Money Exchange

[bbagnall]

Another traveling abroad question for you guys...I need Euros, what is the best way to get my hands on those?

I always heard go to the ATM machine when you arrive, it's cheaper. Then I started thinking...If I go to my bank, they charge me a flat rate of 7.95 to get currency. If I go to the ATM, they charge me a fee of 3% everytime I go. So lets say I want $500 Euros and I go to an ATM, the fee is 15 bucks, that is double the fee of going to the bank in advance.

Wouldn't it just be cheaper to go to the bank before I leave and get all my money? Is there some sort of magical math or fee that I'm missing?????

 

[YawningDodo]

The exchange rate is generally worse if you exchange money in advance, so you’re losing more than the fee. My strategy in Europe last fall was to take out only 50 euros and use my credit card for everything since I have a card that doesn’t charge foreign transaction fees. By using a credit card you’re getting whatever exchange rate the banks are currently using internally, not the disadvantageous rate they give you at an exchange office to make money off of you.

I’d check your bank’s rate against other rates. If they’re giving you a reasonable rate it might be worth doing, but don’t take it on faith that it’s a good rate.

 

[Marc D]

You will never beat credit card exchange rates by buying money before leaving your country. As PP said, make sure you use a card that doesn’t charge any fee for foreign transactions. Also, do be fooled by machines that offer you to make the conversion immediately. Always charge your card in local currency and let your bank do the conversion.

Like Asia, Europe is now pretty much a cashless society. The fact that tipping is non-existent helps a lot. Even the smaller stores take credit cards without minimum amounts. I rarely take out more than 100 euros from an ATM and end my vacations with most of them still in my wallet.

 

[bumbershoot]

Also, do be fooled by machines that offer you to make the conversion immediately. Always charge your card in local currency and let your bank do the conversion.

YES.

And at stores and gift shops, too. They make it sound like they are doing you a favor, and it’s easy to get confused (I got confused at the gift shop at Dublin castle!), but it’s not a favor.

The fact that tipping is non-existent helps a lot.

True.

Even the smaller stores take credit cards without minimum amounts.

In England and Ireland I’ve noticed a lot of minimum charges, fwiw. Though things might have advanced in the last 1.5 years.

 

[daedelus]

We did the EBTA that went up into England, Netherlands and Denmark, then flew to Iceland. We always purchased with a card and in local currency. The other benefit you get when using your card (as long as you do credit and not debit) is that you are protected from fraudulent purchases by Visa / MC / Amex, etc. While your bank might protect you from debit issues, you're fighting to get your money back, as opposed to a credit card charge that the company writes off and you're golden.

Always ask for and keep your receipts until you get home and can verify against the statement.

 

[dad of 3 addicted to DCL]

keep your receipts

For VAT refund as well, right?

 

[tvguy]

I always go to the bank before hand so I have at least enough money for a meal in cash I end up somewhere where I can't use a credit card.

 

[MillauFr]

I never bring cash. It is always just credit cards.

 

[Disneypeach]

In addition, if you are on a DCL cruise guest services will exchange money on board. Won't be the best rate but if you keep your receipt and don't use the money in port they will exchange the foreign funds back to you at the same rate so you don't really lose anything in the exchange. One caveat, on my cruises they didn't have all currencies just the "popular" ones like dollars, euros, pounds...

 

[disneyfaninaz]

Just a little warning. We took a lot of private tours on our Med cruise. Most tour guides will want payment in Euros at the time of the tour. We got all the Euros we needed at our bank (fee was waived because of the amount) before we left. We left an envelope for each tour with the correct amount of Euros in the safe on the ship. I forgot one for one of our tours and was charged 12% for using my credit card.

 

[rammh]

I am doing what disneyfaninaz suggests. I got 500 euros and will break it up for our tour guide tips and if needed for some small snacks/meals. My bank doesnt charge a "fee" but they charged 1.17 when the exchange rate was 1.12 so they got the fee that way. I have read about using my debit card at the airport but I am just too anxious to not have any euros with me and then pay huge fees because I cant figure it out.

If we happen to have any left, can we pay it towards our DCL folio? Does anyone know?

 

[ryankski]

I've never taken an international cruise, but have done several land vacations around the world. I always get a little money from my bank beforehand. Usually enough to get a metro card plus a bit extra. If I go to my banks main location there is no charge (it's $7.95 if they ship it to a different branch) but they do give a less then desirable exchange rate on both ends (exchange from and to USD). I figure this is a cost of travel and when not getting a bunch of foreign currency isn't too bad .

