two money questions
Apr 9th, 2011, 05:15 AM
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two money questions
starting to think through the nitty gritty of our upcoming trip. So two questions:
1. I know the Euro is the currency of choice in France now, what are the smaller bits of change called (ie in the US we have quarters, dimes, etc? ) and what are they worth?
2. suggestions of how best to access money in France...how many Euros would you bring with you for a two week, sorta middle of the road trip? my son tells me travellers checks are passe - is that your experience? would you rely on credit cards? money access machines? best to change at airport? banks? your wisdom is much appreciated.
1. I know the Euro is the currency of choice in France now, what are the smaller bits of change called (ie in the US we have quarters, dimes, etc? ) and what are they worth?
2. suggestions of how best to access money in France...how many Euros would you bring with you for a two week, sorta middle of the road trip? my son tells me travellers checks are passe - is that your experience? would you rely on credit cards? money access machines? best to change at airport? banks? your wisdom is much appreciated.
Apr 9th, 2011, 05:35 AM
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Hi L,
The Euro is the official, required currency in France. It is divided into 100 Eurocents.
The Euro is currently worth about $1.42
Traveler's checks are not only passe, they are hard to cash. Bring some ib US Dollars as emergency backup.
You need bring very little money. Buy $100 worth of E at the departure airport to save lookiing for ATMs on arrival.
Charge everything chargeable. Use your CapitalOne card - no transaction fees - and use your ATM card for cash. There is one on every corner (almost), and French banks do not charge for ATM withdrawals.
Enjoy your visit.
The Euro is the official, required currency in France. It is divided into 100 Eurocents.
The Euro is currently worth about $1.42
Traveler's checks are not only passe, they are hard to cash. Bring some ib US Dollars as emergency backup.
You need bring very little money. Buy $100 worth of E at the departure airport to save lookiing for ATMs on arrival.
Charge everything chargeable. Use your CapitalOne card - no transaction fees - and use your ATM card for cash. There is one on every corner (almost), and French banks do not charge for ATM withdrawals.
Enjoy your visit.
Apr 9th, 2011, 05:44 AM
#3
ditto what Ira says.
there is no "currency of choice" just euros. ATMs are plentiful and have a "english" option - the first question should be "what language?" Depending on your card limit, you can probably get up to €300 in euros at a time, though I've never been able to figure out what my UK card's € limit is so I usually ask for €200 at a time. notes are dispensed in €5 upwards, and there are €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c coins, though you won't see the smallest ones very much any longer.
most places take C/cards; i tend to pay cash for everyday spending [snacks, coffees, etc] and put meals, hotel bills, and big purchases on the c/card. doing this I find that with 4 of us, I have to go to the ATM every other day; when there are just two of us, it's less often. so €100 should tide you over til you can get to a local ATM.
there is no "currency of choice" just euros. ATMs are plentiful and have a "english" option - the first question should be "what language?" Depending on your card limit, you can probably get up to €300 in euros at a time, though I've never been able to figure out what my UK card's € limit is so I usually ask for €200 at a time. notes are dispensed in €5 upwards, and there are €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c coins, though you won't see the smallest ones very much any longer.
most places take C/cards; i tend to pay cash for everyday spending [snacks, coffees, etc] and put meals, hotel bills, and big purchases on the c/card. doing this I find that with 4 of us, I have to go to the ATM every other day; when there are just two of us, it's less often. so €100 should tide you over til you can get to a local ATM.
Apr 9th, 2011, 06:05 AM
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In my several trips to Europe each year over the last 10 years...
I bring $100 USD cash as an emergency backup. I always return to the US with the same $100 cash.
I never use travelers checks. As stated above they are worse than passe.
I use ATM at the airport or in town using my credit union debit card with Visa logo. My CU passes through to me the 1% foreign exchange fee charged by the network.
I use cash for a all purchases less than about 20 euros and cc for anything larger. No particular reason. In some countries credit cards are less or more widely used for small purchases, and cash is always accepted.
I use my Chase BA visa card for all large purchases. With this card Chase charges no forex fee, so this is the lowest cost way to make any purchase for me - 1% cheaper than using cash I got from the ATM. Several other companies or cards don't charge any ForEx fee - Capital One is one of them. Many cards charge 3% fee, which is still much cheaper than exchanging paper money.
