Paying with your Credit Card
Jan 12th, 2011, 09:10 PM
#21
Guess I should clarify, I opened a Cap One checking account with a few thousand $ for the purpose of getting the ATM card and only paying $3 per withdrawal.
That account has nothing to do with my Cap One cc.
That account has nothing to do with my Cap One cc.
Jan 13th, 2011, 08:26 AM
#22
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Yes, I realize using a CC for ATM is not a good idea....
But: $3 per ATM withdrawal (Capital One bank) is same as withdrawing $100 at 3% (duh!). So I have to think about it, what would be a typical amount I'd withdraw from an ATM in Europe, more than $100? Nobody wants to walk around with too much cash in his/her pocket....
But: $3 per ATM withdrawal (Capital One bank) is same as withdrawing $100 at 3% (duh!). So I have to think about it, what would be a typical amount I'd withdraw from an ATM in Europe, more than $100? Nobody wants to walk around with too much cash in his/her pocket....
Jan 13th, 2011, 08:36 AM
#23
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Check the policy with your local credit union if you have one. Mine charges only the 1% Visa transaction cost (listed separately) for foreign transactions, whether they are on the credit card or ATM withdrawals.
Jan 13th, 2011, 08:42 AM
#24
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Great summary, travelerjan! (bookmarking!)
mamamia: Of course for every person the amount you need is going to be different. But I can tell you that, traveling as a couple, we usually take out (of a bank ATM) about 200 euros per transaction, then split the cash between us so neither is carrying a lot. No need to incur fees on both of our bank accounts! On our trip to Italy last year, I think we hit the ATM about 3 or 4 times in two weeks, using the cash mainly for restaurants but of course also for the small amounts on things like metro tickets and gelato. Most of the (casual) restaurants where we ate either didn't take cc or "their machine was down/lost/having a lie down" (love that line!).
mamamia: Of course for every person the amount you need is going to be different. But I can tell you that, traveling as a couple, we usually take out (of a bank ATM) about 200 euros per transaction, then split the cash between us so neither is carrying a lot. No need to incur fees on both of our bank accounts! On our trip to Italy last year, I think we hit the ATM about 3 or 4 times in two weeks, using the cash mainly for restaurants but of course also for the small amounts on things like metro tickets and gelato. Most of the (casual) restaurants where we ate either didn't take cc or "their machine was down/lost/having a lie down" (love that line!).
Jan 13th, 2011, 08:53 AM
#27
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Definitely shop around.
My credit union also only charges the 1% foreign transaction fee. No per usage fee.
My credit card (Chase BA Visa) charges no foreign transaction fees.
How much cash to withdraw from an ATM? I usually withdraw the max amount 1st pass - 250 euro or 300 euro, whatever the machine will allow. The $3 charge you may face on $300 is only 1%. If you limit yourself to small withdrawals then you are correct, a % fee may be lower than a flat usage fee.
But: using cc to get cash is just a bad idea, period, IMO.
If you are nervous about carrying that much cash around then divide it between 2 people. I've read here on Fodors that some people consider themselves more likely theft targets if they are carrying around a lot of cash. I still haven't figured out how that is so, and I'm not sure even a few hundred dollars constitutes "a lot".
If I have left over euros at the end of the trip I pay down my hotel bill with the big stuff, and keep 40-50 euros on hand for my next trip.
My credit union also only charges the 1% foreign transaction fee. No per usage fee.
My credit card (Chase BA Visa) charges no foreign transaction fees.
How much cash to withdraw from an ATM? I usually withdraw the max amount 1st pass - 250 euro or 300 euro, whatever the machine will allow. The $3 charge you may face on $300 is only 1%. If you limit yourself to small withdrawals then you are correct, a % fee may be lower than a flat usage fee.
But: using cc to get cash is just a bad idea, period, IMO.
If you are nervous about carrying that much cash around then divide it between 2 people. I've read here on Fodors that some people consider themselves more likely theft targets if they are carrying around a lot of cash. I still haven't figured out how that is so, and I'm not sure even a few hundred dollars constitutes "a lot".
If I have left over euros at the end of the trip I pay down my hotel bill with the big stuff, and keep 40-50 euros on hand for my next trip.
Jan 13th, 2011, 09:28 AM
#28
>>Dayenu on Jan 13, 11 at 12:47pm
Is the limit per ATM withdrawal 250 Euro, or it varies? I dont' mean the limit on my ATM cards in $, I mean the limit in Italy in Euro.<<<
Most machines I've used in Italy seem to be in the 250-300€ max withdrawal range. You need to know your banks max withdrawal and the approximate exchange rate for the day. If your bank max is $400 and you try to get 300€ when the exchange rate is lousy (say 1.40) then it will reject your attempt as that would be around $420 ($20 over what your bank allows). If you are trying to make multiple withdrawals to pay a large bill in cash such as an apartment, you need to be aware what time the daily allowance changes/updates in the US due to the time difference.
