Credit Cards

You'll probably pay the same percentage for cash from the ATM. Get a different bank.

Leave the Am Ex home. Unless you are staying in five star hotels, no one wants the AE. Second question is how much does your debit card charge? If less than 3%, then get the cash and pay cash. We almost never use a credit card in Europe since cash is often preferred.

...or bring the AMEX as a back-up; the credit card terminal at one of my hotels wouldn't accept my VISAs (yes, plural) and there was no rhyme nor reason for that, but it did accept my AMEX...at a worse rate, of course grrrrrr. I'd hate to think I could still be stuck in Paris after 7 years, ironing sheets ;-)

This must be your first trip to Europe as most folks who travel there often/occasionally have usually found out there are cheaper ways to get cash and pay bills in Europe. If you go to "Graffiti Wall > Money and Communications > ATMs: Minimizing Fees" elsewhere on this web site you will find some helpful information to your question that gets asked here very frequently. Cap One cards seem to be the card of choice for most folks here as it is one of the least expensive ways to handle European financial dealings. My credit union DEBIT card tied to my CHECKING ACCOUNT only charges a
1% fee for European ATM use. I do carry a credit card as back up or for major purchases which are rare. I would encourage you to get a DEBIT card tied to a CHECKING ACCOUNT with low fees and withdraw funds from ATMs and pay in cash wherever possible.

I have a Capital One MC - no foreign transaction fees. When I use a cc in Europe, it has always been the Capital One card. However, I try to use cash whenever possible.

You probably have enough time to get a CapitalOne Mastercard. I did that just before a trip about 8 years ago; have used it specifically for European travel, although I, too, prefer to use cash, which I get with an ATM card from my credit union. Don't forget to let card issuers know where you'll be using the cards! :)

Thanks everyone for your advice! It definitely has been helpful!

How much does it cost you to get cash? How much would you charge? We can't give good advice without knowing. Charging $1000 worth of purchases would cost you $30, not the worst thing in the world and probably better than rushing to get a new credit card.

We also picked up a Capital One Master Card to use as our primary travel credit card. The Dodd-Frank banking bill has every bank rethinking it's fee structure. Keep on eye out for change notices from your bank, it's likely informing you about fee increases on your accpunts. Another thing to avoid. When asked, always have the transaction processed in the local currency and let the bank convert it. Some businesses, I think primarily hotels, offer to convert the amount and charge your account in dollars. This is never a good deal and costs extra for no benefit.

Most merchants and restaurants do not accept credit cards in Germany. But certainly hotels do and that is a major expense. You can buy train tickets with cash or plastic at ticket counters. Machines are sometimes tricky - some don't accept large bills, they always give you change in coins. If you have the time, get a Capital One credit card and open a Capital One money market account and get an ATM card for it. No fees. So you can withdraw just as much (or little) as you need.

Get a Capital One credit card. There are no transaction fees.

"most merchants and restaurants do not accept credit cards in Germany" Wow really, I didn't thing Germany was a cash only society. That would certainly curtail my traveling there, all my expenses go on a card, how else would one track them?

I use Capitol One Visa card, and Bank of America ATM / Debit card. In Germany the B of A card charges no ATM fee if you use a Deutsche Bank machine. In France, use BNP machines. Otherwise, take out a large enough amount to justify any per transaction fee.

It is called pen and paper, ipad, or envelop to keep receipts. We rarely used credit card as we find cash is easier and more convenient. And cash receipts are some much easier to keep track of than credit card receipts. I don't understand why someone would want to charge everything.

I can only think of two reasons to use a cc for everything and I am sure there must be more. One, ff miles, two: can not afford to pay cash for everything. I see RS is finally accepting cc for final payment for his tours but gives a discount for cash as I wish all merchants would do. I would assume that anyone that would "only use cc's to pay for everything" would be severely limited in the number of B&Bs where they would be accepted. Then, again, if you only stay in hotels.....

