Are ATMs really the best way to get Euros (paper)?

Wait until you arrive in Europe to get your euros from a regular bank ATM. You will get the international exchange rate when you use a bank ATM. That’s the best exchange rate available. U.S. banks are going to make an additional profit for providing you with foreign currency if you get the euros in the U.S.

And when you pay for anything while in Europe, always pay in euros or you will get clipped again if you pay in U.S. dollars.

Thanks Kenko,

“You will get the international exchange rate when you use a bank ATM.“

I am finding that banks are playing very loose with their definition of exchange rate and incorporating charges (I guess they can’t use the word fee) to give me different rates.

I’m wondering if anyone in the world of currency trading has investigated whether the banks are using “enhanced” exchange rates being used for ATM transactions to make up for not having to say they are charging fees?

For example: if today's exchange rate is 1 USD to 0.8588 EUR, could I really go to an ATM and take out Euros at that rate? My gut feeling is no, and that instead the exchange rate for both ends of that transaction will be different and the banks will make money on the exchange, and not just because of different rates on difference settlement dates.

The European banks will use the international exchange rate. Occasionally the ATM will advise you there is a nominal fee of something like $3 to use their machine. This fee is refunded when I use my credit union ATM card and often investment bank credit cards such as Vanguard, Fidelity etc. will refund the stated fee to you.

You have to check with your bank to know exactly what their policy is.

Using a debit card to withdraw Euros rather than a credit card is also a good move because banks will charge the withdrawal done with a credit card as a cash advance and interest begins on the day you make the withdrawal. Using your bank debit card avoids this.

Personally, I never get euros in advance but wait until I am in Europe before getting them. I’ve always withdrawn Euros on the second day after arrival from a local bank that Italians bank at. Of course, you won’t know what any particular bank’s specific charges are until you do a test run at their ATM. You can proceed with the transaction or cancel it and try a different ATM.

I just returned from Milan a week ago and brought home €120 to have pocket cash at the beginning of my next trip.

This Rick Steves’ site explains a lot of this if you look up “Tips on Using ATM’s in Europe.”

You're never going to get the published bank exchange rate because you're not a bank (and TBH, most banks probably aren't getting that rate either). Financial institutions are not in the business of working for free, so you're going to pay for their services ("hidden" or not).

Unless you're in need of thousands of Euros, the difference in exchange rates for various options is pretty nominal compared to the overall cost of a trip. Among the reasons I use an ATM in Europe is so that I am not carrying around a lot of cash at one time (and risk having excess to bring home). I've also purchased currency before a trip to save the trouble of seeking out an ATM that will take my card. Either option was worth the cost, to me. YMMV.

Thanks Kenko and CL,

"You have to check with your bank to know exactly what their policy is."

That's what got me started :) I called the bank and they said they don't have a fee, they just have "their" exchange rate... which wasn't close to todays rate.

"Unless you're in need of thousands of Euros, the difference in exchange rates for various options is pretty nominal compared to the overall cost of a trip. Among the reasons I use an ATM in Europe is so that I am not carrying around a lot of cash at one time (and risk having excess to bring home). I've also purchased currency before a trip to save the trouble of seeking out an ATM that will take my card. Either option was worth the cost, to me. YMMV."

Good safe advice, and where I think I'm landing. It's not a lot of money and either is a fine way to go. The benefit of getting it now is that I know exactly what the cost is going to be, and we can spend less time at an ATM and more time wandering around the streets of Sicily.

thanks again

A couple more tips: Using ApplePay works about 95% of the time. That avoids having to carry cash as do credit cards. There is a company called “Euronet” that has an extremely high number of ATM’s in areas tourists are concentrated. Euronet ATM’s are to be avoided at all costs because they have usurious rates that are shocking. I checked on how bad it is and in one town they were charging a fee of 15% on top of other fees in the overall withdrawal!

That is predatory and you don’t want to be Euronet’s prey!

Have a great trip!

I wonder if you are confusing the Interbank rate (the exchange rate between banks- which you as an individual cannot get) and the ATM rate which is the rate for customers. Of course the latter will be different than the former. But if you have an ATM account that doesnt charge fees, and/or refunds fees charged at the other end, that will be the best you can get. If you get foreign cash from your own bank at home, they may use a different rate and/or charge a fee for that service. And the usual advice is to use an ATM at an actual bank, or iwned by a bank, and not a commercial ATM like Euronet

Hi Jean

The rates that I quoted above was the current forex rate (1 USD to 0.8588 EUR). The other rate of 1 USD to 0.795 was a quoted rate to purchase within the states, they just mentioned it was "their" rate?

