Italy exchange using supermarkets
 

Does anyone have any info on buying something in an Italian supermarket and asking them to add on extra euros to the bill thereby avoiding cash advance fees assuming you use a credit card that does not charge foreign transaction fees? Have heard this works in a few other countries.

That is crazy way to get cash and how could you get enough. Second, I have not see extra cash back but was not looking for it either. Just get a no fee debit card and use bank owned ATMs.

I have never heard of this. Would you supply the data source? I cannot find it easily by web searches.

Even if we postulate such practice exists, the outcome is probably worse than being hit with cash advance if you actually do the accounting. You might avoid one type of fee but might be hit hard many times over by other type of expenses. The merchant will be hit with 2-4% charge by the bank in giving you the money. Why would the merchant want to do this unless this makes business sense? One scenario I can think is that the item is marked up so high that making a sales produces so much profit that a few percent bank fee that they have to pay is negligible. If the product margin is low, one way is to give you a pathetic exchange rate to cover their bank processing charge.

Unless the merchants are dumb, I can't imagine this scheme, even if we postulate that it exists, provides you be less costly cash than using a debit/ATM card at ATMs.

"I have never heard of this. Would you supply the data source? I cannot find it easily by web searches."

Just about every supermarket in Britain offers cashback, to make more money. It's almost always (I think always, but can't be sure) limited to debit cards.

The commercial analysis of the economics above is completely nonsensical. Apart from anything else, what supermarket chain would let a supplier get away with a merchant fee as extortionate as 2%?

How it's possible with a straight face to claim Google doesn't acknowledge cashback beggars belief.

But whereas in Britain, "offering" cashback means the checkout operator will actually say "do you want cashback?" most of the time, it's phrase I've never heard used in Italy.

The poster might try googling though.

<i>I have never heard of this.</i>

It's common enough in the States, but with debit cards.

Never heard this in Italian supermarket.

Here in Germany our local Rewe supermarket does something like this. If you use your EU (debit) card and buy goods for more than €20, you can get cash back. They ask if you want cash and you say, for example, yes, €50. They just add that to your total and hand you the cash.

It is usually under 50 though so not worth it unless you are in a pinch. Just go to the atm and get out the max.

Most supermarkets in Italy have bank ATM's in them or at their front door. It's just like getting advances in the U.S. but you get Euros instead.

My Wells Fargo ATM card costs $5 plus 3% upcharge on foreign withdrawals. I suggest you check your local bank/credit union on what they charge. I'll be using a different ATM card next trip.

The OP asked about a credit card.
Most of the responses are about debit cards. The economics are different. Debit cards are much cheaper to process for the merchants.

Cash advanced on a credit card anywhere is considered a loan and the issuing bank will charge interest from the instant of transaction. Rates usually approach knee-breaker heights. Around 20 per cent is common. Some banks will take the interest on the entire outstanding balance, not just the cash advance. Any saving of a transaction fee will be quickly eaten up. As a separate issue, the exchange rate will be the same as an ATM/debit card gives at a machine or over the counter. However the cash is obtained, the rate won't be as good as published "wholesale" rates.

The OP actually asked a sensible question. Obviously based on some information s/he had picked up somewhere. As Flanneruk writes, it is common in the UK for example.

Most responding do not in fact have any personal knowledge of the topic but wade in with 'opinions' which they suggest are 'facts' and in some cases are in FACT totally incorrect.

If you don't KNOW about a subject, leave it to those who do to respond as Flanneruk did. Here is the answer for the UK:
http://www.bbc.co.uk/worldservice/le...e4/page8.shtml

Debit cards only however so even if going there it would not solve vannwec's problem. How to avoid exchange fees on his credit card which is a sensible question to ask.

I did find this vannwec which suggests the answer for Italy is no. http://www.italymagazine.com/community/post/cash-back

Here are quite a few comments on the subject covering several countries. http://www.tripadvisor.ca/ShowTopic-...ce-France.html

So it looks like that won't solve your problem of how to avoid exchange loading and transaction fees vannwec. The only viable answer remains to get a debit card with no fees you can use at an ATM.

But the OP asked about using credit cards, so saying it is possible, but then qualifying it with only on debit cards is, in fact, saying it is not possible with credit cards.

This is standard isn the US - but not with a credit card - using a debit card. But the markets usually have limit of $50 or so cash that they will return to you.

Why not just pull cash from an ATM wth yuor debit card?

And if it's different currencies - your bank will still charge you for the exchange - the usual 2% or so.

>>As Flanneruk writes, it is common in the UK for example.<<

As he said - Only w/ debit cards as far as he knows -- just as in the US and other places. The OP didm't ask about Debit cards.

<i>The OP didm't ask about Debit cards.</i>

And it is useful to point out the option where available since he might not have thought of it.

Italian supermarkets don't offer cash back. I don't know any place that offers cash back on a credit card purchase. It wouldn't make sense anyway, because the high interest rate would more than overwhelm any savings on ATM fees.