Cash Passport

My credit union offers this, and as far as I can tell, there is no advantage to having it over having a regular ATM card linked to a travel checking account. There is a setup fee, and then you preload the card with your vacation budget (dollars, not euros). You then use the card to withdraw money from ATMs as you go along. I asked my credit union why I would want to do this when they don't charge me anything to use my regular ATM card in Europe, and they didn't have an answer. It's like any prepaid debit card, nothing special. As for the Travel Ex version, I'd be very careful to check their exchange rate if they load the card with euros. They are most likely charging a much higher rate than you could get just making regular withdrawals. Also check to see what their setup fee is.

laura,
Well they didn't lie to you. You can pay 7% one time on the entire amount with cash passport or pay 1% on the amount you withdraw each time with your ATM card.

In the past pre-loaded cards have had high fees -- in the range of 7 to 10%. Sometimes the fees are not obvious because the fee is buried in the exchange rate. I don't know what you mean by, "one conversion fee instead of multiple." You only have one conversion fee when use a debit card. Same for a credit card.

Laura; Your Comment: "As for money I can also order it from Bank of America for 7.50 shipping and handling. They do not charge otherwise." is not exactly true, you pay no fees on top of the exchange, but the exchange rate you pay will be several percentage points above the Interbank Exchange rate, and above what you will get at an ATM in Europe, in essence, still an exchange fee. As an example. If I were in Europe today, and not paying any ATM Fees, 100 Euro would cost me about $128 and change (Interbank rate of 1.2710 per Euro plus 1%) If I order from Bank of America today, that 100 Euro would cost me $132.58 plus the $7.50 Shipping, or about $140 (BoA's current exchange rate is 1.3258 per Euro) So regardless if they say there is no fee, no commission, etc. it all comes down to when all is said and done, what did the 100 euro cost me? Now in the above example, the more euros you buy from BoA, the less impact that $7.50 shipping fee has, but it is nowhere near the deal you get at the ATM.

Frank, I think she means that your money is converted to euros before the card is loaded (the "one conversion"). Then you'd just be withdrawing euros from euros with no conversion fee at the time of withdrawal.

I do not trust anything related with Travel Ex. In addition to fees related to the card, they can and regularly do use a different base. Let me give you an example... I wanted to get some euros before we went to France this Fall.I called a bank where we usually got a good rate and they said they did not deal in euros anymore , but had a Travel Ex office at the bank for euros. When we left on our trip the rate was $1. 40. The Travel Ex man told me it was $1.89. Right. This is why AAA now uses a different company for their prepaid money cards and a different place for euros. At some airports you will see a Travel Ex ATM. I would never get money from them either.

I have never had any dealings with the Travel Ex before but they did give me an overly high euros to dollars exchange rate. I just wanted to have at least 50 euros on me when I landed in Paris. Just so I didn't have to rush around looking for an ATM to get money for the RER B train ticket.

While I was at my bank yesterday they gave me a packet about fees and one of the fees was for conversion rates internationally 3%!!!! That seems really high, but the packet also says that for 3.00 flat fee I could buy euors at the going rate. Then they gave me the run around and eventually they gave me the number to Travel Ex. So I guess I am back to square one with no euros before I get to Europe:(

Laura - just wanted to post a reassuring message that landing in Paris without any Euros ahead of time is not bad. ATM's are everywhere, especially in airports. We didn't bother to purchase swiss francs ahead of time when we landed in Zurich this past March, nor rupees when we went to India, etc. We bring Euros back, but if I forgot them I wouldn't be worried in the least - and even though I have a few Euros on me when I land, I go right to the ATM and get my first large withdrawl before I leave the airport. On the other hand, if it is something that will make you stressed out, the additional cost for 50 Euros purchased ahead of time from your bank would not be that much - or rather, YOU might feel it worth the few extra dollars.

I just went on to Travelex.com and went part way through the process to purchase one of their cards. The minimum purchase is €150, for which they wanted $222, with mandatory next day shipping. According to Oanda.com, €150; is $191 today at the Interbank rate. The Travelex card would cost you over 16% with shipping, plus they charge a set fee (€1,75) for each withdrawal (makes that bank's rate of 3% look downright reasonable).

With the Travelex card you would still have to use an ATM, so your thought of not having to find an ATM doesn't make sense. If you want CASH, get it through Wells Fargo. They only charge 5% over the Interbank rate and $8 for shipping, but there is a minimum for online purchase.

Let this be a lesson to everyone. If you want a few Euro on hand when you arrive next time, bring it back from this trip. For now, try a different bank, preferably a major one. I know main branches of Wells Fargo will sell you foreign currency over the counter; small branches will order it in. Bank of America and Chase also have foreign currency operations.