Since I travel often I come home with about 50 euros for my next trip, so I don't have any need to get euros in the US. Buying euros at the departure airport will cost you about $10 or so on $100 due to the poor exchange rate they offer. They are a for-profit company. There is nothing wrong with wanting some pocket money (100 euros or less) to have on you when you arrive, but there is no need to pre purchase larger sums (the exception would be if you have a large cash payment due on an apartment immediately upon arrival, but even then there may be better options).
Don't be fooled by the ads for "no-fee" exchange or "chip-&-pin" visa debit cards, or any other sales pitch from TravelEx (airport located currency exchange for-profit business).
Check with your bank to see what they charge for using an out of network ATM. My Cu gives me 10 free withdrawals a month, and only charges the 1% ForEx fee. My BofA card is free to use at their partner banks in Europe, but $5 per transaction elsewhere, so I am cautious in using that card at random ATMs. They also add in the 1% fee.
I bring $100 USD cash as an emergency backup. I always return to the US with the same $100 cash.
I never use travelers checks. As stated above they are worse than passe.
I use ATM at the airport or in town using my credit union debit card with Visa logo. My CU passes through to me the 1% foreign exchange fee charged by the network.
I use cash for a all purchases less than about 20 euros and cc for anything larger. No particular reason. In some countries credit cards are less or more widely used for small purchases, and cash is always accepted.
I use my Chase BA visa card for all large purchases. With this card Chase charges no forex fee, so this is the lowest cost way to make any purchase for me - 1% cheaper than using cash I got from the ATM. Several other companies or cards don't charge any ForEx fee - Capital One is one of them. Many cards charge 3% fee, which is still much cheaper than exchanging paper money.
Since I travel often I come home with about 50 euros for my next trip, so I don't have any need to get euros in the US. Buying euros at the departure airport will cost you about $10 or so on $100 due to the poor exchange rate they offer. They are a for-profit company. There is nothing wrong with wanting some pocket money (100 euros or less) to have on you when you arrive, but there is no need to pre purchase larger sums (the exception would be if you have a large cash payment due on an apartment immediately upon arrival, but even then there may be better options).
Don't be fooled by the ads for "no-fee" exchange or "chip-&-pin" visa debit cards, or any other sales pitch from TravelEx (airport located currency exchange for-profit business).
Check with your bank to see what they charge for using an out of network ATM. My Cu gives me 10 free withdrawals a month, and only charges the 1% ForEx fee. My BofA card is free to use at their partner banks in Europe, but $5 per transaction elsewhere, so I am cautious in using that card at random ATMs. They also add in the 1% fee.
Apr 9th, 2011, 06:13 AM
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OK, here's my "primer" on accessing money abroad (I've answered this one so many times I have a little text to cut & paste hee hee):
Right now is a Terrible Time for the Dollar; speculators are attacking it, and on the best-known internet currency conversion site - http://www.xe.com/ucc/ -- 1 Euro = $1.44!! about a 15% change since January! So you don't want to add a single nickel to your cost to get cash. OK:
(1) Trav checks passe, bye-bye, can't find a single place to cash them.
(2) Don't get Euros in advance in the USA! Exchange Bureaus here give terrible rates; they probably would charge over $1.50 today for 1 Euro. ATMs are everywhere, including airports. If by some freak of chance ALL airport ATMs malfunctioned, you can carry $100 as back-up, and go to an airport currency x bureau. I go annually, never had to use my backup $$.
(3) Don't use credit cards to get cash, as u know, they charge big bucks for cash advances.
(4) ALSO, think before using to pay hotel bills & restaurants. Why? Because -- unlike US usage -- when used abroad, CC's (except for the pricey levels with names like Sapphire etc) tack on 3% or so for every purchase. So... for a $500 hotel bill, you'd pay $15 extra. When to use a CC? (a) when you don't have enough $$ in the bank to pay-as-u-go, and want to pay it off later, no matter the interest rate, and/or (b) when making a major purchase like jewelry etc,so you have recourse if item is unsatisfactory or whatever, or (c) you're so affluent you don't care a bit. Some people say "but I get Reward Points to cash in!" Yes, but those usually accrue at a 1% rate, and this charge is 3%. You lose.
(5) CASH from ATMs -- #1 rule Foreign bank ATMS do NOT charge u a fee to use. Any fees come from your own bank. So it's good to know what they are:
• Interbank Currency xchange fee -- 1%. this is what Visa/Mastercard charge for acting as clearinghouse, $ into Euros, Swiss Francs etc. This is bundled into the rate u get; only bank I know that "eats" this fee is Capitol One online checking (not CC). So fuggadaboutit.
