Cash vs Charging in Europe

[Diskidatheart]

I know this topic has been discussed before, but now that I am getting close to my trip and really started to finalize things, I realized something that may be useful to some fellow travelers regarding the use of a charge card or cash for purchases in Europe.

I was discussing this topic with a co-worker who has been to Italy several times. He made a good point that you should try and use as little cash as possible, and it makes sense after thinking it through. The main reason is that you get a much better exchange rate on a credit card. If you go through a bank or even worse, the airport, your exchange rate will be much higher than what it would be through the credit card company. For example, if you want to exchange $100 to Euros at a bank, you may only get $69.00 right now. However, if you go through a credit card company, you would probably get an exchange rate around $72, which is over a 3% difference. Even with the 3% charge for a credit card, you are still coming out ahead. These numbers are approximations, but you could call your bank and credit card company to see what their exchange rates are. It's not a large difference, but these trips are too expensive to be throwing money away due to bad exchange rates and I don't know about you, but I hate having a lot of cash on hand for security reasons.

 

[WeLoveABD]

We've struggled a bit with this question over the years--and finally I've decided:
1. bring $100 worth of the currency with me, for issues that might arise at the airport or initially before being able to either use an ATM or a credit card
2. as you say, use a credit card for the best rate (we use one, but bring a second just in case a problem arises with the card)
3. as to the cash you bring: I discovered by asking around at work that a lot of people have Euros at home, just collecting dust. So I buy them at the current rate--win win as they get cash now and I get a better rate than going to the mall and buying from Thomas Cooke.

 

[Tozzie]

I spent a good deal of time thinking about what to do when I go. I looked at the various options. I found out that with my bank due to the type of account I have I will not have to pay foreign transaction fees for ATM use and then one of the posters posted about Capital one not having any forgiein transaction fees on their cards so I applied and got a Capital One credit card to use when I go to Europe so I will take a bit of cash just in case but I will either charge or use my ATM card while there.

 

[helenk]

Do not forget to notify the charge card company that you will be travelling out of the country. My bank advised that I let them know at least a week before leaving. This way it will not set off any fraud alerts that will freeze your account. You'll be able to get it taken care of but what a pain when you are enjoying your vacation.

 

[disneylove69]

Do not forget to notify the charge card company that you will be travelling out of the country. My bank advised that I let them know at least a week before leaving. This way it will not set off any fraud alerts that will freeze your account. You'll be able to get it taken care of but what a pain when you are enjoying your vacation.

Your bank can also give you the phone number to use in case you have an issue with your card. The normal 1-800 number will not work. Another good way to get a rid of local currency is to use it towards any fees you have at the hotel when you check out.

 

[Diskidatheart]

When I spoke to my credit card company, they provided a service for $3.99 per month (and can cancel at any time) that you can register all your cards with them (not just theirs) and you if something happens to your wallet, you just call one number and they will take care of everything for you and provide you up to $2,000 of emergency money. After my wife got pick pocketed in Chicago a few years ago, this is well worth the $4.

I've heard Rome can be pretty bad when it comes to pick pocketing....has anyone had any problems with theft while in Rome or on an ABD?

 

[WeLoveABD]

We had two pre-days and did a lot on our own (the humidity screwed up my camera--after all of our planning, that was the one unexpected event! I had to buy a camera at the Rome train station!), and I spent down time during the ABD riding the subway in Rome and walking the streets. Never encountered a problem BUT being forewarned probably was the trick--kept money in my front pocket, carried very little when on my own etc. I avoided crowds when possible. During the ABD tour, the bus remains secure and so most of our stuff stayed on board and I just worried about my camera working...

 

[bopper]

I am an American living in Germany and I would use an ATM to get money locally in Europe. If one bank doesn't take your ATM card, most likely another one will. Also keep in mind that some restaurants don't take credit cards, so check before you order if you are expecting to use one (learned that the hard way!)

 

[MAH4546]

Using credit cards in Europe is often a major hassle, especially in southern Europe (Spain, Italy and most especially Greece) where many places won't take credit cards (stores almost always will, but resturaunts often won't).

 

[Tozzie]

Using credit cards in Europe is often a major hassle, especially in southern Europe (Spain, Italy and most especially Greece) where many places won't take credit cards (stores almost always will, but resturaunts often won't).

Do the buisnesses that accept credit card display the credit car logos on the door or in the windows as they do here in the States

 

[CC12005]

Many European countries also have a chip in their credit cards, so US cards will not work everywhere. For instance unmanned train stations where you need to purchase a ticket. Found that out the hard way.
Make sure all your contact information is correct with your credit card company. Even though we notified Chase before we left, they still froze our account because of one bad cellphone number, even though all the other info. they had was correct. Address, home phone & such. This rejected all of our autopayments while we were gone as well as no European charges allowed on our card. Not a happy camper. Enjoy your trip.

 

[shoes99]

We are not ABD, but the title caught my eye. We are doing the Baltics in June 2010, flying to CPH Copenhagen. I've been researching the fees on my cards too.
My AMEX Gold charges a 3% foreign transaction fee, and in addition charges $10 transaction fee for cash advances. Not good.
My local bank check debit card charges 3% FTF and $6.00..
My best card, without getting a new one, is my Charles Schwab Platinum Check Card with a 1% FTF, and they reverse the ATM fees.
This Visa debit card works worldwide where Visa, STAR and Plus symbols..
I'm still researching, but thanks for the info.

 

[MAH4546]

Do the buisnesses that accept credit card display the credit car logos on the door or in the windows as they do here in the States

Some will, some won't; no different than in the states.

Many European countries also have a chip in their credit cards, so US cards will not work everywhere. For instance unmanned train stations where you need to purchase a ticket.

U.S. cards will work everywhere that takes credit cards. Those chips are for debit cards and what you saw was a place that only took debit cards.

 

[CC12005]

U.S. cards will work everywhere that takes credit cards. Those chips are for debit cards and what you saw was a place that only took debit cards.[/QUOTE]

I respectfully disagree that only debit cards have the chip. They also issue credit cards with the chip. But I do agree that is very rare they do not accept regular credit cards.

For those wondering what a chip debit/credit card is, one of many links that details the cards.

http://www.creditcards.com/credit-card-news/outdated-smart-card-chip-pin-1273.php