I am going to open a Bank of America checking account. They have affiliate banks all over Europe: France BNP Paribas, Deutsche Bank ... There is no ATM fees at these banks and only 1% transaction fee. This is the best I have found for ATMs.

As for money I can also order it from Bank of America for 7.50 shipping and handling. They do not charge otherwise.

http://www.bankofamerica.com/foreigncurrency/index.cfm?template=fc_faqs.cfm&state=IT

Laura, 3% is a pretty standard conversion rate for ATM and credit card usage. That is not unreasonable. It will vary because it is the credit/debit issuer that determines the rate after the network adds it one percent. Advice will vary but I think it is prudent to have 50 to 100 Euro in your pocket when you land. There is always the possibility that the ATM is broken, empty, or your card doesn't work. Adds a level of stress that you do not need at that time.

In addition, as a personal policy, we never use a stand alone ATM unless it is an absolute emergency. We always use an ATM attached to bank during open hours. If an ATM has been tempered with it will be a stand alone. And KNOW the exchange rate by checking the paper the day you leave so you have a bases for knowing the fees added if you have to do something other than an ATM.

Laura - actually, if you are willing to open a new bank account the best deal that I have found is Charles Schwab. I have a BofA account as well and the Schwab one is much better. There are no ATM fees for withdrawing from any ATM - you don't have to search only for a BNP branch. The exchange fee is stated as 1%, but I have to tell you that I doubt it is even that high - looks like 0 from my statements and comparing to BofA card usage. You can get all the details from them, but I have used Schwab for the past 1 1/2 years - ever since my daughter went to France for the school year and we needed a better deal for her to use as well. We are VERY happy with it, check it out before you open BofA.

laura,
If you want a new account see http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange
for a list of what banks charge.

I can also order it from Bank of America for 7.50 shipping and handling.

Compare their exchange rates. BofA normally charges about a ½% higher discount rate than WF. I once tracked both for about 6 months and BofA was consistantly higher, on average.

Since you don't want that much, it might be a good idea to check their minimums, too.

To get cash both Wells Fargo and BofA have pretty good rates 1.32, and both have fast delivery.

WF $8.00 s/h min $200.00

BofA 7.50 s/h min $100.00

What is the rate in Europe...lower than 1.32? I looked on google and it said 1.27 but isn't that only when dealing in millions not hundreds.

Converting $500.00 USD to Euros

WF 378.52

BofA 503.80 = 380

Travel Ex 360.45

Right, you cannot get the Oanda rate yourself. But, it is good for reference.

Most major banks, those with their own foreign currency ops, charge you 3% for ATM transactions. Smaller banks, like the one I use in Denver, without foreign currency ops, can only pass on the 1% "network" charge.

Lee and Paul, Do you get the Oanda rate at European ATMs?

Do the ATM machines also charge a conversion fee, or since you are taking out euros that wouldn't apply?

YES !!! or at least pretty close. That is what everyone is trying to tell you. At an ATM you in Europe you will get the Interbank rate plus a 1% (or less) network fee buried in the exchange rate. So if the interbank rate is 1.25, most likely the ATM rate will be 1.26. THEN, your card issuer may charge you an additional currency conversion fee ranging from 1 to 3%. Or they may charge a flat usage fee plus a percentage. It is entirely up to the card issuer --- SO ask them the rate for currency conversion. Some cards charge nothing. A Capitol One credit card is zero today (could change tomorrow). A debit card at an ATM is the cheapest way to obtain foreign currency.

Sorry I just didn't get it now I understand! Thanks for hanging in there with me, this is my first time traveling internationally and dealing with another currency.

Not anymore. The Interbank rate, also called the peer-to-peer rate, is the rate at which banks exchange different currencies amongst themselves. The banks have to make money somewhere (poor banks), so they get it by charging you more for Euro than they pay for them. So, the rate you pay at an ATM can be 1%-3% more than the Interbank rate.

How many withdrawls would you take for a two week trip for food and souvenirs? (I realize this all depends on how much you spend on food, gifts, gadgets ect...)BofA has a $1000.00 daily ATM limit so I am thinking probably 4 withdrawls one in each city and one at my arriving airport. Does this sound about right, I have a money neck wallet but I'm still leary about carrying large sums of cash?

OK, maybe we need to say more.

The actual transaction, paying the European bank in Euro and billing your bank, is handled by what is called the "Network" (Visa, M/C, Plus, Cirrus, et al). They do this for 1% (approx ½% for doing the transfer and ½% for the currency exchange). That's why my small, local bank, without a currency exchange operation, charges me 1% for the ATM transaction. However, major banks, like Chase, WF, USBank, etc, have foreign currency operations, so they can pay the "Network" in Euro, thereby avoiding the ½% fee, and then they charge you 3% for currency exchange (nice guys, huh).