In prep for my departure to Europe this month, I began to investigate changing dollars to euros. I found my bank charges a fee of approximately $10/100 euros. Seems exorbitant. What do others do??? Am I better to purchase euros in Frankfurt upon landing??
thanks Gary
You are better off using a bank ATM (some non-bank machines charge large fees) when you arrive - perhaps with some USD cash as a backup if you worry about your card not working. And do not overestimate the cash you need; these days in Europe it is mostly needed for very small purchases.
When I travel the other way to a non-Euro using country (which hasn't happened in a while...), that's what I do, and I do not even bother with more emergency euro cash than what would be in my wallet at the time of departure.
You figured it out- just go to a mainstream bank ATM when you arrive in Germany and get them there with a credit card that will charge you the lowest fee. Deutsche Bank has a “Geldautomat” at the airport. There usually is a 3% conversion charge, but some credit cards waive that. If you have any questions, contact the bank that issued your card.
Am I better to purchase euros in Frankfurt upon landing??
Yes, and there are lots of ATMs at Frankfurt airport:
https://www.frankfurt-airport.com/en/airport-guide/help-at-the-airport/money-and-more.html
Even better than using a debit or credit card is using a brokerage account card such as E-Trade. The fees are waived.
I would suggest reading the informative Travel Tips:Money on this website. Wealth of info.
Hi, Gary! This is a great time to take stock of what you will be using to pay for your purchases or to get cash from an ATM machine when you arrive in Europe.
Take the time to explore the features of your credit cards and your debit/ATM cards. You don't want to be surprised by foreign transaction fees or service charges. You might be pleasantly surprised by some of the travel insurance coverage that accompanies your credit card. At any rate, find out exactly what the policy is for the cards you will be using.
There is a real trend to use "contactless" payment for many items that involves using your credit card or Apple Pay. Many people are finding that cash is not used as much as it was previously, but this may vary by person and your individual spending habits.
FYI: Frequent travelers usually look for credit cards with no foreign transaction fees and debit cards that have no ATM fees as well as no foreign transaction fees.
And NEVER withdraw currency using a CC, because that would be a cash advance
I think most people misunderstand a cash advance. It is a viable means to get cash if needed, and at no more cost than if you happen to bank at a place that charges you both a use fee and a Foreign Transaction Fee, using your debit/ATM card.
In fact one of my cards only charges a $5 minimum fee, or 2% of the transaction for Cash Advances, and any interest (you can pay it off immediately and avoid interest) is about half what other cards charge.
Now in my wallet, I have 2 ATM cards and 3 credit cards that I travel with, and with using less and less cash, I probably would never need to use a cash advance, but it is a viable option.
So I would not say "never", just know what the costs are and where it sits with your personal options.
Using a credit card you start incurring interest charges, at whatever rate the cc charges, immediately. A credit card for a cash advance is only for dire emergencies. As someone said upthread, if you use a credit card, you need to go online and pay it off the same day. That means finding a secure internet connection.
A currency exchange could charge you wire fees, depending on your bank account. For the piddling sum of $100, you don't want a wire charge; banks sometimes charge $25 for the wire. I've done several currency exchanges with two different companies because we own property overseas, but I have managed to avoid charges. Not everyone does.
Carol's advice to study your cards was on target, as was your idea of withdrawing the tiny bit of cash you'll need upon arrival.
Bon voyage.
Hi Gary. Go to your bank’s website first to see if there’s any reciprocity with a German bank like Deutsche Bank. Bank of America for example has reciprocity with Deutsche bank. You don’t need to “buy“ euros. It’s like setting fire to your own money as it is such an expensive way of getting local cash. When you arrive at the airport in Germany, go to a bank ATM machine and use your ATM card to withdraw €100.
thank you I appreciate your responses
Using a credit card you start incurring interest charges, at whatever rate the cc charges, immediately. A credit card for a cash advance is only for dire emergencies.
Again, I would urge anyone to check terms of their credit card and any other options at their disposal. I always see ABSOLUTELY DO NOT and ONLY IN DIRE EMERGENCIES and it really does not help in giving advice.
On here, many people will discuss fees they incur with an ATM card, and in the end say "Oh well, I am paying $$$$ for a trip, so if I pay some money to get some cash...no big deal"
For example, Bank of America, which many people use, will charge you a $5 fee to use your card out of network plus a 3% of the transaction as a currency conversion fee. So to take out 200 euro (OK let's say at this time it is 1:1) it would cost you $211 ($200 plus $5 fee plus 3% of $200, so $6) Yes, you can spend your time looking for an ATM that is aligned with BoA, in Germany maybe not too bad, but whatever, you save yourself $5.
Most credit cards offer cash advance. The most common terms are a $10 minimum fee or 5% of transaction amount. This means if you seek a cash advance of 200 euro (again, lets assume 1:1) you will be charged $210...so less than a BoA cardholder will see!
Of course many will also say "OH MY GOD...YOU WILL PAY 24% INTEREST FROM THE SECOND YOU TAKE THAT MONEY OUT!!!!!"
But do the math. First, yes, you can go on immediately and pay off the balance (If you had cash in the bank for an ATM withdrawal, then you can pay the card). Secure connection? All my credit cards have two factor authentification..so no issue there, if you do not, that, and your risk, is on your credit card company. But let's say you hold that $200 until your next pay cycle, How much interest will you incur? (It is less than many doomsayers think)
No the point is, know what the cost is to use whatever the options are, whether it be ATM/Debit, Credit card purchase, Credit card Cash advance, Wiring money, a variety of money transfers, carrying cash and making exchange....they all can vary wildly de[pending on your situation. You cannot make wild statement as "never", "Dire" or other advice without knowing the details or the cost.
Also convenience plays a role, I have never bought euros or GBP here in the US, but I have no problem with someone who would like to have a 100 or 200 euro in their pocket ahead of time doing so. Same with cash advances, I do not recall the last time I ever did one at an ATM in Europe, but it is an option and probably a better option than exchanging cash there, getting euros in the US, and even some money transfers. It is another tool in your box not to be overlooked.
