Money Changing-Again!!
 

I know this topic has come up many times..but here I go..what is the best way/cheapest way to get money in Europe..here are the options (add any more you can think of)

Use ATM card at ATM machines

Use credit card at ATM machines

Get cash at currency exchange using credit card

Get cash at bank using credit card

Convert dollars to Euros before we go (in the States)

HELP!!!!!

1. Cheapest is ATM.

2. Next is convert cash at European bank, look for no/lowest commissions.

3. Exchange at currency exchange - this can be similar to bank, depending on the country you're in. Check for exchange rate and also any fees/commissions.

4. Exchange $ for euros in US. Not a great exchange rate but convenient for having cash on arrival. (I personally wait until I get to an airport ATM).

If you have a credit card that does not charge a lot of fees, using the credit card for purchases is one of the best ways to go. I usually do this and carry euro equivalent of US$100. I usually come back with most of the cash, ready to use on my next trip.

However, anytime you us your credit card for cash you will get hit with LOTS of fees. This is considered a cash advance. So interest on it immediately in addition to the cash advance fee. So your option 2, 3, 4 are expensive options and should only be used as a last resort.

Strike the 2nd option immediately, unless you're in a dire emergency. Using a Credit card at an ATM will incur the highest possible interest rate (cash adv) + the foreign currency conversion fee (usually 3%).

Other than funding a free checking account for travel cash, accessing it with a Debit-ATM card, you could get some starter money at your airport (a small amount)... If you must get a larger amount to start, one of the best foreign curr purchase rates is through www.bankofamerica.com

Our method is: bring some Euro back from the last trip to start the next trip, use Debit card to get cash from 'travel fund', and Credit card for hotel, train, other larger expenses.

We use our debit card for as many purchases as we can (it seems to have the lowest fees), use our credit card when debit isn't accepted, and use the debit card at ATMs for walking around money. Our bank refunds any ATM fees we incur.

I've always thought that using a credit card at an ATM is very expensive because it's treated like a cash advance and you start paying interest at date of withdrawal.

Pay for as much as you can with credit cards (but pay off the bill as soon as you get home). For walking around money pull cash from your checking account via ATM machines. This will cost far less than any other option.

I've been a B of A customer for years and even when I used their partner banks in Mexico and Europe (France) in the last few years (and therefore didn't pay ATM charges) I still had to pay those pesky currency transaction fees when I used it as a credit card--and those fees always add up. I have an investment account at Schwab and knew that they reimburse ATM fees. But what I found out yesterday after I called customer service is that a FREE Schwab High Yield checking account (which actually earns 1%) also charges no currency transaction fees. You can join on their website and either send it to them or take the form to a local bank. I don't believe you need any account minimum either--it seems to be a very good deal. It's a very easy one-page form which you can fill out online and then print out the form. I'm going tomorrow to my local Schwab location (I need to look at their website again for this.) I just want to stress, I don't have any financial relationship with Schwab, honest. Just found out about this yesterday myself.

Hi S,

>Use ATM card at ATM machines<

That is the only sensible way.

If you use your CC to get cash, you will pay interest on the loan from the moment you get the money until the bill is paid - probably with a minimum $25 fee.

Enjoy your visit.

((I))

I only Use ATM card at ATM machines.

No muss, no fuss.

For myself, the optimal combination is the Schwab check card as described above for cash from ATMs and the Capital One credit card for major expenses. Neither of these incurs any foreign conversion fee or any other type of fee for use. The Schwab card even refunds any ATM fees imposed by the bank that operates the ATM, although in Europe this is not a problem with any US debit or ATM card.

This makes getting cash and using credit equal in terms of cost; the only factors entering into the decision of how to pay for any item are how much cash I want to carry and whether I want to earn points on my credit card.

Answers from my experience

Use ATM card at ATM machines -- Yes, if you have a low % or low fee card. Most US banks charge 3-3.5% to convert and may include a standard per transaction fee. My Chase card costs $3 a pop plus 3.5% transaction fee. And that's why I opened a CapOne account that charges nada.

Use credit card at ATM machines -- Never. These are charged as cash advances, which accrue interest from the date of withdrawal (no 25-day grace period) and charge another 3% for the conversion.

Get cash at currency exchange using credit card -- Same as above, you'll incur interest at a very high rate from the day you do the transaction.

Get cash at bank using credit card -- again, same as above. There's no functional difference in your costs between getting cash "at bank" or cash "from ATM." Either way you're getting cash from the bank. This option just means you deal with a human and not a machine to dispense the dough.

Convert dollars to Euros before we go (in the States) -- this is generally a terrible idea because US banks have awful exchange rates. US banks do far fewer personal foreign exchange transactions on a per capita basis than their European counterparts, therefore they make their money in the larger spread between the Interbank rate (the true exchange rate) and whatever level of shafting they give to you.

If your ATM card exchange is really bad, then get travelers' checks and use the old-fashioned exchange method. Credit card is a horrid way to get cash as everyone else has said.

DD going to Spain (Madrid) in a few days. I was planning on getting a few Euros locally, then letting her use her debit/credit card for everything else. (we have fraud protection on this like a regular credit account.)

Is this a good way to go? Can she use the debit/credit cards for purchases, or is it better for her to get cash at a bank or ATM?

I'm also re-thinking getting the Euros locally. I assumed the fees would be lower if I exchanged at my bank. Would it be better to just exchange currency at the AP in Madrid?

Thanks all!

Fees on getting your money at home can vary widely
The GBP is at $1.38 today. I can pick them up at my local BoA branch and pay $1.44, ezforex is charging $1.51, wells fargo charges $1.43 but 8.00 shipping.

Brookside: As people have noted, there is no need to get money beforehand. If you need a few Euros after arrival, there are ATM machines that will give you money in local currency in airport baggage check areas and I assume the same at train stations. You don't need to change money at higher rates at home, really. The banks get discount rates for currency exchange, hence an ATM is cheaper. If you are in the US, open Schwab high yield checking account and you will have no ATM charges and no credit card 1-2% currency exchange charges. That's what I'm going to do myself ASAP. It's a no-brainer.

I've never analyzed this because in the end, the fees I pay seem to be such a small percentage of the cost of the trip -- while I don't like to throw away money, I also don't want to spend hours and hours figuring this out. Has any of you ever actually added up the cost of using the "wrong" kind of transaction? (I know I pay ATM fees to BofA, but again, it's not worth the aggravation to do it any other way -- same reason I like Oyster PAYG, and same reason I use my AT&T cell phone even when I'm in Europe).

Brookside, there is no need to exchange currency at all, either in the US or in Europe. However, if you would feel more secure sending your daughter to Spain with a few euros in her pocket, she can exchange at the airport in the US or on arrival in Spain. Of course, upon arrival in Spain she can just use her debit card for cash in the ATM.

You mention your daughter's debit/credit card. Is it a debit card or is it a credit card? If it is a credit card, she should not use it in an ATM for all the reasons people have noted in this thread. Only a debit or ATM card should be used in an ATM.

She can certainly use the debit or credit card for purchases; this is what she should do to avoid having to carry much cash on her while traveling.

BigRuss, travelers checks is a bad idea. Most places will not take them. and there's the converting cost.

Travelers' checks beats using credit cards. The converting cost isn't nearly as bad as racking up interest at 19-23% from the moment you make the withdrawal with your MasterCard.

But really, in this day and age, the OP and anyone else should just use an ATM card for cash, period. I've been doing that in Europe since 1996, and I'm not the most advanced user of electronic media by any means. And I stopped exchanging in the US before my trip years ago because the exchange rates were so bad here at home.