Currency Exchange

[Bronxboy52]

I have been told that, since the advent of the use of the Euro throughout Europe, that the cost of things has really increased. It was suggested that, while I should exchange some dollars for Euros to have "walking around money", it is best to make any large purchase through use of major credit cards since you get the best exchange rate that way. Anyone have any experience with this?

 

[Diskidatheart]

That is what I am planning on doing. There are also ATM machines that you can use in Italy. There will be a fee, but in a crunch, it will be worth it. Also, it is probably important to let your credit card company and bank know that you will be in Europe. You don't want them to cancel your card(s) if they are suspicious of theft. The exchange rate is not real favorable right now, so you get a lot less for a US dollar than you used to.

 

[sayhello]

I'll have to double-check this, but I was told to make sure your PIN for your credit card or ATM card is 4 digits, as European ATM's only accept 4-digit pins.

Sayhello

 

[Bronxboy52]

Thanks to both of you. I never thought of letting the credit card companies know. It makes a tremendous amount of sense.

 

[DisFan09]

I have been told that, since the advent of the use of the Euro throughout Europe, that the cost of things has really increased. It was suggested that, while I should exchange some dollars for Euros to have "walking around money", it is best to make any large purchase through use of major credit cards since you get the best exchange rate that way. Anyone have any experience with this?

The credit card companies have been mailing out amendments to their credit card agreements and making changes to the various fees, including foreign transaction and conversion fees for purchases made outside the USA. I would read those amendments carefully to make sure that using credit cards for large purchases in another country is still the best method. You may pay an additional 3-5% on your purchases, which negates any savings in exchange rate. I used a combination of Euros and credit card in Italy and I didn't really like the fees that my credit card charged me...

 

[kidcoos3]

It was suggested that, while I should exchange some dollars for Euros to have "walking around money", it is best to make any large purchase through use of major credit cards since you get the best exchange rate that way. Anyone have any experience with this?

Capital One didn't charge anything in Summer 2007 and Summer 2009. Not sure if that has changed.

 

[Traveling Tinkerbell]

The credit card companies have been mailing out amendments to their credit card agreements and making changes to the various fees, including foreign transaction and conversion fees for purchases made outside the USA. I would read those amendments carefully to make sure that using credit cards for large purchases in another country is still the best method. You may pay an additional 3-5% on your purchases, which negates any savings in exchange rate. I used a combination of Euros and credit card in Italy and I didn't really like the fees that my credit card charged me...

Ditto, we have received our credit card statements in the past and each bank charged an international transaction fee for each charge during our trips. Amex, Visa (Chase), and Mastercard (Bank of America) billed us transaction fee charges for each line item.

Also, it is important to contact your credit card companies and banks (ATM card) before you go on your international trips because we witness many travelers on our ABD trips that had problems using their cards. The banks were blocking their transactions for their own safety and lack of knowledge about their international travels.

 

[Q's My Princess]

Capital One didn't charge anything in Summer 2007 and Summer 2009. Not sure if that has changed.

Ditto...we have the Capital One credit card, solely for foreign travel because they are no hidden charges!

 

[Tozzie]

Ditto...we have the Capital One credit card, solely for foreign travel because they are no hidden charges!

This is interesting, I may have to get a Captial One Credit card just to use in Europe.

 

[kidcoos3]

Double check with your bank about using your ATM card in Europe. Those fees can really add up too. If you have accounts with Schwab, you can get an ATM card from them. They don't charge any fees at all and they cover any fees that the European banks do charge.

 

[kidcoos3]

This is interesting, I may have to get a Captial One Credit card just to use in Europe.

I just received the new terms etc. pamphlet from Capital One - they still don't charge a transaction fee.

We only use it for travel too. We've used it in Europe, the Carribean and South Africa.

 

[sayhello]

I just received the new terms etc. pamphlet from Capital One - they still don't charge a transaction fee.

We only use it for travel too. We've used it in Europe, the Carribean and South Africa.

That's great to know. I have a Capital One card that I never use anymore because they bumped the interest rate up. But I think I'll be using it for Europe. I'll just pay it of when I get home!

Sayhello

 

[Bronxboy52]

Just checked with American Express. They do charge a 2.7% conversion fee on foreign transactions. However, they did indicate that if you ask the merchant to charge you in US dollars, the conversion fee is waived. Anyone with experience in asking merchants in Italy to charge in US dollars?

