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.

Always take enough Euros for at least a day. You can buy them at Travelex at your departure airport. Otherwise, if the ATM's are out of cash or malfunctioning at your airport of arrival you'd have to go to the bank straightaway. You need at least enough for a cab to your hotel and a meal.

Mostly nonsense! Read the many scores of posts.
M

I don't know to whom you are referring, Mikemo, but we landed in England and both ATMs were out, it was a bank holiday, and we had no money. Better to have at least enough for a day, Martha, and at the VERY least enough to pay for your transport to the hotel. You can always eat at your hotel. Other than that initial emergency money, you withdraw as needed from ATMs, obviously.

Even if the ATM's are out, the exchange booths at major international airports are open 24/7 and you can always change a small amount there...and of course both the Underground and the Heathrow Express take credit cards anyway.

Changing before arrival is absolutely unnecessary in the 21st century.

Obviously xyz123, you have never traveled with loads of luggage, including trunks for costumes, and three kids who are starving. What's the difference between getting 100 Euros at the US airport at the start of your trip when your luggage is off your hands and you're rested and awake as opposed to waiting until you get off a plane, tired and cramped, with luggage and cranky children who just want something to eat NOW? MarthaN asked a legitimate question and has received advice from many quarters. She now has many opinions and can plan accordingly. xyz, I find that dogmatic statements are just not that helpful.

Sylviam,

My understanding is that the European ATMs will work only with a checking account. I know when I use a domestic ATM, I have the option of selecting my checking or savings account, but I have never seen that option on a European ATM. My bank also confirmed this a couple of years ago.

Many banks now have free checking accounts. I opened one of those and associated it with my ATM card. I keep a minimal balance in the checking account, as my bank allows me to transfer money from savings to checking via the internet, with no delay. Perhaps this is overconcern with security, but it keeps me comfortable.

I have always just gotten local currency at arrival from an ATM, but I know there are some people who are more comfortable carrying some euro from home. If you are going in a group of 10, one of them will probably feel the need, so borrow from him if all the ATMs are broken, the cabs won't take credit cards (or dollars), the money exchanges are closed, and you are so decimated by your flight that you are not capable of functioning.

KSWL, in spite of what most say here on Fodors I am with you. I want some euro when I arrive in Europe. With the cost of CC fees and ATm fees I do not care about a fee to get some euro before I travel. It is no big deal as the kids would say.

So everyone should just do what works for them. End of discussion IMHO.

I use only ATMs but one thing I've never seen mentioned in these threads is the fact that your acct needs to be flagged to function internationally. And even more, the particular card number has to be flagged as well. I had trouble with this on my last trip to France in November. I had gotten my 16 year old his own card on my checking acct and I mistakenly thought since my acct was flagged to work internationally, his card would work. It didn't and when we got home and called the bank, I was told each card number has to be flagged as well. It was no big deal this time since we were together and he did not have to use his card, but he leaves Monday for a trip on his own so we got is straightened out for that.

I do agree however with some of the above: because I am the only adult or either traveling solo, I take 100€ in case the airport ATM is on the fritz.

Interesting post, crepes a go go, but I've been traveling to Europe with my ATM card for a lot of years and have probably used my ATM card at least a hundred times in the past few years (as I'm there for months at a time). I've never had my card "flagged" or even told them at the bank I'm going to Europe, so I have no idea what you're talking about.

And I agree that "whatever works" but I don't get the idea of paying extra to get money in advance just for the very off chance the ATMS won't be working, when if that does happen, you could always go to the nearest currency exchange booth and cash a few dollars. Why spend extra money for a "just in case" scenario, when it is ALWAYS possible to get some on site if there is just a problem?

Do any Americans, particularly those in big cities, have exchange bureaus where you can get Euros for a rate of more or less exactly 2% over the interbank rate? I get Euros (or pounds or krone) at such a place before every trip. The bank is a ripoff comparatively, and I never use it for currency exchange, but these bureaus are a good value. In Vancouver, here's the place:
http://www.vbce.info/

My foreign ATM story - the bank had, unbeknownst to me and for no explainable reason, put a limit of $100 CAD on my daily withdrawals. I tried to withdraw more than that in Denmark, and thought that my card just didn't work. Luckily, my son had gotten his own ATM card on my account, and I was able to use his ATM card. The bank apologized subsequently after the trip, but what good would that have been if I had been on my own.

Patrick, the same for me, traveling to France and England now for the past 5 years, always using my ATM. But on my first trip, a French friend suggested I call my bank and ask if anything special needed to be done to my acct to allow me to use it overseas. It might be because I am with a small local bank, not a big chain. Not sure why. I do the same with my credit cards - call and have the accts flagged to allow international charges.

Crepes, I too had to "enable" my check card/ATM card for use overseas. I also bank at a small (7 branches) family owned bank.
Hi LoveItaly, I guess you know what it's like to have absolutely no energy to do anything after a long flight except get in a cab!
Patrick, you must never have traveled with children. :D

No, I've never traveled with children, but not sure what that has to do with having an ATM card flagged or with getting emergency cash at a change booth if the ATMs are down? Care to explain?
By the way, yes, I do always call my credit card companies to alert them of my travel, but have never done anything about my own ATM card.

"I don't get the idea of paying extra to get money in advance just for the very off chance the ATMS won't be working, when if that does happen, you could always go to the nearest currency exchange booth and cash a few dollars."

This is what I was referring to, Patrick. Sometimes when we arrive the kids are dehydrated and need something to drink or eat right away, or I'm just too tired to stand in another line with them. It's easier now that they're older, of course, but sometimes I just want a Diet Coke the minute I deplane, too.

That's odd. I always load up the family on food and drink <u>before</u> I get off the plane. I figure I paid for it, so why pay &euro;20 for Cokes and PopTarts at the airport?

Getting back to the original question, the best places to exchange money are ATM's once you arrive in Europe. I understand some people like the warm and fuzzy feeling of having some Euro in their pockets once they arrive.

Having travelled to Europe numerous times, I always have a few Euro saved up for return trips, but I can understand first-time travelers wanting that secure feeling.

I never do, but getting a few Euro at the airport prior to departure might be a good idea for some. ((b))

This is truly an argument that will not die. My thought is just let it go and do whatever you want. I personally just hit the ATM upon arrival. As a back up if need be, exchange a USD 50 or a few 20s at the exchange booth. I have travelled overseas with children. I remember before the days of ATMs standing in lines exchanging traveler's checks with kids in tow. Didn't seem to bother them, as they appeared to be jet-lagged zombies, anyway.

Now there is good advice and then there is what I actually do...

Sometimes I've paid to get euro ahead from Bank of America (whadda ripoff) or a Thomas Cook exchange bureua (ditto), sometimes I wait until arrival and use the first ATM I see (airport or train station).

Most often I have a little leftover from a previous trip (for instance GBP because I usually transfer Heathrow) or CHF (because Switzerland is my most frequent destination) that will at least get me a sandwich &amp; glass of wine or a train ticket.