anyscreennamesleft

Four of us are leaving in just over a week for a 3-week long independent Europe tour. One of my travel companions heard on CNN today that those leaving soon should get travelers checks in Euros before you leave in order to lock in the rate. Also to call hotels to get a quote in US funds in order to lock the rate. I guess that means they are predicting further slides.

We are staying in cheap hotels and even some hostels, so I won't be trying to lock rates in US quotes with them. But is the travelers checks in Euros a good idea? We had planned to use ATM/debit cards to get the best exchange rates and not have to deal with travelers checks. I suppose I should call local banks and see what rates they are offering now on travelers checks demoninated in Euros. If we get the travelers checks, where can we get Euro cash for them (Paris is the first stop on the trip)? Paris banks? American Express offices? I have never exchanged currency before, have only used ATMs. What type of fees are involved in exchanging travelers checks for cash? We have planned a student-budget type trip, where the hotels and restaurants we plan on patronizing will be very unlikely to accept travelers checks. Thus, we will need to exchange travelers checks for Euros.

usbeauty

In order to use traveler's checks, you must exchange them at a bank or currency exchange in Europe. These places usually charge a "commission" to exchange, plus they give you a low rate in exchange for your dollar. Plus, there is a certain inconvenience involved, i.e. waiting on line, finding the best exchange location etc. I think you're better off sticking to your original ATM plan and braving the currency fluctuations.

WatersonFamily

Why not just get Euros before you leave?
We are leaving on June 11, we have already exchanged our money and got a much better rate (1.06) with only a $5.00 service charge. Good luck, enjoy your trip.

luvtotravel

With what company did you buy Euros at a flat $5.00 fee?

anyscreennamesleft

Thanks for your thoughts. I am in the largest city in Montana (Billings). Our largest institution had no Euros in stock. The next largest had 5 Euros in stock!

orleans

Anyscreennamesleft,
Just a thought..if you'd like to have a few Euros in your pocket when you arrive in Paris,
and if you are flying from Billings to Paris via Minneapolis you'll find a currency exchange booth near the MSP internationl arrivals gates.
(There is a currency exchange in Detroit, too, if that is where you are making your connecting flight, but I am not sure of the exact location.)

Christina

This sounds like a bad idea from folks who don't know much about travelers checks. It would make sense, if you can't buy euro, if you thought the value of the USD vs euro would fall about 15 pct in the next week. I don't think anyone is predicting that. The idea of getting hotels to quote in USD is also dopey and rather ethnocentric, in my opinion -- if they aren't US hotels, why should they lock you in a rate in USD rather than having you pay the rate in their currency?

As someone said, you have to exchange TCs (even those in euros) at exchange bureaux or banks and you will pay a fee to do that, even if they are in euro. Exchange rates on USD TCs are generally quite good in Paris, however, but may not be in other places you visit. I've never waited in lines much, either -- in fact, I've seen longer lines at ATMs, so I wouldn't decide on that. I have also never paid a commission on top of the exchange rate difference in Paris. YOu do have to find the best places, however -- I know them so it's no effort for me, but might be fore others (it is NOT Amex).

I'd stick to your ATM plan. You'll probably lose several pct on exchanging TCs to local cash if they are in euro, and about 5-8 pct in getting them in euro to begin with, so it's not better than ATMs unless rates really change drastically.


The above rate by Waterson at $1.06 is incredible!!! if it was fairly recent since that's lower than bank rate-- but if it were last January or mid-March it would make sense. I feel a little lucky because I completely prepaid my apartment rental ahead of time so got about an 8 pct advantage compared to now (or when I finally go next month, who knows). I didn't even do that to try to guess rate directions.

EmilyC

You can order Euros from American Express and they will deliver them to your home. Also, all major banks can order Euro's for you and should have them within 7-10 business days. Traveler's checks in Euros do not necessarily have to be turned in at a bank or kiosk. Hotels will take them as well as many restaurants as long as you have a passport for ID. Avoid using airport and train station cambios - they give the worst rates. Try to bring at least a days worth of Euro cash with you so you won't be forced to cash in your checks at a bad rate. Using a credit card for everything is fine, but you need a back up in case there is a problem with your card.

anyscreennamesleft

When she told me about CNN suggesting that you call the hotels to lock rates in U.S. dollars I had to shake my head. Our hotels are of the zero to one star variety. I couldn't imagine making those calls! Even if I were at the Ritz, I wouldn't want to make the call...

I leaning towards sticking with the ATM plan. Only 6 business days until we leave, so its likely too late to get Euros in this part of the world.

KennyL

To the Watersonfamily- Where did you get the good exchange rate? How long ago? THNX for any information--

JoeG

anyscreennamesleft,
Stick with the ATM's. You might want to go to your local bank and get maybe 100 Euro dollars just to have some currency in your wallet.
JoeG

WatersonFamily

Okay, I live in Ontario, California. We exchanged $400 two weeks ago at the Foreghn Currency Exchange at the Ontario Mills Mall. They only charge $5 for up to $500. We paid 1.06 for euros and 1.38 for pounds. We leave for London/Paris on June 11. Our bank, B of A offered to order what we needed and FedEx it to us next day for a fee of $10.

bob_brown

The dollar is at its weakest point in years and you want to lock it in with a financial instrument that will cost you even more money to use?

I would not do it that way. Buying euros here in the US has always cost me more than I paid in Europe.

Use your ATM to get daily spending money in Europe.

lubeltri

My father bought me travelers checks (500 Euros and 100 pounds) last week. Can anyone tell me where to go in France and Britain to exchange them for cash for as low a charge as possible?

luvtotravel

To WatersonFamily: Thanks for the tip -- I work a couple of blocks from Ontario Mills. I'll check it out this week. Much appreciated.

kmed

We bought Euro travelers checks last year on our trip to France. I figured it would be like cash...that we could pay restaurant bills or hotels with the travelers checks. Wrong!! Many hotels and restaurants would not accept them. We even had difficulty finding a bank in Arles that would change them. We ended up cashing them at exchange booths that charged hefty fees. Last trip to Spain and Portugal...6 months later I took a small amount of Euros, my credit card and my bank card. ATM machine are on just about every corner. My bank charges a 2.00 fee per transaction and the rates were wholesale. Much better exchange than prior to leaving or at destination banks. I know that travelers checks give you a sense of security because they can be replaced...but what a pain and an expense. I will buy them again!!

kmed

I should have mentioned that we were told by a hotel that the reason they did not want to accept the travelers checks was because they had to pay a tariff to the bank to deposit them. It must be true as even in large cities like Lyon and Avignon we had difficulty.

kayd

WatersonFamily: Are you sure you paid $1.06 per Euro two weeks ago???
Your exchange bureau took a beating on that transaction because the offical rate on May 8 was $1.135. The best rate most of us could have expected for buying Euro cash in the U.S. that day would have been about $1.17.