Money Exchange in Italy
Jun 2nd, 2011, 08:04 PM
#7
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Pulling out cash from ATM is good for walking around money. Most ATMs have a limit of about 250 euro or 500 euro. I always try to take out maximum allowable b/c if it is $250 and then the bank charges $5 withdraw fee and the Italian bank charges $5 dollar fee plus the 3% exchange fee you end paying 6% for $250 cash. Still less than most other methods but 6% is 6%. If you take out less at time, then the % you pay for your cash goes up. The 6% is 2x more than using ATM for purchases and paying 3% foreign currency exchange fee.
Some restaurants in Italy charge "service" fee if you use a credit card or debit card, which then is a play on the currency so maybe they will charge you 20% more on currency, like 1.6 or 1.7 to use card when exchange rate is about 1.4. So I typically try to use cash when in caffes, trattorie etc. and if I want to use card in these instances then I always ask if there is a "service" before using the card.
Credit card vs. debit card is an endless debate. I prefer debit b/c I know fee is fixed at 3% and I get exchange rate of that moment when purchase is made. Check your credit co. to see if they charge foreign transaction fees or if they give the best exchange rate. If they do, then debit would be less expensive than credit card for large and small purchases.
Some restaurants in Italy charge "service" fee if you use a credit card or debit card, which then is a play on the currency so maybe they will charge you 20% more on currency, like 1.6 or 1.7 to use card when exchange rate is about 1.4. So I typically try to use cash when in caffes, trattorie etc. and if I want to use card in these instances then I always ask if there is a "service" before using the card.
Credit card vs. debit card is an endless debate. I prefer debit b/c I know fee is fixed at 3% and I get exchange rate of that moment when purchase is made. Check your credit co. to see if they charge foreign transaction fees or if they give the best exchange rate. If they do, then debit would be less expensive than credit card for large and small purchases.
Jun 2nd, 2011, 09:42 PM
#8
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If you can get some euros before you leave I would do that. IMO exchanging money is very expensive. It is better to find an ATM (from a trustworthy Italian bank) once you get there.
As for the debit card make sure you have a savings and checking account on the debit card and that you have enough money in both accounts because the ATM does not ask you which account to draw from. Nor do you know which account it uses until you get home. And, when you take out 250 euros remember the conversion rate so you do not overdraw on your account. At today's rate 250 euro is $362 usd.
As for the debit card make sure you have a savings and checking account on the debit card and that you have enough money in both accounts because the ATM does not ask you which account to draw from. Nor do you know which account it uses until you get home. And, when you take out 250 euros remember the conversion rate so you do not overdraw on your account. At today's rate 250 euro is $362 usd.
Jun 3rd, 2011, 02:16 AM
#9
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"if it is $250 and then the bank charges $5 withdraw fee and the Italian bank charges $5 dollar fee plus the 3% exchange fee you end paying 6% for $250 cash. Still less than most other methods but 6% is 6%."
That's completely bogus info in my experience.
Italian banks don't charge any fee for a withdrawal, nor do they charge a % fee.
If your own bank charges you $5 to get your own money they you're using the wrong bank. It is common that the Visa or MC network will charge you 1% Forex fee, but there are many banks that don't pass on that 1% fee to you.
"If you can get some euros before you leave I would do that."
Also misguided advice, in my experience. Buying euros from a US bank will cost you 6-7% in exchange rate, assuming $0 fee. If you need to have some euros in your pocket for the plane ride over then fine, get $100 worth and eat the $7, but anything more than that you're throwing money down the drain. Since the whole premise of this original question is how to do it the cheapest, buying euros in the US is poor advice.
That's completely bogus info in my experience.
Italian banks don't charge any fee for a withdrawal, nor do they charge a % fee.
If your own bank charges you $5 to get your own money they you're using the wrong bank. It is common that the Visa or MC network will charge you 1% Forex fee, but there are many banks that don't pass on that 1% fee to you.
"If you can get some euros before you leave I would do that."
Also misguided advice, in my experience. Buying euros from a US bank will cost you 6-7% in exchange rate, assuming $0 fee. If you need to have some euros in your pocket for the plane ride over then fine, get $100 worth and eat the $7, but anything more than that you're throwing money down the drain. Since the whole premise of this original question is how to do it the cheapest, buying euros in the US is poor advice.
Jun 3rd, 2011, 03:32 AM
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Not sure my comment was bogus b/c it is true for me, but certainly I am open to trying other banks... I'll switch tomorrow if you let me know which bank does not charge the 3% currency exchange fee on purchases and withdrawals?
I know many credit unions that do not charge a withdrawal fee but not many banks. Certainly it is my experience that the too big to fail all charge withdrawal fees of about $5 unless you use their own ATM - can you suggest a few nationwide banks that do not charge a fee when making a withdrawal from an ATM that they do not own? As for Italian banks, it is my experience they do charge 3 to 5 euro for a withdrawal. Again, just my experience so not sure it is bogus.
Anyway, on this question, it is always best to check with your bank for various charges before you leave, which is how I closed my comment.