I don't know what the "the ATM rate which is the rate for customers" is. Is this a currency exchange rate that the bank "makes up" and may include other markup costs?

If banks are saying they don't charge fees on foreign ATM withdrawals, but they aren't matching the forex rate, it's a fee. And, I fully understand that banks are in the business of making money. But, the idea that seems to be prevalent is that using a Debit card at an ATM to get cash avoids foreign transactions fees and costs, may not be accurate.

The rate you see on Google is the interbank rate. You won't get that anywhere. Be assured, the rate you'll get from an ATM when you're there will be better than what you'll get if you change your money at home. The difference between the interbank rate and what you pay is (mainly) profit for the bank.

"the idea that seems to be prevalent is that using a Debit card at an ATM to get cash avoids foreign transactions fees and cost"

It's the cheapest way of getting cash when overseas. We all know we don't get the interbank rate. Personally i pay by card as much as possible - current rate on xe.com is 1USD = 0.8620 EUR, and my bank is offering 86.09 for electronic transactions.

I posted this roughly 40 minutes ago, pretty amazing all the great responses and wisdom.

much appreciated!

CL and Simon nailed it.

EDIT: I tried to give a little better response below.

I have a debit card from Fidelity that reimburses any ATM fees charged worldwide, so I really don't care if the exchange rate is a little worse at the ATM-I'll pay for the convenience.

First, exchanging money is different than using an ATM. You are certainly right to question what is going on, but individual banks really do not "set" or determine the exchange rate for an ATM transaction, like they do for a currency exchange.

When you go to an ATM in Europe, and seek to withdraw cash, the first concern is if the ATM owner charges a fee, maybe they charge nothing, maybe it is anywhere from 3 to 7 euros. You ask for 100 euros, you get 100 euros, if you are charged a 3 euro fee, 103 euros is forwarded to the network as the transaction amount. Likely one of 2 or 3 major networks will process the transaction and convert from euros into Dollars. They do millions of dollars of transactions and get great rates, typically you can expect that to be about 1% over the interbank rate you see published, but that rate fluctuates by the second, so you could be better or worse than the 1%. That Dollar amount then goes to your bank. They can then charge you fees, the two most common are an "Out of Network" fee, usually a set amount per transaction, which a random ATM in Europe likely is out of network, and/or a Foreign Transaction Fee of a few percent.. Many banks charge no fees. Any fees they charge should be disclosed and they really can't fudge with a conversion rate.

None of the ATM cards I have charge fees, one actually reimburses me for fees ATMs charge.

Be warned though, ATMs know that you bank in Dollars, so they might nicely offer to do the transaction in Dollars, so you know exactly what the exchange rate is. Don't do it, they are taking you from an ATM transaction to an exchange transaction, and they set the exchange rate. This is called DCC (Dynamic Currency Conversion) and the rates are always worse than what the network will give you, ranging from 2% on up, 8 or 9% is common. You also encounter DCC when using a credit card. Always choose to do the transaction in local currency (euros) and decline any offer of conversion.

I compare the international exchange rate with the rate offered by Bank of America. I have all the receipts where I noted what BofA charged and the international rate, telling me what can be reasonably expected, it's a difference of .6. If the int. rate in $l.06, then I can expect BofA to charge me $1.12, no fee for the transaction as long I withdraw one thousand dollars (the minimum) from my checking account. For example, on 24 Dec 2024 the int. rate stood at $1.03 (almost parity, it's not going to get batter than that, so no use waiting), BofA charge me a rate of $1.09 (fair enough), when I decided to take an additional $1, 552 from my account to bring over in Euro.

With the present rate of $1.17 to the Euro, it's bad and I don't expect it to go back to a more desirable rate, say, $1.12 or lower. The $ starting sliding once the tariffs were announced, the sliding stopped at $1.17, charged , say, to your purchase price in Euro, say, 22.55 Euro x 1.17 = ? is what you pay.

Bottom line : it adds up fast. Then it depends mainly on you travel style. I have no problems carrying large amount of Euro cash after taking the usual security measures, basically interested in or concerned about getting picked. It's not going to happen.

Please reread Paul's recent post. He has given you a clear, full explanation.

If you are seeing exchange rates at a European ATM, you are seeing what will happen to you if you foolishly accept the DCC offer and allow the ATM owner to set an exchange rate that will be different from (and much, much worse than) the rate you will receive if you simply withdraw money without conversion. If you conduct the transaction in euros (or whatever is the local currency), there will be no conversion done at the ATM, just the modest (I think about 1%) difference from the interbank rate as your withdrawal goes through the clearning process.

