Hi Christina:

Currently, Capital One does have a debit card that is tied to one's checking account that is usable overseas as a debit card at ATM's.

Sorry, I hit the wrong button..
I've been told they have 0% fees for transaction fees, which may not be the case anymore. Thanks for pointing this out.

One caveat to the recommendation to using your CC (or debit card) often in Europe - your bank or card company may charge you a fee for each such transaction. Accordingly, you have to balance carrying larger amounts of cash with the potential per-transaction CC fee. I recommend checking with your bank or CC company prior to travelling to know exactly how high those fees might be.

With the dollar on the decline and the fees, you don't want to hemorrhage unnecessary money.

Yes, as in the US, don't use a machine not operated by your bank to withdraw $20 at a time - the fees at ATMs are generally per transaction. A $2 total fee on $20 is crazy - especially if you're doing that frequently, rather than in an emergency. But a $2 fee on 200 is less painful.

fsufan, something you'll immediately enjoy is the aforementioned ubiquity of ATMs in Europe (and the US, of course.) In any small town, and in most neighborhoods of cities, there will be a bank ATM handy. If you discover a purchase you'd like to make and need cash (say at an outdoor market or antiques fair), you'll be able to do it, even on a Sunday. If you discover after lunch that the restaurant won't take credit cards, ditto.

You're obviously cautious enough not to get carried away - just remember to put enough in your account to cover your needs. AND you and your husband might EACH like to have your own card on the trip, just in case one card (or one of you) gets lost!

KayF, my mother had never used an ATM until my father died. She always withdrew cash by cashing a check at the bank (my father had no problem using an ATM).
After my father died, I showed my mother how to use an ATM. She still preferred not to use them because where she lived at the time, the closest ATMs were in banks next to drive-through lanes. And they often had "dead times" with no one else about in fairly secluded locations. A hesitant elderly lady, alone at one of those machines with no one else around, would be a prime robbery target, possibly a carjacking target as well. Also, she enjoyed the sociability of going into her branch and chatting with the tellers she'd come to know over the years.
She has moved back to central PA and uses the ATM on occasion, but she usually goes into the bank to cash a check.
*She's also gotten rid of my father's PC and their cell phone. And she doesn't have a digital camera. So she may be out of date to some people, but since she now lives in the Amish country, she's still ahead of the curve ;-)

Sorry, the ATMs were OUTSIDE the banks, not in them. Some of those gave me the heebie jeebies as well, standing alone at the machine while questionable types slowly drove by giving you the eye.

No-one has mentioned using debit cards. Are these not very popular in the States?

RM67 - many people use the terms ATM card and debit card interchangeably. A debit card is really just an ATM card w/ a visa logo. the vast majority of "ATM" cards, in the States at least, ARE debit cards. at many banks one needs to make a special request to get an "ATM only" card.

I will probably get flack here but.....I would never go to Europe without having TWO different ATM cards and TWO different credit cards. I have run into various situations(for whatever reasons) that an ATM would not take my one ATM card but the other one would work. Also, if you have it stolen or lost-you have another one to fall back on.
The second ATM card doesn't even have to be a large amount one but one that could be used in the event of an emergency.
And in regards to a credit card-I fly everyweek to Europe and NEVER use my credit card for purchases. It really is less expensive and easier to use the cash from the ATM's-yes, even when I am on vacation I budget everyday from the ATM to pay the hotel if possible. Just a suggestion!

I can't imagine why anyone would give you flack - back-up credit and ATM cards is a really good idea.

<I'd just write checks at the grocery store for about $50 over the amount due, and use them to get spending money, basically. I think that was my main source of extra cash, but when I deposited by paycheck, I'd also keep an extra $100 or so out for spending money. If you don't spend a lot of cash (which I didn't), that would last several weeks.>
Right, Christina, that's exactly what we do...we just use credit cards for most things and keep a bit of cash on hand, it's just never been a problem for us.
I've checked with my bank and they charge $1.50 for each ATM transaction in Europe plus a 1% conversion fee, $750 per day limit on withdrawals. Sound about right?

That is pretty good - Some credit unions don't have fees. But $1.50 & 1% is better than many banks - and a LOT better than travelers checks..

I hope at some point I will have something to offer on this board that will be as helpful to someone else as you all have been to me! I'm sure I'll have a ton more questions between now and March....but maybe when we return I'll have some tips to offer. Thank you, really I mean it.

I needed ATM/debit cards to get cash in Europe because I found that European business:

1. are less likely to accept credit cards,
2. take credit cards, but only if they are smart-card type not commonly issued by US companies (for use at gas stations, train ticket vending machines in France, etc,)
3. especially hotels, give discounts when paid in cash,
4. sometimes insist on engaging in dynamic currency conversion.

Now there are conflicting opinions on whether credit cards are accepted just like in the U.S. I think the differences are due to the country and the type of the stores visited.

