Purchasing Euros

Maybe buy a 100 or so here to get you started but otherwise buy them there, the rates are much better over there.

It's not that the rates are better 'over there'. The Interbank ATM exchange rate is the same. It's that if you buy foreign currency from your bank or a currency exchange retailer like Travelex or American Express, there's typically a mark-up because they want to make a bit of profit on the transaction. There could also be a fee tagged on for the service they provide. If you get only a small amount before you leave, you'll have some local currency to use when you arrive if you need it. The ATMs in airports are sometimes not tied to a bank network, so they can also charge more. When you're settled at your hotel, seek out an ATM in the neighborhood and you'll get cash at the straight Interbank ATM rate. The European bank won't charge any fee, but your bank will probably charge a small fee for the transaction. You'll see it on your statement later.

Best and cheapest way to get money in Europe is with your bank ATM card. Just notify your bank before you leave of the countries you will be visiting and find out what your daily withdrawal limit is (an then figure what the conversion would be in euro). I usually like to leave Europe with 100€ or so, so when I come back I have some in my wallet and not have to rush to an ATM but you can easily find them at airports.

Rule of thumb: Use a credit card for major purchases and get cash from a bank-affiliated ATM for everything else. Be sure to tell your bank and your credit card provider when you will be in Europe. If you don't, a computer may freeze your account for unusual activity signaling possible fraudulent use. Read this very helpful article by Rick Steves.

Carolyn, to clarify, it's not a good idea to "Buy" euros in Italy with your US dollars. Leave your dollars in your bank account and use bank-associated ATMs in Italy to withdraw from your own bank account in euros. Your own bank will likely charge a transaction fee so find out what that is before you go on your trip. My bank charges $5 (!) so I withdraw fairly large amounts when I need cash to minimize that cost.

Thanks everyone....I will get enough cash for arrival and then do as you suggest. My bank suggested that I use an ATM inside a bank rather than the ones on the street. Not sure if this is available in Rome, but I will try.

I think they are suggesting that you use an ATM attach to the bank as stand alone machine can be subject to tampering. Some ATMs at banks will be in a little room near the entrance to the bank and it is necessary for you to swipe your card to gain entrance to the enclosed area with the ATMs. These enclosed areas in Italy are not real common but you can find them. We have used street ATMs attached to banks for years with no problems.

I just came across another good article about using ATM cards overseas: http://www.independenttraveler.com/travel-tips/money-and-insurance/atms-abroad Carolyn, be very aware of your surroundings when you go to an ATM. If possible, have someone come with you who can keep an eye on the people nearby while you carry out the transaction. And don't dawdle by the machine with your cash/card in hand. Take them as quickly as possible and move away from the machine to a less exposed place. I usually go into a shop or café. Then put your cash and card in your moneybelt immediately in a non-obvious way.

You'll find lots of banks have ATMs inside a secured area. You have to swipe your card to get inside. Those are the best ones to use because you can secure your cash after you get it but before you go out into the street.

Great advice...I will have my 18 year old grandson with me so he will be a good "look-out". I saw a short video on a website that said to wear a belt and then attach your money belt to that so it sort of hangs down the front of your leg instead of putting the money belt around your waist. Better yet was to attach the money belt to a loop in your pants and let it hang down your leg. That way you can pull it out easily to make transactions, yet it is more safe. I do not want to be paranoid but also be careful.

Carolyn, I found out too late for my recent Italy trip, that my own bank coverts US dollars to euro for no fee, just the standard exchange rate. It takes about a week. I ended up pulling cash from Bank - Operated ATM's throughout Italy, and paying on average $3.50 per transaction. (Not bad, just pull out max euros - which was €250 at every bank I went to). Don't go to the ATM's set up right next to the banks, they have hefty fees and try to look like the bank, go to the bank ATM itself.
From my minimal experience, I would absolutely take some euro if you can get a free exchange through your bank (allow a week- that's what they told me). Of course, travel safely with a wad of cash. Ether a secure safe in hotel, or the good ol' money belt, or the classic "bra pocket with a safety pin". :) Impossible to pick pocket!!!

Don't be fooled by a no fee exchange at your US bank. The fee is built into the rate. If you are able to go to your bank's head office or their main branch in a bigger city, they likely have Euros on hand. You'll just need the foreign exchange desk.

I just happened to be at a CHASE branch today so on a whim I inquired about buying €€€ and £££. They don't keep foreign currency on hand, so they order it for their customers (those who actually have CHASE accounts) and you pick it up in a couple days, I guess. The teller quoted today's rate at $1.3911 to one Euro, and $1.6391 to one British Pound. These are awful rates! The Interbank ATM rate, which I queried on my mobile as soon as I was out the bank door, was $1.28 for one Euro and $1.50 for one British Pound. Big mark-up, almost as bad as buying currency at an American Express office.

Carolyn, another good reason for using an ATM physically attached to a bank is in case there's a problem - the machine doesn't give you any/enough money or eats your card. Also, be sure the bank is currently OPEN for business when you use the ATM. I'm assuming (never a great thing to do!) that there's a Wells Fargo in your area; see how their price compares to your bank's price. WF is generally the best going...Definitely get some (a few 100€, maybe?) to get started; my branch has always asked what denominations I wanted, so get some 5, 10, and 20€ notes. You can also order currecny online and have it overnighted to you. ATMs will usually spit out 50-100€ notes and those aren't always convenient. Also, get as much € from the ATM as you can in a single transaction, especially if you're being charged per transaction.

