Credit/Debit and Cash

Hi Rob, Have you researched whether your credit or debit card charges a fee for transactions? If so, using plastic can get expensive. For this reason, I bring along a debit card that has a low cash withdrawal fee and pull out large amounts of cash to last a few days. I tend to use credit cards for the hotel charges and use cash everywhere else. Btw, some taxis do accept credit cards, but not all. Even the ones that are supposed to accept them can have an out-of-order machine on board. I highly recommend reading Rick Steves' Europe Through The Back Door. It has a great chapter on this topic. Have a great time and Happy 30th! Jessica

Rob, Congratulations! Our first oveerseas journey was to celebrate our 30th also. Follow your mind. You are right in this matter. Our debit account is tied to our credit union checking account which we load up before we leave. Also have a second source of plastic money. We use the AAATravel money service, and put four or five hundred dollars in it for a trip to use if, for some reason, the main debit card won't work somewhere.

Hi Rob, Congratulations. I have to agree with you. We've RARELY used a credit card on our many trips to Europe. I can probably count the times we've used a cc on one hand during 7 trips and over 80 nights away. We make sure we have 2 checking accounts from serarate banks and/or credit unions with separate ATM cards with sufficent funds to cover our land expenses before leaving home. If something out of the ordinary happens to one account or card, we have a back up. If all else fails, we'll use a cc.

Cash is still far more common in Europe in the U.S., although credit cards are more widely accepted now than even a handful of years ago. We remove generous sums of cash using our debit card and carry it as needed to cover most purchases. We do use our cc for larger purchases; in the grand scheme of things, the associated fee is negligible.

Tell your wife that she is wrong. You won't find that 'everywhere' accepts Visa or Mastercar. And no, you don't want to give a taxi driver a card. Have 2 accounts (as suggessted before) that you can access via a low fee debit cards. Have at least 1 'good' credit card that COULD be used for larger expenses (some special meals, hotels, special purchases, etc.). You may want to have more than $200 available in cash- you'll have to monitor that as you go- days spent in markets, eating 'street food', etc. can eat up cash quickly- and some b&bs and smaller hotels will give a discount for cash payments. Use a money belt (or appropriately safe alternatives- see multiple threads on this site) for 'deep storage' of excess cash and cards and passports. Try to manage your cash so you have little or none to 'exchange' as you move from Greece and France (Euros) to the UK (Pounds) or vice versa. There is another alternative. Not as safe, but still used by some (such as by my husband)- take plenty of cash in each currency with you from the start. Use the 'deep storage' for all but that day's amount. No stops at ATMs, and only one, up front fee (and if you have a good bank, that is rather low), if you use it up or save excess for the next trip.

Thank you to everyone for your advice and input. I traveled quite a bit before we were married in that time before Debit cards and cell phones and e-readers and internet so, most of my experience is outdated. I have researched the fees and daily allowances associated with the Debit card I had planned on using and I find it too limiting, the fees were not bad but a $200 cap on daily withdrawals seems a tad low to me. I'll research other banks and their limitations. I ordered Rick's Europe through the back door but have not read it yet. It will be the next thing I read. Again, thank you one and all for your input. You will probably hear from me again.

Yes, $200 is a very low withdrawal limit. If you ask in advance, your bank and/or credit union probably will increase your daily withdrawal limit. That way you can make fewer trips to ATMs and minimize the fees you'll pay. If you need a lot of cash on a particular day, go to an ATM and ask for the equivalent of your withdrawal limit in the local currency. If that turns out to be more than that machine allows, take what you can get and get the rest from another ATM. General rule of thumb: Use credit cards for major purchases and get cash from ATMs for everything else.

I'm with Paul. I use two debit cards, one from a local credit union (no additional charges) and one from an online bank (charges 1%). I can easily transfer money from one to the other online, if necessary. I only use credit cards for hotels - and on my recent trip to Spain three of the seven places I stayed DID NOT take plastic at all. You can ask to have your withdrawal limit raised for the duration of your trip. Credit unions are the way to go for no/low fees, rather than a bank. My online bank is Ally (ally.com).

I use credit cards for big purchases - major hotels, car rentals, transportation, etc. - and cash for small retailers. Credit cards can be used in most tourist areas but you may not always want to buy from vendors that cater to tourist crowds. The retailers get charged a lot for accepting credit cards, so they prefer cash. As you get further from the beaten tourist path, you are likely to find many small retailers won't accept cards at all. You may also find they don't know how to take an American mag-strip card - our cards are no problem in tourist areas but retailers outside are more accustomed to chip and pin cards and many don't know how to print a receipt for you to sign. Shop for good travel accounts. Mine is a flat one percent on ATM withdrawals ($600 daily limit). There are free options, but they usually come with restrictions that may or may not work for you.

Thank you everyone for your tips. The planned trip is still a year away but this will help make sure I have finances available when we leave. You all are great!

Welcome, Rob! Use credit cards for purchases, and an ATM (ATM/debit combo card, if that's what you have) ONLY at an ATM! Don't use your debit card for purchases; you run the risk of some unscrupulous waiter clearing out your account of all of your cash :-( Not terribly likely, but...it's a lot easier to straighten out a hacked credit card than a debit card, esp. while you're in Europe. Use ATMs attached to a bank, and only during banking hours, just in case you have a problem with the transaction. Definitely use an ATM to get an much cash as possible per transaction, then the two of you can split it up between your moneybelts, if you want. You can also do two transactions in a row if you need more cash. Or, bring cards on two different accounts. Bring Two Cards on each account in case one just doesn't want to work once you arrive; it happens. Trust me on that ;-( Be sure you've contacted your bank with a list of the dates and countries you'll be visiting, or you won't be getting ANY money! Call them again one week before your trip - really. Carry the bulk of your money in your moneybelts, and keep the day's worth of spending money in a more accessible place like a wallet. Make sure she has some cash on her at all times, too. You may assume you'll be together, but you may venture apart for awhile and she may forget that she has No Money (ESP for toilettes!!! Always keep her well-stocked with €.20-.50 coins!). Congratulations of 30 years of "spirited" discussions! I've been there ("spirited"), about to do that (30)...;-)

Paying in cash will often save you 5-15% with hotels, and many smaller hotels or B&B's don't accept credit cards. Be sure to contact hotels directly and ask hotels if there is a discount paying in cash. Both you and your wife should have a debit card off your primary ATM account, which then makes your daily withdrawal limit $400. But still ask your bank to increase it.