USD/Euro exchange - where is best?
 

A group of US Midwest people are going to Germany the June 1 - 16, 2005. Is it necessary to take some Euro with us? What are the best places to exchange money? What places should we avoid? Thank you!

This question comes up a lot and the answer is always the same. Use your ATM card once you get there. You will get a better exchange, pay less in fees, and have the convenience of being able to get cash 24 hours a day. Keep in mind that when you enter an amount for withdrawl, you are withdrawing euros, not dollars.

If it makes you feel any better to have euros in your pocket upon arrival, then get around $50-$100 in euros before leaving. Be advised that by exchanging in the US you will get a rate that totally stinks. I don't think it's necessary to get any euros here, as you can use the ATM upon arrival at the airport in Germany. Call your bank and find out if they have any agreements with German banks for mutual use of ATMs. If your bank is Bank of America, their partner is Deustch Bank. By using a partner ATM you will pay no withdrawl fees at all. Even if your bank has no partners in Europe, you're still better off using the ATM than any other means of exchange.

Use credit cards for large purchases. If you are considering bringing Traveler's Checks, bring them in US$, but do not plan to cash them. Bring them only as a back-up in case something really weird happens and you have problems with the ATM's. The odds of this happening are extremely slim, but some people like the idea that the Traveler's Checks are there just in case. I'm willing to bet you will not need them and you will bring them all home.

Do not buy Traveler's Checks in euros. For some reason, people have the idea that you can cash euro Traveler Checks in any store, restaurant, etc. but the fact is that they are very hard to cash. If you do find someone to cash them, they will often charge you a fee.

You asked about places to avoid. That would be any place that isn't an ATM.

"Exchanging money" is as archaic as buying things with beads or stones. ATM is the answer. Best rate, easy as pie. Make sure you have an ATM card that will take money out of your checking account. Check with your bank what fee they charge per transaction or if they have "partner" banks where there will be no fee at all.

And at least in Italy (so it may be true in other European countries) you need a 4 digit number for your pin # for your ATM. I would also use the ATM's at the banks, preferrably when the banks our open, just in case (that slight chance) you have a problem.
Wishing you a wonderful trip.

Very well said Patrick. It took me 4 1/2 paragraphs to convey that message, you said it in just a few sentences. I am impressed with your more economic use of words. :-)

LoveItaly just reminded me of something I left out of my very wordy post above. My bank recommends using a PIN number that doesn't begin with a zero. Also I have found that a Visa debit card sometimes works better than a regular ATM card.

Wow, that's something I don't hear every day "Patrick's economic use of words". I'm usually the one that it takes four paragraphs to say what someone else says in a simple sentence. LOL.

Patrick If my ATM card is only attached to my savings account, does this mean I cannot use it in Europe?

Check with your bank, but as long as your pin is linked with that card and that account, I sure don't see any reason why it won't work.

"'Exchanging money' is as archaic as buying things with beads or stones."

Or carrying paper maps, travel guides, and books.

THANK YOU for your responses and good information! We appreciate your help! :)

>Do not buy Traveler's Checks in euros. For some reason, people have the idea that you can cash euro Traveler Checks in any store, restaurant, etc. but the fact is that they are very hard to cash. If you do find someone to cash them, they will often charge you a fee.

When I first came to Ireland I bought american express Euro travellers cheques. They were expensive to buy (about 7% in charges) but I was told that there would be no further charges). When I arrived I was being charged 7% to cash them! So In total it cost me 14% just to have travellers cheques.

You're far better using a visa card. You can draw money from pretty much any atm in europe.

Re: ATM cards and credit cards overseas

VISA and Mastercard corporations charge 1% overseas transaction fees on ALL cards, regardless of the issuing bank. But your bank may add another fee (usually 1-3% more) for these transactions. It pays to check to see if your individual credit card has the fees or not...some credit unions and banks (USAA Savings Bank is one) do NOT add these rip-off fees.