I know many credit unions that do not charge a withdrawal fee but not many banks. Certainly it is my experience that the too big to fail all charge withdrawal fees of about $5 unless you use their own ATM - can you suggest a few nationwide banks that do not charge a fee when making a withdrawal from an ATM that they do not own? As for Italian banks, it is my experience they do charge 3 to 5 euro for a withdrawal. Again, just my experience so not sure it is bogus.
Anyway, on this question, it is always best to check with your bank for various charges before you leave, which is how I closed my comment.
Jun 3rd, 2011, 03:56 AM
#11
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Capitol One bank does not charge a foreign currency exchange fee on their ATM withdrawals or their CC purchases. They charge $2 per ATM withdrawal. Just got back from Italy middle of May, so this info is current.
Jun 3rd, 2011, 04:02 AM
#12
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Ditto to Motorino's bogus advice. My US bank charges nothing for overseas withdrawals and Italian banks NEVER charge a fee (with the possible exception of using a private ATM in, say, a convenience store or gas station or something).
I'd love to know where Motorino got charged $5 by an Italian bank for an ATM withdrawal. At any rate, ignore that advice.
I'd love to know where Motorino got charged $5 by an Italian bank for an ATM withdrawal. At any rate, ignore that advice.
Jun 3rd, 2011, 09:50 AM
#13
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I think some are here are too quick to judge what may or may not be bogus advice or just fools with their money. Kybourbon posted this very helpful link to a chart with some money exchange rates:
http://flyerguide.com/wiki/index.php...reign_Exchange
Note that under the section titled, "Additional considerations regarding fees" the first bullet discusses "HIDDEN FEES"
Could it be that those who believe they have NEVER paid an ATM fee abroad actually may have NEVER noticed that they are in fact being charged a fee by a foreign bank but missed it because the fee is included in the withdrawal amount and converted to dollars?
As I have stated many times, when it comes to bank fees, always check with your own bank... now that is not bogus advice ;-)
http://flyerguide.com/wiki/index.php...reign_Exchange
Note that under the section titled, "Additional considerations regarding fees" the first bullet discusses "HIDDEN FEES"
Could it be that those who believe they have NEVER paid an ATM fee abroad actually may have NEVER noticed that they are in fact being charged a fee by a foreign bank but missed it because the fee is included in the withdrawal amount and converted to dollars?
As I have stated many times, when it comes to bank fees, always check with your own bank... now that is not bogus advice ;-)
Jun 3rd, 2011, 10:14 AM
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Also only take money from ATM's that are attached to banks, meaning the bank wall and during banking hours. Less chance of problems and it has the bank establishment behind it. If you card gets eaten by the machine, you walk into the bank and report it.
I also suggest if you have two separate bank accounts in two separate banks, bring both cards and have money in both. We have run into an ATM not accepting one bank card (even though it has always accepted it and did after that) so we used the other card.
I also suggest if you have two separate bank accounts in two separate banks, bring both cards and have money in both. We have run into an ATM not accepting one bank card (even though it has always accepted it and did after that) so we used the other card.
Jun 3rd, 2011, 10:25 AM
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Regarding the 100% certainty of BofA withdrawal fees, either the commenter's 100% certainty is in fact not correct, or the the chart is incorrect, which states for BofA there is at least 1% forex fee, everytime, regardless of bank - maybe you should do some digging.
Bank of America Visa / Plus
ATM withdrawal:
1% at banks in the Global ATM Alliance [9]; 1% + $5 per transaction at other banks
ATM Point of Purchase:
3%
Credit Card:
3% for most cards [10]; 2% for AAA Visa; 4% for OSU Alumni MC; 4% for Platinum Plus MC, Visa Signature
I live in foreign country and have Chase, Capital One and BofA, among others such as my University credit union. I have used the calculator many times to calculate exact charges and in my experience my University credit union is the least expensive. Chase the most expensive. BofA not free, ever. Now maybe I just do not have the deal the commenter has with BofA. I am just an average guy with an average account. But the chart seems to tell the tale of the life I am living abroad. No need to dig when you live abroad like me.
Bank of America Visa / Plus
ATM withdrawal:
1% at banks in the Global ATM Alliance [9]; 1% + $5 per transaction at other banks
ATM Point of Purchase:
3%
Credit Card:
3% for most cards [10]; 2% for AAA Visa; 4% for OSU Alumni MC; 4% for Platinum Plus MC, Visa Signature
I live in foreign country and have Chase, Capital One and BofA, among others such as my University credit union. I have used the calculator many times to calculate exact charges and in my experience my University credit union is the least expensive. Chase the most expensive. BofA not free, ever. Now maybe I just do not have the deal the commenter has with BofA. I am just an average guy with an average account. But the chart seems to tell the tale of the life I am living abroad. No need to dig when you live abroad like me.
