Cash versus Plastic in Europe

There have been a lot of discussions regarding this - do a search for currency in the box at the top of the page for more in-depth info.

It's always best to have a some cash on you, especially when visiting smaller establishments. Some people like exchanging a small amount (€100-200)before they go so they have some in case of emergencies, but I just wait until I arrive at the airport or hotel to get cash out of an ATM. Check with your bank to see what they charge for foreign transactions - most banks charge a fee for withdrawals ($2-4) from foreign ATMs and then an additional 1-2% to change it into USD. However, you get that day's official exchange rate, so it still ends up being cheaper than using a Bureau de Change.

Shop around for your bank. My little local credit union charges no extra fees at all for withdrawals from foreign ATMs. You'll be surprised at how many places you can use your credit or debit cards, but I'd agree with having local cash available for smaller purchases.

Be sure to let your bank know you are going overseas and the dates, otherwise they may freeze you card when using overseas. Also make sure you "pin" code is all numbers and not any letters. They do not use letters on overseas machines.
Have cash on hand for taxi's and small town markets. Use a money belt.
Read previous posts as other suggest. I only used by bank credit card at ATM's in Italy in June and used my regular credit card for dinners, etc.
Have fun!

I have had and continue to have the opportunity of traveling extensively. I have always used my ATM card. I withdraw funds daily. I inform my bank of my destinations. The conversion rate is the best at a bank. Never use a money exchange vendor. Once I reach my destination, I use the ATM at the airport.

Even if you plan to use mostly plastic in your travels, you should always carry $200-$300 in cash in case of an emergency. Make sure this cash is always kept in a money belt or in-room safe.

Just use ATMs every 3 days or so - having 200-300 euros on you in your money belt. Unless youre a high roller that should be enough for beer and pretzels. BofA and DeutscheBank have a partnership so you dont have to pay atm FEEs, but the big bank ATM echanges rates are probably the best you will find for small amounts - so dont worry. Unless you take out 1000s and 1000s - a few points difference will be insignifgant (1-2%)compared to the cost of the whole trip... $50 vs $5000-trip cost!

The exchange rate at ATM's is about the best you'll get. It's not really a good idea to convert this before you leave, and carry a lot of cash with you.

I tend to withdraw somewhat larger amounts of cash every few days, in order to minimize the withdrawal service charges. It's a good idea to check with your financial institution to get a clear idea on what service charges will be applied in your case.

You'll probably find that it's necessary to have some cash on hand for meals and small purchases. Also, some smaller Hotels will reserve rooms via credit card, but require final payment for the room in cash.

Sometimes you do need to withdraw daily (because of daily limits, etc). And some banks/credit unions, like mine, don't charge fees for withdrawals at all. It just depends on your own situation. I, myself, would prefer not to "play games" with availability of my money.

I just came back from my 6th recent trip to Germany, and I found that, still, very few traditional hotels and restaurants take plastic. If course, you can stay in expensive starred hotels and they will take plastic, but you might as well give your money away, because they charge so much more.

As for frequency of withdrawals, as long as you protect your cash with a money belt, neck pouch, or other suitable safe place, your biggest exposure to fraud, theft, etc is when you are at the ATM. Minimize those exposures by taking the maximum and going as little as possible.

I agree with Lee on that one. Although I'm not a world traveller, I am actually a Fraud Detective with a police department. Anytime you use your plastic you are at a risk for fraud. Thanks to everyone for the help. I am beginning to reserve my hotels and will know from there if I have to include those expenses in my daily cash needs.

Rob,

A bank will always give you the published rate, but there are fees involved in any ATM transactions from both banks, so you will need to figure that out.
From my experience you will get a better rate from ATM with all those fees, then paying for each transaction. I got ripped off by Chase last year when I used my credit card, even if they told me they wouldn't charge me any fees.When they broke the fees down, I was impressed to find out that they charged all kinds of fees. I am not sure if it's just Chase that charges soo many fees. I remember years ago when I used my other credit cards , I just paid a small transaction fee, like 3%

FYI, if made purchases on a Visa, MC or Diner's Club card overseas between about 1998 and mid 2006, the credit card companies lost a class action lawsuit regarding all those fees. As a result, you can send a list of your charges and get a percentage back - you should have received a packet in the mail if you have a credit card involved in the lawsuit, but if not, google to find the website with info.

Kate

Actually an earlier poster was incorrect about ATM fees. Banks in Europe don't charge fees to use the ATM. If there are any fees, they're charged by your US bank. A 1% currency conversion fee is unavoidable, buy there are credit cards (typically from credit unions) that don't charge anything other than that. USAA also has no other fees.

I am lucky enough to have a bank that doesn't charge me fees to take cash out of an ATM in Europe. But the daily limit is slightly low. So I end up spending cash on everything except the things that I want the CC protection. So I'll buy that expensive cuckoo clock with my regular CC and spend cash on hotels and meals.

I also am not comfortable having a lot of cash on me. So I get myself a great money belt, and only have 20-40 Euros in my wallet or pocket at any point in time. The rest I put in the $$ belt. This works well for me. I've even been pick-pocketed in Rome on the subway, but I only lost about $15.

If you use your debit card you will be charged fees by Visa/MC or whatever every time you use it as a CC. When you use your debit card for purchases in the US you are using it as a CC unless you specify DEBIT. The only way to avoid this is to use it as a true debit card. I've never tried to use my card as a true debit card, so I have no idea how well it would work.