After reading postings on the subject of exchange rates, ATMs, credit cards, etc., I started doing some investigating. Here is what I THINK I learned, but I would like some comfirmation and/or amplification because I often talked with bank employees who were ignorant of the answers to my questions. (The person I asked did not know, so I was referred to someone who knew even less and got annoyed at the question.)

Basically, I concluded that the whole money exchange game seems to have changed since last August with NO notification at all from either of the banks I use.

Essentially, much of what I have done in the past to obtain local currency no longer applies.

1. Capital One seems to be a credit card company that does not charge a 3% conversion rate for overseas usage. The conversion rate seems to be only the bank wholesale rate of exchange.

2. For using their credit cards overseas, Bank of America, CitiBank and others charge an extra 3% for currency conversions. Essentially, they add no service for the fee.

3. Bank of America now charges $5.00 for all ATM usage outside of the US unless the traansaction is at an affiliate bank. Barclay's and Deutsche Bank are two of the European affilitates, but there are several others.

4. With respect to #3, an allowance of 2 off-net transactions per month at no charge is a thing of the past.

5. Some credit unions will allow multiple off-net ATM transactions without a charge. I found a local one that allows 5 free off-net transactions per month and charges 50¢ thereafter. European transactions were included in the allowance of 5 freebies.

6. Travelers' checks are hard to cash and purchasing them is expensive. The rate of exchange is one set by the seller, and is often 5% higher than the wholesale exchange rate.

7. Exchanging currency at a bank or at a "cambio" is an expensive way to obtain local spending money.

8. I land in Munich and can use Deutsche Bank for a period of 4 days. If I take €500 in bank notes to Switzerland, would exchanging the money there cost me more than the $5.00 aTM fee? (I seem to recall that it would. If the rate was 5% worse than the wholesale rate, I would get clipped €25.)

9. European banks do not add on a fee for using their ATMs even if the European bank is not affiliated with the American bank that issued the debit or aTM card.

Where the local credit union is concerned, I will be charged a one-time $9.00 fee to join.
I figure that 2 B of A off-net transactions with my ATM card would be more expensive. Amortizing the $9.00 fee would therefore be accomplished rather quickly. Also, if I deposit enough money at the credit union to fund the trip, I get a higher interest rate than if I left the money in my normal checking account.

Your comments please.

Good homework Bob !
I think I concur---if I am current.

I did a little checking here and as far as I can find the only credit union is only available to school employees and teachers. They have no international ATM withdrawal availability, and there is a maximum of $200 a day withdrawal for the first 6 months of account holding. It is also interesting that they say those over 55 get a "discount" on their checks, so it sounds like you have to buy checks.

hi, bob,

My only comment would be that you do NOT, repeat NOT want to be drawing money on your credit card through an ATM - it counts as a cash advacne and the interest rates are generally ruinous.

you need a debit card, preferably with a provider like Capital One.

regards, ann

If you are eligible for USAA, their Mastercard does not impose any extra conversion fee other than the 1% by Mastercard itself.

As far as credit unions go, they vary. We were with one for 23 years and just cancelled the account a couple months ago. But we had no problem using our ATM card from them in Europe, and they did increase the amount we could take out while over there. We got free checks if we took the basic ones (no fancy designs). So I think it just depends on each institution.

We got a NetBank ATM card.
They do not charge fees .. this is what we will use after moving to Argentina for our weekly cash withdrawals.

Yea, Scarlett, but in Buenos Aires everything is so cheap you'll only need to withdraw about $5 a week, right? So even 3% would only be 15 cents. LOL

I am afraid of ATM's - I fear losing my card in them. I know traveler's checks are less popular now, but I like them. They aren't very expensive to buy and they are easy to cash. Especially in Paris, where American Express is close to the Opera, and there are partner banks all over the place where you can cash the checks in for Euros with no exchange fee. I use my Capitol One card to charge as much as I can though. I bring the traveler's checks just in case.

Are you afraid of ATMS at home, clsavocat? I've used my bank card in ATMS in over 40 countries and all continents (except Antarctica) and never had my card gobbled. It's a good idea to have a back-up (one credit card, one ATM card and if travelling with someone, have them bring a different kind of card), but that's enough for us.

LOL Patrick! I can only hope so.
Actually, if we get the apt that we have our eye on, renovations will have to be paid for..

Thanks for all the info!

I'd like to add a couple of things if I may...

American Express charges 2% on top for their international transactions.

I recently emailed my credit union about foreign ATM transaction fees and they replied that there is a fee of 1% added to ATM withdrawals.

A couple of weeks ago I was in Prague, Vienna and Budapest. I used both Citibank and non-Citibank ATMs with my Citibank ATM card.
At the Citibank ATMs I was not charged an additional fee.
At non-citibank ATMs, I was charged 3% on top, shown as an additional line item on my statement.

Next time a travel to a place without Citibank ATMs, I will put enough $$ in my credit union account and try to use that instead.

I know that using a credit card in an ATM is a cash advance.

I was talking about a credit union where one can establish a demand account and draw money from it with an ATM card.

According to the spokesperson at the office I called, I asked specifically about foreign usage and the fees imposed.

The credit union does offer a form of checking, and the account draws more interest on a percentage than what B of A pays me. It is not much higher, but at least it is a step in the right direction.

Does anybody know if a company like Vanguard offers an ATM type of account??

I know I can write checks on my money market account, but the minimum check amount makes routine usage highly unlikely.

At least I am on the right track here.
The big shock to me was the $5.00 fee to use my ATM off net. Last year I am almost positive that I got two freebies.
We were in Switzerland for 10 days and I used both accounts for a total of 4 freebies. I arrived in Germany with euro notes from a private transaction before leaving. I spent them all paying my hotel bill, except for snack money on the train.