ATM or credit card

For many travelers, buying Euros at home is a comfort level to be sure you have them when you land. Normally, you will pay 4%-5% to your bank for the privelige. As for ATM fees, it depends on the type of card you have. Our Charles Schwab debit card doesn't charge any fees. I believe that Capital One and many credit union cards don't either. If you have a BofA debit card and are fortunate enough to be in England, Germany, France or Italy, you can withdraw from global partner banks for no charge. As using your credit card to withdraw, I would suggest that you think through that option. When you use your credit card to withdraw cash, you are borrowing the bank's money. There could be immediate fees but for sure you're up around 16% or higher if you let the balance remain. At least with the ATM debit card, you are withdrawing your own money. True, there is usually a 1% fee plus a 3%-5% fee if you have a card other than a no-fee card. Switching to charging purchases on your credit card, I see those nasty credit cards now adding 3% onto your international purchases. This happened to us on our Chase card last fall in France. Big surprise. They never use to do this.

Thanks Larry for your quick response. I figured I will use me credit card whenever possible but for needing to get a euros, I will use my ATM card. I will have to get Euros once I arrive because our first destination (Geneva to Chamonix, France) has a bunch of tolls. I will try to use my credit card but not sure if all toll booths take credit cards so will probably need some Euros to be safe.

If you use a credit card to get cash from an ATM it is a cash advance on which interest of upwards of 20% APR accrues from that day on, there is no grace period to the due date of your bill to avoid interest as there is with charges. If your bank tells you there is no charge for getting you Euros, then you had best see how much you are losing in the exchange rate. With the various bank ATM cards with no fees (and no fees are charged by the European ATMs that are bank-owned) the system (PLUS, Cirrus, etc) charge amounts to about .8% loss on the published daily exchange rate You should be able to easily find a bank-owned ATM in any European airport or train station you arrive in (including countries not on the Euro) As for using your credit card for purchases, Capital One does NOT charge the 3% international fee and your purchases are made at the exchange rate at that time (as long as you don't let the merchant have it process in dollars, which DOES cost 3%)

Tracey, glad you mentioned tolls. From our experience, they seem to take chip & pin credit cards only. None of our 3 cards would work. We too were in Chamonix-Mt. Blanc. You'll love it. As you approach the toll booth stay to the right. It's usually, the right booth or the one with the blue neon agent's head (best I can describe it) that is the cash booth. Occasionally, none are staffed. Make sure you have cash. As I recall, our trip from Chamonix to Burgundy cost 15+Euros in tolls. We had lots of coins and several 20Euro notes. As a side note, we stayed at L'Oustalet which is two blocks from the cable car station and an easy walk into town. Free parking. As for dinner, we ate at Le Caleche (a bit rowdy but great fondue) and Atmosphere (much more quiet and great food).

Just clarification to Larry's otherwise very spot on post - buying Euros in the US will cost anywhere between 5-10% over the interbank rate. Using an ATM in Europe costs between 1-4% above the rate. So for getting some "comfort" cash beforehand, the cost is negligible. But in general, it's much less expensive to use the ATM even if your bank's fees are somewhat high.

If you're flying into Geneva, there are a few bank ATMs at the airport, and while Switzerland has its own currency, I believe you can also get Euros at those machines. And yes, you need a chip and PIN credit card for tolls if you don't have cash.

As others have mentioned, getting currency before the trip or waiting until you get there is a personal preference. I prefer to have some local currency with me when I arrive. DO NOT use a credit card to get cash from an ATM because that is a cash advance and the interest is insane. The percentage varies by credit card but it is very high. HOWEVER, I would suggest that you call your CC company to get the PIN for each credit card you'll bring. Memorize the PIN(s); don't write them down. In the worst-case scenario (something happens to your ATM/debit card, no one can wire you money), if you need cash and have no other way of getting it, it's good to have the CC PIN. NEVER USE IT unless you absolutely have to. The fees at ATMs depend on how much your bank or credit union charges. My credit union charges a $1 foreign-ATM fee for each transaction. As of 2 years ago, US Bank charged $2 per transaction plus a 3% fee per transaction. Find out the fees before you go so there won't be any surprises.

Hello Tracey, I just went through the same issue myself. Most people I talked to who traveled to Europe before were against bringing Euros with them and would rather just get at the airport or elsewhere on their travels. Still, I personally feel safer bringing some Euros with me, especially in the event that my ATM cards do not work or there is an unforeseen problem. I just ordered Euros from my bank on Monday and should get them by Friday. You are going to pay a premium no matter what route you go (ATM fees vs. privilege fee plus foreign exchange fees anyway). I recommend doing what makes you most comfortable.

I use a credit union debit card to get local currency from an ATM machine once I land at my destination airport in Europe.
My CU has a 1% exchange fee surcharge and that is the only fee I incur. I have gone to Europe every summer for the last 10 years (or is it 11?) and feel very safe waiting until I get there to get local currency. As others have said, using a credit card to get local currency from an ATM or bank in Europe is a cost that I choose not to afford. I try to pay cash for all of my transactions and often get a discount in doing so.

Lots of wise information here, but I can add a little heads-up hint. The ATMs in British airports may be run by a non-bank operator named Travelex. As indicated above, bank machines are usually the best deal but they may be hard or impossible to find if Travelex has a franchise with the airport. In that case you will just have to accept its fees, which are not obvious when you are standing at the machine half-asleep after a trans-Atlantic flight.

Southam, if you go here: http://www.ricksteves.com/graffiti/helpline/index.cfm/rurl/topic/87767/best-way-to-get-cash.html you will find a recent discussion of Travelex. Look for Bryan's post about how to avoid Travelex's attempt to get you to accept their inflated rate. We often warn people that the ATMs at LHR are all Travelex.

1. My experience is that ATMs in the country are the best value overall. Zero muss or fuss. However, use ATMs that are in secure locations if at all possible and always cover your hand when you enter your pin code. Airports, hotels, or anywhere with controlled access is best. Card skimmers and cash trappers are rare and I've never run into one, but they do exist. 2. YES. Never, ever, ever, ever use your CREDIT card to withdraw cash. The APR for cash advances is usually much higher than your credit APR and the way the system works is that you pay off lowest APRs before you can start paying off higher APRs. For example, let's say you had a $2,000 normal credit card balance from purchases at 12% APR. On your trip, you withdraw $2,000 from ATMs along the way. This counts as a cash advance at 20% APR. Naturally you think, "Well, I'll just pay off the $2,000 when I get home and all will be the same", but what happens is that the first $2,000 you pay them when you get back goes to pay your 12% APR debt and not the higher 20% debt. And that's on top of foreign transaction fees. If you carry that balance for any amount of time, it's a horrible deal. Edited: I meant to say never use your credit card, not ATM card. Always, always, always use your ATM card, not the credit card. :)