AlessandraZoe

KeppieAngel:
If someone takes your debit card, they can be charging away. Yeah, you might have overdraft protection, insurance, but it's a hassle I don't want.

ATM card=money
Credit card=purchases

My home bank's plain ol' ATM card has ALWAYS worked in France and has usually worked everywhere else (in Italy, often ATMs seem to go out for coffee or something--an hour or two later, that same ATM would always work again). My husband and I have two different accounts, so we always have a back-up.

Because of a need to take out more money in a short period of time for an upcoming trip, I have obtained other bank accounts and their associated ATM/Debit cards. DJBooks recommended the Schwab account because of their fee arrangement, etc. The downside was I had to get a debit card because that truly is the only thing they offer. The upside was that I could make it work as an ATM-only card by limiting any purchases to a penney.

For purchases, I have always used credit cards**. And again, I love my Capital One credit card.

**One caveat about using credit cards for all purchases: In some countries, the worst of which in my experience was Ireland, the hotel and restaurant people do a thing to tourists called Dynamic Currency Conversion. They supposedly charge you in your HOME currency on your credit card as a "favor". It's a long explanation, but essentially that conversion means that the proprieter gets a mark-up on your purchase. My husband and I got tired of telling them to re-do the purchase to Euros because there would always be some sort of struggle explaining why to the waitstaff, front desk, etc, and it starts to ruin your vacation. In areas where every resto and hotel was using DCC, we just gave up and would pay in cash.

KeppieAngel

I just called the credit union my company has for it's employees. They offer a savngs account with a $5 minimum that provides a free ATM card with no charge for the first 10 ATM withdrawls per month and no FE transcation fee.


Hmmm - now i can use this savings to buy some french audio tapes.

ncounty

fantastic.... sounds like you are set for your trip.

one last little tip: make sure your pin is only 4 numbers. I don't know how I skated by not knowing this till my trip last month. Some countries and some ATMs won't work with pins longer than that.

You've gotten a lot of good advice here. Alessa is right: ATMs = cash and credit cards = purchases. I never knew it was preferable to be charged in the home currency rather than in dollars, interesting.

My system, because I am totally paranoid and the worst thing is to end up overseas with no funds:
-I notify my bank and my Cap One card i am traveling.
-I use my Cap One card exclusively but have several back up CCs just in case.
-I have not just my normal ATM card but I set up a back up account called my travel account and put funds in it just in case my regular card doesn't work so I have a back up ATM card.
-I still take at least $300 in case, just in case.

KeppieAngel

ok - so what does it mean that credit cards = purchases as it relates to being charged in the home currency? Can you elaborate with an example? Will i be charged an interest rate on the money i am floating until i pay the credit card bill even with the Cap one credit card that has no fees or FE fees? i always pay my monthly credit card in full every monnth. thanks.

i will also take a back up ATM card and back up credit card and cash. does you bank provide you with Euros at no fee? i think my bank wants to charge me.

kayd

"Home currency" I think means the currency of the country where the card was issued (US dollars in our case). When a merchant overseas offers to charge your purchase in your home currency, instead of the local currency, as a "convenience" it does so at an exchange rate favorable to that merchant, and leaves you still subject to your bank's "foreign transaction" charge (if any) because the transaction took place overseas. So using the credit card with DCC can cost as much as 5% or more (if your bank card has the typical 3% surcharge).
When you carry no balance on your credit card, there's no difference between domestic and foreign purchases as far as incurring interest is concerned.

KeppieAngel

AlessandraZoe, thank you. I now see your explanation. I think I sent out my reply when you were posting yours and missed it.I can now say- I feel comfortable with all of this.

Many blessings to all that have contributed.

Christina

Banks don't do much of anything for free, why should they, they are a business. So it isn't surprising a bank wants to charge you for a service like getting you euro notes, as it obviously takes them time and some expense to do that. If it is like most local banks (like mine), it has no euro lying around and it has to get them from some foreign currency service. I think my bank uses Travelex. And of course they charge a fee.

Anyway, my bank charges about 7 pct to get you foreign currency, I think that is fairly typical.

I think it's good to have some backup plans, but you are really going to a lot of extremes I don't, so don't worry. I mean the idea of setting up separate bank accounts just for travel just in case your regular ATM card doesn't work. You can get cash by a CC if you had to in the rare event your ATM card didn't work, for example. Anyway, my bank wouldn't allow you to set up small bank accounts for free, I think a lot of banks nowadays won't, but you are certainly covered with lots of ways to get money.

Michael

<i>Anyway, my bank wouldn't allow you to set up small bank accounts for free, I think a lot of banks nowadays won't</i>

But a credit union would because a minimal account is usually sufficient to become a member.