•A bank's transaction fee -- in past used to average about $3, now big banks mostly = $5! (see below for the ones that do not).
•A Bank "greed fee" -- now many banks ALSO charge a %!! Example: Wells Fargo now has $5 transaction fee PLUS 3%. So getting $300 worth of Euros costs u $14! Hiway robbery.
(6) Getting BEST ATM Deal -- Find out what your bank(s) charge. If it's like Wells Fargo, find a better one & open account purely for travel abroad and save your Greedy-Bank ATM card strictly for back-up. This website lists the ATM fees and CC fees of scores of banks & Credit unions around the country http://tinyurl.com/yco2od2 Here's what I use just for travel:
• TD Bank - alas not everywhere, but it charges NO %, and NO transaction fee for up to 10 transactions per month... plenty of transactions for the average trip!
• Credit Unions - Usually NO % OR transaction fee. I adore my CU account, cling to it even as a retiree. Now many credit unions are open to the general public. I use this as back-up.
(7) TIPS for ATM usage abroad, for convenience and prudence:
• Tell yr bank you will be withdrawing in Europe between (date) and (date); otherwise an ATM use will make them think yr card was stolen & they'll freeze your account
• Ask them to raise yr daily limit (usually $500) to $750 or $1,000 -- esp. important with the awful current exchange rate. U won't use $1,000 per day.. just means fewer visits to ATM.
NOTE -- I do these 2 in person, & watch the bank staffer enter into computer.
• Rather than use free-standing ATMs, I use ones attached to a bank & during banking hours. Just prudence; if there's a glitch or I goof, I can go inside & have bank staff deal with it.
• If u are a couple, BOTH of you should have a card on each account you have.
About coinage smaller than 1 Euro? Simple 100 cents to Euro... most common coins are .10, .20, .50, and 1-Euro, 2-Euro coins. So a 20-cent piece = 29¢ US = approx our Quarter.
Hope this answers all your questions... at least for now!
Right now is a Terrible Time for the Dollar; speculators are attacking it, and on the best-known internet currency conversion site - http://www.xe.com/ucc/ -- 1 Euro = $1.44!! about a 15% change since January! So you don't want to add a single nickel to your cost to get cash. OK:
(1) Trav checks passe, bye-bye, can't find a single place to cash them.
(2) Don't get Euros in advance in the USA! Exchange Bureaus here give terrible rates; they probably would charge over $1.50 today for 1 Euro. ATMs are everywhere, including airports. If by some freak of chance ALL airport ATMs malfunctioned, you can carry $100 as back-up, and go to an airport currency x bureau. I go annually, never had to use my backup $$.
(3) Don't use credit cards to get cash, as u know, they charge big bucks for cash advances.
(4) ALSO, think before using to pay hotel bills & restaurants. Why? Because -- unlike US usage -- when used abroad, CC's (except for the pricey levels with names like Sapphire etc) tack on 3% or so for every purchase. So... for a $500 hotel bill, you'd pay $15 extra. When to use a CC? (a) when you don't have enough $$ in the bank to pay-as-u-go, and want to pay it off later, no matter the interest rate, and/or (b) when making a major purchase like jewelry etc,so you have recourse if item is unsatisfactory or whatever, or (c) you're so affluent you don't care a bit. Some people say "but I get Reward Points to cash in!" Yes, but those usually accrue at a 1% rate, and this charge is 3%. You lose.
(5) CASH from ATMs -- #1 rule Foreign bank ATMS do NOT charge u a fee to use. Any fees come from your own bank. So it's good to know what they are:
• Interbank Currency xchange fee -- 1%. this is what Visa/Mastercard charge for acting as clearinghouse, $ into Euros, Swiss Francs etc. This is bundled into the rate u get; only bank I know that "eats" this fee is Capitol One online checking (not CC). So fuggadaboutit.
•A bank's transaction fee -- in past used to average about $3, now big banks mostly = $5! (see below for the ones that do not).
•A Bank "greed fee" -- now many banks ALSO charge a %!! Example: Wells Fargo now has $5 transaction fee PLUS 3%. So getting $300 worth of Euros costs u $14! Hiway robbery.
(6) Getting BEST ATM Deal -- Find out what your bank(s) charge. If it's like Wells Fargo, find a better one & open account purely for travel abroad and save your Greedy-Bank ATM card strictly for back-up. This website lists the ATM fees and CC fees of scores of banks & Credit unions around the country http://tinyurl.com/yco2od2 Here's what I use just for travel:
• TD Bank - alas not everywhere, but it charges NO %, and NO transaction fee for up to 10 transactions per month... plenty of transactions for the average trip!
