Joan...please tell me what money changer you use that charges 2.5% above the interbank rate...or do you mean you pay only $20 more to change USD to euro in the USA as opposed to what it would cost in Paris? On what basis did you come up with the $20 figure....I checked multiples sources just yesterday and the best I could do was 10% above interbank...with an ATM you will pay at most, and only if you use one of the near criminal banks which add on the 3% surcharge, 3%. I pay nothing.

However, I do understand that if you have to pay cash on arrival for an apartment, it might be necessary to swallow whatever and do the exchange herre in the USA. But there is no way that the fee for 800 euro as cp,[ared tp am AT< wotjdrawa; os pm;u $20 in all due respect.

xyz123
I use my local AAA office. International Travel Magazine called me recently when they were doing a "chip and pin" article..which they have done. We dicussed the travel money thing at that time. I told him that I had on occasion used my bank, but they charge $30-$35 just to do it! The ITN fellow did further checking. Not all AAA offices offer the same thing. Some only offer those 100 euro packets. I think in his article, he found that the average would be paying about 5% over the average standard market rate. It may be costly/unreasonable for larger sum needs, but for the small amount of cash that I need, it seems a reasonable fee for my convenience. Obviously, a matter of personal opinion!

I don't need cash for my apartment. That is all done by credit card. I only need cash for my driver. I always return home with excess euros.

I am well aware that ATM's are the most popular and they are readily available. If reasonable sources of cash become unreasonable, I may also change to ATM's. At the present time, I just feel it is one less thing to do!

Joan

BOA didn't always add a 3% fee to partner banks and I will be disappointed if this is true. If that's the case I will do the math and determine if I should stick with my CU ATM, even in countries where BOA has partners.

The near criminal Bank of America indeed charges 3% on foreign transaction fees above the interbank rate on all cash withdrawals whether from a partner bank or not. The partner bank thing only involves the fee you pay...they waive withdrawal fees if you use a partner bank...I think, but wouldn't stake my reputation on it, that if you use a non partner bank they tag you for another $5....

I just checked out statements from our recent trip:

ATM: Schwab Checking: I paid interbank rate + anywhere from .01 - .03% (that is .001 - .003 higher than the interbank rate). On 200 euros that worked out to about 40cents higher than interbank. For 1500 euros, that would work out to about $3 - $5. Using the 'exchange before I leave' method, if you are paying 10%, that would work out to almost $200 in convenience.

I guess I'm cheap, but for $200, I'll deal with the risk of using an ATM, planning when I get down to 20 euros to find an ATM (again, I find they are everywhere).

(also, for the example of a restaurant not accepting credit cards, if you happened to be anywhere other than a block of your apartment, it actually would have been easier and more convenient to find a nearby ATM).

credit cards: Schwab: again, I was charged extremely close to the interbank rate. Plus I get 2% cash back. So, in reality, I'm actually paying LESS than the interbank rate. Not bad for the protection of a credit card.

surfmom: our late, great poster Robespierre was a big fan of Schwab, it sounds like I need to look into that.

Until 31/03/2010, Charles Schwab Bank (as opposed to the brokerage house) offered a signature visa card that among its features had no foreign currency transaction fees (including eating the 1% visa fee) and a 2% rebate deposited into your brokerage account for all purchases. That card as of this writing is no longer being offered although they claim it might be offered again in the future.

The visa debit card attached to a Charles Schwab premium brokerage account was usable in ATM machines with no fees and a rebate of ATM fees charged by US domestic banks if you have the audacity to use of their ATM's other than yours. That was the card Robespierre was referring to.

Can only give my experience. On the advice of I think Navigator Bob years ago, I talked my bank into giving me an ATM card WITHOUT the Visa logo so no one could use my ATM card to purchase items and thus wipe out our checking account. The bank told me like a zillion times it did not exist, but I was peristant and was able to get one for my account and my husband's account. They are tied into our checking and savings accounts. They still have Cirrus, Plus, etc. on the back.

Important: Navigator Bob--and again, it might not have been he, so forgive me if I have the wrong poster; it is someone whose opinion is extremely reliable anyway--ended up running into difficulty with this type of card a year or two later and passed the word along. He (or whoever) went back to the one with a Visa.

Ironically, we have NEVER had a problem withdrawing cash with our non-Visa ATM cards UNLESS the ATM-to-US thing is on the blink in the specific machine we happen to be using. That just means going around the block to another ATM that does work at that hour. And I think they only places where this annoyance has occurred are Rome and Prague.

I must admit I like having two different ATM cards on hand. For some reason--cyberpixies--we never know how much an overseas ATM will let us have. I am not kidding. My limit in the US is $300 and my husband's is more, but I've been able to withdraw 600 Euros in some places while my husband has often been limited to 100 Euros. It makes getting money fun.

We used to call the bank to let them know where/when we were going; they have told us, "You don't need to tell us." I decided to test that "no-tell" out a couple of times, and in this instance, the phone reps may actually have known what they are talking about.

That's interesting AZoe about the no-tell policy but it would never work for me. About a year ago I made a purchase on my BOA debit card from a British company so of course the charge was in £. I wasn't in the UK so it never occurred to me I should notify the bank. The next day the British company emailed and said the bank would not honor my charge. I called BOA and they said that I should have notified them I was traveling in the UK. I told them I was NOT traveling in the UK, I had simply made a charge from a British company. They said OK, tell the company to run the charge thru again and they would honor it.

