XE.com--exactly how does it work?
 

I get the idea: I can buy/sell my USD for Euros all via my bank account. What I don't understand is this: how do I withdraw the Euros from a US bank? Can I just walk up to my bank and they'll have them, or to the atm machine?

I need a small amount of cash when I get to Rome to pay for our lodging and I want to avoid the "my atm does not work" conundrum (although my bank assured me it will work).

Thanks!

Of course, any alternatives to xe.com are welcome. Thanks again.

Get an ATM card that is linked to your bank's checking account. Take the card with you to Rome, walk up to any ATM machine, put in your card, enter your pin, select the desired amount of Euro that the machine will dispense for that transaction, and bingo, out comes the Euro. Listen to your bank. That's the easiest way to get Euro.

On the other hand, if you want to pay expensive fees, you can order some Euro from your bank -- it will cost you, but if that makes you feel warm & fuzzy, go for it. You usually have to order the Euro beforehand.

No, You can't walk into a U.S. bank and use an ATM machine and get Euro. ((b))

Budman didn't make it extremely clear. You have to have a DEBIT card linked to your checking account. That is the cheapest and most convenient way to obtain Euro -- about 3%. If you purchased Euro through your bank in the US, expect to pay a 7 to 10% premium. Finally when you go to Europe advise your credit and debit card issues that you are going or you might find that nothing works.

ATM card = Debit card. In most if not all cases it comes right out of your checking account.

It depends upon your bank what the charges will be. My bank charges nothing. Some banks as fmpden points out charge 3%. Some charge 3% plus a fee for the transaction, plus a currency conversion fee.

All banks are different and charge different fees. You need to check with your particular bank to find out what they are going to charge you. ((b))

You'll also need to know the approximate conversion rate from dollars to euros, or euros to dollars. For example, if your maximum w/drawal amount is $500 per day, then you need to know what that is in euros (say, 350 E. for the sake of this explanation). You will only be able to w/draw 350 E. in one transaction, or total for the entire day with that card. If this is a problem, you can get your bank to raise your daily limit before you leave.

You may also find that the ATM you use in Europe has a limit as to how much in Euro you can withdraw which may be much less then the limit your bank in the US allows.

If that is the case then either insert your ATM card again or go to another ATM and withdraw more money.

xe.com/ccc is extremely useful for determining exactly how much foreign currency is costing you.

You enter a card transaction, and it compares the rate you got with the interbank rate for that day.

There are cards that rebate the International Service Assessment (the "hidden" 1% fee of Visa and M/C) as well as any ATM fees paid to banks not in your bank's club.

Schwab Investor Checking is one such account (and you don't have to be a Schwab customer to qualify).

>You have to have a DEBIT card ...<

Not quite.

I have 2 ATM-only cards that work just fine.

((I))

Terminology.....

In Canada it has become almost universal that businesses take DEBIT cards, in that purchases can be paid for directly out of either your savings or checking account. Likewise, I can go to any ATM in Canada, and take money out of either account. When I travel, this same card can be used to withdraw money from my checking account.
It is an ATM and DEBIT card (everyone calls it a DEBIT card)....
Although it is not a VISA card, at my banks' machines I can withdraw cash on my VISA account.

Is there an ATM card in USA that is not a debit card?

That's interesting. I always use xe.com to find out the going exchange rates but have never thought to buy money thru them.

1) To get Euro I usually wait until I arrive and use an ATM machine at the arrival airport.

2) I have ordered them from my own bank - you pay a fee and they ship them to your branch.

3) Or you go to a main branch of your own bank that has an international desk (depends if this is available where you live) & there yes you can just walk up and purchase them. There is a fee.

4) You can buy Euro from AAA or Thomas Cooke. There is a fee.

<i>Is there an ATM card in USA that is not a debit card?</i>

Yes, my credit union ATM card. It can only be used in an ATM machine, not to make purchases.

Now, my bank ATM/Debit Card which is tied into VISA, I can use ATM and/or make purchases wherever VISA is taken. Those purchases/ATM withdrawals come directly out of my checking account. When I use my ATM/Debit Card as a VISA, I don't need to use a pin -- only need a pin as an ATM withdrawal.

Now, I understand some gas stations allow you to use an ATM card where you punch in a pin. I haven't tried this out, but I suppose my CU ATM card might be able to be used. ((b))

I have an ATM card that isn't a debit card, also. I had to go out of my way to get one, as my bank by default tries to push debit cards on you as it is to their financial benefit, but they will give you an ATM only card if you insist.

As for xe.com, I really don't know how it works as some of those online business will sell you euro, and I think they Fedex it to you or something, but you can always ask them. I think the idea of trading online by credit card, etc., is a different thing (they do have some system for paying bills online to foreign accounts by CC), and that is all &quot;electronic&quot;, you can't get physical euro that way. There are some online services where you can buy them and have them mailed to you, if you really want, but they charge a fee for that, of course.

The major benefit of xe.com to travellers (according to their website) is that one can send money to a recipient's foreign bank account without huge markups and service fees.

So you can (theoretically) send a deposit or full rental economically to that apartment in Paris or gite in Provence.

I do not know of anyone who has used this feature of xe.