• Credit Unions - Usually NO % OR transaction fee. I adore my CU account, cling to it even as a retiree. Now many credit unions are open to the general public. I use this as back-up.
(7) TIPS for ATM usage abroad, for convenience and prudence:
• Tell yr bank you will be withdrawing in Europe between (date) and (date); otherwise an ATM use will make them think yr card was stolen & they'll freeze your account
• Ask them to raise yr daily limit (usually $500) to $750 or $1,000 -- esp. important with the awful current exchange rate. U won't use $1,000 per day.. just means fewer visits to ATM.
NOTE -- I do these 2 in person, & watch the bank staffer enter into computer.
• Rather than use free-standing ATMs, I use ones attached to a bank & during banking hours. Just prudence; if there's a glitch or I goof, I can go inside & have bank staff deal with it.
• If u are a couple, BOTH of you should have a card on each account you have.
About coinage smaller than 1 Euro? Simple 100 cents to Euro... most common coins are .10, .20, .50, and 1-Euro, 2-Euro coins. So a 20-cent piece = 29¢ US = approx our Quarter.
Hope this answers all your questions... at least for now!
Apr 9th, 2011, 08:08 AM
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This is ever so helpful - thanks everyone - one further question - in the past I've used AAA to change money prior to trips - do you know if they are also have "terrible rates" - on most things they are pretty upfront in my experience. again, thanks so much for the advice
Apr 9th, 2011, 08:30 AM
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Last time I checked (2yrs ago) AAA would cost about 7-8% higher than getting euros from an ATM in Europe, so a $7 fee to get $100 worth of euros isn't a big deal for a one time convenience.
The clerk at AAA was clueless about exchange rates, so don't rely on them to be an expert. All he knew was "we charge the daily rate."
You can easily see the daily exchange rate online - simply enter "1 euro in usd" into google search and you'll see it spit out 1.4434 for today. That's essentially the same rate you'd get using an ATM today, although the exact # fluctuates daily. If you checked at AAA today they'd likey quote a rate of about 1.55 or so.
Regarding the advice to use an ATM connected to a bank, that might be a nice idea but it can greatly limit your flexibility. Bankers keep bankers hours all around the world, and free standing (wall mounted) ATM's are ubiquitous. Much more prevalent compared to actual banks. I've never had an issue with an ATM eating a card, but that doesn't mean it can't happen.
The clerk at AAA was clueless about exchange rates, so don't rely on them to be an expert. All he knew was "we charge the daily rate."
You can easily see the daily exchange rate online - simply enter "1 euro in usd" into google search and you'll see it spit out 1.4434 for today. That's essentially the same rate you'd get using an ATM today, although the exact # fluctuates daily. If you checked at AAA today they'd likey quote a rate of about 1.55 or so.
Regarding the advice to use an ATM connected to a bank, that might be a nice idea but it can greatly limit your flexibility. Bankers keep bankers hours all around the world, and free standing (wall mounted) ATM's are ubiquitous. Much more prevalent compared to actual banks. I've never had an issue with an ATM eating a card, but that doesn't mean it can't happen.
Apr 9th, 2011, 08:54 AM
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My bank, Wells Fargo, charges $5.00 per foreign withdrawal, so I usually draw as much as I can at one time. If I were a touch smarter, I would have gotten an ATM card from my credit union, but it's too late now.
I use my cc for larger expenses, though it would be cheaper to use cash. However, since I receive miles with my cc, I still use it. (I used my miles for my airline ticket for this trip and will use miles again for next year's trip.) For two trips, I used miles for both my ticket and that of my sister.
I bring an extra ATM card with me in case mine gets eaten, but I've never known that to happen.
The advice was other posters was right on the money. Bring $100 in USD, though you won't use it. Don't bring traveler's checks.
I use my cc for larger expenses, though it would be cheaper to use cash. However, since I receive miles with my cc, I still use it. (I used my miles for my airline ticket for this trip and will use miles again for next year's trip.) For two trips, I used miles for both my ticket and that of my sister.
I bring an extra ATM card with me in case mine gets eaten, but I've never known that to happen.
The advice was other posters was right on the money. Bring $100 in USD, though you won't use it. Don't bring traveler's checks.
