Getting Euros-In US or in Italy?

In the past I always got some of the local currency before I left. I was at Rick Steve's seminar and he said most airports have ATM's so as soon as you get off the plane, find an ATM. I'm going back to Europe this June and that's why I'm going to do.

Also it's always easier to pay everything in cash when you are there and a lot of places don't take credit.

I have never tried to get currency before I leave and always used a debit card to get cash out of ATMs. Works well for me because I have a bank that doesn't charge extra fees for doing that. But if you get cash before you leave you'll pay an exchange rate that is usually higher than bank fees. ATMs are easy to find all over Italy. It's easiest to wait until you get there.

One thing to keep in mind, make sure you know what your maximum daily withdrawal limit is before you go. And make sure you know what it is in Euros (approx.). An ATM won't let you take out more than your daily maximum, so often you end up maxing out your daily maximum every day to make sure you have enough cash to pay for everything (and avoid those rip-off credit card fees for international transactions).

Personally I did what is convenient and less stressful. I bought enough euros from my commercial bank to get me to my place in Europe and survive for a day. After disembarking from the plane, I easily get overwhelmed w/crowds because of jetlag. Yet, I still must accomplish various procedures in order to get out of the airport. Trying to find an atm machine at the airport for immediate cash needs would be hellish for me. After looking at my banking statements, I believe going to your local Italian atm machine or bank using your debit card is the cheapest way to purchase euros. You may want to check prior postings on this helpline for other opinions.

The rates at the ATM in airport are very bad, plus the commission.
Get some Euros from your bank ahead of time, then use your credit card while over in Europe.
Also check the exchange rates with your credit card company to see which one charges less commission.

I needed to add, is it better to use a debit or credit car? Grazia.

I found it incredibly easy to just use ATMs while I was in Europe. Just make sure your bank does not charge a crazy exchange fee. Most credit unions will only pass on the 1% Visa/Mastercard fee. Also Visa/Mastercard is the one that processes the exchange rate for you so you won't be getting ripped off as you would have if you bought euros from a vendor.

get maybe 50E from home so you don't show up in Italy and have no money to buy a little food and water, take a bus or taxi, etc. And when you return keep that much for your next European trip. In addition to banks, AmEx travel stores sell currency.

Get the rest from ATMs in Europe. Make sure your PIN is only 4 digits. As others have said, check with your bank or credit union to see what they charge.

I am puzzled by the comment by the poster who claims airport ATMs give a bad rate. I do not see how this can possibly be true. The ATMs in Italy do not charge a fee, so the only charge that will appear on your bank statement from the ATM is a 250E (or whatever) withdrawal. The exchange rate is then determined by your bank, not the ATM. And the advice about just using credit cards is equally misguided. Many shops and restaurants, and even some hotels, do not accept credit cards. They are not as commonly used in Europe as here.

Bea:

Where do you get your information about airport ATMs? It is my experience that they charge the same rate and commissions as those located elsewhere. Are you confusing ATMs with Currency Exchange outlets?

I always keep 60 or 70 Euros from my last trip for the next one. That said, if I didn't have any Euros or Pounds or whatever, I get some from my bank, say around $100 worth. I use Wells Fargo and BofA and while they do charge a fee it's not way out of line but it is more than if you'd withdrawn from an ATM in Europe. Having some local cash means you're not staggering around with jet lag looking for an ATM at the airport. I travel alot and have NEVER had an ATM at the airport charge me more than one in town. Just remember, you're charged a fee each time you use the ATM - for 40 Euro's or 200 so don't take out tiny amounts. Make sure your ATM card has a 4 digit pin and make your bank aware of your travel plans. DO NOT USE YOUR CREDIT CARD for cash except in an actual bank. To many scams. Also be aware that there is a conversion fee frequently by either the bank and/or the retail establishment when you use your credit card for purchases, hotel etc.(this is a new trend but businesses have to pay a fee for conversion and eventually every establishment will be charging it to the purchase price - it's only a matter of time). Use your credit card for large expenses and cash for the day to day stuff.

