J62

I'd be cautious taking financial advice from someone who claims using a credit card to get cash at an ATM is a good idea.

Credit card co's make profit on interest they charge. Perhaps logos' German credit card works differently but every credit card co I know charges interest from the moment of withdrawal.

I have a Visa logo debit card from my bank, but that's NOT a credit card.

logos999

What about the Schwab card? Did you check it out on their website. It all depends on the bank that issues the card. Visa/Mastercard will charge fees in any case, just the bank may pay them for you. They make their money in a different way.

One of my cards doesn't charge for withdrawals unless you don't pay your next bill, the other only doesn't charge any conversion fees if you use the card to pay another one gives you 5% on gas purchases worldwide but carges 1.75% conversion fees. Another one has travel insurance included and CDW for your rental car. So it's all completely differnt, you need to inform yourself what is available in your market.

bigtyke

I didn't think about getting any Euros before I go this Dec., but the dollar has fallen 10% vs the Euro since I made my plane reservations. I am seriously thinking about getting a 1000 Euro or so now. Despite Bernanke's pledge to keep the dollar strong, his actions have had the opposite effect. Recently Germany's inflation rate has risen which could trigger an interest rate rise in Germany which would certainly strengthen the Euro

anothertravelinsong

The outlook for the dollar is not good, but it's not good for the euro either. The Fed is unlikely to change interest rates much, if at all, this year. The euro is overvalued against the dollar and the Greek debt crisis is impending. Portugal's issues are not over either. So it could really go either way.

Christina

Maybe German credit cards are really debit cards or something because no credit card in the US lets you withdraw cash and treats it like an ATM, because it is not, obviously. It is a charge, not being taken out of your bank acct., and thus it is treated as a short-term loan with very high interest rates and they start immediately. Now sure some credit card company could write their terms differently but I have never heard of one in the US that didn't charge interest immediately on ATM cash withdrawals. Of course they don't charge for purchases if you pay your bill in full at the end of the period, but cash withdrawals are different.

I can't imagine why any credit card company would basically be giving out interest-free loans for a month or so. I guess one could if they saw that as a way to get customers but I don't know of any in the US that do that. By contrast, the car CDW coverage is usually not dependent on the bank or issuer, it's the policy of Mastercard or Visa themself and all Mastercards of a certain type (gold, platinum, whatever they call it) have the same coverage, I believe. Because if you ask for the terms of coverage for those extras from whoever sponsors your card, they just send you a pamphlet from Mastercard which is the same for everyone. It's the interest and fees and those terms which vary by the issuer.

logos999

Quite simple, the free loan is only free if you pay it back completely with your next bill. Many people are lazy and only pay parts of the bill. I doubt they don't make a profit nevertheless. I'd consider it clever marketing.

tonyL64

Is it much of a hassle to exchange US currency for euros in an Italian bank?

janisj

tonyL64: "<i>Is it much of a hassle to exchange US currency for euros in an Italian bank?</i>"

You simply don't want to do that unless it is an emergency. The exchange rate for cash exchange is horrible. Worse even than exchanging travelers checks. You'd have to queue and then pay through the nose for the privilege . . .

Joseph7820

I always wait until I get to the airport at the country that I am visiting, locate an ATM Machine and withdraw the maximum amount allowed since you pay the same transaction fee no matter what amount you withdraw. Of course you could find out in advance of your trip if your bank has a recriprical agreement with one of the foreign banks, wait until you locate one and avoid ATM fees in this manner.

After that I charge everything that I can on my Capitol One Credit Card. Capitol One is the only credit card company that does not add a Transaction Fee on to every purchase. You are just charged the going exchange rate for that day. I specifically obtained a Capitol One Credit Card for foreign travel.

mcfrau

You always need some cash upon arrival. You always lose some money, when you exchange money, even from ATMs. You have to have a variety of money sources. Not all restaurants take credit cards, especially affordable ones. Most shops have a minimum purchase requirement for use a credit card. If you just need a postcard or something small, you need cash. I have seen vacations ruined, when the ATM eats a credit card.--or if the number and password are stolen. You next visit to the ATM will find your account empty. Travelers' checks are old fashioned and take time to exchange, but they are still the safest way to carry money. Don't trust your trip to one form of currency. If you carry large sums or small, watch out for pick pockets.

kayd

Travelers checks may be safe, but they are a pain in the neck. Instead, why not have ATM cards for two different bank accounts, plus a couple of credit cards? That's several ways to access your funds and doesn't require carrying large wads of cash or scheduling your sightseeing around banks' business hours to get the TCs cashed.

