Help with Money

Get a different credit card (like Capital One) with no foreign transaction fee. And then use it as often as possible, unless you also get a different bank with little or no ATM foreign transaction fee.

What Robert said.

CapitalOne offers debit and credit cards with no foreign transaction fee, plus there is no transaction fee from them for using their debit card at any ATM. (The ATM provider may charge you a fee, but CapitalOne won't.)

I tend to take $1500 in Euros (divided between myself and my wife) and we pay for everything except hotels in cash, if we are getting low we make a ATM stop. We generally only need to stop at a ATM once during our 2 week trips. My bank here in Kansas converts my US dollars into Euros for me so it is very easy for us. I know many on this forum like to head to Europe without any Euros and to head to a ATM as soon as they land, I prefer to hit the ground running and get out of the airport as soon as possible and get to where I want to go.

3% is pretty standard and relatively low cost. But many here live by the mantra of opening and managing new accounts to avoid paying any fees. If that is worth it to you for a 2 week vacation, then by all means.

You are unlikely to get euro in the US for anything less than 3% and probably will pay more. Even if your bank says they don't charge a fee, the exchange rate they use will likely be 3% or more difference.

If you use an ATM in Europe, you only have your own bank's fees (European banks rarely charge to use their machines). Do look out for offers (ATM and purchases) to convert your transaction in US dollars for you. Agreeing to that means they set the exchange rate and it will be higher. Otherwise the rate is the interbank rate plus any fees added by your bank.

The problem with bringing too much euro with you is if you don't use it all, you'll pay to re-change it again. Plus the risk of carrying a lot of cash (even in a moneybelt). Many bring a few hundred dollars just to avoid hassles and feel comfortable on arrival. But I don' recommend bringing more than that.

If you are asking about how much you might spend daily, that will vary WIDELY based on your own spending habits and locations of travel.

A FAQ. See Rick Steves' Tips:

https://www.ricksteves.com/travel-tips/money/card-fees
I concur that: Capital One has a particularly good reputation for no-fee international transactions on both its credit cards...

https://www.ricksteves.com/travel-tips/money/cash-tips
Bring along some US dollars. While you won’t use it for day-to-day purchases, American cash in your money belt comes in handy for emergencies, such as when banks go on strike or your ATM card stops working. I usually have a couple of hundred in USD bills and have yet to need it as an emergency (high exchange cost) source of cash.

https://www.ricksteves.com/travel-tips/money/cash-machine-atm-tips
Suggest having a back-up ATM card/account with foreign travel notification for both. I have seen an ATM confiscate another traveler's ATM card.

I wouldn't bring any cash with me. We use our bank ATM cards linked to our checking accounts. I wouldn't even bother getting a new credit card to save a few dollars. Figure 3% of $1,500 is $45 over the course of a 2 week trip roughly $3 a day.

"But many here live by the mantra of opening and managing new accounts to avoid paying any fees. If that is worth it to you for a 2 week vacation, then by all means."

When I was preparing for my recent trips to Europe (over the last 5-6 years), my daughter suggested getting a card with low or no foreign trans fees. I ended up getting two, a Capital One card and an Ally Bank card. Both of these were debit cards for ATM use not credit cards (I used an actual cc rarely in Europe although I did use it often for things I paid for ahead of time here in the US). The accounts were easy to set up by phone and/or online, no big effort to manage those accounts as they are used only when I travel. I deposit money in them before I leave home and take cash at ATM's; they're not attached to my 'home' bank account so no big risk if card is lost or stolen. The reason I opened both was to have 2 separate cards with the money in two different accounts so if one was compromised or a card lost, etc. I'd still have money to fall back on without having to access my regular bank account. This worked well for me.

I tend to take $1500 in Euros (divided between myself and my wife) and
we pay for everything except hotels in cash,

Whoa, whoa, bad idea!! To get Euro in the US you will pay between 5 and 10% premium The cheapest and most convenient way to obtain local currency is a debit card at a bank owned ATM where ever you are. Even if you have to pay a 3% conversion fee it is still cheaper than bring from the US. Second paying cash for hotels is generally the best deal. Often the hotels will offer a 5 to 10% discount for cash. I only charge a hotel if they do not give a discount for cash.