I've given up trying to figure out the cheapest way of buying foreign currency except to stay away from Currency Exchanges. While the banks we do business with say that they charge only a nominal shipping fee for currency purchases, the currency rates they offer are substantially poorer (i.e. more costly to the purchaser) than market rates. Because rates fluctuate by the minute, it's hard for a punter like me to figure out the exact differences but I've seen what appears to be as little as 2.5 percent and as much as 4.5 percent difference in favour of the bank.

I can't conceive of any bank not taking the opportunity to make some money on transactions by their customers including those on ATM's (after all, they have to stay in business). I'm just not too sure how to figure out how much they make on the transaction and how to determine a definitive answer to the question.

Thanks you to all for your help. I'll get a little here and then use the ATMs when I need more. Arrivederci!

Rick Steves has a good article on this subject in the Travel Tips section of this site. It's called "Money 101." Here's the URL: www.ricksteves.com/plan/tips/moneytip.htm.

I'd like to second Marie's advise - contact your bank and credit card companies before you go. Tell them the dates you will be gone as well as the countries you will be visiting.

As a matter of fact, just yesterday, we got a call from Visa informing us that there was unusal activity on our daughters Visa check card. She had made an internet purchase from England and they were checking it out to make sure it was legit! If they can't get ahold of you to confirm foreign transactions, they could shut down your card and you are then without money, so never forget to call them before you leave!!!

I always use my ATM card for cash in Europe. I have never exchanged currency here in the US before leaving. I do bring US currency as a safety but with ATM cards and credit cards I have never had to use it.

But I can't stress enough to contact your banks before you leave, giving them the dates and the countries you will be in. I forgot to do that with my credit card 2 years ago in Paris and on my last day(I don't generally charge much in Europe) I was in a very chic store making a huge purchase and my card was declined. I was completely embarrassed until I noticed that there were 3 or 4 customers dealing with the same problem. The banks will suspend your credit card if they can't verify the "unusual" activity is actually legit.

I have never paid more than the going exchange rate for withdrawals from ATMs in Europe. My own credit union doesn't even charge fees for using an out-of-network ATM. I'm not sure what Bea is talking about, mentioning commissions and higher rates -- they have always been the same for me. And while JC may find it easier and less stressful to get euros from her bank before traveling, not everyone lives in New York City and has access to such services. In my area, foreign currency must be ordered some time in advance, and the fees are great. I would suggest using your ATM card upon arrival to the destination.

I think Nancy that Laura was soliciting our own opinions and personal experiences for purchasing euros. She got mine and she got yours.

Jeff,
Airports always charge more for anything, money exchage, phone calls, water etc.
I had 2 "bad" experinces aith the fees charged by the aiports. One was Detroit, when I was trying to make a call from a pay phone. They wanted $5 just to make the connection and to call Cleveland was like $.99/minute.
The second experience was in Amsterdam trying to get cash from ATM. The ATM charges you a fee besides your credit card company's fees. The charge was high, maybe 5 EUR or more, I can't remember that for sure and we didn't do it. Each ATM works with a bank to give you a rate, which is different from one ATM to another. It's like banks. You don't get the same rate from all the banks. The currency exchange outlets might charge you an extra commission, but it's up to them what rate they offer to the public.

The only ATMs in Europe (in fact, anywhere) that I have ever experienced that charge me an extra fee on top of what my bank charges, are non-bank ATM's, usually found in airports, train stations, and convenience stores. Banks charge each other the same rate of exchange at the same moment in time...there is no difference in "exchange rates." The increased cost comes in the transaction fees that your bank might decide to charge for using your debit or credit card to make withdrawals at other ATMs. Currency conversion outlets, on the other hand, DO charge different conversion rates...usually at a MUCH poorer rate than banks. So check your bank to see what their transaction fees would be for overseas withdrawals, and make sure you only use bank-affiliated ATMs when overseas. As others have suggested, get a minimum amount from your bank before you leave, then use bank ATMs in Italy.

