Bank offering reasonable euro rates. Get euros before departure?

I don't know the ins and out of the rates...I'll let someone else speak to that. However, I would be hesitant carrying a lot of cash. If you are taking a longer trip and paying for big things like hotels in cash you would want thousands - which I would not want to carry on me. I'd worry about theft, loss, and just be paranoid. However, I do find it smart to get a couple hundred before I go. That takes care of whatever I may need for the beginning of the trip and I will find an ATM at my convenience later.

I'm prebooking all housing, train, and probably attraction tickets. So I expect to only use cash for food taxis and buses.

How much should I expect to spend on food a day? I don't care at all about atmosphere, but I do want to eat authentic food.

Where are you going? Costs vary widely within Europe. What will buy you a great dinner in Spain will get you the equivalent of hot dogs in Switzerland. I agree with the prior poster-get a few hundred to carry securely in your money belt. Then visit bank affiliated ATM's in Europe. There will be added charges so withdraw as much as you need and feel safe carrying at once.

What is the rate at which they will sell you euro, right now?

Traveling to Italy.

They said the rate is just according to whatever the standard (according to Wall Street I think) at the time of exchange with the 3% fee.

Then ask them what the rate is TODAY. The bank can set any rate that they want and they do. And there is no such thing as a Wall Street rate. You need to know the Interbank rate as of the moment. At this posting it is $1.05. Normal banking practices is to mark up the rate from 5 to 10%. Say -- $1.11. The cheapest and most convenient way to obtain local currency is a debit card at a bank owned ATM in Europe - absolutely !!!

Someone posted - There will be added charges. That is not always true. All additional charges are determine by your bank. Most ATMs in Europe are free to use.

You can use this resource to check exchange rates. I like to ask how many $ it will take to buy however many € I want. That's because the ATM will ask me how many € I want. When I just checked, it cost $1.06 to buy €1,00. Note the difference in the way the currency is usually written.

Fortunately, neither of the credit unions I belong to charge any foreign ATM use fee. The exchange rate is whatever it is when I get the cash, and both credit unions charge less than 1% as a Foreign Transaction Fee. I never say yes to DCC (Dynamic Currency Conversion).

For lots more information on money in Europe, go to the Money section of this very Rick Steves website.

If you are only using cash for food, transportation, and incidentals, a few euro here or there doesn't make much difference in conversion.

The main question is whether you would feel comfortable carrying a relatively large amount of cash around? I used to do that, but it was stressful. Now I withdraw money from Bancomats in Italy. Costs a few euro (my bank is terrible for international travel), but I feel more comfortable.

Just buy enough to cover your cash needs for your first day or two in Italy, until you get oriented. After that use your ATM card. Italian ATMs will give you the best exchange rate.

Bank ATMs in Italy are everywhere. It's the country in the Eurozone with the most bank branches, therefore you will always be within sight of at least one.

Your ATM card works in Italy just as easily as at home. Your bank may charge you a flat fee for international withdrawal (my CHASE wants $5 per withdrawal) therefore it's a good idea to withdraw the max each time (usually $300 to $400 equivalent). Make sure you notify your bank that you will be using your card overseas, or they will block it when they see international use thinking it's a fraudulent transaction.

I just checked with chase bank and you can preorder Euros. I would
lose 3% on the conversion.

Saying you would lose 3% on the conversion is too vague. Make them give you a firm rate for today. Then compare it with the Interbank rate on www.oanda.com.

What was the exchange rate they quoted you? I just called my local Chase bank, and they told me that no one in Denver carries euro, but I could order them for 1.1331 $/€., which is 7% (not 3%) over the rate on Oanda (1.05777) right now.

I've followed this question for many years now, and I have found that Wells Fargo has the best rate for euro over here at about 5% over. Bank of America is second at 5½%.

As for the rate from an ATM in Europe, don't use a major bank like US Bank, Wells Fargo, or Chase. Major US banks all charge 3% plus a fee, usually $5. A local bank here in Denver charges 2% plus a fee of about $2. My credit union just passes on the 1% fee they pay to the Network I understand there are some banks with a 0% , but make sure they are quoting the ATM fee, not a credit card charge. I've never been charged anything from the ATM over there, although I have heard that Italian banks might add a fee.

I'm prebooking all housing, train, and probably attraction tickets. So
I expect to only use cash for food taxis and buses.

Which means you are paying for your housing with a credit card. In my experience with Germany (not Italy), places that accept credit cards are far more expensive. Stay in simple places that only take cash and you will spend a lot less.

This no deal. I bank with Chase and they are going to charge you a service fee on top of 3%
It is ok to get some euros to start the trip before you go as a convenience so you can relax from a long flight and not have to look for the ATM but better and safer to take it from ATM when you get settled in so you are not carrying a lot of cash on you

Use xe.com for up to date currency rates. Also, do US banks offer a travel card similar to a debit card? In Australia I can go to the bank today and get Euro rates locked in at todays rates, even if Im not travelling straight away. I'll put say $1000 AUD aside and get the EUR equiv at todays rates ( less any fees/commissions) and ita avail on the card you use it like a normal ATM debit card so you dont have to carry lots of physical cash around. And you can have multiple currencies if you're travelling to different places. And pretty sure you can top up online with the bank. Thats what Im doing....which reminds me Ill have to organise that soon Good luck!

