buying Euros before you go to Italy

What was the Interbank rate at the time of your purchase? I'll bet it was around 1.59. Wells Fargo "bumps" the exchange rate to essentially hide the fee. That doesn't mean you got a bad deal, but in general, the best exchange rate is going to be had from the ATM at your place of arrival.

Sometimes the currency conversion comes with a fee, sometimes it's burried in the rate. While the rate changes daily, recent rates were around 1.56 to 1.58 per Euro. Even though Wells didn't charge a fee, they charged you a percentage which can add up to more than transaction fees at an ATM.

Most people use the ATM because you get the best conversion rate and pay a small fee for the transaction. By limiting the number of transactions (i.e. fewer/bigger withdrawels at the ATM) you can keep your costs for Euros as low as possible.

I wait until I arrive at the airport to get my first ATM withdrawel in Euros. I've never had a problem and ATMs are readily available. It's a good idea to keep a couple hundred in US currency in your money belt. If for some reason the ATMs don't work at the airport, you can use the change booths in the airport as a backup.

I also like to team up on debit cards. My wife and I carry one each for different accounts (and one each credit cards for different accounts). We are both signers on both accounts. If a card is lost or stolen, we can call the bank, cancel the card, transfer funds to the backup account and draw cash using the other debit card. So far we haven't needed it, but it's always good to have a plan B.

Nancy, remember that Wells will charge you a fee for using a non WFB ATM, as well as as fee if you use it as a debit card (a foreign currency conversion fee).

So if you do pull money, do it in larger increments, and be sure to tell WFB you'll be in Europe.

Here's some prior links of the same topic:

click here for ATM question

click here for ATM usage

click here getting euros

In any currency transaction you have to know what the current exchange rate is. The financial page of your local newspaper will have it along with a number of web sites. You paid a premium of 5% to WF. The typical debit card in Europe will range from 1% to 3% BUT that is determine by the debit card issurer so call and ask.

Nancy: If the transaction was in the last week or so, you actually paid a "fee" of 4.2% to the bank.The bank would have bought the euros at the interbank rate of $1.565 and you report they charged you $1.63, thus the "fee" you paid (whatever the bank calls it) was 4.2% ($1.63 divided by $1.565 - 1 = 4.2%.) That's standard for banks, in fact slightly lower than the transaction profit we've been seeing of 4.5% to 5.5%. Using your ATM card you will pay a fee of 1% to 3%, depending--lower than what you paid.

I did the same for my trip to Europe (also at Wells Fargo), and I just got back last week from there (Italy, France, England) on the whole the rates were much better here than over there. Unfortunately for me when I changed my dollars to euros the Dollar was weak. When I changed my money back at Wells today the Dollar had made a comeback so I got less than I would have a week ago. Oh well, bad luck for me good luck for you. As of today you are getting more euros and pounds for your dollar than when I went.

Hi, Nancy. I purchased 2000 Euros from Chase Bank this past March. I wasn't charged a fee outright but I did pay $1.647 per Euro.

I stuffed the 2000 Euros in my Rick Steves moneybelt but kept a few Euros in my Rick Steves Lambskin Travel Wallet for daily purchases. I plan on repeating this process the next time I tour other countries. I toured Rome for seven days in April and NEVER felt uneasy about carrying that much cash since it was securely tucked away.

I don't know why a lot of folks here love ATMs so much. You have to worry about so many things, namely, will the card work, calling the bank back in the United States if the card doesn't work, will the information on the card be "skimmed" by a thief who will then empty your account, will the daily limit on the card be surpassed, and where the ATMs are located. I imagine that while many tourists were hunting for the ATM in Rome, I was hunting for the nearest Gelateria.

It seems the main benefit to using ATMs that many keep repeating here is the exchange rate. I paid $1.647 per Euro and I imagine the rate would have probably been around $1.58 if I had used ATMs. Come on, folks, if you are concerned about paying a FEW PENNIES MORE per Euro, when you have already spent $1000 for a round-trip airfare, you probably can't afford to travel anyway.

As far as cash versus ATMs, I know I came out ahead: Hotel Paba gave me a 5% discount when I paid in cash. PS - Stay at Hotel Paba - Alberta Castelli, the owner, is a real gem.

My apologies if my comments offended anyone. But chalk me up as someone who goes the cash route and shuns the oversees ATM!

Nancy,

1.63 was a bit high. EUR vs USD has not reached 1.63 (yet). The highest it's ever been was 1.60.
I always buy Euros when I get to Europe and have some left over for the next trip.

No offense Joseph. Its all a personal preference and a comfort level. I personally have almost always just used the ATMs, but have gotten cash beforehand in the US when I knew I wouldn't have time to obtain enough in a certain country. But the fee that we have to pay to obtain cash here is pretty high. Based on your figures, you paid about $134 to obtain 2000 Euros. That's a pretty high fee IMO. To each there own and the point is to enjoy your travels and be comfortable doing it.

Joseph....no offense at all...if taking that much cash is comfortable for you, then go to it. But no one has to "search" for ATM's in Europe any more....there's probably one right next to your gelateria. And using an ATM doesn't eliminate the possibility of paying for accommodations by cash. As for "a few pennies," multiply the 5 cent difference over the 2 grand you took with you, and that's a hundred Euro....I'd rather have that in MY pocket than the bank's. To say we shouldn't travel if we can't afford to waste 100 Euro on cash is just a touch snobby, and ignores many travellers (like myself) who don't feel the need to spend thousands of dollars on a trip to Europe to enjoy ourselves. The risk of "skimming" your ATM is no greater in Europe than it is at your local bank....and probably less than being robbed. I'd rather have my money in a bank than in some crook's pocket!

I agree with Eric and Norm.. no offense Joseph.
Its just that with the chaos in traveling, worrying about carry a hunk of cash (even in a money belt) can be nerving.

Some people perfer to carry a bit of cash before, and some prefer to rely on new technology of the ATM.

I have left over money from my prior trip which I am bringing but am relying on the ATM and charging big items when I'm there. I am just nervous about carrying 2000 cash even here in the US.

Not offended Joseph and if you think your way is better for you and fits your comfort level then good for you. We should all go with what we feel works best for ourselves. I use the ATM's and have never thought of it as being a worry. Brad offers good advice, as he usually does, with a back up plan for his debit card. We do the same thing but we have never had to use the backup debit card yet. I cannot foresee myself overdrawing my daily limit but if I do I have the second account as a backup if need be. I try to make a mental note of where any ATM's are just in case I find myself in need for one. Saves hunting for one. The airports have ATM's readily available and I get my initial withdrawal as soon as I can at the airport. I also carry 200-300 in U.S. currency in case there is a problem with the ATM. The next time I go I do have 40 Euro left over from my last trip. I just cannot bring myself to exchange it back to cheaper U.S. dollars knowing that I will be going back.

As someone who has relied on a debit card with no problems for the past ten years or so, I could ask the question, "Why would anyone want to buy all their Euros in the US?" I love the debit card for two reasons -- economy and convenience.

But math doesn't lie !! The average March exchange rate was $1.53 so Joseph paid a premium of about 7.5 %, or $234, to purchase Euro in the US. By April when he was spending those Euro the rate was about $1.56 so his premium would have shrunk to about 6% or $175. Depending on the debit card issuer, those same 2000 Euro acquired from ATMs would have cost him from 1 to 3 % or a range of nothing to $93. So Joseph paid about $100 or more for his convenience of not having to worry about using an ATM. For him a small price to pay but for me I rather have the money in my pocket. The declining dollar worked slightly to his advantage but that is not dependable. I personally see absolutely no advantage to purchasing large sums of Euro on this side of the water.