And yes, it's equally important not to fall for DCC when you pay by credit card--actually more important, because you will probably be paying for a lot more things by credit card rather than with cash. Accepting DCC is a good way to increase the cost of your trip by a substantial amount with no benefit to you.

Unless you're planning to exchange tens of thousands of dollars, this is all rather moot. As noted above, no one is going to change money for free (nor should they). You gotta pay somebody and wherever you end up, there's not going to be a ton of difference.

Let this be the least of your worries on your trip.

I have a Schwab VISA debit card that serves as my ATM card in Europe. I was in Prague last week. Every ATM I encountered in the old town had a terrible exchange rate (taking somewhere around a 10% cut of the exchanged money). Most were Euronet, but a Czech Sparkasse (bank) I checked also had about the same rate. I didn't use any of those, but there was a bank at the border of the Old Town/New Town by Powder Tower that became my place to get cash. The amount I received was almost dead on the published exchanged rate. That ATM did offer dynamic conversion, which took about a 7 percent cut as I recall, but I of course declined that.

Lots of great responses, this certainly puts it in perspective…

if you believe you paid 5% too much on the exchange, then add 0.1% to 0. 25% more to your trip cost. Is that worth worrying about? Go enjoy your time instead.

Or

Let this be the least of your worries on your trip.

I agree with both, and appreciate all the info.

Ciao!

Use the ATM. As noted it is hard for an individual to game the system better than the banks who deal with millions per day. Also consider that when I began booking our summer vacation last spring (with euros) the exchange rate was about a 10% difference, and the rate on our last transaction in Europe in August was close to a 25% difference. NOT because of bank fees but because of the decline in the value of a dollar versus the Euro because of US policy changes.

Start with what is the extent of the issue? A midrange two-week trip to Europe for a couple might cost $6000 including airfare. And let’s say your daily expense for food, entertainment, entrance fees, guides, etc. is $200 a day. In most of Europe, and there are very real exceptions, you can pay for all of it on a credit card. But if you did need cash, let’s say cash averages 10% of your daily expenses. That’s $20 a day or $280 for the entire trip. That would be 4.6% of the cost of your holiday.

If one were to pay 10% “too much” on the conversion that adds $28 to your trip. There are more important decisions to be made than a 0.46% increase in your trip cost. But do consider where you are going because there are still islands of cash only in Europe. And everyone’s travel style varies. Run your own numbers for your trip and consider.

You travel for enjoyment. For some people every penny counts for psychological reasons, and they trip would be less if they know they paid a half percent too much; but for many the worry of the half percent is a distraction for the fun of the travel. Do what works for you.

The only “method” to all of this that I would keep in mind daily is always draw and pay in the local currency and let your bank do the conversion. It is easy and doesn’t require any thought. The rest, below, for me at least, isn’t worth the effort of worry as illustrated above.

You won’t get the rate that a google search will give you: Probably not and buy and sell rates can vary 3% or more. Every change house charges a fee. Some say no fee, but that just means not as good a rate.

Never use a private ATM like a EuroNet: No, use them last. If you find yourself in a situation where you need the cash and the Euronet is 30 feet away and the Bank ATM is a 10-minute walk in each direction the Euronet begins to look better. Know that the fees are often fixed fees, so they remain the same regardless of the amount taken out. Sometimes they are graduated with the amount taken out. If the fee seems high, cancel out and try again with a much larger withdrawal and see if it looks better. They are not taking advantage of you. The machines and the rental for the location cost and it’s a business designed to make a profit in return for providing convenience.

Always use bank ATMs: The theory is they don’t charge fees. Many do, my bank in Europe dose if you don’t have an account, and they can be as high as the Euronet. They can also be fixed so do the same test to see if it becomes a better deal if you withdraw more cash.

Never get the cash before the trip from your bank at home: Depends. Some banks give good rates with low fees. Some do that for everyone and some for preferred customers. Look at the cost, then decide based on your position. For comparison google the VISA rate for the day and see if they are similar.

Look for ATM cards that refund ATM fees. Some do. Its another bank account you have to mess with, but for frequent travelers that spend a lot of cash, maybe its worth it.

Are people simply accepting that when banks say they don't charge fees at foreign ATMs that it's the best solution, but in actuality banks are giving worse exchange rates via ATMs and taking their cut without it being a fee?

