Questions regarding currency exhange
 

Hello,

This is my 1st time posting on this forum. We are heading to Italy in October and I'm doing as much research as possible but I have a few questions regarding money. We are coming from Los Angeles. Where is the best place to exchange our money? Do we take care of that once we arrive at the airport in Rome? Are there places in Rome we can exchange currency too? Any tips on what/what not to do?

Thanks for all your help!!

Use your American ATM card to get the best exchange rate - take money out of the ATM when you get to Rome (should be ATMs at the airport). Contact your credit union or bank ahead of time to find out what it costs to use a non-bank ATM (the ATMs in Italy won't charge you anything most likely - I've never been charged) - what per-use fee there is, what percentage if any they charge for a currency conversion fee, etc. More importantly, let them know when/where you will be traveling so they don't disable the card for fraud!

I usually bring a few hundred USD with me to Europe in case something goes wrong with my ATM card and I can't get money from an ATM, but that has never happened over numerous trips now. In a pinch, you can always exchange some USD at the airport for lousy rates.

Thank you Andrew!

I also recommend a 2nd ATM as a back up, just in case. It should be from a different account as well. I actually had an ATM card swallowed up in Switzerland last trip. It was from a "travel" account that I don't use daily, just for trips. I had gotten a new card just before we left home and it looked identical to old card. In my last minute frenzy, I took the expired card. This the consumption of my card.

Luckily I had back up cash account and ATM or it would have been ugly.

THERE IS NO REASON TO EXCHANGE MONEY EVER.

Pull money from the ATM as Andrew said above. Even Greece has ATMs, therefore Italy will have tons (and it did 20 years ago, so you're fine).

To avoid fees and transaction charges, set aside money for a travel account (unless your bank will not charge) that does not charge foreign exchange fees for ATM withdrawals.

Example: BigRuss's main account would charge $3 + 3.5% conversion fee for ATM use abroad. BigRuss doesn't use that account (nor does he normally refer to himself in third-person). Screw those crooks.

BigRuss has a separate travel account with Cap One (also works with most credit unions). Conversion fee = 0; withdrawal fee = 0. Same goes for the CapOne Venture card we have.

And be careful:

(a) European ATMs are now offering to "convert" for you - that means they offer you "today's exchange rate" for withdrawing from the ATM or you can "continue without conversion." The response is always <b>continue without conversion</b>. That choice gives you the true international exchange rate, not the bank's rate (which favors the bank). In Australia, we rejected this nonsense and saved 7-9% on our cash withdrawals because we got the better rate.

(b) some retailers and restaurants will offer you the opportunity to pay in your own currency, not the Euro. DO NOT DO THIS, PAY IN LOCAL CURRENCY ONLY. If someone charges you in dollars, reject the transaction and tell them to run it again. Same reason as (a).

To get the best rates you should pay for everything possible with credit cards (assuming yours has good terms - if not get a different card). For walking around money pull cash from your checking account at an ATM associated with a bank. (Commercial ATMs - not at a bank - may charge a fee.)

If you must have a little cash when you arrive then change about $100 at your departure airport. The rates will be awful - but it's awful anyplace in the US and this is the most convenient.

make sure you are using your bank or credit union ATM card that is linked to your checking account ( it may be your debit card)...your bank will tell you what the fees are for withdrawing money, and for converting to dollars.. its a rip off but unless you have an account where the fees are waived or not charged, just think of it as part of the trip costs.

capital one has credit cards that do not charge a fee for conversion from euros to dollars... so when you charge items on your trip, you will not pay an extra fee, and the conversion rate is competitive.

never ever use your credit card at an atm because it will be considered a loan at considerable interest rates.

<I>To get the best rates you should pay for everything possible with credit cards </I>

Oops. Too fast.

Credit card doesn't necessarily give you the best rate.

If the exchange rate gets worse at the time credit card is due, it won't be best rate. Cash would have been better because at the time, the exchange rate is better. It's a crap shot.

Also, if your credit card charges foreign transaction fee or other fees, getting cash is better - assuming your Bank doesn't charge fees.

My point is that there isn't a "best rate," it really depends on a number of factors. Sometimes cash would be better; sometimes credit card.

maxima: <i>make sure you are using your bank or credit union ATM card that is linked to your checking account</i>

Or savings account. At least, my credit union ATM card has worked fine on the last several trips in numerous countries. I don't have a checking account to connect the card to.

All good advice above.

The only thing I could add is if you really love Europe, get some cash out to take home for your next trip. 100 will get you into the city from the airport and a meal.

Thanks everyone!!! some great advice here! I am going to call my bank for info regarding fees and things like that and go from there. Thanks again!!