Advice on debit card usage in Europe.

If it is 0.8%, then is an excellent rate. The vast majority of European ATMs do not charge any fees for using the ATM terminal as is common in the US. All charges are determined by the card issuer so you might want to double check with your issuers. You need to read the fine print of the pre-paid card very carefully. In the past pre-loaded debit cards have had fees as high as 10 to 12%. Pre-paid cards do not have the same protections as regular credit and debit cards. I personally would not use a pre-paid card.

Not bad if they are correct; However, you can get a no-fee card from Charles Schwab Bank. We opened one on our first trip to Europe and liked the service so much we stuck with them.

I got a reloadable debit card from my bank before my last trip. It worked just like my regular debit card. I didn't want to open up another bank account just for a trip, so I thought it was my best alternative for a back up card. Plus, it wasn't linked to any of my regular accounts, so if it had been compromised, it wouldn't have affected any of my regular accounts.

My Wells Fargo ATM card charges 3% and $5 per transaction--excessive.
My credit union ATM card doesn't charge any discount or transaction fee. I activate it only when traveling.
Be sure to tell them when and where you're traveling prior to you leaving. Otherwise, they may turn down or question out of country transactions.

Look carefully at the ACE card fine print. I see $2.50 fee per ATM withdrawal (domestic). see nothing about foreign transactions. I'd be a bit suspicious with out seeing a complete fee schedule and statement on exchange rates.
The 0.8% is pretty standard for a MasterCard branded card. That is what my credit union uses. Most banks charge 3.0% plus out-of-network fees. So I would stand pat in your case.

Reloadable debit cards sometimes have an activation fee, as well as other transaction fees. I would take a second look.

"I was also told that I will only be charged the transaction fee for using the foreign ATM's" - That sounds like your bank's charge for using a foreign bank's ATM.
"good alternative to opening up another account just to have another debit card" - why would you open a new account? Just use the same debit card you currently use to get cash or pay bills in your home town.

Zoe, What is a "Ctivation fee"?

Zoe, What is a "Ctivation fee"?

I think it's a typo - I think Zoe meant "Activation." :)

We have a Bank of America Travel Visa credit card, which does not charge a foreign transaction or annual fee. Generally, we only use a credit card to pay our hotel bill and pay cash for everything else. Although, we do occasionally use the card for some purchases. For example, we used the card in the gift shop at the Ferrari Museum in Maranello this past August.

As for using Bancomats, ATM"s, we have a checking account with Charles Schwab with an ATM card and they do not charge any ATM fee and will return any fee charged to your account by any bank, both here and internationally. There is also no minimum balance requirement.

Buon viaggio,

Yes, teensy keyboard. Edited for activation.

I would avoid any type of pre paid card re-loadable or not. There are numerous fees including a fee to add money, fees each time you use it and even fees just to check the balance! (Not all cards of this type charge all the fees, but most do.)

I have an account with Capital One 360 (formerly ING Direct) I use when traveling. Charges absolutely zero fees for any ATM / Debit card use. No minimum balance required, no minimum deposit required to open the account. They allow you to transfer money into the account from any external bank with no fee as well so it is easy to keep only the funds you think you will need in the account. Used this card on every trip to Europe I have taken and it has always worked to get cash from machines everywhere there. And the rate you see on Google for USD/EUR exchange is what you are charged -- never anything extra.

Chris F: Many people traveling from the US like to have a second account to withdraw from while in Europe because US banks are notorious for cutting off access to your funds even if you have repeatedly told your card issuer where you would be going. Since it takes a couple days in many cases to get the card reactivated, having a second one tied to a different account at a different bank is very useful to keep from being left without funds.

I agree with Frank about preloaded cards. I've looked at the T&C for a lot of preloaded cards, and all but one (Key Bank) have been bad deals (bad exchange rate or lots of fees, or both).

If your bank really charges only 8/10% for the exchange rate discount and no foreign ATM usage fee, that's a good deal, although for certain accounts, Wells Fargo has absolutely no exchange rate discount and no fee.

As for using credit cards to pay for hotels, at least in Germany, the hotels that take credit cards are far more expensive to start with so more expensive rooms is kind of a hidden credit card fee.

Piggybacking on Lee's comment, sometimes you can get a discount on a hotel if you ask about paying in cash instead of credit card.

schwab debit worked like a champ for us in Lucca, Cinque Terre, Pisa in October, no fees, no catch, reimburse for ATM charge if it occurs. Took me about half an hour to sign up, received the card in 3 weeks. You have to sign up for brokerage account when signing up but no fees, all can be done online or via phone of you prefer!

Charles Schwab is the best, I have been using them for my checking account for at least 5 years and their policies are just amazing. Greta for international travel but you do have to call them in advance of making an international purchase or traveling outside of your normal area.

They automatically reject any charge otherwise, not a big deal if actually traveling but a bit of a hassle when you are buying tickets, hotels from home on an International website to have to call them in advance for each coming charge.
Should you ever have an issue their customer service is top notch and answers the phones right away.

Takes awhile to get used to not having a branch nearby but with all ATM fees rebated, free checks, online bill pay and an app for depositing checks by camera phone picture it really is no big deal.
Only issue that has ever come up is if I have cash that I want to deposit or a check for more than $5000
Fortunately for me they just opened a brokerage office not far from my house and you can deposit cash or checks there into your brokerage account and then on your phone immediately transfer from brokerage to checking.
When you sign up for a checking account and are approved you are automatically given a brokerage account with one penny in it.

Charles Schwab seems to be a favorite here. So if I understand correctly, to get a checking account through them, I would have to have a brokerage account. I'm not sure that I can do that. Schwab seems like the way to go though. In addition to that, there isn't a location near where I live. That seems problematic. There isn't a whole lot of options for this central Illinois girl. I just want to have a backup. I appreciate all the feedback here.

You do get a Charles Schwab brokerage account along with the Investor checking, but there is no requirement to put any funds in it! I just use the Charles Schwab checking/debit card and have never put any money in the investment account.

This card works very well for traveling. No foreign transaction fees, no atm fees anywhere. I used last summer on my trip to Europe and was quite pleased. I put my monthly travel budget funds into this account throughout the year and use it exclusively for travel.

I've never gone to a Charles Schwab location. I mail in deposits, and you can access your money via check or any ATM machine.

An easy alternative for a backup card would be Ally Bank. It's online, you get a debit card, they reimburse ATM fees in the US (and there usually aren't any abroad). Their foreign transaction fee is 1% but that's not bad compared to many bank debit cards. You can also set it up to link to your regular bank account so that you can transfer money between them if necessary. I live in central IL, too, so I understand the limitations. :)

Take a look at a Capital One free checking account. It's free and pays you .2% interest plus they won't charge you any foreign transaction fees. They even refund you what Mastercard charges for the transaction fee. You can't get any better than that! https://home.capitalone360.com/online-checking-account

Look at capitalone360.com I pointed out some of the benefits in an earlier note here. They are internet based as is Ally. You can conduct business at any local Capital One branch but in the 15 years I have been their customer I have never needed to do anything I couldn't do online including opening my initial accounts with them.

I use a Chase card that charges no Int'l fee.s