Listen to Paul

Unless you're planning to exchange tens of thousands of dollars, this is all rather moot. As noted above, no one is going to change money for free (nor should they). You gotta pay somebody and wherever you end up, there's not going to be a ton of difference. Let this be the least of your worries on your trip.

And I tend to share the same sentiments as phred and Me E.

Capitol One and Charles Schwab are the notable exceptions, but most banks are charging an international transaction fee.

If one is wanting cash there's essentially one of two choices - buy it from your bank prior to travel or withdraw from an ATM.

Purchase currency from the bank, and you are getting currency at the buy/sell rate. Yesterday was $1.16 to €1, and Wells Fargo's sell rate (the price you're buying at) was $1.22 to €1.

Purchases or ATM, will convert near the exchange rate on the day the transaction was processed. My €8 and change charged at the Berlin hbf McDonald's on October 2nd was processed on the 3rd at $1.17. Again using Wells Fargo, the conversion will probably be at about the exchange rate for the Euros withdrawn and the ATM owner's fee. Then WF will tack on $5 for using a non-WF international ATM and then 3% foreign transaction fee.

Buy currency at the bank at $1.16, buy €100 you may pay $122.
Withdraw €100 from an ATM with a €3 fee and you may pay about $128.

Of course I am not going to keep track of every bank and every possibility.

I agree.

It was a good exercise, and I have a better understanding now. My takeaway as stated best by those above.... enjoy the trip.

But:
- Don't use private ATMs
- Don't use "Dynamic Currency Conversion, and when purchasing with a credit card the transaction should always be in the local currency
- Use Credit Card as much as possible for purchases
- Use only Debit Card for getting cash - hopefully one that will refund charges and has no fees
- Buying dollars in the states, may still be okay, especially for convenience as long as the rate is close enough.

And after following those rules, any means of getting Euros is not going to have a big enough impact on the overall cost of the trip to worry about. Thanks!

Using my no fee to create, maintain and use debit card, current rates are $1.159701 USD per euro. If I can easily save money while traveling, then I do so.

The "extra" cost of getting 100-200 euros from your local bank before leaving in nothing compared to the overall cost of the trip. That said, there is another aspect to consider.

On arrival you will be tired, jet lagged, sleepy, on new turf, and probably in awe of where you are. Most people (self included) don't need to be handling sharp instruments or operating and ATM under those circumstances. In addition, there is the problem of finding a "real bank" ATM, waiting in line to use it, and hoping all goes well. ATMs have been know to malfunction and do run our of currency at times.

Regardless, be sure to check with your bank and or card provider to see if you need to place a travel alert on the ATM and / or debits cards. Some do and some don't

Just offering food for thought.

" Most people (self included) don't need to be handling sharp instruments or operating and ATM under those circumstances."

... sounds like you've seen me get off of an overnight flight before

Yes, I've already decided to just get some Euros before the trip, as I've done before. I started this thread to make sure that I wasn't doing something really awful by trading a couple dollars for convenience.

Convenience is worth something. Yes, sometimes it costs. Not worth worrying about. I once traveled with someone who wasted two hours looking for just the right ATM.

There is no "official" government regulated "exchange" rate. You buy it at the price the seller sets.

If the international rate is $1.16, using the above example Wells Fargo charges $1.22, fair enough. Obviously one expects the bank to make some profit and obviously it won't sell you the withdraw amount at the international rate. I would much rather take out one thousand dollars to avoid the transaction charge as is the policy of Bof A.

If you have no problem carrying large amounts of cash in Europe, then no problem, pay in cash.

I have done both and can attest to the fact that it's cheaper to get Euro banknotes in Europe ATMs than the banks here in the US. These days I rely mostly on credit card; but the massive 2025 Iberian Peninsula blackout reminds me to always carry some paper cash when traveling. I usually bring home about €100 cash for my next trip.

Note: when given the options I always pay in domestic currency when using credit card; the exchange rate will always be better.

To learn of the current VISA brand (the debit card I use) foreign exchange rate from an affiliated bank, search the internet for VISA exchange rate calculator and enter the amount of currency you wish to exchange or wish to receive. There is a box to enter the bank fee rate…mine is 0%. It couldn’t be easier nor more cost effective.

The following has always been the case when I've checked. As far as I know, it still is.

Certain institutions, like Cirrus, Plus, et al, known collectively as "The Network" pay the ATM owners in local currency, then bill your bank in US$. They bill your bank in equivalent dollars per the current Interbank rate, then add 1% for handling the transaction and converting the currency.

