In mid-April we're going to Italy. Is it wiser to use our ATM card most of the time or are credit cards still a good (relatively!) deal?? I know the dollar is terrible against the euro so we need to do the most economical thing. Thansk for your help. Julia in Vermont
Posted by
Myrtle Beach, USA
12313 posts
Some small hotels and restaurants don't take credit cards or will give you a discount for cash (ask). I use my credit card when I can for purchases and use my debit card to get cash. Since each withdrawel incurs a fee, I make bigger withdrawels less frequently and keep anything beyond a day of spending money in my money belt.
Posted by
Newport Beach, CA, USA
769 posts
Also - if you use a CC - then you have a little more buffer if they make a mistake. If someone charges you the wrong amount by mistake it can take a week or more to undo, and if it is on a Debit-Checking-card one could be out of that amount of cash in the mean time (vs the CC where you can settle it before the bill is due!). Save the ATM for cash machines only - CC for any purchases bigger than pocket cash.
Posted by
Los Angeles, CA, USA
1449 posts
I believe you are asking about using a credit or debit card to pay a merchant. Credit (and debit) cards are nowhere near as popular in Italy as here. A surprising number of hotels, restaurants, etc. are going to want payment in cash.
Use your ATM card to get cash out of an ATM machine. As for credit cards, I think Capital One offers a card that has a very low (maybe 0, someone chime in here) charge for overseas use. Many credit union credit cards just charge the 1% the Visa and Mastercard networks charge, most others pile on the fees.
Posted by
Richardson, TX, USA
153 posts
The typical US credit card will add a 3% 'finance charge' on top of your purchases.
If you have an ATM card, and it has a Visa symbol on it, they'll charge you 1%.
The best deal is to get cash and not use a credit card. Not always possible, obviously.
I have also heard that Capital One does not charge the 3% but their commercials are so obnoxious!!!
Posted by
Wichita
831 posts
Julia,
This may help you http://www.bankrate.com/brm/news/cc/20050624b1.asp
Also be aware that credit is not the same as cash, many places will give a discount for cash.
Posted by
Tresana, Highlands Ranch, CO, USA
23626 posts
The subject is discussed endlessly over on the Steves' money site. Go there for more details. Jim's information is a little off. You don't get hit with a 3% "finance charge" on credit cards. This is simplified version of the fee structure --- ALL networks (Circus, Plus, etc.) charge a 1% currency exchange fee that is BURIED in the exchange rate. (It is reported that some card issuers especially credit unions will rebate this fee). After that is is up to the card issuer (your bank, etc.) to add addition fees of 1 to 5%, generally 2 or 3, or a combination of a flat fee and percentage or no fees -- Capital One, as of today -- could change tomorrow -- does not add extra fees. Same is true for some credit unions and maybe a Schwab money account. You must check CAREFULLY with your card issuer --- NOTHING is standard. Conventional wisdom is use a debit card for ALL cash withdraws and a credit card for major purchases. Our practice is to pay cash for nearly everything.