Jun 3rd, 2011, 11:58 AM
#19
>>>>Could it be that those who believe they have NEVER paid an ATM fee abroad actually may have NEVER noticed that they are in fact being charged a fee by a foreign bank but missed it because the fee is included in the withdrawal amount and converted to dollars?<<<<
Could it be you are not always using a bank ATM OR not using the brand on the back of your ATM card (Cirrus, Star, etc.)? You have to stay in network not to have fees, just as you do in the US. There are many ATM's in Italy that are not bank ATM's (similar to exchange places) and they do charge fees. Don't use ATM's not associated with a bank. Otherwise, I've never had an Italian bank charge a fee(in some European countries they aren't allowed to charge a fee). The fees are imposed by the US bank. If you are using a B of A Global Alliance ATM, you should not be charged more than 1%. No need to do a lot of calculating. Just look up the history calculator on Oanda or XE and enter the transaction dates.
I would really be interested at how these Italian bank fees are reflected on your bank statement since they must be listed individually under American banking laws and can't be lumped in with the withdrawal transaction.
My daughter lived in Spain for six months and was never charged a fee at the ATM's (ATM cards from two different accounts in two different states). That was her only source of money the entire six months so she used the ATM's often.
Could it be you are not always using a bank ATM OR not using the brand on the back of your ATM card (Cirrus, Star, etc.)? You have to stay in network not to have fees, just as you do in the US. There are many ATM's in Italy that are not bank ATM's (similar to exchange places) and they do charge fees. Don't use ATM's not associated with a bank. Otherwise, I've never had an Italian bank charge a fee(in some European countries they aren't allowed to charge a fee). The fees are imposed by the US bank. If you are using a B of A Global Alliance ATM, you should not be charged more than 1%. No need to do a lot of calculating. Just look up the history calculator on Oanda or XE and enter the transaction dates.
I would really be interested at how these Italian bank fees are reflected on your bank statement since they must be listed individually under American banking laws and can't be lumped in with the withdrawal transaction.
My daughter lived in Spain for six months and was never charged a fee at the ATM's (ATM cards from two different accounts in two different states). That was her only source of money the entire six months so she used the ATM's often.
Jun 3rd, 2011, 01:47 PM
#20
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I never used to have an ATM fee abroad, why is that so hard to believe? But then my bank must have hired a consultant and they added on the typical 3 pct. But they didn't do that for a very long time, it was just a regional bank (Chevy Chase in Wash DC metro area). I didn't have a flat fee for using the ATM because I had a priority account, those fees are often the same for any ATM not your own bank, whether in the US or Europe.
Now I don't have one again because luckily my bank which started the fee a few years ago was bought out by Capital One and now I have no ATM fee again.
But I do think that now most US banks add on a percentage to the ATM card, they all started doing that. But Capital One does not. I don't know if you want them for your bank if they aren't a presence in your area, though, I think they ony have banks in this area and maybe Texas or La, not sure.
I don't think it's true that all big banks charge $5 for ATm withdrawals, I sure know mine doesn't and they are pretty big. I thought the only one that did was B of A, actually.
I really dont' understand the idea of preferring a debit card to credit card for purchases because you get the exchange rate at the moment. So what, why is that moment any different from tomorrow or next week, it could go up or down.
But I don't think it's totally bogus to tell people to get some money before going. It's a vacation expense that is not a terrible idea (to have some money on you when landing), but it will cost you something, of course. I just wouldn't take a lot that way. A lot of people like having that money even when they understaned it is an expense to do that. It isn't an issue for me as I got to Europe about every year and always just save some from my trip to take the next time. But when I got to places that don't use the euro, I don't bother getting any in advance now, although I used to. Even if no ATMs worked or whatever, I could still use the exchange desk at the airport upon arrival and even if there were a line, it would be taking up less of my time than making a special trip to do that in the US before I go. I would never use the US airport exchange desk before departure, that is about the worst option.
Now I don't have one again because luckily my bank which started the fee a few years ago was bought out by Capital One and now I have no ATM fee again.
But I do think that now most US banks add on a percentage to the ATM card, they all started doing that. But Capital One does not. I don't know if you want them for your bank if they aren't a presence in your area, though, I think they ony have banks in this area and maybe Texas or La, not sure.
I don't think it's true that all big banks charge $5 for ATm withdrawals, I sure know mine doesn't and they are pretty big. I thought the only one that did was B of A, actually.
I really dont' understand the idea of preferring a debit card to credit card for purchases because you get the exchange rate at the moment. So what, why is that moment any different from tomorrow or next week, it could go up or down.
But I don't think it's totally bogus to tell people to get some money before going. It's a vacation expense that is not a terrible idea (to have some money on you when landing), but it will cost you something, of course. I just wouldn't take a lot that way. A lot of people like having that money even when they understaned it is an expense to do that. It isn't an issue for me as I got to Europe about every year and always just save some from my trip to take the next time. But when I got to places that don't use the euro, I don't bother getting any in advance now, although I used to. Even if no ATMs worked or whatever, I could still use the exchange desk at the airport upon arrival and even if there were a line, it would be taking up less of my time than making a special trip to do that in the US before I go. I would never use the US airport exchange desk before departure, that is about the worst option.