AND never use your credit card to obtain cash from an ATM unless it is an absolutely emergency. Cash on a credit card is a loan with very high fees. I would take a tin cup and start begging on the street before using my credit card for cash.

to get a new credit card to save money on the percentage charged by
the current credit card bank, it could hurt the OP's credit rating.

That is not completely accurate. It could if you already had a marginal credit score but at the most it would be a few points passing in a couple of months. And six months later it could be a big boost to the credit score. Opening one new card would have nearly zero impact. There are a lot of myths around credit cards and credit scores.

I agree with Nancy, and did the same as she did. I opened a Capital One 360 debit card account, funded it (via online bank transfer) before leaving the US, and that was the sole ATM card I used throughout Europe at numerous banks' cash machines. No transaction fees.

Like Nancy also says, having an ATM separate from my "home" bank/ATM was quite reassuring, so that if somehow the Capital One card account was hacked or that account compromised in any way, my "regular" bank account was in effect behind a firewall and would not be affected.

However, it would be smart to carry a second debit card on your local bank just in case something happens to the first card. That may be a low possibility but things happen. We have used a debit card for most of the past twenty years and never (knock on wood) had a problem but as an old engineer who likes back up to back up we carry three debit cards.

Those banks that charge 3% for ATM withdrawals also charge a $5 out-of-system fee for using a "foreign" ATM, so for a withdrawal of $500, it's more like 4%. Wells Fargo averages 5% over for euro over here, so bringing euro is not so bad compared to using big bank ATMs. However, even if you don't have 0% ATM card, most credit unions only charge 1% over.

As for using credit cards for accommodations, I have found that the least expensive places only take cash, so the extra you pay for a place that takes credit cards, even if you have a 0% credit card, is far more than the cost of paying in cash.

If you are considering opening a new account, I've used the Charles Schwab investor checking ATM with very good results. No ATM fees and no foreign transaction fees.

Frank, I agree with you. I'll let you in on a little secret, I actually had the two new debit cards (Capital One and Ally) and also carried my bank debit card (just in case) and 2 credit cards (just in case). I'm not an engineer but I have been described as being a little anal (ok ok a LOT anal) and I try to be prepared for all contingencies. My home bank debit card and one of the credit cards stayed in the money belt the whole trip and were never used. I think I used the other credit card once, for a train ticket purchase in Poland and that was it. Otherwise it was cash from the ATM for most everything including all hotels/apartments. If I start using credit card for everything I tend to spend more money, I have a better handle on my budget using cash.

In response to the comment about getting new credit cards hurting your credit rating, that depends on a lot of things. If you have a good (or better) credit rating already, getting a couple of new credit cards may only cause a little blip for a short period. After using them a couple of times and paying the bills on time, your credit rating may actually increase.

@ Nancy, we prefer "thorough" rather than "a" word. :)

We have a Capital One checking account that we use solely for vacations. I direct deposit a portion of my paycheck into it every month, and then a month before our vacation transfer additional funds into that account if needed. Not only do I have zero transaction/exchange fees, I like the fact that even our "vacation" account was compromised, it's only money. If our regular bank account was compromised/cleaned out, we'd likely have bills/mortgage set up to pay, and if the overdraw protection account was accessed to the max, I'd have a mess to clean up when we returned home. We do take another debit card on our primary account for backup.

One other thing I do upon arrival in Europe is "test" all 4 cards (my husband's and mine off both accounts) just to confirm transactions work without issue.

Karen, I may be even more "thorough" -- I test out my travel-only Schwab debit card before I leave home to make sure the PIN number still works since the last trip. But thanks for the reminder to check the Capital One backup credit card PIN as well.

@ Sam - who's we? I prefer calling a spade a spade. None of my friends or family ever said I was 'thorough'. LOL

I travel solo and like to arrive in a country with a decent amount of cash (carried in a belt loop pouch, of course), using the ATM if I need more. For a week in Paris I will bring perhaps 500 euro. I fear having a problem with or losing my ATM card, even though I take all precautions. I will only use a bank ATM and preferably during open hours, just in case.

I also bring 2 credit cards, I like Capital One because they don't charge a foreign transaction fee so I use that one and have another as back-up in my pouch.

In short, I like to be prepared and I like to have options, so bringing cash and 3 pieces of plastic sets my mind at ease.

Yes we test all cards before we leave to make sure PINs still work.