Regarding xe.com, as Robespierre said, it is useful when you want to send money to someone with a bank account overseas.

I have used it to send money to a travel agent in South Africa, to a family member in Hong Kong, and to my own account in Germany. It works essentially the same as wire transfers through any bank, but xe.com's selling point is the better exchange rate.

To use xe.com, I had to first set up an account with it. I then log in to request a transfer. I tell it the amount either in U.S. dollars or in whatever currency the receiving account uses. It then offers an exchange rate, which I can accept or decline. This rate is valid for 60 seconds, I believe. If I accept the rate, I then authorize xe.com to electronically withdraw the money from my U.S. account and make the transfer.

In my opinion, the ability to specify the amount in the transfer currency is a benefit as it eliminates the guessing game of how much to send. For example, the travel agent in South Africa quoted a price in Rand. I went to my bank and asked to have this much Rand wired. The teller took out a calculator and figured out the amount in U.S. dollars based on that day's rate. In other words, I'm sending U.S. dollars until the transaction arrives at the receiving bank, which then uses its own exchange rate to convert the dollars into Rand. Whereas with xe.com, I am essentially buying Rand from it and telling it to send the exact amount to South Africa.

Based on my experiences, it does offer better exchange rates than retail banks (at least compared to mine in Atlanta). The thing is, I think it is only worth it if the transfer amount is relatively large; otherwise, it is not worth the effort because of the rather lengthy process to set up an account. After you apply for an account on-line, you are told to wait for a call back (during a time you specified). During this call, you are asked to provide some personal information (birthdate, passport numbers, security question, etc.). Then you wait again while xe.com goes check to make sure you're not on some black list or something. Finally, you get another call to let you know the account has been approved. Plus, xe.com sets a limit to how much each transfer can be, but you can request for special one-time increases.

That much said, I have been very satisfied with the service.

Kealoha - To answer your question, I'd go with the ATM option unless the amount is large enough to justify otherwise. I've used my ATM card from my bank in Atlanta in Germany, the U.K., Spain, Portugal, the Netherlands, France, Hungary, Czech Republic, Japan, Hong Kong, Singapore, Thailand, China, S. Africa, Namibia, Peru ... In other words, it has worked pretty much wherever I wound up.

Hope this helps.

&lt;&lt; Regarding xe.com, as Robespierre said, it is useful when you want to send money to someone with a bank account overseas. &gt;&gt;

Just out of curiosity... does PayPal offer a competitive alternative? Anyone know about exchange costs sending from one currency to antoher with PatPal (whether for an actual eBay purchase, or simply for a transfer of funds from one person to another?)

I've made an occasional overseas purchase on eBay (couple of really small items), but I have no recollection of what were the details of the financial transaction... and of course, I have no idea what the seller received in his currency, versus what I paid in USD (the shipping was far more relevant... many times more than any commission may have been, but of course, that was for an actual physical item being shipped to me).

Best wishes,

Rex

Rex -

&lt;&lt; Just out of curiosity... does PayPal offer a competitive alternative? Anyone know about exchange costs sending from one currency to antoher with PatPal (whether for an actual eBay purchase, or simply for a transfer of funds from one person to another?) &gt;&gt;

I don't know ... I have only used PayPal once and it was for a domestic purchase. But, to use PayPal, doesn't it require both parties (the sender and the receiver) to have a PayPal account? I think I did look into PayPal for the South African agent, but it turned out she didn't have a PayPal account or something like that.

ngodeia

As I understand it, xe.com is in principle free, though your bank might charge you the cost of the wire transfer from your account to xe.com.

PayPal deducts roughly 3% from what the payee receives. My experience of it is that, as a payee, I've also got about 1% less from tha Paypal exchange than Oanda was quoting as the midmarket rate that day (I've not made a comparison with xe.com's rates, but they claim they're the sharpest around)

Paypal also sits on the payee's money for some time, though my bank does that too, and I've not been that assiduous in allocating blame.

flanneruk -

&lt;&lt; As I understand it, xe.com is in principle free, though your bank might charge you the cost of the wire transfer from your account to xe.com. &gt;&gt;

I thought so too. Then I found out I can use what I call electronic direct debit (forgot what xe.com calls it). Instead of telling my bank to activate a wire, I authorize xe.com to withdraw a specified amount from my linked bank account (the only other example I can think of is when I used to pay my American Express bill by phone before online was an option). There was no charge from my bank on my end.

ngodeia

This is really good to know. I pay all my credit card bills this way -- authorize them to take out a certain amount of money from my checking/savings account to pay my bill. Similarly, my brokerage firm deducts a monthly fee on the first of each month to go into my Roth IRA. I set it up and do nothing. It costs me nothing.

I'll have to remember that for future should I have to make a deposit for a rental apartment. ((b))

Yes, I'm pretty sure that a PayPal transfer would require that the recipient hve a PayPal account. But that doesn't make the question altogether irrelevant. It's an ever smaller world. You have to wonder when we might expect to encounter small business/innkeepers/rental owners etc... to seek to have a PayPal account.

It certainly behooves eBay (owner of PayPal) to expand globally.

Thank you for all the info.