A couple of comments.
First, we've pulled cash from ATMs in many places in Italy. We've had our card declined once or twice in maybe a hundred transactions, so no big deal.
Two. Cash is much appreciated in Italy. We don't put anything on our credit cards.

FHurdle -

You are certainly entitled to yuor point of view.

I suggest anyone going to europe run the numbers for themselves, based on what their banks charge and taking into account ALL of the factors:

Convenience of CCs and debit cards
ATMS on every corner unless you are at the end of hell and gone
Risks of carrying large amounts of cash
Fees associated with changing currency in the US
Rate of exchange versus the interbank rate for changing currency in the US
% fee charged by your bank for CC charges processed
% fee charged by your bank for ATM withdrawals processed
If your bank has a fee per withdrawal (mine doesn't, nor do many others)
Safety of paying for large purchase via CC rather than cash (the same in europe as in the US)
Risk of ATM transaction issue (hasn't happened to me in thousands of transactions)
Risk of not finding an ATM to take your card (minute as long as your bank is a member of the major networks)

And I know some places prefer cash. For a small item I have no problem. For larger charges - they will just have to learn to live with the 21st century.

You can at times get a discount when paying with cash. But you need to ask the 21st century people for it.

My own suggestion is......

1. Use credit cards everywhere they are accepted for all purchases, all purchases, no matter how large or small. Of course there are some countries where using a credit card for small purchases or in small shops might be a problem but many are much like the USA where you can use a credit card for everything everywhere. Make sure the credit card has the proper foreign transact fee i.e. 0% like in nothing. Plenty exist including Capital One cards, Bank of America Travel rewards card, Pen Fed FCU. Many also have the infamous emv chip but the importance of that is overstated but a good one that accomplishes most everything is Pen Fed (certain cards) and the Bank of America travel Rewards card although the last is chip and signature which we have discussed a great deal but even the antiquated magnetic strip cards issued by Capita One will almost always work.

2. To fill in the gaps, use ATM's but make sure you are using a bank that has no fees. Personally, I would never never never use my main account's cards just in case it gets compromised. There are several banks, on the internet, that have no minimum balances and issue free ATM/debit cards will no fees for withdrawals and which will reimburse you if you use a machine that charges a fee up to a certain amount each statement cycle but most bank ATM's in Europe do not charge a fee like the US banks do for having the audacity to access your money by using their ATM's. A good example is Charles Schwab Bank which has all these features. I keep $1.01 in that account and before every trip, I transfer via bill pay an estimated amount for my trip although in many cases one quick €20 ATM withdrawal will serve for a couple of weeks as 99.9% of the places I frequent take credit cards.

Do I pick up euro or sterling or whatever before leaving for the "convenience"? Absolutely not. Every arrival airport in this day and age have many functional ATM's. What happens if none of them work? Has never happened to me but in any event most public transport out of most airports take credit cards anyway.

The modern 21st century way to travel.

I know there are some smaller places that give discounts for cash - but I have never seen this is a hotel we stayed at (granted 4 or 5* usually), noticed it in a restaurant and certainly not in a museum of other site. If it's a drink in a cafe or ice cream or whatever - we assume we're paying cash.

And is the cash discount large enough to make up for getting cash at a much more expensive rate.

We always each have at least two ATM cards with us, just in case a machine might eat one or one is lost. Never happened, but it is almost no trouble, and no expense, to open another account to get that extra card.

Since my ATM card was eaten in Delft several years ago, I do carry $200 US with me for emergencies. I have since gotten a second ATM card on a different account just in case. I'm usually solo and can't depend on someone else's card.

Fhurdle comment's are just to stir the pot. If he has had all those problems then he is unique or doing something wrong. We have spent nearly a year in Europe over the past 18 years or so. Totally dependent on debit cards for the last 12, maybe fifteen years and never had a single problem. In the same way I have used a debit card in the US for nearly 40s years with only one problem.

Take two debit cards tied to two different accounts. Primary card is a credit union with no fees and a $1000 withdraw limit. Back up card is a standard bank with 3% currency conversion fee. First day or two will use both card just to make sure they are working and bank debit goes deep into the money belt. In all of our many trips over the years we have never had to use the second card.

Using the debit does require a little smarts and some common sense. We only use an ATM attached to bank during banking hours so if something happens to the card, in theory, one of us can guard the ATM and the others goes in the bank to resolve the problem. Unfortunately, the theory has never been tested since we had never had a problem. Second, we always use an ATM after someone else has used it. If it worked for them, it should work for me.

