Money exchanging
 

Last time I went to Europe, in 2002, I used my debit card and good rates and little or no fees charged by my credit union. MY mom on the other hand, used her credit card issued by the same credit union and had some fees. Can anyone else give advice on the best way to save on fees or let me know what how you got the best rate. I'm hoping I can suggest one means for my group of 6 to use for the best savings. Thanks!

Use a credit card for major purchases and get cash from ATMs for everything else. Note, however, that some banks have been raising their fees lately. For instance, my bank, Wells Fargo, now charges $5.00 for every overseas ATM withdrawal so I limit my transactions by withdrawing as much money as possible each time and using a moneybelt. Here's the URL for a helpful article on changing money in Europe: www.ricksteves.com/plan/tips/moneytip.htm.

It depends much on who are the issuers of the debit card and the credit card as well as where you use them. As someone else noted, Wells Fargo charges alot to do oversea withdrawal. Similar sad story for the Bank of America except at banks where they have no fee agreements. My credit union debit cards is pretty good and so is their credit card. I don't use my MBNA Mastercard as they tack on 3% total, I use something else.

However, also consider that what you are trying to do it is to reduce the OVERALL cost of the trip? Hotels in budget range often give cash discounts.

Also when using credit cards, you need to be vigilant about the dynamic currency conversion. It is a scheme touted to be a "convenience" to the turists whereby a merchant claims he has to charge you in your home country's currency (e.g. US dollar.) In so doing, he adds his own fee on top of what your bank is already charging. So how does the math work? Say your bank adds 3% and the merchant adds yet another 4% (I don't know if this markup is regulated.) What do you get? 3%+4%=7% additional fee.

For credit cards, the banks also make it very hard for you to compare the oversea charges. They rarely disclose the oversea transaction fee in their pre signup statement. I always have to call a reluctant (and hard to reach) customer service.

Most credit cards now charge up to 3% for foreign currency transactions. Check with your bank about ATM fees, that might be your best way to go.

Anyone have the name of a bank or credit card that doesn't charge fees?

There's been lots of recent discussion on this topic here and in the travel press. Bottom line is that almost all cards have some sort of fee, ranging from minor ATN fees to rip-off level. Credit union issued cards tend to be better. Remember that all Visa and MC are not the same, and specific terms vary depending on who issued the card.

If your Mom used her credit union CREDIT card to get cash at an ATM, interest charges began immediately. Using a credit card to get cash is for emergencies only. Also if you use a debit/ATM card at a non-bank ATM, there may be a fee. (These are equivalent to ATMs in 7-11s and so on.)

Over the years using our credit union ATM card (NOT a debit card, no Visa/MC symbol), we've never had a fee. But we stick to bank ATMs. Not a great restriction, there are lots of 'em.

I use a Visa Debit card from Compass Bank for ATM withdrawals. No fees for -any- ATM, and only the 1% Visa conversion add-on. (however, their credit cards add on the full 3%, so I don't take that).
http://www.compassweb.com/mquest/mqi....exe?link=find

I use a AAA Visa Platinum card issued by MBNA - only the 1% fee added on, however not sure if you can still get that. Clarify it with the issuer.

I think Capital One is still charging only the 1%, but I don't have one of those.

First, I don't know everything about everything, so there may be some better deals out there than I mention, and if you find one, please share.

As to ATM cards, some banks charge a flat fee for using anyone else's ATM. Other than that, most pass on the 1% currency conversion charge imposed the the network (Visa and MC). I have read that CapitalOne does not pass on the 1% currency conversion charge, so if they don't have a fee for using someone else's ATM, they would appear to offer the best deal. However, there is a lot of change going on in this field now, so you have to check carefully as to what the current situation is at any institution, and, unfortunately, customer service representatives do not have a reputation for knowing this part of the business.

As to credit cards, many banks are adding their own charge to the 1% currency conversion charge imposed by the network, but there are still some banks, and many credit unions, that do not add their own charge, and again, CapitalOne is widely reported to not pass on the 1% currency conversion charge, so it appears to be the best deal I have heard of, although I don't have firsthand knowledge of them.

While no charge is great, a 1% charge, given that the conversion is done at the most competitive rates, is a far better deal than what tourists paid before the ATMs arrived.

In the US, the credit card companies have a clause in their contracts that the merchant will not charge less for cash than for using a credit card. They don't have this clause in their European contracts, I'm told, so it is fairly common that you can get a decent discount by paying cash, rather than using a credit card. I still like to use credit cards because it gives me good records, and I have some bargaining power if the charge is problematic, such as a hotel refusing to return a deposit.

I imagine the problem was that BFLOGAL's mom used a credit card to get cash which will almost always have very large fees. It's a credit card, for purchases, not to withdraw cash because it's not linked to your bank account. Therefore, that is like a loan.

Which is why I don't think Clevelandbrown's comments on Capital One fit, because it's a credit card people are talking about. They are a big credit card issuer. I don't even think they have a regular bank with savings/checkings accounts or ATM cards. So, you shouldn't use a Capital One card for ATM withdrawals, either. However, they do have a Money Market product that has an ATM card, so someone might check that out, because I don't know the terms on the use of those cards at ATMs or what kind of fees there are, or limitations.

actually, I just checked out Capital One's Money Mkt account, and I think I'm going to open one to get an alternate ATM card to my bank's one. I never thought of that, so thanks for the idea, Clevelandbrown.

They do charge a $2 ATM withdrawal fee for those cards, but the APY is pretty good for a Money Mkt account, and if they don't add on any foreign transaction charge, that's pretty decent. I'm going to verify that issue, but it appears to be a decent alternative. My own bank charges nothing for foreign ATM withdrawals, not even a flat $1-2 fee, but it would be good to have another card.