ATM vs. Capital One credit card

There is no downside except that sometimes you can get a discount for using cash. You need to balance the advantages. And there is little advantage if your ATM would charge you a currency conversion for obtaining cash. Generally, not always, ATMs can be cheaper than a credit card but Capital One is one of the exceptions.

Some, but not all, Capital One credit cards will do currency conversion for you (euros to dollars) for a 1% upcharge. Some debit (ATM) cards will include the same fee. Most credit cards from Bank of America, Chase, etc. and some debit cards will charge 3%. You will need to check with your bank.

Of course, with a credit card if you don't pay by the due date, you will surely incur a much larger finance charge.

Gretchen,

In your case, I think CapitalOne card actually has a slight advantage over ATM card:

1. CapitalOne does not charge a fee, so you end up paying 1% over the official exchange rate by the Visa/MasterCard network. That's also the best an ATM card can do (see http://www.smartertravel.com/travel-advice/Foreign-exchange-part-Back.html?id=284490). Chances are you have a cash reward CapitalOne card so you get about 1% back as a rebate.

2. In case there is a dispute on the purchase, your credit card company may provide you with some legal protection. For cash purchases, you are on your own.

CapitalOne doesn't even charge the Visa 1%. I just charged 100 euros to my Capital One card as a down payment on an agriturismo, and $132.77 was charged to my card, that's exactly the latest interbank rate. I definitely think it's great to use the CapitalOne card as much as you can - especially for bigger things like accommodation and purchases (plus, I don't know about your CapitalOne card, but mine gives me 1% cash back on everything!). I don't see any downside to using the credit card as much as possible, I totally agree with you and I use credit everywhere I can every day. Use the CapOne card and rejoice when you see your statement and are charged NO extra fees!!!

"Of course, with a credit card if you don't pay by the due date, you will surely incur a much larger finance charge."

And if you use a credit card to obtain cash you will pay a finance charge from the minute you get the cash, since this is considered a cash advance.

I guess you do need both,, but really, having cash on hand is so important,, you can't count on places taking a credit card,, especially small places. No one buys an ice cream cone with a CC , and I personally would not feel comfortable using a CC for small purchases from travelling peddlers, or small little set ups,, I keep my CC as secure as my Passport , I don't like just handing it around to assorted people.

That's a good point, Pat.

There have been a lot of stories of people using their credit cards in restaurants, etc, and later major charges showing up on their cards in places they never vistited.

If you are going to be away during the time when your credit card bill is due be sure to have a way of making the payment.

In my experience in Germany, the small, local establishments that provide the most economical and culturally rich experience don't take credit cards. If you are staying in places that do take cards, you are probably paying far more than you would at places that only take cash.

Thanks - very helpful input!!

One last questions (before I head off tomorrow)... I'll take some US currancy with me of course, but can I plan on accessing an ATM at the airport when I arrive to get local currency to start off with?

The short answer is -- probably. ATMs are readily available in airports. Just make sure it is a true ATM associate with a bank. And not a private ATM.