>>>Nobody wants to walk around with too much cash in his/her pocket....<<<
Quite a few places in Italy are cash only. Last time I visited Herculaneum, admission was cash only. The Accademia in Florence had two lines. The short line was cash (they wanted exact amount so they didn't have to make change) and a long line for other types of payment. Don't assume a restaurant will take credit cards either. You also have to pay the new hotel tax in cash. Many bus ticket machines are cash only. You will need cash for many things.
Is the limit per ATM withdrawal 250 Euro, or it varies? I dont' mean the limit on my ATM cards in $, I mean the limit in Italy in Euro.<<<
Most machines I've used in Italy seem to be in the 250-300€ max withdrawal range. You need to know your banks max withdrawal and the approximate exchange rate for the day. If your bank max is $400 and you try to get 300€ when the exchange rate is lousy (say 1.40) then it will reject your attempt as that would be around $420 ($20 over what your bank allows). If you are trying to make multiple withdrawals to pay a large bill in cash such as an apartment, you need to be aware what time the daily allowance changes/updates in the US due to the time difference.
>>>Nobody wants to walk around with too much cash in his/her pocket....<<<
Quite a few places in Italy are cash only. Last time I visited Herculaneum, admission was cash only. The Accademia in Florence had two lines. The short line was cash (they wanted exact amount so they didn't have to make change) and a long line for other types of payment. Don't assume a restaurant will take credit cards either. You also have to pay the new hotel tax in cash. Many bus ticket machines are cash only. You will need cash for many things.
Jan 13th, 2011, 09:55 AM
#29
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I've been withdrawing 500 euro at a time in Venice in the last few weeks, but it was 250 euro limit two years ago.
Hit "Other amount" when the machine asks you how much you want. You can select English as the language.
Sometimes you'll receive a discount when you pay with cash
- not in restaurents, but for purchases. We never bother with getting receipts unless we can claim back the VAT on bigger purchases. I think the threshold for claiming back the
VAT is about 180 euro per purchase.
In Italy, cash is king.
Hit "Other amount" when the machine asks you how much you want. You can select English as the language.
Sometimes you'll receive a discount when you pay with cash
- not in restaurents, but for purchases. We never bother with getting receipts unless we can claim back the VAT on bigger purchases. I think the threshold for claiming back the
VAT is about 180 euro per purchase.
In Italy, cash is king.
Jan 13th, 2011, 10:46 AM
#31
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Now I'm confused. I use a Capitol One credit card for charging big purchases in Europe, as they do not levy any foreign transaction fees. I use an ATM card linked to my checking account in my small local bank to withdraw cash, as they do not charge a foreign exchange fee either.
I was thinking of opening another Capitol One account just to get an ATM card, but some of you posters indicate they charge a per transaction fee. Do any of you have a Cap One account (savings, money market) that provides an ATM card with no fees?
I was thinking of opening another Capitol One account just to get an ATM card, but some of you posters indicate they charge a per transaction fee. Do any of you have a Cap One account (savings, money market) that provides an ATM card with no fees?
Jan 13th, 2011, 12:19 PM
#33
We never bother with getting receipts unless we can claim back the VAT on bigger purchases>>
Peter - I think that not getting a receipt, even for the smallest purchase, is illegal in Italy. it's their way of trying to fight the black economy.
not that anyone takes any notice of course!
Peter - I think that not getting a receipt, even for the smallest purchase, is illegal in Italy. it's their way of trying to fight the black economy.
not that anyone takes any notice of course!
Jan 13th, 2011, 12:55 PM
#34
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ATMs should get you the best exchange rate, as close to the wholesale rate.
But you have to watch out for ATM use fees imposed either by the owner of the ATM or your bank. Or both. Some institutions like eTrade will reimburse any ATM fees right away.
With credit cards, most can access the wholesale rate but they impose 2 or 3 % on top of the whole purchase.
And like others have mentioned, if you use a CC at an ATM, it's considered a cash advance. You will pay the surcharge on the foreign transaction, just like an ATM card (though some CCs have minimal or no surcharges) and then pay interest on the cash until you pay it off.
You're fine with minimal cash. Unless you're having an expensive meal and you know they only take cash. Pickpockets are an issue so take minimal cash.
But you have to watch out for ATM use fees imposed either by the owner of the ATM or your bank. Or both. Some institutions like eTrade will reimburse any ATM fees right away.
With credit cards, most can access the wholesale rate but they impose 2 or 3 % on top of the whole purchase.
And like others have mentioned, if you use a CC at an ATM, it's considered a cash advance. You will pay the surcharge on the foreign transaction, just like an ATM card (though some CCs have minimal or no surcharges) and then pay interest on the cash until you pay it off.
You're fine with minimal cash. Unless you're having an expensive meal and you know they only take cash. Pickpockets are an issue so take minimal cash.