Some financial institutions, like Citibank, eat the 1%, so you pay for your withdrawal in equivalent dollars. Other institutions, mostly credit unions like mine, pass on the 1% fee to you. Wells Fargo charges $5 for an up-to-$500 withdrawal, about 1%. Other banks, like Chase and USBank, charge you the equivalent dollars and add a 3% fee, i.e., a 2% profit for them, just for giving you your own money.

For my last few trips I used Wells Fargo and my credit union debit cards at Deutschebank ATMs and checked the receipts when I got home. I always was charged the Interbank exchange rate, plus the $5 or 1%. The Interbank rate changes constantly during the day and the Network probably charges you the maximum rate for the day, but only one rate is shown on websites, so it might look like I'm charged a little more or a little less, but always close to the Interbank rate.

But this doesn't always hold true in the case of non-bank ATMs. They often charge their own rates and/or have fees. Others, Reisebank in Germany, for example, tries to get you to take Dynamic Currency Conversion, billing you in US dollars at their higher rate, but if you figure out what they are doing, you can refuse DCC and get the Interbank rate**.

One place you really want to avoid is Travelex. It's not an ATM, it's an exchange service, although I understand at London's Heathrow it runs the ATMs. Right now, at Denver Intl. Airport, at currency exchange desks, it's charging 11% over the Interbank rate according to OANDA.

hey hey hickory
so that was you on that overnight flight!! HA HA
i'm on the side of obtaining euros here in states (100-200E) before flight at wells fargo. made sure i received small bills (5, 10, 20) even when you go to ATM in italy, ask for 95E instead of 100E where you get one big bill.
years ago, my first trip to rome got off plane along with 2 other planes landing same time. passengers running like cockroaches to ATM to get euros OMG!!! one machine "out of order" with lots of pi_ _y people. sooner or later money will run out. turned to my friend, can i borrow 50 or 100E till we get to town just to have cash for taxi & food. we both laughed, of course, paid her back in town. from that point on in all my other trips to europe got euros ahead of time. nowdays getting off my flight, looked to long lines at ATM or euronet and waved with a big smile. was so worth the $20-$25 i paid here than worrying about the fee or % over. ate cheaper in rome or one less cocktail or glass/bottle of wine. no worries or stress. stressed spelled backwards is desserts : )
aloha

I don't bother to get euro before going to Europe because every time I go to Europe I bring back about 500 euro to have with me at the start of each trip.

Once, I was going to be staying in a small German town with free rail transportation to the Czech border. I was going from there to Prague, and wanted to buy my tickets at the border, at Czech prices. The host were I was staying had told me by email weeks before that the ATMs in town did not give out Czech Koruna, so I bought a small amount from Wells Fargo here in Denver before I left. Other than that time, I've never purchased currency here before I've gone.

But if you do, I've found that Wells Fargo sells euro at about 5% over the exchange rate. They set the exchange rate first thing in the morning at the Interbank rate, so as the rate changes during the day, you might pay a little more or less than 5%. At the time I did the study, Wells was 5% over, Bank of America was 5½% over. I think BofA has since come down to 5% over.

I always try to pay using my credit card either via the actual card or by Google Pay.

However, I always have some local currency on me. (In most cases, in some countries I never got any local currency and did fine.)

There is nothing wrong with getting foreign currency prior to leaving if that is what you want to do. Considering what you are paying for your entire trip, is a few dollars more for peace of mind really a problem?

Get enough to get started and realize you can always get more once in Europe.

BTW, don't forget to let your bank know you will be traveling if they still require it.

The "exchange rate" you see online etc is the bank rate. Not the rate when we change money - when we change money we are "purchasing" euros, not just swapping our currency out for their currency - so there will be about a 10% differential. If you are purchasing the euros from your bank, they had to have purchased them in the first place and they are not just doing us a favor by swapping currencies without some sort of profit for the risk they are taking for buying the currency in the first place. If you are in need of a currency like pesos or a South American currency, that usually needs to be ordered in advance since it can be so devalued. Pounds and euros on the other hand, are usually on hand (depending on where you live). Do NOT go to a currency exchange window where are the selling currencies at inflated costs, this is a business, not a courtesy for travelers. If you are using your credit card, it's the bank rate. And that fluctuates constantly. Have some euros ahead of time for your comfort level and get what you need from the ATM, and like you said, different banks charge different fees, if you are lucky to have a cc that charges no international fees, that is the way to go for purchases.