Norm,

I don't agree with you.
Rates differ from bank to bank .One of the reasons is the supply and demand. Also the goverment of each country publishes a "fixed rate" in report with the USD.Banks publish a mid-point rate depending of their supply and demand.
So a bank in the US might have a different exchange rate then a bank in Italy, or two different banks in Italy have 2 different rates at the same moment of time .
Banks tell customers that they don't charge commission, but there are commissions involved in any transaction.

Bank ATMs at airports don't charge any more than bank ATMs at a branch outlet! Nor do they charge a commission! In fact, banks around the world trade currencies at a standard interbank rate, which can change thousands of times a day, usually in a very small trading spread. For European banks, that would be the Euribor. So when my withdrawal goes through, say, a Spanish bank ATM, the exchange rate I am charged at my Canadian bank is the Euribor rate for that specific moment in time, the same rate a Spaniard would be charged making an ATM withdrawal at a Canadian bank at exactly the same time. Banks make their money on the "buy" and "sell" spreads in these interbank rates, which are usually so narrow, they wouldn't even show up on your normal cash withdrawal,in the order of hundredths or thousandths of a percentage point. To suggest there is a noticable difference at bank ATMs is incorrect

Tim: Thanks for the link - I found it very informative.

Very good way to explain that, Norm!

I'm not trying to arguee with anyone here, but I think it's either I didn't make myself clear or some of you actually don't check your crecit card statement to see how much you get charged overseas.
Norm you are right about the interbank rate, but that's not you get " at the end". What I mean by "at the end" is the interbank rate plus a commission. If you read the link Mike posted, which is very good , you will see that the commission varies from bank to bank , or credit card issuer. When you use an ATM you deal with 2 banks. The one that issue your credit card and the one you withdraw money from. This way there are more or less commissions, because some banks in Europe might not charge any commission, but some do.

according to the Federal Reserve Board "Credit and debit cards are frequently used by U.S. citizens when visiting foreign countries to initiate point-of-sale (POS) transactions and to access cash at ATM locations worldwide. When a cardholder makes a purchase abroad, the foreign merchant requests payment in the foreign currency, while the domestic card issuer pays Visa or MasterCard in U.S. currency. Visa and MasterCard set the foreign exchange rates for performing this conversion, charging credit card issuers a wholesale rate plus 1 percent."

The article goes on to explain how some US banks then tack on their own fees.

This is at http://www.phil.frb.org/src/srcinsights/srcinsights/q3si4_05.html

So there you have it. Everyone gets the same rate, says the Federal Reserve Board. Or rates and charges differ, according to Bea. You decide who to believe.

continue....
Here is a quote from Federal Res. site=, which is very important:
" For example, by using a credit card to withdraw cash at an ATM in Italy, a cardholder may incur a Visa or MasterCard fee of 1 percent, a card issuer fee of 1 percent to 3 percent, and a flat ATM surcharge of an additional $5 to $10 for a $100 cash withdrawal. "
It says very clearly here that the surcharge could be $5-10 per $100. When you deal with a percentage added to your withdrawal, it makes it even worse, because if get $1000 from ATM, there could be $10 to $30 added to your statement just as surcharge.
In my opinion airports charge a higher commission for anything. Even in the USA , if you get cash from an ATM that is not from your bank, you might get charged (by that ATM) a fee, mostly $2. Plus the charge from your bank.
A few years ago in Canada, I paid $8 only in commission to withdraw $50 from an ATM.