AlessandraZoe

Low and behold, a Fodor's editor, Doug Stallings, made a summary of everything we've been chatting about:

http://www.fodors.com/news/story_3870.html

Great job, Doug!

I found it searching for Dynamic Currency Conversion (DCC) so that newbies could read how incensed we oldsters have been for ages about DCC. Read down the list to #6, which will lead you to another posting about DCC. Heck, just search for "Dynamic Currency Conversion" in the forums and be prepared for a lot of emotion. I can get angry all over again just hearing "DCC".

I think of most of Doug's article is on point. Just want to emphasize, however, that Cap One and some other ones we like have a variety of banking accounts, each with it's own characteristics, so you should go with your preferences.

As to getting Euro before you go:
I used to be able to go to a local American Express office and get some currency for free or for a small fee. No more.

Now I just don't worry. There are ATMs all over CDG. I withdraw enough right off the plane for a taxi and a cafe meal for however many are travelling. Since we usually arrive early a.m. and eat either breakfast or an early lunch, I get about 150 to 200 Euros at the airport.

Once at the hotel, after I've dropped off the bags, I have two hands free and can be a little less frazzled and more aware of my surroundings. Then I go to an ATM and draw the rest of whatever my daily allowance is. If my husband is with me, he does the same.

Hope this helps.

AlessandraZoe

sorry about the misuse "it's" in the above post. Soon I will be typing "alot". Goodness gracious.

JeanneB

Bless yer heart. LOL!

BeachGirl247

Amex Platinum and Centurion Cards will no longer charge international transaction fees:

http://www.dailymarkets.com/personal...nturion-cards/

"American Express (NYSE:AXP) just announced some good news for their personal or small business cardmembers. It said that it will eliminate foreign currency transaction fees for U.S. cardmembers who use their American Express Platinum Card or Centurion Card for international purchases."

Sarastro

Wow, for only $450 per year, I can avoid a currency conversion fee. How much does that Capital One card cost per year?

KeppieAngel

Whew - I did feel as if I were going to extremes. It's good to have someone I don't know point it out to me!



It has been fun and again thanks to all.Especially putting up with my typos. AlessandraZoe I have got you beat by a mile!!!!!

BeachGirl247

Sarastro,

I agree the $450 is high but my point with the AMEX post was for those that have the card already.

ncounty

i never get the foreign currency before i leave home; they do charge for it and it is generally not necessary. i get the local currency at the airport atm upon arrival.

Lately, I've just kept the euros or pounds left over from one trip and keep it in my safe and take it with me when I return. It is just enough for train or bus to get me into the city where I can use a bank atm.

tag32

Back to Ira's comment from June 22nd on not using credit cards -- If I want to change dollars (cash) to Euro in Paris, anyone know of where to get the best deal? Banks? at the airport? What about Exchange places? Any caveats or recommendations would be appreciated!

Michael

<i>If I want to change dollars (cash) to Euro in Paris, anyone know of where to get the best deal? Banks? at the airport? What about Exchange places? Any caveats or recommendations would be appreciated!</i>

Don't bother. Establish an account with a financial institution that does not charge for the use of the credit card.

Christina

YOu will never get the best fee at an airport for anything. Have you never been to an airport?

The best place are private exchange places, you can shop around for rates. Some of the ones near the Louvre on rue de Rivoli give decent rates. I know a few others that do, also, but who knows if you'll be around them (one inside a travel agency near bd Montparnasse and Vavin, and another a few blocks north of bd Montparnasse on rue de Rennes).

I doubt if banks are going to have anything to do with you, but never tried that. Why would they want to function as an exchange service for people who aren't their customers. Seveeral decades ago when some did exchange TCs for tourists, they gave worse rates than the private exchange bureaux, at least if you shop around. There are lots in Chinatown, also, that give decent rates.

There is no particular caveat except to know what the going interbank rate is for comparison, and get clear on whether the rate is the whole thing to compare or if there are any flat fees in addition, to consider.

AlessandraZoe

Tag32--May I ask why you need to exchange actual currency rather than withdraw Euros at an ATM?

If you have no credit card for purchases and no ATM to withdraw cash in Euros, then as Christina has more or less said, you'll have to do a bit of homework. If you need a bit of cash right at the airport, then do use the Travelex office there to get you going and then shop for best rates on the ground for the rest of your stay.

As Christina implied, a lot of things are changing. Here's an old article from 2007 that tells you about a few places, but you'd need to follow up to see if they are even in existence:

http://www.secretsofparis.com/heathe...-in-paris.html