Also on ATM cards...most incur a transaction fee ($1-$4) for overseas use, but no other fee. However, in their hunger for profits, some banks are adding the credit card type fees to ATM cards, usually those with VISA or Mastercard logos on them.

So use plastic, but check first to see what fees come with the convenience and try to get the lowest fees. Even if you can't get out the fees, plastic is still a better deal than any "bureau de change" or currency exchange outfit. The exchange rates there are horrible.

Dave W
[email protected]

Some people like to get a few hundred euro (ordered from your home bank) prior to arrival. This is not the cheapest method, but worth it to some for the comfort factor.

Once in Germany use ATM machines to withdraw euro directly, 4 digit pin, on the Cirrus or PLUS network, linked to your checking account is the surest bet.

Use charge cards for large expenses like hotel or expensive meals.

Another optional security blanket is Travelers Checks. If you choose to take some, get them in U.S. not euro, and plan to go to a bank with your passport ID to cash them.

"Another optional security blanket is Travelers Checks. If you choose to take some, get them in U.S. not euro, and plan to go to a bank with your passport ID to cash them."


And that's a good idea, why? Most banks in Europe will charge you a huge rate -- think 6 or 7% for exchange from the US dollar cheques to euros, plus possibly a fee as well.

It's a good idea because when you don't need them in Europe, you can tote them around on the next trip wherever that may be.

Most TC vendors charge a premium for non-$ cheques. So you pay when you buy them AND when you redeem them. When you carry $ cheques you still get screwed, but only once, and only in an emergency.

Besides, $ cheques can be negotiated in £-land, €-land, ¥-land...

Suze seems to have the best all inclusive answer....Patrick is really hung up on ATM's and they probably ARE the best solution (IF they work), and certainly the lowest fee. We feel, however, that if one feels comfortable taking quite a few Euro from home,,it is simpler, but of course one must "protect them closely"! The exchange rate with your home bank is not as good as ATM's overseas, IF you are really concerned about it.
I think Patrick was also misinformed from a rep at citibank in regard to conversion fees.(for items charged overseas on credit cards)I've been told several times that the 4% is wrong) What is changing on April 2,?: apparently the way these fees of the usual 3% will appear on your bill. It will appear as "finance charge" in a separate column. (1% MC/Visa plus 2 % citi bank fee) .(USAA has a 0%charge and only the 1% required by Visa/MC!) I hope all these people from CitiBank who have told me this are correct.!!! We will also use our ATM cards some after arriving in Europe , but will probably take more Euro from home than the average person. ....then charge hotels on credit cards.

thank you mari. i appreciate that.

Since i often travel solo (i.e., no one to loan me money should things go south) it is even more important IMO, then for a couple or a group, to have a number of methods to carry or obtain funds available to me.

While i do not like to waste money, i also don't fret over a few dollars here or there, if it buys flexibility, convenience, safety, a good back-up plan.

Martha,
Since you're travelling to Germany, my guess is that you'll be flying to either Frankfurt or Munich. I travel to Germany about 3-4 times a year and always use the same system. I bring ~$100USD cash with me as a backup that in a pinch I could exchange at a bank or even the hotel. My Bank of America ATM card (happens to have a Visa logo) works at every ATM I've ever tried. Munich airport has ATM's every 100yards or so, and Frankfurt airport has numerous banks scattered all around, each with an ATM.

Don't take out a lot of Euros - there are ATMs on every street corner in Germany. I recommend just take out enough you'll know you need to spend in the first day or 2 (meals, sightseeing, etc).

At the end of my trip, I use most of my Euro's to pay down my final hotel bill, and then payoff the balance by credit card. That way I'm not carrying a bunch of Euros back to the US and paying to convert them back to $$.

The exchange rate I get using my ATM is always the best and is a few % better than using a credit card.

Speaking of credit cards, I have had trouble on 2 occasions where a rental car company didn't like my credit card. For that reason, I tuck away a 2nd credit card just as a backup.

If you want other tips on travelling around Germany, post a reply and I'll comment.