Bea,
Many of us (I know I was) were speaking of using debit or ATM cards at foreign ATMs, not our credit cards, to make cash withdrawals. The article [you reference] also appears to be referring to using the credit card as an ATM card, which would be considered a "cash advance," thus subject to high fees...but why would anyone want to do that?
The math in the example you posted is incorrect. In your example, the $1000 withdrawal would incur a maximum fee of $50. I challenge anyone to show me where a debit car withdrawal has been charged that much in transaction fees. (more)

Thirdly, it may be your opinion that airports charge higher fees for ATM withdrawals, but that is simply not true. Airports sign licensing agreements with their clients who put ATMs in the airport. ATMs from major banks will NOT charge you any more at an airport ATM than they will at the ATM at the branch downtown.
Yes, there are "transaction fees" assessed by your home branch on transactions, unless you're lucky enough to deal with one of those credit unions or banks that suck up the charges themselves...I wish I could find one here in Canada.
But I maintain my position that ATM withdrawals via debit or ATM cards are still the best way to go when travelling, for the lowest fees, the safetly, and the convenience. BTW, if you were charged $8 at a Canadian ATM for a $50 withdrawal, then you weren't using a bank ATM, or you were getting a "cash advance" from your credit card.

I think it depends on what's available in your area. I got some Japanese yen for my sister before she went to Japan for two weeks. She also took an ATM card and a credit card. Because it was a school trip, most expenses were prepaid.

She used a bit of the yen, plus yen that was given to them each day for lunch, and her credit card (Capital One, so no fees), and never went to an ATM.

I took 50 euros to Rome with me in December, an ATM card, $75 US, and a credit card. I used my credit card to get to Termini on the train, then used my euros to buy a metro ticket and a bottle of water before finally going to the ATM. Sure, I could've gone to one in the airport, but then I would've had to go find one. It was a lot nicer to get right out of the airport first thing and find an ATM at my leisure. I have leftovers for my next trip.

One note about ATMs, at least in Rome: they tend to be in clusters. You can walk a ways and not see any, then find five within half a block.

Ken's (and Norm's) practice makes SO much sense--for those who arrive from a long flight tired and want to minimize stress and hassles and have one less "must do" thing to do before leaving the airport: In Ken's words: "My usual practise is to take about Eu$50-100 with me...that way I have some expense money to buy coffee or a meal, or for a Taxi or Bus from the Airport into town. I prefer not to deal with ATM's at the Airport, as I'm usually not in the best "frame of mind" after coming off a 10-12 hour flight, and I want to get out of there as soon as I'm through Passport control."

So Laura -to sum things up:

1)DO NOT use your credit card to get Euros. You will be charged immediately as a cash advance which is very different from an ATM withdrawl.

2) If you are the type of person to feel very nervous about arriving without cash, then order a small amount ahead of time from your bank, AAA, an online service, etc. You will pay more in fees but overall it might make you feel more comfortable.

3) Do not feel stupid for arriving in Europe without Euros in your pocket. Just as you can arrive at your local airport without a dollar in your hand and expect to be able to withdraw money from the many ATMS, you will be able to do this in European airports too. They are all around you - you put in your ATM card and you get Euros.

4) Call your banks and ask specifically what they will charge - it is usually 1-3% on top of the interbank rate (which is the same for every bank). If you have time get a card from a cheaper bank(many suggestions on this site).

Karen, good summary, although you might want to add she could make the effort to get a few Euro from a local bank before she leaves, just on the off-chance the ATM's aren't available at the airport.

Laura, my usual practise is to take about Eu$50-100 with me. If I don't have any on hand from previous trips, I arrange to get this from my credit union. I usually have to provide a day or two notice, as they don't always have Euros on hand.

That way I have some expense money to buy coffee or a meal, or for a Taxi or Bus from the Airport into town. I prefer not to deal with ATM's at the Airport, as I'm usually not in the best "frame of mind" after coming off a 10-12 hour flight, and I want to get out of there as soon as I'm through Passport control.

Good luck and happy travels!

I don't take any money with me. I use an ATM in the airport and occasionally as needed through the trip.

I minimize the number of machine transactions I make to limit the number of service charges. If you get 100 Euros and pay a 3 Euro transaction fee, your charge is 3 percent. If you get 300 Euros and pay a 3 Euro fee, the fee is 1 percent. By getting larger amounts less frequently, I keep the cost down. Keep large bills beyond a daily need in your money belt and avoid dipping into it publicly.