We avoid stand alone ATMs in the same way we avoid similar ATMs in the US. While the probability is small but an ATM with a skimmer attached is more likely on a stand alone than a bank lobby. And a skimmer is fairly easy to detect if you know what to look for so do a google search and see what skimmers looks like.

A debit card is only way to go. A number of friends travel extensively and have had a similar experiences as ours using debit cards. I think using a debit card has a near zero risk if you use some common sense. We tend to use cash almost exclusively in Europe. Seldom use the credit card because I there is a greater risk credit cards.

Let me ask you a question...I don't see the advantage of a debit card (assuming you're using it for purchases) over a credit card. You've been fortunate over the years apparently of never having had a card compromised and I agree it is not an every day occurrence. I have had a few credit cards compromised, once for 4 transaction of $2,000 each. A couple of phone calls and it was dealt with. If you use a debit card and it is compromised, actual money comes out of your primary account. Have a credit card compromised and you get bills but no money leaves your account. Yes I agree for the most part you will get the money back but until you do, you're out the cash.

I just don't get why anybody would prefer a debit card to a credit card. Maybe I'm missing something.

Thanks for all the replies. Now, I want to add one thought...I have thought about all options and was just posting all the open options for feedback. I'm not sure if everyone here are adults or not, but telling someone they are right or wrong is childish. This is a forum where people post questions to get them answered. All the banter between fellow fodor members on who is right, wrong, and stupid is just necessary and a waste of time for the original poster who needs to read through all the responses. Everyone has their own opinions and personal experiences. Criticizing those opinions and experiences is just childish. If you can't leave a comment/response without telling someone that their opinion inaccurate, then maybe you should not be posting.

Telling people they need to take cash to Europe is wrong. Period. I take cash to Asia. I take cash to South America. For Europe I take $200 or so in deep storage just in case, but I've never needed it.

Suggesting that Wells Fargo is a good bank for foreign travel is wrong. Period. I have an account with them left over from when it was with Wachovia, but I don't use it for travel. I use a Capital One on-line checking account (0% foreign conversion fee, 0% ATM fee, $25/month reimbursement of foreign ATM fees, if any) and a Credit Union account (1% foreign conversion, 0% ATM fee for five withdrawals/month).

And I never use an ATM card as a debit card, in the US or abroad. I use a credit card for which I get miles in the US, and Capital One cards abroad.

Stating facts is not childish. Pretending that facts aren't fact is childish. And if you can't deal with the back and forth on internet forums, maybe you shouldn't be here.

They have plenty of ATMS in Asia too. No need to bring cash.

As mentioned above, Capital One (especially the rewards card) is one of the best as there is no foreign conversion fee, favorable exchange rates, and you get 1% cash back.

For ATM, Charles Schwab is a great one as no ATM fee, full reimbursement of any local bank ATM fee, and favorable exchange rates.

ATMs in Asia. Depends on where you are. None in Myanmar when I was there. Many of the ones in Japan don't take foreign cards. Not a whole lot in Laos. In some countries USD are stilll preferred, and the odds of finding all the ATMs in a small place off the main tourist trail are out of cash are much higher than in Europe.

This is a thread as much about fears and values as it is about anything else.

My family has had bad experiences with ATM cards. I know of others who have as well. Aside from the fraud risk, my wife's card was eaten in Europe, and on other trips we spent an aggregate of several hours per trip looking for an ATM that would work for us. For most people, ATM cards are not a free way of getting cash.

In two months I'm headed to Europe for almost a month. I'll probably buy 2,500 Euros in advance. My hotels and big meals will go on my credit card. My "cost" for purchasing these Euros will be approximately $165, which I consider very reasonable.

My wife and I bank with a small-town bank. I think most Americans do. We don't wish to open an account with a big-city bank and shuttle funds around. I will agree, though, that for those willing to do so, opening a travel-only, online checking account with a no-fee ATM card is certainly an option, and one I may consider in the future. Even so, my preference is to arrive in Europe with at least a good chunk of Euros in my pocket.

With cash there is the chance of losing the money; and I do split my cash holdings up so that it can't all be stolen or lost. But we all carry a certain amount of cash here at home. I've got $600 in my wallet right now and generally have between $200 and $1,000. I haven't lost it yet. I just don't understand the psychic need some have to walk around Europe penniless.

My willingness to carry cash is influenced by the fact that I can get it at what I consider a reasonable rate. Not everyone has access to a bank with such services. One poster suggested that people simply review all the facts and their own preferences and make their own decision, and I think that's a great idea.