Apr 9th, 2011, 09:48 AM
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Bringing US dollars and changing them in Europe is not a terrible idea.
Hotels often change at the official rate and charge no commission. Large-denomination bills ($100s) often command better rates.
in Italy we have also had good luck with a few currency exchanges that do not charge commission. Compare this to the fees you pay for ATM use and this old-fashioned method does not seem so outdated.
This should not take the place of carrying an ATM card, but should be viewed as an option which may or not work for you, depending on whether or not you feel comfortable taking lots of cash along, and what rates/commission the bank connected to your ATM card charges.
Hotels often change at the official rate and charge no commission. Large-denomination bills ($100s) often command better rates.
in Italy we have also had good luck with a few currency exchanges that do not charge commission. Compare this to the fees you pay for ATM use and this old-fashioned method does not seem so outdated.
This should not take the place of carrying an ATM card, but should be viewed as an option which may or not work for you, depending on whether or not you feel comfortable taking lots of cash along, and what rates/commission the bank connected to your ATM card charges.
Apr 9th, 2011, 10:41 AM
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AAA should be upfront, of course, about what they charge, they shouldn't be lying about it. They have the rates listed as to what they charge, you can ask. But it has always been about 7 pct over interbank at my AAA. You can't do a transaction with them without knowing what it costs as you have to pay for the euro currency you get. You probably never compared their rates to the interbank when you bought foreign currency from them in the past or you'd know they charge a typical markup for US firms. They've always charged about that amount, as far as I know.
In France, they called the amounts less than 1 euro "centimes" rather than cents, which is a historical French currency term, but it seemed to have shifted onto the euro. They won't say fifty cents, but fifty centimes.
In France, they called the amounts less than 1 euro "centimes" rather than cents, which is a historical French currency term, but it seemed to have shifted onto the euro. They won't say fifty cents, but fifty centimes.
Apr 9th, 2011, 11:04 AM
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We've set up a "travel account" debit card with Charles Schwab for no-fee ATM usage anywhere in the world. I had one with ETrade for a number of years, and it worked very well, both for getting cash, and for paying for groceries at Carrefour, gas for the rental car, tolls on the French highways, etc. I may check out one of the local Credit Unions to see if we can join.
Several of the hotels/apartments we're renting this coming fall want to be paid in cash -- so yes, do NOT forget to notify your bank you will be out of the country, and DO increase the amount you can take out daily. We found we could also negotiate better "walk-in" hotel rates if we paid in cash. (We travel in shoulder seasons and usually leave some dates open for changes in plans based on a whim.)
Several of the hotels/apartments we're renting this coming fall want to be paid in cash -- so yes, do NOT forget to notify your bank you will be out of the country, and DO increase the amount you can take out daily. We found we could also negotiate better "walk-in" hotel rates if we paid in cash. (We travel in shoulder seasons and usually leave some dates open for changes in plans based on a whim.)
Apr 9th, 2011, 12:35 PM
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>> J62 " Many cards charge 3% fee, which is still much cheaper than exchanging paper money."
I wonder if you can expand on this? I'm curious about the differences in using cash (obtained from a local ATM in Europe) vs. an American credit card for, say, a nice dinner.
Do most US credit cards (other than exceptions like CapitolOne) charge a percentage on top of the exchange rate, for point-of-purchase use? I wasn't able to get a clear answer from the customer service rep I talked to when I called to notify my bank of my upcoming trip. Honestly the poor girl seemed terrified to be off-script, and confused about what the percentages actually mean.
So, as an example: Let's say I use my credit union ATM card to withdraw € in Paris, which means no fee, just the 1% Visa/MC charge on top of whatever today's inter-bank exchange rate is. I have that cash, and I have the normal Chase Mastercard I use at home. I go out to dinner with my husband, say we spend €80 total. We have the cash on hand to cover the bill (plus a small tip), as well as the credit card. At home in California, we would put that on the credit card, absolutely, even though we pay it off every month.
But in terms of extra fees/percentages on top of the exchange rate, which is the better deal? Paying in cash and going to the ATM again that much sooner? Or paying with the credit card? Since it's not a chip-and-pin card, we would have to ask the restaurant to run the card differently, and bring something for us to sign, correct? Which is more common for locals to use, cash or credit?
I'm not terribly interested in pinching every penny while on vacation, but I figured it couldn't hurt to ask and at least know what all the percentages mean ahead of time.