Jan 13th, 2011, 01:10 PM
#35
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Here is the scoop on Capital One. I just did this for my upcoming trip so I know. I have a Capital One credit card which I will use for big things (like Hotels) No fee or exchange rate to use it. Then for the ATM I have my own ATM card from a local bank (but they do charge a small % per transaction) so I use it as a backup. I opened a Capital One Money Market account. Put enough $$ in it for the trip and you get an ATM card with it. You get $500/day per the ATM and the best part is NO FEES. Capital One is used a lot in Europe because of this. So I am ready with my Capital One Credit Card and the money market account ATM card. As I stated, the bank ATM card (my local one) will be brought along for a back up just in case.
Jan 13th, 2011, 01:13 PM
#36
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My bank charges 3% for ATM withdrawal in Europe. My daughter's bank charges a lot more.... Since she's going to Italy for a semester, and we'll be joining her in Europe later, I think I'll get us a Capital One bank account, put a couple thousand $ there and use their ATM cards to pay $3 per withdrawal. I already applied for their CC.
....OR JOIN THE LOCAL CREDIT UNION BANK, open an account, get their ATM card, and be charged nothing when withdrawing money from an ATM in Europe.
---- Question is, isn't the European bank that owns that ATM machine gonna charge us for the withdrawal?
....OR JOIN THE LOCAL CREDIT UNION BANK, open an account, get their ATM card, and be charged nothing when withdrawing money from an ATM in Europe.
---- Question is, isn't the European bank that owns that ATM machine gonna charge us for the withdrawal?
Jan 13th, 2011, 01:37 PM
#38
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I have no idea what Europe many here visit that they have so many troubles with credit cards. And I only use AMEX!
Take out EUR 200 and pay as much with your card as you can. When you run low on cash, go to an ATM and take out more. Honestly, this ain't rocket science.
As for special credit cards for travel... How much do you spend on foreign travel in a given year? What is the foreign fee? How much value do you otherwise get from your card? Is the expected costs greater than the value you get from the card? If so, switch cards. If not, I don't think it worth the bother.
<i>"Using my charge-card gives me Reward Points, or cash back for everything i spend." Wait a minute. Those payouts are usually 1% or 1.5% -- on American Express, it's $100 for evry $7,000 spent. But if you get 1% credit and THREE PERCENT extra fee for the purchase .... you do the math.</i>
I have done the math. I get at least a 3% return on my SPG AMEX and gladly pay the fee. If you are only yielding 1% on your reward card, then you need a new reward card, even if you never leave your home.
Take out EUR 200 and pay as much with your card as you can. When you run low on cash, go to an ATM and take out more. Honestly, this ain't rocket science.
As for special credit cards for travel... How much do you spend on foreign travel in a given year? What is the foreign fee? How much value do you otherwise get from your card? Is the expected costs greater than the value you get from the card? If so, switch cards. If not, I don't think it worth the bother.
<i>"Using my charge-card gives me Reward Points, or cash back for everything i spend." Wait a minute. Those payouts are usually 1% or 1.5% -- on American Express, it's $100 for evry $7,000 spent. But if you get 1% credit and THREE PERCENT extra fee for the purchase .... you do the math.</i>
I have done the math. I get at least a 3% return on my SPG AMEX and gladly pay the fee. If you are only yielding 1% on your reward card, then you need a new reward card, even if you never leave your home.
Jan 13th, 2011, 01:47 PM
#39
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The point is that taking cash with a credit card is not like withdrawing your own money from your bank -- it is basically a loan, that's what it is. So that is why the fee is so high. It isn't just the high interest percentage, either, they charge fees to do that on top of the percentage, around a 3-5 pct of the amount fee no matter what. It is about the worst way to get cash. And then a foreign transaction fee on most CCs on top of both of those (but not Cap One).
Why don't you call Capital One and find out their fees for their ATM cards. I have one with a Money Market Acct and frankly don't remember as I don't hardly ever use it. I think (but don't quote me) it used to have an ATM fee abroad (around $2) but now does not. It never has had a foreign transaction fee. It was obviously much better than my other card even when it was around $2 as I would take out 150-200 euro at a time and have no foreign transaction fee (my regular bank had a 3 pct fee).
Why don't you call Capital One and find out their fees for their ATM cards. I have one with a Money Market Acct and frankly don't remember as I don't hardly ever use it. I think (but don't quote me) it used to have an ATM fee abroad (around $2) but now does not. It never has had a foreign transaction fee. It was obviously much better than my other card even when it was around $2 as I would take out 150-200 euro at a time and have no foreign transaction fee (my regular bank had a 3 pct fee).
Jan 13th, 2011, 01:51 PM
#40
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We have a Schwab credit card that does not cahrge the currency conversion fee AND pays 2% cash back and have switched to a local bank that also doesn't charge a currency conversion fee and allows 5 free withdrawals monthly in Europe. We just like the idea of not paying all of those fees!