 

[abbyjt]

Hey Kidcoos,
I would check carefully about the foreign transaction fees. Some banks just include them in the total, some show you the fee separately. That's a great deal, if they really don't charge any conversions fees.
It seems that taking cash out of an ATM in Europe is really the best way, even with the bank fees. The rates the bank charge that way are much better than changing money at a hotel or an exchange kiosk on the street. Ask your bank if they have a sister European bank. Sometimes, you can avoid fees that way.
Always contact your bank, credit card and cell phone company before travelling out of the country.
It's good to have some cash in advance depending on where you are going. Sometimes, smaller merchants won't take credit cards.

 

[kidcoos3]

Capital One is always listed in Rick Steves, Fodors etc. as the credit card to go with to avoid foreign transaction fees. I checked each item on my credit card when we returned from our trip - the exchanges were always good.

I agree with taking money out of an ATM - but with large purchases and not always having enough cash on hand, Capital One seems to be the way to go.

 

[Bronxboy52]

Just checked with VISA. They charge a 3% conversion/transaction fee, which they do NOT waive if you are charged in US$.
Seems like Capitol One is the way to go.

 

[Disney Dree]

Here is another thought - we took cash from an ATM machine and tried to estimate a bit high so that we wouldn't have numerous foreign transaction fees. When it was time to leave our tip with our Disney Adventure guides, we used our leftover Euros/Pounds in the envelope provided by Disney for tips. We didn't have to worry about converting the money to US dollars later (for another fee) and seemed to cover the tip adequately.

 

[Diskidatheart]

I actually checked with my financial advisor yesterday to determine when and where to exchange currency. The reason I brought it up in the first place was that I noticed the exchange rate from USD to Euros has gotten better 1.39:1 down from 1.5:1. However, when I went to my bank yesterday they were giving me an exchange rate of 1.5:1. I did a little research and the rate that is usually online is the bank rate and are typically for large dollar transactions (i.e. millions of dollars, which I'm not planning on taking that much with me).

One of my financial advisor's colleagues went to Italy last year and made some recommendations. He said that you will likely get a better exchange rate in Italy. He said to exchange some money prior to leaving, but the rate was better there. He also recommended that you check to make sure your cell phone can be used internationally if you choose to use it. If your ATM card works in Italy, you can use it to access cash, which many others have also indicated on this board. He also said that he advised to use your debit card to make purchases rather than credit cards to avoid purchase fees.

My personal thoughts on this are that I would rather have the money with me ahead of time. It may cost me a little more to exchange it here, but I think I'd rather be prepared ahead of time and not have to worry about holding the group up while I'm trying to get cash. The use of the debit card is a good idea if you don't have a credit card that won't charge you transaction fees. As always, it's nice to know that you can get money out of an ATM if necessary.

 

[WeLoveABD]

I used to take $200 worth of the currency (say, Euros) with me, and have travelers checks for the guide tips--and then use credit cards. Since the trip books now ask that tips be in dollars or local currency, I've given up on travelers checks completely. When we went to Germany I took dollars for tips and that hidden away (all of the hotels have safes), brought about $300 in Euros that I purchased from co-workers and family at the current rate and then, for the first time, used an ATM (in Munich). The fee for the one-time ATM use was not bad, and much cheaper all in all than buying Euros in the US in advance.

People always seem to have some currency when they return from trips, so I would recommend asking around--it is a win win for all, you get euros at the current rate and thus cheaper than from a bank or travel place, co-workers or friends get hard cash for otherwise worthless currency to them (they could cash it is for a lot less, if then wanted to--so they get a better deal selling to you!). I just like the security of having the local currency when I arrive--in case I'm stuck at the airport, or only need bits of cash for coffee or for use in a place that doesn't take credit cards.

BUT ADVICE SOUGHT!! We are doing the Baltic cruise with Disney--many different currencies (mostly not euros, and probably not currency I could get from co-workers). So...buy in advance, use ATMs for small amounts, hope for credit card accpetance...?

thanks all!

 

[Tozzie]

I was just at my bank and while I was there I was speaking to one of the representatives about this and I found out that because of the type of account I have all foreign transaction fees are waived for atm/debit transaction. I am a happy camper now. I am going to get some euros before I leave because I don't want to be stranded somewhere with no usable cash but it will be a minimal amount and I will use the ATM's when I get there.