1Ready2Go

When I went to Eurpoe is 2008 with my 16 year old granddaughter I took 600 in Euros with me which I had purchased from my bank. I never regretted it. We arrived in Italy on a national holiday, and with my granddaughter sick. After we checked in had to take a cab to a pharmacy, again a holiday, and not everything open so none nearby. Eventually wound up having to take a cab to a hospital, and a cab to return. Next morning to pharmacy. I didn't have to worry about where was I going to get Euros, where was an ATM machine at night when we were going to the hospital. These Euros lasted for the whole trip, 14 days, for small purchases, cabs, gelato, etc. I used my credit card for meals, larger purchases. I did wind up using the ATM in London for some pounds, but never regretted taking the Euros. It was one less thing to worry about at a stressful time.

janisj

"<i>Travelers' checks are old fashioned and take time to exchange, but they are still the safest way to carry money</i>"

Not really. But maybe it depends on what you mean by 'safe'. In many cities it is next to impossible to exchange travelers checks. Even most banks won't take them.

J62

but janis, mcfrau attests that he/she has seen vacations ruined, when the ATM eats a credit card.--or if the number and password are stolen, and then at the next visit to the ATM one finds the bank account is empty.

You read it here on the internet, so it must be true...

As a follow up to the point that one needs to be a millionaire to get the interbank rate, I just withdrew 100 euros from my bank account. Within minutes it was posted to my US bank account and the rate is 1.4851. Google show the rate at 1.4883,and xe.com at 1.48439.

Virtually identical rates.

kayd

J62, I was less than clear when I said the interbank rate applies to banks trading in millions. While that is true, what I should have added was that when another entity is involved --whether Paypal, the issuer of a prepaid card, exchange bureau, or the bank branch with its stacks of Euros in the vault-- there's no way for individuals to get the interbank rate. The ATM withdrawal is an interbank transaction, but otherwise just like withdrawing from your own bank's ATM, no third party involved (the interbank processing system system is the same for domestic and international uses of ATMs isn't it?).
I hope this makes sense.

puakaloha1

Purchase your Euro for taxi fare before you leave at an American Express travel store: best rates. AAA sells Euro but at a poor rate of exchange. When in London in March, my ATM was 'skimmed' by a criminal .... a day after arriving home, the criminal stopped at two ATMs every day, withdrawing 300 pounds (about $485) at a time ... needless to say, he emptied out our checking account. I will never again use an ATM except INside a bank.

xyz123

...but let's make it clear....you didn't lose a cent as your bank I'm almost 99.9% sure replaced the money....but it's one reason I have opened a special checking account with an internet bank that doesn't require minimum purchases that provides an ATM card with no fees on itys end which doesn't charge a currency conversion charge...that way if it's skimmed, my main checking account where my bills are paid out of is not touched. I just wouldn't let criminal activity such as that hinder me from dealing with my cash in the most convenient manner possible (the thought that my credit card could be skimmed does not prevent me from using my credit cards either; it's a fact of life but you are basically protected against such things.

uhoh_busted

xyz123 that's my travel financial arrangement too! Works great.

iluvitaly

Just a few points.
Not all banks simply charge a set transaction fee for any amount of withdrawal from an ATM. I found out in March that my bank charged a %, which turned out to be around 3%.
My husbands bank charged a flat $5.

And my British Airways Chase credit card stopped charging foreign transaction fees last year, (but very nicely credited to my account those charges made in Rome during the month they stopped this practice).

Finally, some banks, in Italy, charge a transaction fee for a bank transfer received from the US, (at the Italian end) another surprise that made a deposit transfer less than I had intended it to be.

So check for yourself all the policies your cards and banks have in place.

kybourbon

>>>there's no way for individuals to get the interbank rate.<<<

Many of us have gotten the interbank rate for years. My credit union always gave the rate you see in the paper. I always came home and checked my statement against the rate for the day by using the history function on sites like xe or oanda.
http://www.xe.com/ict/
http://www.oanda.com/currency/historical-rates/