I wonder if you can expand on this? I'm curious about the differences in using cash (obtained from a local ATM in Europe) vs. an American credit card for, say, a nice dinner.
Do most US credit cards (other than exceptions like CapitolOne) charge a percentage on top of the exchange rate, for point-of-purchase use? I wasn't able to get a clear answer from the customer service rep I talked to when I called to notify my bank of my upcoming trip. Honestly the poor girl seemed terrified to be off-script, and confused about what the percentages actually mean.
So, as an example: Let's say I use my credit union ATM card to withdraw € in Paris, which means no fee, just the 1% Visa/MC charge on top of whatever today's inter-bank exchange rate is. I have that cash, and I have the normal Chase Mastercard I use at home. I go out to dinner with my husband, say we spend €80 total. We have the cash on hand to cover the bill (plus a small tip), as well as the credit card. At home in California, we would put that on the credit card, absolutely, even though we pay it off every month.
But in terms of extra fees/percentages on top of the exchange rate, which is the better deal? Paying in cash and going to the ATM again that much sooner? Or paying with the credit card? Since it's not a chip-and-pin card, we would have to ask the restaurant to run the card differently, and bring something for us to sign, correct? Which is more common for locals to use, cash or credit?
I'm not terribly interested in pinching every penny while on vacation, but I figured it couldn't hurt to ask and at least know what all the percentages mean ahead of time.
Apr 10th, 2011, 02:23 AM
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I am interested in the responses that you receive here.
To answer one question, you do not need to ask the restaurant to run your card any differently. Just hand over the card when you get the bill.
To answer one question, you do not need to ask the restaurant to run your card any differently. Just hand over the card when you get the bill.
Apr 10th, 2011, 03:11 AM
#14
The tiny coins are not disappearing in France, just in Finland and the Netherlands. Many stores are charging 2 or 3 centimes for small plastic bags now (it will soon be illegal to give them free in Europe).
Apr 10th, 2011, 03:19 AM
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It is quite standard for credit cards to charge 3% on top of the interbank exchange rate.
Here's what my costs are for the 4 cards I carry.
1. Chase BA visa credit card - exact interbank rate, no added forex fee
2. CU debit card (visa logo)- interbank rate + 1%, no $ per-transaction fee
3. BofA debit card (visa logo) - interbank rate +1%, no $ per-transaction fee if I use a partner bank. $5/transaction if I don't.
4. Citibank mastercard credit card- interbank rate + 3%.
The cards that don't charge 3% fee are not the norm.
These are all cheaper than exchanging paper money at a change bureau or buying euros at home before traveling to Europe.
I'm sure someone will chime about so-and-such change bureau in Rue du Monet in Paris...but if it exists it's the rare exception.
Here's what my costs are for the 4 cards I carry.
1. Chase BA visa credit card - exact interbank rate, no added forex fee
2. CU debit card (visa logo)- interbank rate + 1%, no $ per-transaction fee
3. BofA debit card (visa logo) - interbank rate +1%, no $ per-transaction fee if I use a partner bank. $5/transaction if I don't.
4. Citibank mastercard credit card- interbank rate + 3%.
The cards that don't charge 3% fee are not the norm.
These are all cheaper than exchanging paper money at a change bureau or buying euros at home before traveling to Europe.
I'm sure someone will chime about so-and-such change bureau in Rue du Monet in Paris...but if it exists it's the rare exception.
Apr 10th, 2011, 03:45 AM
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Hi GC,
>I wonder if you can expand on this?<
MC/Visa charge 1% to convert your purchase in Euro to a purchase in dollars. That's how they make their money.
Almost all US banks now add a 3% "conversion fee". That's how they steal your money, since they do nothing to earn that fee.
The ATM rate is usually 1% above the bank rate. That's how the European banks pay for the ATM. Almost all US banks are now adding a 3% "conversion fee" to all ATM withdrawals.
CapitalOne doesn't add the conversion fee for either CC or ATM charges.
Charles Schwab no longer issues its CC card. It is now FIA. www.ibsnetaccess.com
Unless you are converting millions of dollars, the cheapest thing to do is to get a CC/ATM card that doesn't charge conversion fees and a bank that doesn't charge a fortune for ATM transactions.
>I wonder if you can expand on this?<
MC/Visa charge 1% to convert your purchase in Euro to a purchase in dollars. That's how they make their money.
Almost all US banks now add a 3% "conversion fee". That's how they steal your money, since they do nothing to earn that fee.
