again for a few days. We'll need Euros in each port for the tours. Finding an ATM at each port to pay the tour guide doesn't seem efficient. How do people handle this?

Thanks!

I'd use a credit card whenever possible. If your tour operators insist on cash, then you will have to deal with cash.

Banks have different withdrawal limits, but in most cases it's not less than 400 euros per day, so you can take out the cash you need in each port stop for your cruise. I don't find this at all inefficient even though it's something that would have to be arranged in each port. But I guess to each his or her own. The idea of getting a really bad exchange rate by getting euros in advance of the trip seems more of a cost to me. You can lose as much as 10% of the value of transaction on fees and bad exchange rates by getting the cash from your local banks.

If you're concerned about having cash for the next day, just be sure to stop at the ATM at the END of each day (after your tour or sometime along the way) to pay for the NEXT day's tour rather than the one you're on. So really you have to decide if it's worth your time to stop at an ATM in each port or not. I say absolutely yes, but you are the one who has to find an ATM daily if you're doing all these cash-only tours.

You could certainly stockpile cash after you arrive in Rome, but there's a certain risk in carrying that much cash. And you can split the cash withdrawals if you need more than what your bank allows per day. But you need to confirm that with your bank, not with us.

See if your bank has Partner banks in Europe then you pay no fees. Bof A partners with Berclays , BNP Parabis and one in Italy but I forget the name,the bank could tell you!

You can also get a second checking account and a second ATM card, so two of you can withdraw the day's limit. And you can often negotiate with your bank about raising the limit.

I wouldn't expect any problems finding ATMs in/near ports. They're just about everywhere in Europe these days.

Mimar has it right. I too have a Chase British Air Visa card, they charge no foreign transaction fees, and IIRC the exchange rate was reasonable.

ATM cards are the way to go to get cash. Be aware that your bank will probably charge you 1-3% foreign transaction fee for withdrawals, though. I've had French banks turn me down when I've tried to exchange C notes - too many fakes around, they've told me, it'll take several days or a week to verify your currency. There are small exchange bureaus that will change money, but their rates are usually punishing.

I did a six-week cycling tour through the Benelux countries and NE France, finishing a couple of weeks ago. ATM machines are NOT everywhere, certainly not in the villages and small towns - seemed to me that only the medium-sized towns and up had them. There were times, passing through rural France and Belgium, that I was worried about having enough cash to eat on until I came upon the next town large enough to support an ATM. There were times, when it was cold and raining, that the chambre d'hote down the street looked like an awfully attractive alternative to slinging my hammock in a wet forest, but I simply didn't have enough money. Poor planning, to be sure, but that was because I had assumed I could find an ATM just about everywhere in Europe. I learned.

Make sure that your credit card is set up to issue cash advances should it become necessary - have your password/code set up, etc. It's hideously expensive, sure, but this idiot lost his ATM card somewhere in the Netherlands, and I had no choice but to live on those cash advances for the next month or so.

<<ATM machines are NOT everywhere, certainly not in the villages and small towns - seemed to me that only the medium-sized towns and up had them.>>

Well, in the SW of France they are pretty much ubiquitous. My town of 5,000 has at least a dozen of them. Maybe the NE hasn't caught up yet; still wise to be able to plan ahead.

ShellD, these tours are excursions offered by the cruise ship? Or individually booked tours? I'm surprised about paying at the end. Usually you pay when you book. At which point you can charge the cost to a credit card.

I'm surprised to hear about the paucity of ATMs in the Low Countries and NE France. Even the smallest towns in Italy seem to have one or more.

Mirmar - these are all private tours and the majority of them want cash, Euros, at the end of the tour. These are the most common of the tour companies, in Italy, Spain, France and Greece. The only ones I've really come across that want payment when I book are one man operations, and most people are actually hesitant to pay upfront. What would happen if the ship couldn't dock for any reason and you've already paid for the excursion? Especially with a small tour operator? However, I am surprised at the number that don't take credit cards at the end of the tour, given how here in the US it's so easy to swipe cards now with a cell phone attachment.

if you each have an ATM card, each make the maximum withdrawal at the first opportunity, [split it between you] and then top up when needed.

if you can withdraw €400 each at a go, even if the tours cost €600 a throw, you shouldn't have any problems.

ShellD, we have done several similar European cruises where paying cash at the end is the norm. Good choice on that...a way better experience than taking the cruise tours (overpriced, you don't see as much and very crowded) The guides want to get paid :) so they will take you to a bank or ATM during your tour....usually on the way there or back.
This probably goes without saying but be very careful after withdrawing large amounts of money. Friends on our tour were pcickpocketed in Rome. They didn't even know until it was time to pay...hundreds do euros were stolen. We were famine with our cash in money belts and we were discreet and exchanged money in the car instead of in public. Keep careful watch of who is around, use a money belt and try to get the cash out at the end and give it directly to your guide instead of carrying it around,

Have a blast!

Woops, auto correct! We were 'discreet' with our cash in money belts ( not famine!!)