My first international trip was Stockholm and I had no swedish kronar as I was going to use the ATM. However, for some reason the ATM was not working. I ended using a money exchange service which was more expensive then a bank .

Also in Tokyo only certain ATMs accept American cards (7-11, Family Mart, or post office). We created our own layover in Tokyo on the way to Sydney with three nights in Tokyo on each end. On our second landing in Tokyo I did find a 7-11 ATM in the airport in a different location from the others, but had I not had some yen in cash I'd have been wasting precious time looking for an ATM.

Although banks charge an unfavorable rate I personally don't think it's a bad idea to have some of the foreign currency to save you from running around for an ATM when I'd rather be exploring.

 

[scgustafson]

We get our foreign currency through our local Wells Fargo branch, which has no fee, just a bit of a more favorable conversion rate for them. Both of our banks have less than favorable fees for foreign ATM transactions, so it is easier and cheaper to pick-up the foreign currency here and use that in conjunction with our no foreign transaction fee Visa card.

 

[gotomu212]

I've never taken an international cruise, but have done several land vacations around the world. I always get a little money from my bank beforehand. Usually enough to get a metro card plus a bit extra. If I go to my banks main location there is no charge (it's $7.95 if they ship it to a different branch) but they do give a less then desirable exchange rate on both ends (exchange from and to USD). I figure this is a cost of travel and when not getting a bunch of foreign currency isn't too bad .

My first international trip was Stockholm and I had no swedish kronar as I was going to use the ATM. However, for some reason the ATM was not working. I ended using a money exchange service which was more expensive then a bank .

Also in Tokyo only certain ATMs accept American cards (7-11, Family Mart, or post office). We created our own layover in Tokyo on the way to Sydney with three nights in Tokyo on each end. On our second landing in Tokyo I did find a 7-11 ATM in the airport in a different location from the others, but had I not had some yen in cash I'd have been wasting precious time looking for an ATM.

Although banks charge an unfavorable rate I personally don't think it's a bad idea to have some of the foreign currency to save you from running around for an ATM when I'd rather be exploring.

Just because you mentioned Sweden and ATMs I wanted to add, I worked and lived there for awhile a few years ago and they have gone almost cashless. Many stores don’t even accept cash, couldn’t use it on the buses, and the banks by my apartment didn’t even keep cash onsite or distribute it. If you aren’t prepared it can be really eye opening to have a restaurant refuse cash (public toilets don’t even take cash!)

Several countries in Europe are moving this way, though none as fast as Sweden. My big suggest for Europe is to get a credit card with no transaction fees and use that.

 

[Ralph&Pam]

I have both credit card and ATM card from a local credit union. They charge no foreign currency exchange fees and also reimburse any ATM fees incurred. I use the credit card for most needs, but get local currency as needed at an ATM for miscellaneous other expenses.

 

[sunmoon620]

We always pull money out of the first ATM we encounter. The exchange rate is much better than getting the money here in the states. Make sure you check your international fees for you credit/ debit card. Choose a bank that will not charge you. If you are flying in to your embarkation port, there will be ATM's at the airport. More often then not a chip enabled credit card will suffice unless you are leaving cash tips..but with uber...we didn't even need cash for that most days.

 

[PsylockeSmythe]

We ended up using our local bank for the Euro's; the fee was waived due to the business relationship the bank has with the owner of where I work. We used Euro's to pay for everything while on shore; only taking what we thought we would spend. Both credit cards I have would charge a transaction fee for foreign transaction; so it was better for us to pay in Euro's.

Psy

 

[jrabbit]

To Reiterate:

• ATM and Debit cards will give you the best exchange rate
  • Use a BANK ATM .... do NOT use ATM's that are NOT Bank ATM's - so Not TravelEx ... or any ATM with "ex" in it's name
  • Look for the symbols on the ATM that matches your card (ie: Plus or Star networks)
  • Most airports will have BANK ATMs. However it seems like TravelEx is placing more machines in airports
• With Chip and Sign Credit Cards (the kind we have here in the USA)
  • when making a charge ... ONLY select "Local Currency" (Euros, Francs, Krona, etc) otherwise the vendor can make whatever exchange rate they want (you will come out on the short end ... guaranteed)
  • IF you have a PIN with a USA issued Credit Card (Europe uses the Chip and PIN technology) do NOT use the PIN!! At least with Chase and Citi, using the PIN will make it a Cash Withdrawal transaction, meaning you will be paying 20+% interest from the second that you make the transaction until such time that you pay your card down to a ZERO balance (not just paying the last statement in full)