Money Exchange
 

My daughter and I will be traveling to Germany Austria and Cz Rep in mid March this year. Are we best to get all monies exchanged in Euros once we get to Munich? I know euro rates can change, but having to get local monies in each country seems more tedious. If better using my debit or credit card over there, best to go to bank or airport kiosk? Curious about excessive fees. I have read that it is often more costly to convert here in USA. Comments certainly welcome. Thanks.

I find it best to use my CC and pay in local currency when possible (rather than having them convert the bill to $ before running the transaction). Germany and Austria both use the Euro. The Czech Republic still uses Koruna. I believe most places in Prague will still take dollars or euro. However, I usually drop in to a bank and get enough koruna to take care of small purchases and use the CC for bigger ones. If you're going outside of Prague, I would recommend using only CC or Koruna.

Don't 'exchange money anywhere. Use your ATM card to get cash where/when you need it and use credit cards (always charged in euro or Koruna)

>> best to go to bank or airport kiosk?<< Neither -- see above.

>>Curious about excessive fees<< The only fees will be those assessed by your own bank.

Use your debit card to withdraw money from an ATM at the airport or elsewhere when you land. Use your credit card to pay retailers and restaurants where accepted. I usually estimate how much cash I will need for things that can't be paid with CC and only withdraw that amount.

The costs associated with exchanging at home from your bank will be: a very bad rate offered by the bank and any shipping fees if the local bank doesn't have your foreign currency on hand.

The costs associated with exchanging at airport kiosks: a very bad rate

The costs likely associated with ATM withdrawal upon arrival: 3% and $5 per transaction (this depends on your bank)

I find that, disregarding the fluctuating exchange rates, the ATM withdrawal works out to be the best option.

As noted, you don't exchange money anywhere. You use your ATM card, one hopes from a bank that doesn't charge you fees for such transactions, to withdraw money for small purchases and use your credit card, also one hope one that doesn't charge you fees, for the big things like hotels and restaurants and train tickets, and so forth.

There is no reason you have to pay any bank 3% or a $5 per transaction fee. There are plenty of no-cost options for banking.

Realistically, there are many more reasons people use a particular bank than the cost/convenience of getting local currency from an ATM somewhere such as Europe. To say there are plenty of no-cost options is undoubtedly true but those aren't the only reason somebody "should" use one bank vs. another.

True enough, but there is nothing to prevent anyone from opening up an account just for overseas travel transactions, not so different from the "travel acounts' people used to have at their own banks.

The $5 per transaction fee is typically a fee charged by the ATM machine, not by your bank. Because you are withdrawing from an ATM that does not belong to your bank. This fee is waived, in my bank's case, if the ATM belongs to a partnering bank. The 3% holds true in either case and is negligible enough that I don't think opening an extra account elsewhere is worth the trouble for me. I don' travel internationally that much, or do I withdraw that much money each time. The zero fee credit card makes more sense to get. Of course, others can assess their own situation and decide.

Is it not easy to change euros in say Prague at kiosks at a good rate -say if you only need a few bucks on last day and don't want ATM $5 charges? Was this way in Bratislava five years ago - even supermarkets took euros at going rates - not dollars - just curious if Prague similar as so so many Germans, etc flock there for few days.

That is incorrect. Banking rules are subject to change of course, but in the past and for the time being, the $ fee IS charged by your US-based bank for using an 'out of system' ATM. The European bank does not charge you to use their ATM.

Ditto to what janis says IME. Local banks set limits per day on withdrawal and best tell your card-issuing bank that you are going to exactly what countries and say none other - lest though legendary 'Romanian ATM withdrawals' show up (always make sure you are not being looked at when typing in PIN) - best IMO to go into a bank that has an ATM inside if possible. But be sure to tell your bank what countries you may use it in - I've had one blocked in Europe because my local bank thought it was a fraud so can't hurt to do that. ask about fees too -ditto for c.c.s.

"The $5 per transaction fee is typically a fee charged by the ATM machine,"

No, it is not. European banks do not charge one cent to make a withdrawal, unless you are foolish enough to find a non-bank ATM at a convenience store or such, in which case the screen will notify you of that.

I have been in 8 European countries in the past year, using my ATM card in all of them, and was never charged a penny for a withdrawal. It has nothing to do with partnering banks or anything else. If your own bank charges you $5 fee for a withdrawal in Europe, complain or switch banks.

Yes European banks make money on exchanging dollars from your bank account to local currency - always about the best rate possible I think as a rule and get none of that typical fee your bank charges.

Something to keep in mind for your time in Austria is that cash is still more preferred than credit cards, though the more popular tourist restaurants are becoming more accepting. Do try to avoid paying with a credit card at a cafe. If you intend to pay at a restaurant with a credit card, inform your waitstaff when requesting your check to save yourself a potential eye-roll, and to save them from having to return to the cash desk for the credit card machine.

The $5 per transaction fee is typically a fee charged by the ATM machine, not by your bank.

It depends where. I have heard that banks in Spain do charge ATM withdrawals from their machines, but in my experience, that has not been true in Denmark, Germany and France which are the latest countries I visited. However, I do not use ATM machines that are not directly associated with a bank.

I was in Spain twice in 2017 and made a number of ATM withdrawals without ever being charged. Perhaps it is a particular bank?

I think that it was Santander.

That actually sounds familiar. I think I've read about that on another travel board, or even maybe here.