Debit cards vs traveler's checks

Yes, debit cards are widely used by N. American tourists to get euros out of ATM's in Europe. Not credit cards and not travelers checks. This question is one of the most frequently asked here, and to learn other helpful things about getting money while in Europe, you probably want to go to our 2nd stickie (FAQ) at the top of this page, the first Q&A item addresses your question. And go to Rick's Money 101

What you don't realize is that total fees for traveler checks will be even higher. The debit card, even with fees, is the cheapest and most convenient way to obtain local currency. If you use a debit card you will not have a bunch of bills after you get back either. And, of course, a no fee debit card is even better. If you have time check around for a no or low fee debit card. Start with some local credit unions. Credit unions offer have some worthwhile advantages besides no fee debit cards over banks.

As the others have mentioned, using Debit / ATM cards is by far the easiest and most cost effective way to obtain Euro's. I'm sure some still use Traveller's Cheques but they're somewhat an archaic relic of the past. A few things to keep in mind. Your travel funds must usually be in a chequing account with a four-number PIN. It's a really good idea to take a second ATM card (possibly on a different account) for "backup", in case there are any problems with the primary card (I can tell you that DOES happen). At least one credit card is also a good idea for "emergencies" or unexpected expenses. Happy travels!

Well, if you were planning on coming to Germany, Travelers Checks would be huge problem. The only place you can cash them are at the money exchanges located in the airport, and larger train stations. Businesses will NOT accept them and neither will German banks. The rate one gets at the exchanges is not very good and they charge an extra fee for cashing the travelers check.

Take traveler's checks ONLY if you want to save money.......as you will most likely not find any place to cash them... ATM Debit cars are everywhere. And I agree with you...pay as you go and no pile of bills when you return!

If you are using a debit card use it an an ATM to get cash but be careful letting it out of your hand like in a restaurant or such. Debit check cards with mastercard or visa logos do provide protection but it may be harder and take longer to deal with an issue while something like that with a credit card is easier and less likely to tie up available funds.

We just came up against a problem with the use of the debit card. When we called to get it 'unblocked' for the trip, our bank said that they cannot do that and our son would basically be taking a chance that the card will not work each time he tries to withdraw funds from an ATM card. They are suggesting that he will need to call the bank before each transaction. I suppose they don't understand that Europe is in a different time zone than we are so those calls are likely to come in when the bank is closed. This is creating a big headache for us since he leaves next week. We've had a credit card, basically a card linked to our own account, fed ex'ed to him so he'll have this as a back up, but it's hard to see why he wouldn't be able to use his own Visa debit card at an ATM machine. Needless to say, we will be looking for a new bank. But that won't help him before he leaves.
Just thought i'd post this to give people a heads up that they need to ask plenty of questions of their bank and not assume they'll be able to use their card, even if they've done so before.

Melissa, You need to find a new bank. There is no reason why the bank can't note the account and unblock it or to demand he call each time. If your current bank's customer service is that horrible than there is another bank in town that is better.

Melissa - in all the years of reading this site and others, this is the first time I have seen a bank do such a thing! Unbelievable. However, the blocking of a debity card is not done by your local bank but by whatever security firm is monitoring the card. When I notify my credit union of an upcoming trip, they always reply that they have notified their security providor - not that they, themselves, have noted my account. It might be worthwhile to find out who is monitoring your son's debit card and contact them directly. Noting that an account will be used outside of the U.S. is routine for all credit/debit cards and your bank ought to know this.

As Steve says most credit unions and small banks outsource the customer service/security monitoring of their cards to another company. You many get better results dealing with the "contractor" instead of the bank itself. Try calling the number that's on the back of your card that you would use to report a lost/stolen card...that's usually the direct phone number.

One advice with debit card, we booked hotel through major international chain in April for stay in late June with debit card. We cancelled within 24 hours of making reservation and the hotel in Italy had already received our money. Since it was debit card, we did not have credit card company to help us and even with the international hotel helping us, it took until December to get our money back.

I've used a debit card as a credit card many times. The only thing that has been tricky, and in these cases it's better to use a straight credit card, is with car rental and with hotels. And the problems I've had is here in the US more so than Europe. What can happen is that they put a hold on your money that is more than the cost of car or the time that you are staying at the hotel. They want to cover their risk. They do not take the money out in advance, but it can take longer than a day or two to get your line of credit back. So the lesson is have a debit card to take out cash from ATM's and use a credit for direct purchases and to make reservations. BTW you can't use a traveler's check in the US at many stores. Last year, Whole Foods stopped accepting them. Pam

It is conventional knowledge promoted by many travel writers that you should only use a debit card for cash withdraws from an ATM and never for purchases or deposits in Europe. Since we almost always pay cash, I never paid much attention to the reason behind that advice -- probably for the reason you just encountered. We always use a credit card for deposits/guarantees and then pay cash when we arrive.

Pamela's point is a really good one. NEVER use a debit card to reserve hotels or car rentals. Hotels and rental agencies often charge one or more nights or put hold's on funds as deposits. And for rental cars, some will place a charge hold on the value of the car if you don't use their insurance. Not good if this is applied to your checking account. Ideally, you should not use it at all for purchases in Europe as you have much less protection if something goes wrong. It's a hassle if you have to cancel a credit card due to fraud, but you don't temporarily lose all your checking funds. To the OP - what high fees are you talking about? If you have no balance, the only fees are foreign transaction fees (some credit union cards and Capital One waive those). And I'd think those same fees would apply to debit cards.

You can ask your bank for an ATM card so that you don't have to worry about holds on a debit card. If you're likely to return to Europe in a few years, it's good if you return with a bunch of bills. You'll already have some cash when you go back and you'll save money from avoiding exchange rates - once for changing euros to dollars when you get home and another for changing dollars back euros when you travel again.