Above the transaction fee (may be charged by banks on both ends of the transaction) is the exchange rate. The nice thing about an ATM transaction is the exchange is done at a good rate. Using money changers in Europe or your bank in the U.S./Canada will almost certainly add up to a larger overall cost than the combined service charge/exchange rate from an ATM.

A credit card works well for some expenses, rental car, some hotels and restaurants but the small places prefer cash.

Just wondering - do some people worry about not having Rupees on hand when they go to India? How about somewhere more common for lots of Americans - like Costa Rica. Anyone order Colones from their bank? These are two non-European places where I arrived without any local currency. In Costa Rica I did have some US dollars as it was a while ago but for India (2 years ago) I had nothing.

We also drove from Germany to Prague last year and didn't worry about getting Czech Koruna before we actually arrived in Czech Republic. For those of you traveling this year to Prague are you worried about not having CZK and are you ordering it ahead of time(or maybe I am out of date and they are actually using the Euro in 2008)?

Just wondering if we ONLY obsess about the Euro and what might happen if all bank machines go down in Europe. Last year did finally think to bring back LOTS of Euros for the next time. It made a nice gift for my daughter who is in France for school this year.

I don't think I've seen anyone obsessing about the Euro or about "all the bank machines going down in Europe," but I guess it depends on what you've faced. Having been caught once without local currency and been forced to use one of those horrid currency exchange offices at an airport (and spending hours in the lineup), I prefer to eliminate that hassle by getting a bit of the local currency before leaving home. I've done it with British pounds, Hong Kong dollars, and South African rand as well as Euro. I don't ever leave the house without a few dollars in my pocket....I wouldn't do it heading out on a trip, either. It's just part of my personal comfort zone.

Hi Everyone. Thanks so much for all the information. It has been very, very helpful. I am going to get a little here and then use my ATM (not the credit card) to get cash while in Italy. I appreciate all your help. We leave Tuesday Jan 22. and will have a teriffic trip thas to all of you.

I agree with all those writing below who suggest you use the ATMs in Europe to exchange money. You will find them everywhere.

I NEVER buy euros here because that is far too expensive. In 10 trips to Europe I have bought currency at the airport on arrival in Milan, Frankfurt or wherever I land without problem.

In Switzerland you will find ATMs in the post offices. In other countries you will find them in dept stores. malls, grocery supermarkets, service stations, hotels and outside almost every bank.

As a traveler you can't do anything about the exchange rate or the ATM fee. Why complain? I will gladly pay the fee for the convenience of finding the machines so easily.

Many rental apartments require payment in cash upon arrival.

For example, on our upcoming trip our apartment in destination #1 (Venice) costs E800 for four nights, cash only. We need to have that much ready to pay as soon as we arrive.

The fifth night we go to Florence. We need another E600 for four nights in Florence, again in cash. We can hit our ATM for the first four days to stock up that much cash for day 5, but that doesn't leave us much spending money per day with a E250/day withdraw limit.

Day 9 and we're in Rome for five nights. We need E800 in cash to get into the apartment.

We haven't finalized our reservations so we may be able to pick places that take CC but this scenario is plausible.

Our alternative is to prepay rentals - not an idea I'm comfortable with.

Some apartments don't require cash - but Rick even suggests offering cash to get a discount. In this situation, Unless I'm overlooking something, we may be forced to get a lot of Euros before we go

We have just withdrawn money once arriving at the airport. You'll find in Italy that everyone wants you to pay for meals, etc... with cash - not credit cards. Not only that, they all expect you to have change too! It's the weirdest thing - they all expect change, but you can't get it unless you break bigger bills...
We also got nice discounts on the hotel rooms by paying in cash. We asked before making reservations what the cash price will be. So during our stays, we'd just stop at an ATM and withdraw money along the way. Most hotels have safes where you can store the money if you don't feel comfortable holding or just hiding it too.

We usually take 100 or so EU with us, too. The last thing I want to do upon landing is look, bleary-eyed, for a bank machine.

We also have to give our bank a week's notice in order to get EU from them. They have to order it from their head office, so not available at the very last minute-we're on our way to the airport.