The ATM rate is usually 1% above the bank rate. That's how the European banks pay for the ATM. Almost all US banks are now adding a 3% "conversion fee" to all ATM withdrawals.
CapitalOne doesn't add the conversion fee for either CC or ATM charges.
Charles Schwab no longer issues its CC card. It is now FIA. www.ibsnetaccess.com
Unless you are converting millions of dollars, the cheapest thing to do is to get a CC/ATM card that doesn't charge conversion fees and a bank that doesn't charge a fortune for ATM transactions.
Apr 10th, 2011, 05:44 AM
#17
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British Airways and Virgin Air do not charge foreign conversion transaction fees to charges made on their creit cards and you get miles . Bank of America ATM cards also do not charge conversion fees if you use a partner bank.
Apr 10th, 2011, 06:01 AM
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MasterCard has even expanded their "conversion fee" to an all-encompassing "foreign country" fee. Particularly strange when you are in a place like the British Virgin Islands (where US dollars are the official currency) and get a 3% fee tacked onto the transactions on your monthly statement, even though the charge is in dollars.
Apr 10th, 2011, 06:19 AM
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I opened [online] a Capital One Banking/Checking Account and also Venture Credit card from them specifically to use in Europe. We will be in Denmark, Sweden, Norway and France.
It was very easy to set up both, got cards quickly for both CC and ATM and have tried them both out to be sure they worked with no problems [PINS etc].
No fees on either card for use in Europe. NONE.
The Mastercard ATM will not even have Mcard fees [Cap One absorbs them]. And Cap One will allow $10 reimbursement per month in case the bank in Europe charges a fee [in countries other than France].
Transferred money from our regular checking accounts to set up the new checking account was fast and easy.
I cannot imagine paying any fees [miles or not] or other unnecessary charge with the dollar being so weak.
It was very easy to set up both, got cards quickly for both CC and ATM and have tried them both out to be sure they worked with no problems [PINS etc].
No fees on either card for use in Europe. NONE.
The Mastercard ATM will not even have Mcard fees [Cap One absorbs them]. And Cap One will allow $10 reimbursement per month in case the bank in Europe charges a fee [in countries other than France].
Transferred money from our regular checking accounts to set up the new checking account was fast and easy.
I cannot imagine paying any fees [miles or not] or other unnecessary charge with the dollar being so weak.
Apr 10th, 2011, 07:28 AM
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There is a lot of good information above, some of it a bit muddled however.
ATMs
1. French banks do not add any fee of any kind to withdraw from their ATMs.
2. There will be a currency conversion fee of 1% charged by the network handling the transaction, typically Sirrus or Maestro or some other entity. It should be noted that Visa and MC own Sirrus and Maestro.
3. Your local bank might add additional fees as a percentage of the transaction and/or a fixed fee. Bank of America charges a conversion fee and $5 per transaction which is one of the highest foreign ATM user costs of any bank in the USA. They then throw their customers a bone by not charging the fixed fee on withdrawals from BNP but many, many credit unions and smaller banks only pass along the currency conversion fee with no fixed fee no matter from where withdrawals are made.
Credit Cards
1. Merchants or their banks do not charge the customer for credit card use.
2. Visa or MC charge a 1% currency conversion fee on all charges made outside of the USA (excluding its territories or military installations) regardless of the currency used in the transaction. Accepting a Dynamic Currency Conversion transaction does not avoid the conversion fee.
3. Banks may add an additional 2% if for no other reason than they can. TD Bank, Capital One, Navy FCU, or some credit unions actually absorb the 1% currency conversion fee. Bank of America, Wells Fargo, Citicorp and other large banks charge 3% (1% currency conversion + 2% in house) on foreign transactions. American Express charges 2.7%. It is a fundamental misstatement to conclude that <i>Almost all US banks now add a 3% "conversion fee"</i>. There are many banks and credit unions which do not add transaction fees and only pass along the currency conversion fee. USAA is a large bank which only passes along the 1% conversion fee but adds no additional costs to foreign transactions. Savvy consumers inquire about these fees before opening a bank account anywhere.
Travelers Cheques
These are almost impossible to cash and may involve degraded exchange rates. Pre loaded ATM cards with a local currency are nothing other than updated TCs and should be avoided due to their unfavorable rates of exchange and high fees charged per transaction.