Besides fees and the rate, there are few other reminders, in case you have not looked around this forum.

While the ATM machines are available "any time,"
1. You need your bank as well as the European ATM system (the bank that operates the ATM) to be both up in order to receive your money. In my case, I could never get money out in the evening in Europe.
2. Remember that if your bank places the system offline for maintenance, it usually does it off-hours in their time, which is in the middle of the day in Europe (if your bank is in the U.S.)
3. Unless you inform your bank that you will be using your card overseas, their fraud detection system can block your card cold. The bank calls your home number (really useful...) to confirm if it was your transaction.
4. The "day" limit is imposed by your bank's clock. Withdrawals done on adjacent days in Europe can take place on the "same" day according to your bank's clock.
5. Bank's US "800" customer service number is usually a toll call from Europe. It is best to get non-800 number from your bank that you can dial direct from Europe. Some banks provide a non-800 number that accept oversea collect calls printed on their card while others guard this like a family jewel.
6. The ATM/debit card must be linked to your checking account. ATM machines in Europe usually does not give you choice of accounts; it goes to the checking. This leads to a natural question – what if I only have a savings account, and the ATM card is linked only to this savings account. I had this set up. In spite of an empty promise that it “should” work, I could not get money out. I had to talk to my bank in middle of the trip to have my account changed to a checking account – and voila, the money came out. Of course, I had other ATM cards linked to different checking account to protect myself from these kinds of empty promises.

One other note, in some European countries, restaurants will charge you the credit card processing fee (around 2%) if you pay with a foreign credit (or debit) card. This is a legal requirement in Denmark, for instance.

Yet another reason to have ready access to cash.

Agree with others: 2 credit cards
one of which should be the Capital One which charges NO conversion fees. I Applied & got before recent trip thanks to savvy posters' advice.
I also finally got an ATM card but
have used maybe 2x as I have opposite problem of going to bank to
deposit cash from payments on rentals.
Use credit card on even the most minor purchases to gain points translating into dollars @ anniversary date.

Boggling even more now at "Our bank is closer (13 miles) than the nearest ATM (we live in the country)". Your bank doesn't have an ATM ? There are more bank branches than ATMs where you live ?I can't remember when I last saw a bank branch without an ATM.

I don't even to to a bank to pay in a cheque on the rare occasion I get one - I post it. It's too much hassle for me to get to a branch during their normal opening hours.

fsufan1, not sure I saw you saying where you are going ? In the UK you need to watch out for ATMs not affiliated to banks - often in small shops or service stations - as they charge an exorbitant withdrawal fee (up to £3.50). I haven't noticed this yet on the continent, but ATMs attached to banks are usually safer in terms of exchange rate/fees/avoiding dynamic currency conversion.

'ATM machines in Europe usually does not give you choice of accounts; it goes to the checking'

Not entirely true..... usually a savings account here has a separate account number and it's own card. You can draw funds out from a savings account at an ATM - you just need to use your savings card, not your current account card.

Also, I still don't get why more people don't pay with their debit cards as opposed to wanting to draw out cash, or using a credit card. A debit card is like cash in that it's an instant transaction, you don't get charged interest, and unlike a credit card there isn't usually a minimum charge or processing fee (unlike a credit card). And they can be used (certainly in the UK) in pretty much any store, even for small, cheap items, like newspapers and stamps.

I would rather use a credit card than a debit card because I can pay at the end of the month rather than having the money come out of my account immediately. There is no interest when the balance is paid in full by the due date. A credit card also provides some consumer protection; if there is a disputed charge, you don't pay until the dispute is resolved.

If a debit card is stolen, your account can be wiped out and it might take some time to replenish it. When my husband's credit card was stolen at the train station in Naples, we reported it within an hour and the thief had already charged $2,000 worth of merchandise. If it had been a debit card, that money would be gone from his account; as it was, he wasn't responsible for any of it.

For all these reasons, I never even owned a debit card until very recently, when I learned that some European ATM's would only give cash for debit cards rather than the ATM-only cards I had been using until that time. Since then, I have encountered ATM's that would not accept my ATM-only card in Italy and Portugal. I also had trouble at a pharmacy in Portugal which would only accept debit cards, not credit cards. I was told that for some reason in Portugal, pharmacies are not allowed to accept credit cards.

It strikes me that credit cards are more commonly used in the US than in Europe, and I have wondered why.

'If it had been a debit card, that money would be gone from his account; as it was, he wasn't responsible for any of it.'

Depends on your account - I have the same protection with my current account. And I can dispute payments with a debit card and have them refunded if they are fraudulent just as you can with a CC. It sounds as though credit cards are more popular in the US because they haven't yet extended many of the benefits to current accounts, wheras in Europe, a lot of those same benefits are already available with a current account and its associated card payment systems.

I do think it's useful to have some cash for coffees, ticket machines and tipping though. And being British, the tipping part doesn't need a lot of change...... 8-)