I'm glad the bank was looking out for my welfare but due to an exchange fluctuation between the first charge and the second, I lost $4. :-( But that's OK, I'm glad to know they are watching for irregular activity.

I've never told my bank I'm traveling abroad and I've used their ATM card for as long as I've had it (which is 10-15 years, I'm sure). I've never had a problem, and I've used it in Prague, also.

It isn't a debit card and has no Visa/MC logo. I don't have a debit card that can be used without a PIN, never wanted one. I do tell my credit card companies, but I couldn't charge anything to my ATM card as it's not a debit card. My CC companies don't really seem that interested, and once when I told them, it didn't do any good as they still called about unusual purchases due to some minor charge at a cafe in Europe. A lot of CC companies, probalby all, are just incompetent.

Now I mainly use my Cap One Money Market account ATM card as it doesn't have any foreign exchange fees. I've had no problem with that and that isn't a checking account.

HI Christina - I leave next month on my first trip (Ireland, London, Paris, Brussels) and will rely on my Capital One Money Market ATM card. I'm about to call Capital One anyway, (I also have their Venture Visa card). It is good to hear that you haven't had any problems with your card ;)

Christina: "<i>I've never told my bank I'm traveling abroad and I've used their ATM card for as long as I've had it (which is 10-15 years, I'm sure). I've never had a problem, and I've used it in Prague, also. </i>"

I never used to either. I was one of those 'do as I say, not as I do' folks since I always advised those attending my travel programs to do it but I never bothered. But banks are becoming more and more vigilant and will freeze accounts -- somewhat capriciously IMO.

I have a cousin who travels all over the world - to some really exotic places as well as the typical tourist route through Europe. Maybe 6 overseas trips a year. Last year in China her cards wouldn't work and she couldn't get it straightened out until 5 days later when she got to Hong Kong. She was livid and went to the bank manager when she got home to complain and make sure it didn't happen again.

"<i>Why on Earth was I frozen out - I travel all over all the time?!</i>"

"<i>Well, you had never used your cards in China before and it looked like unusual/fraudulent activity.</i>"

jeez!

Anyway - all it takes is once to ruin a trip - I definitely notify them now.

FYI, all those who are thinking cash. My credit union is great with exchanging foreign currency. NO exchange fee, a flat $8.50 fee for exchanging 0-$5000 dollars at current rates, and took 2 business days. If you belong to a smaller credit union they often offer services waaay below what the big banks offer.
I brought $1000 Euros yesterday at the rate of 1.239 dollars and a 8.50 charge.

I'll tell you....the standard advice is to call the bank. I usually don't, not that I make big charges for the most part but one time I did and the person took the information then told me there is no guarantee it wouldn't be flagged that computers make these decisions while not at random based on patterns of use whether you call or not.

>>is no guarantee it wouldn't be flagged that computers make these decisions while not at random based on patterns of use whether you call or not.<<

A credit card co. rep told me the same thing; but said it was better to call so they can at least have that info "in the system," as a reference, too. If they bother to look.

"I never used to either. I was one of those 'do as I say, not as I do' folks since I always advised those attending my travel programs to do it but I never bothered. But banks are becoming more and more vigilant and will freeze accounts -- somewhat capriciously IMO."

When I call the credit card bank, no problem, they take the info, give me a local phone # for stolen cards, done.

Then I call the ATM bank - and it seems the employees are not trained for it. I always say: "I will hold while you make a note on my account" - and they put me on long hold, and I hear somebody walking this employee through making notes.

I agree with letting them know, but it's a matter of whether they want to HEAR it. I always call my cc companies but sometimes even THEY don't even read the entries when the computer flags it, and then I have a mid-trip snafu where I must call them. Note: that happens on US trips as much as on overseas. I feel as though I have to let them know if I'm going to FL let along Florence. And I should not complain--glad there's some sort of security.

But actually, my bank security people told me they don't even have the resources (!) to INPUT my travel info. In other words, I can hear the credit people typing the stuff in; my bank people don't even bother.

It must have something to do with our type of account. So that's why I gave up calling my bank.

And again, the only problem we've had with the ATM is when something is going on one end (US or the ATM). In Rome, I used one ATM three times without a glitch and on the fourth time, no go. Used other ATM around the corner with no problem, so had nothing to do with a stop on my account. Next day, came back to my "favorite" ATM. Good to go again.

I actually call the CC companies twice to double check. Several years ago after clling all companies for the cards taking, arriving in Nice and picking up car rental, the first card would not work..used another. Called the first one later and all I got was..they somehow just did not note it on the account!! Cap One now has a menu selection number for advising of travel. I still call them a 2nd time..always wait a few days! They most certainly will block them!

Joan

JUST CALLED BANK OF AMERICA

I asked about ATM fees overseas. They said there is a 3% charge for foreign purchases using the debit card, however the markup on ATM withdrawls is still 1%. This 1% is regardless of whether you are using a partner bank or not. I did not realize they charged 1% when using a partner bank, but it still beats the heck out of exchanging cash.

Good to know. I couldn't imagine even BofA adding 3% on ATM withdrawals.

The 3% on purchases isn't wonderful but is along the lines of other banks.