I appreciate everyone's advice. I went to my bank a week ago and had them order Euros for me. The "personal banker" told me I would pay the exchange rate of the day plus a $12.50 fee. When I went to pick up the Euros they were 1.40 (not the daily rate of 1.30. I sent them back as I had ordered more than I needed for a day or so. Checked with Wells Fargo and they are 1.37. I will use the bank ATM machines as everyone has suggested.

Schwab bank is good for travelers. I called and they had better exchange rates then Citibank, bank America. Don't know compared to wells Fargo. Schwab is free account. Europe banks don't charge a atm fee like us banks of $2.50 for a transaction, but Schwab refunds all atm fees since they have no branches. I bank with them for travels

I did some looking; you weren't going to pay $1.30 :-( I'm guessing your personal banker was similar to my personal bankers (sigh). The difference b/n $1.37 and $1.40 is $3/100€. It's never been more expensive for me to buy € from WF than using a European ATM. Of course, the real plan is to buy some once the first time, then bring some home and keep them with your passport(s); I've ended up buying some for nearly every trip for others traveling with me. Dang - $12.50 fee from your own bank? WF doesn't charge anyone a fee for online orders. Now, if you don't order 'enough' you pay a delivery charge... Remember the point of buying currency in the first place - to have a bit of money for getting around (airport drinks/snacks, metro tickets, taxi fares), not to fund a 3-week vacation ;-) Upon landing in Europe, we've always needed some cash before coming across an ATM, so cash-in-pocket (& moneybelt) saved us some backtracking. Not a major biggie but when I haven't slept in about 24 hours it's a pain and an annoyance. As posted, definitely don't take $ to change into €!!! And forget travelers checks...don't even go there ;-) Also - be sure your money is in the regular checking account and NOT in a savings account; in the USA you can choose which acct to withdraw money from, but not in Europe!

Rose, I did some digging...if you're using an app for your conversions, what are you using? Oanda's (and others) show a +2% ATM Euro purchase rate of $1.33/1,00€ on 06/06. The Interbank Rate was 1.30. Your number matches how much you'd receive on 06/06 if you were selling Euro for Dollars (1,00€ for $1.28). To buy 1,00€ would cost $1.33. I just want to be sure you're using the correct computations and from the customer's side, not the seller's/bank's side. Check and see if there's a place to set 'bid', 'set', and 'midpoint', etc., and that you're buying Euro, not dollars. Ugh - brings back the old days of having to buy currency at the money exchange offices in Europe (the bid/ask rates, the exchange %) - yuck. And if you bought too many francs, you'd lose money selling them back (and that's why you always bought the next currency instead selling francs, then buying lira). And if you didn't like math...good luck.

Thanks, Eileen. I do use the Oanda app, and I know about buying vs. selling. The Oanda app doesn't allow me to query back to 6/6, but it does show several different rates for each conversion query - the 0% Interbank Rate, 1% Interbank Rate, 2% Typical ATM Rate, 3% Typical Credit Card Rate, 4% Interbank Rate, and 5% Typical Kiosk Rate. The little dial thingy in the app defaults back to the 0% Interbank Rate each time the app is closed and re-opened. I thought I had looked at the 2% Typical ATM Rate when I exited the bank branch the other day, but I was in a bit of a hurry and may have inadvertently jotted down the 0% Interbank Rate. The rate the teller quoted me was what it would actually have cost me to purchase one Euro and one British Pound if I had ordered them from her at that moment, obviously multiplied by how many €€ or ££ I wanted. As you know, the rates fluctuate constantly based on buying/selling activity on the world currency market. My post was meant to illustrate that CHASE doesn't seem to be one of the better banks from which to obtain foreign currency. I did this same exercise a while ago for Wells Fargo, and I recall they seemed to have less of a buy mark-up (on the customer side).

Rose, cool. On the regular website the page that looks like the Euro-buying page (because of the highlighted $1.31-type number) actually shows the Euro-selling price, and the one that looks like the Dollar-buying page (because of the highlighted $.75-type number) shows the Dollar-selling price. I know - confusing. If one gets into the travelers info on that site, then things are clearer, but since most currency sites are for traders, NOT for travelers, it gets confusing. Ack! Main point - for the convenience of having a few Euro upon landing, it's only a few dollars. Many pay way more than that for the convenience of a taxi vs train/shuttle bus, or for 'free' breakfast, or for two Coca-Colas or one bottled water in a restaurant. I think people get confused with the decimal points. It's not like $40 extra dollars/100€, it's $4. Bring some back and stick them inside your passport! Don't forget the 'pee coins' ;-)

It is so easy to buy euros once you are there. No need to pre purchase. We purchased our first euros at the airport train stop. We used our credit union debit cards for euro purchases that has a one dollar fee for each transaction. And used our CapitalOne credit card for charges, that has no fee.

Eileen, I thought I was the only one who said 'Ack'. LOL I keep an eye on the exchange rates for €€ and ££ mostly just as an interesting exercise. I always bring some €€ or ££ home with me at the end of each trip as a reminder to start planning my next trip ASAP, and to have that bit of cash in hand when I first land next time round. :) Tracking the exchange rate can matter for some people who plan to rent an apartment and need to pay the full amount in cash when they arrive. I would not want to be running around looking for multiple ATMs to withdraw €250 each from to end up with the needed larger sum, amidst the fatigue and jet lag of an international flight and getting to my destination. Watching the fluctuating rates over a couple months may help a person save a bit if they buy when the rate dips.