I was just surprised at that statement in general, is it really true that merchants and restaurants in Germany don't take credit cards. Do they do this to avoid taxes? I've never found bank charges that high to risk loosing a sale by not taking cards. Why don't they take cards, any one know? For those who can handle credit cards responsibly there are advantages in using them. At the end of the month a itemised list of expenses is sent buy the cc company, no receipts required. Less cash to carry, fewer impulse purchases. Just returned from Ireland, all b&bs and restaurants took cc. If you don't take cash advances, and pay off your monthly balance, interest free.
There are others.

Peter, it seems to be a "cultural" thing. I visited an Israeli friend who has been in Berlin for 3 years now. He was surprised when he went to Ikea and they didn't accept credit cards. Many Germans use debit cards, but mostly you stand in line at the supermarket while everyone digs for coins in their wallets, men and women.

....itemised list of expenses is sent buy the cc company, no receipts required. ..... A trusting sole !!! On average we find a couple errors a year in credit card charges sometimes more than few dollars. And from Europe I would expect more error so it is critical that you save credit card receipts to check the monthly total. The change of errors with cash is zero. You can build you own reasons for using a cc or cash exclusively but it is personal preference with no real advantage either way. Both a series of trade offs.

Peter, as Chani says, it is a cultural thing. Might be due to the hard times after the war, but the Germans don't like to borrow money. That's what credit cards encourage. According to the criteria catalog for DEHOGA (which "awards" stars), a hotel has to take credit/debit cards in order to have more than one star. Maybe that's why there are so few star rated hotels in Germany. Since 2004, I have stayed in 22 places in Germany. Only one place had stars (3), and only it accepted US credit cards. In all other places it was cash only.

Erika, Between France and Germany you'll find the credit card accepted far less in Germany by merchants, hotels, Pensionen, restaurants, etc. than you would in France. It's best to have cash as a back up at a restaurant if you want to pay by credit card. But, the credit card is accepted at Deutsche Bahn, whether at ticket machines or at the counter, when buying tickets or reservations. In Germany I mainly use cash especially when staying at a Pension, especially if the proprietor prefers cash, inspite of the Visa logo on the registration desk. If I stay at an independent hostel (not an HI one), then I use the Visa card. In France mostly a credit card. Yes, I would plan on paying in Germany with cash.

As an added point, in over 100 nights in Germany, I have found that the most economical accommodations do not accept plastic. If you look around, particularly on booking websites or big chain hotels, you'll find someone who takes cards (as I said earlier, with two stars they are supposed to accept CCs. BUT, for inexpensive hotels, you'll probably spend a third to a half more for a place that accepts card. And sometimes you'll have to settle for a much more expensive place.

"all my expenses go on a card, how else would one track them?" As Frank says, "with pencil and paper". Actually, I use a spreadsheet on my netbook (just one of the many uses I have found for the netbook). Great to keep records. I created a spreadsheet based on the ones I used to have to fill out when I traveled for business. Every evening, or the next morning, I fill out the sheet for the previous day. I can tell you, for instance, that for my 2007 trip, I spent €232,16 for meals, an average of just less than €19/day. I also have on my netbook a "dummy" filled out spreadsheet. I have reservations for accommodations, so I know what those will cost. Likewise transportation and entrances. From experience, I can figure meals at €20/day. The only thing variable is "misc" - newspaper, WCs, etc. As I spend, I delete items. At any one time I know how much cash it will take to finish the trip, so the last time I go to the ATM, I know what to get. I could never do this if I had to wait until I got home and got my card statements.

And even places that accept credit cards may give a discount for cash...depends on the place. Ask when making a reservation and confirming the rate. BTW, get a new card...perhaps Capital One...no foreign transaction fee as others have said.

"I use a spreadsheet on my netbook" You can also use a spreadsheet on many phones or an expense app. This way you can make entries on the spot. With an expense app you can categorize and get a snapshot of your expenses on the go. Some will sync with a desktop version. These apps have password protection. If you have an Android phone, I believe it will sync a spreadsheet with your Google docs. I don't know if you can password protect a file on an Android. I imagine you can. Many people don't realize what a powerful computer they carry in their pockets/purse.