Cash
For certain travelers needing euros to pay for apartments (and acknowledging associated risks of loss or theft) cash may be converted at reasonable rates at several locations in Paris. Exchanging dollars to euros will cost 2% to 3% which is about what big banks charge to use their credit cards:
http://www.bureaudechange.fr/
http://www.ccopera.com/
http://www.fcochange.com/
Electronic Funds Transfer (EFT)
For individuals who require euros to pay for apartments, schools, or other types of cash obligations, there are several entities which can easily make transfers for you at virtually no cost to the user. It requires your establishing an account (the process is similar to establishing a new bank account), linking this account to your local bank, and using a secure on-line interface. These operate in a very similar fashion to Paypal except that they can make a payment in virtually any currency. Payments may be made with a wire transfer (with modest cost), EFT (at no cost), or drafts may be sent using the mail system (at no cost):
http://www.hifx.com/
http://www.xe.com/
http://www.currencyonline.com/
There are a few additional steps involved such as establishing the payees address or bank information but for many types of transactions this option is fast and very inexpensive.
Conclusion
Make no assumptions about what your bank is charging you for access to your money. Ask about fees and how they are assessed. Many banks, most of them large, national banks, are more concerned about offering meaningless promotions than they are in providing quality, low cost service to their clients. Do not overlook small regional banks or credit unions. These institutions can save you a bundle and offer more personalized service in the process.
ATMs
1. French banks do not add any fee of any kind to withdraw from their ATMs.
2. There will be a currency conversion fee of 1% charged by the network handling the transaction, typically Sirrus or Maestro or some other entity. It should be noted that Visa and MC own Sirrus and Maestro.
3. Your local bank might add additional fees as a percentage of the transaction and/or a fixed fee. Bank of America charges a conversion fee and $5 per transaction which is one of the highest foreign ATM user costs of any bank in the USA. They then throw their customers a bone by not charging the fixed fee on withdrawals from BNP but many, many credit unions and smaller banks only pass along the currency conversion fee with no fixed fee no matter from where withdrawals are made.
Credit Cards
1. Merchants or their banks do not charge the customer for credit card use.
2. Visa or MC charge a 1% currency conversion fee on all charges made outside of the USA (excluding its territories or military installations) regardless of the currency used in the transaction. Accepting a Dynamic Currency Conversion transaction does not avoid the conversion fee.
3. Banks may add an additional 2% if for no other reason than they can. TD Bank, Capital One, Navy FCU, or some credit unions actually absorb the 1% currency conversion fee. Bank of America, Wells Fargo, Citicorp and other large banks charge 3% (1% currency conversion + 2% in house) on foreign transactions. American Express charges 2.7%. It is a fundamental misstatement to conclude that <i>Almost all US banks now add a 3% "conversion fee"</i>. There are many banks and credit unions which do not add transaction fees and only pass along the currency conversion fee. USAA is a large bank which only passes along the 1% conversion fee but adds no additional costs to foreign transactions. Savvy consumers inquire about these fees before opening a bank account anywhere.
Travelers Cheques
These are almost impossible to cash and may involve degraded exchange rates. Pre loaded ATM cards with a local currency are nothing other than updated TCs and should be avoided due to their unfavorable rates of exchange and high fees charged per transaction.
Cash
For certain travelers needing euros to pay for apartments (and acknowledging associated risks of loss or theft) cash may be converted at reasonable rates at several locations in Paris. Exchanging dollars to euros will cost 2% to 3% which is about what big banks charge to use their credit cards:
http://www.bureaudechange.fr/
http://www.ccopera.com/
http://www.fcochange.com/
Electronic Funds Transfer (EFT)
For individuals who require euros to pay for apartments, schools, or other types of cash obligations, there are several entities which can easily make transfers for you at virtually no cost to the user. It requires your establishing an account (the process is similar to establishing a new bank account), linking this account to your local bank, and using a secure on-line interface. These operate in a very similar fashion to Paypal except that they can make a payment in virtually any currency. Payments may be made with a wire transfer (with modest cost), EFT (at no cost), or drafts may be sent using the mail system (at no cost):
http://www.hifx.com/
http://www.xe.com/
http://www.currencyonline.com/
There are a few additional steps involved such as establishing the payees address or bank information but for many types of transactions this option is fast and very inexpensive.
Conclusion
Make no assumptions about what your bank is charging you for access to your money. Ask about fees and how they are assessed. Many banks, most of them large, national banks, are more concerned about offering meaningless promotions than they are in providing quality, low cost service to their clients. Do not overlook small regional banks or credit unions. These institutions can save you a bundle and offer more personalized service in the process.