One thing that I did after having my ATM/Visa bank card turned off for international transactions while traveling through Ireland(did not know about the whole "tell the bank before you go" thing) was I opened a 2nd bank account. If anything happens to my ATM/Visa card, I get online, move the money, and begin using the card attached to that account. I make sure that the bank has been notified of all cards that will potentially be used, so no issues. "Compromised" is only one scenario that could happen to the card. Because of the daily limit of withdrawals, I know that if the card is compromised there will be limited damages because I check the account every day and move $$$ if anything is suspicious. Never has happened!!! Thank goodness...

Also, I never use ATM's that are not associated with a bank and located inside an establishment, preferably a bank but at minimum a post office (most that I have found in Europe have a postal bank and an ATM in the lobby).

I never carry large amount of cash with me (exchange rates are too high that way). I also never convert before I go. I go online and ensure that my ATM/Visa card will work in the country I am going to. If you look up the Cirrus network (or whatever network is listed on your card), it should tell you what banks take the card. For my upcoming Swiss trip, Credit Suisse or USB take my card.

Good luck and have fun.

One tries not to be dogmatic abut giving advice but sometimes it comes out that way. I agree, there is no right or wrong and much of it depends on one's personal preferences. At home, I don't think I've spent a dime in cash since February when I stropped by a Chinese take out place (we have a lot of them in my neck of the woods) but now the one I use has signed up with square and takes credit cards! I may hve maybe $20 in my wallet with my belief being anything costing more than $1 I can use a credit card for (and that's pretty true). So I guess that makes it natural to credit card everything while on holiday. No hassles with foreign exchange rates. I get whatever the rate is that particular day.

As far as the debit card thing, I have to admit I have never been able to understand the advantage of using a debit card for purchases over a credit card and I'm quite willing to understand where I'm wrong.

But the reality is you have much greater protection with a credit card for a variety of reasons than you do with a debit card!

JMHO

"we spent an aggregate of several hours per trip looking for an ATM that would work for us"

I find that bizarre. The only countries in which I've needed to try multiple machines have been China, Japan, and Syria, and even then it did not take several hours. It looks like you are going to England, France and Germany. There will banks all over the place - like catherine, I prefer to use an ATM attached to (better yet, inside) a bank. If your bank is issuing an ATM card that is not on the Cirrus or Plus networks you need a new bank. And there are sites on the web where you can locate ATMs in the places you'll be going.

"my wife's card was eaten in Europe"

That is certainly a valid concern. It is why I carry cards for more than one account, and why I prefer to use ATMs within banks, and during banking hours.

" My "cost" for purchasing these Euros will be approximately $165, which I consider very reasonable."

We all have our own definitions of reasonable, but that is over 6%, and I see it as throwing money away. Not throwing money away is how I afford travel. I look at extravagances like that $165 in terms of how many days travel it would buy me.

"I've got $600 in my wallet right now and generally have between $200 and $1,000. I haven't lost it yet. "

Why on earth would you walk around with $1,000? I'm currently carrying $28, and since my favorite coffee shop installed a nifty card reader I can't remember the last time I actually used cash. In any case, in the US, the crime you need to worry about is mugging, which is unlikely if you drive everywhere, while in Europe it is pickpockets, and you are more likely to walk and take public transport. I hope your hotel has a safe, and that you are not moving around much.

"My willingness to carry cash is influenced by the fact that I can get it at what I consider a reasonable rate."

And I consider that rate extortionate, not reasonable.

thursdaysd,

The $165 rate I quoted is based on my calculations of a five percent markup, not six percent. MOST ATM cards -- not all -- will hit one with a three percent foreign transaction fee plus a cash withdrawal fee that generally puts the effective exchange rate above four percent.

Also, I calculate the risk of countries such as Greece, Italy, Spain, Portugal, and others having a financial crisis that might affect ATM machine withdrawals at about 20 percent per years. So for a two-week visit there is in my mind about a one percent chance of an economic calamity that could affect access to ATM funds. That's a substantial risk, in my view.

As I said in my previous post, there is something to be said for having a travel-only account with a no-fee ATM card. Regardless, I still like having a little pre-exchanged cash on hand, and I don't consider a five percent premium excessive.

Indeed most of the big banks charge fees for withdrawals from out of country ATM 's and put on a 3% exchange fee but more and more don't. And like I said, there is no reason to have to change banks. Just open up an account say with Charles Schwab Bank, make Charles Schwab Bank a payee in your bank's bill pay system and transfer money you may need. If you underestimate, find an internet café and transfer more! When you return, write a check into your main account. Hardly raises a sweat in terms of convenience and ease to do. Far easier than running around, at least in my opinion (and everybody is clearly entitled to theirs so I'm not saying right or wrong).

I think that sweating over exchange rates is a total waste of time and energy. The difference is a few percent.

Have the happiest of trips!