@Lee. I'm currently in Colorado (Fort Collins). I didn't call the local Chase. I called the 1800 number.
There are a few scenarios with Chase.
1) I have a Chase freedom credit card. The cash advance fee is $10 or 5%, whichever is higher on top of the ATM fee if there is any.
2) Using a Chase debit card. The withdraw fee is $5 and there's an additional 3% fee on top of the ATM fee if there is any.
3) Order Euros. Pretty sure the rep said that the $5 is waived and all I would be giving up is the 3% (of total purchase).

Also, I don't currently have a Chase bank account, but I was thinking about getting one (not because of the Euros). The only bank account I have is a university affiliated credit union account.

As for housing. I have not pre-booked all my housing yet as I'm still trying to figure out my itinerary. However, I booked 3 nights in Rome on Airbnb with my Capital One credit card which has no foreign transaction fee. I also bought an Italoreno ticket from Venice to Rome with this card. I think the ticket was 39.90 Euros and on my CC transaction it shows as $42.33.

Is it advised to pay restaurants with Euros?

Before we went to Italy last year, I opened a Capital One 360 checking account and a Charles Schwab checking account so that I would have two different debit cards to get Euros while there. I had two different accounts just in case we had a problem with one of the cards. Be sure to notify your bank of your travel plans before your departure. You can usually do this online.

We did not get euros before departure. There was a Bancomat in the Roma airport soon after departing the plane. Mostly we used cash for taxis, food, miscellaneous, and small hotels that offered discounts for cash. We would withdraw enough cash for two to three days at a time. We have a Chase credit card that does not charge international fees.

dzdang.

The person you talked to on the phone either lied to you or completely misunderstood your question.

1 & 2 were correct. You will pay for getting money on most Chase cards. 3 is where it gets off track because none of what was said applies to purchasing Euro currency at any of their branches. You also need to have a checking account with Chase to use any of their services. I know because I bank with Chase.

Chase, and most other banks, set their own rate when they sell or buy physical currency at one of their branches. It is always off from the Interbank rate (that is what Google shows when you enter "1 EUR in USD" for example) and as someone mentioned their current exchange rate is about 7% in their favor. It won't bankrupt you to buy €100 before leaving on your trip, but plan on getting most of your cash while in Europe. And use only cash machines attached to actual banks for that avoiding any cash machines you might see in bars or restaurants. Also never let anyone or any ATM charge you in dollars! This allows them to charge whatever rate they want causing you to lose money. Don't worry, the Euro transaction will appear on your statement in dollars anyway.

If you have time before leaving, look into getting a no foreign fee debit card (your Capital One credit already has you covered on the credit side) and putting enough into it to cover your expenses. Capital One 360 offers a great debit card. Application and account maintenance is all done online. I have one I have used for over 10 years and have never paid even one penny in fees and always get the Interbank rate for any european currency I have gotten out of ATMs. Just make sure it is the 360 product as other Capital One debit cards can charge foreign fees.

Yes, pay in Euro. They won't take anything else. No one in Europe wants US Dollars, UK Pounds, Canadian, or anything else you might have.

Of course you can use your credit card at many restaurants. But make sure you have enough cash to cover the bill just in case.

jenn,

I don't know of any bank offering the travel card like you describe in the US. Many banks will allow you to open a second account that is not tied to your main account if you are wanting to keep the travel funds separated for whatever reason, but it is still in USD and you still pay whatever fees they mandate and are still subject to exchange fluctuations.

The Auto Club (AAA) and Travelex both offer a pre paid debit card that functions like what you describe where you can load it with currency that is whatever you want at purchase or load time (EUR, GBP, or a wide selection of others). Unfortunately with the fees they charge (fee to issue the card, fee to add funds, fee to use the card for any transaction, fee to check balance, fee to unload it once you return home, fee if you use a currency other that what you told them to put on it, and so on) it is not a good option.

Mark,

Thanks. I may have gotten some of my information mixed up. I called 4 credit card companies + Chase all in a row. Yeah, I would need a Checkings account, which I planned on getting "eventually." I can't remember what the Chase rep said about the exchange conversion ratio. I asked what the conversion ratio with every company I had called. I can't remember who said what, but it seemed most referred to some standard that is NOT determined by them.

So I've actually never used an ATM before :(. I almost never carry cash. If I do need cash in the states, I usually withdraw from my bank or get cashback with my Discover CC.

"Also never let anyone or any ATM charge you in dollars!" What does this mean? They should charge me in Euros? If they did charge me in dollars, would that mean I wouldn't have to worry about the conversion ratio with my respective bank that I'm withdrawing from, but obviously that conversion ratio would not be to my benefit?

I was going to go with a Discover Debit card for the no foreign transaction and other fees, but I realize Discover isn't commonly accepted, especially in Europe. I'll look into the Capital One 360. If there's no foreign transaction fee or ATM fees with this card, then I'll probably just get all my Euros at the Venice airport (first destination).

I am a little hesitant to be carrying a lot of cash on me. I need to look into how to keep all my items and cash safe when I'm moving around.

Off Topic: There are a lot of Colorado people in here.

We opened a Capital One account 6 years ago and use for ATM withdrawals in Europe, or elsewhere on vacation. Three reasons I like having this vacation account. 1) no ATM fees anywhere- I'm reimbursed when the ATM says there will be a $3.00 charge (in US). 2) vacation money is segregated from normal everyday money. Since our "regular checking account" is likely set up to pay bills and receive direct payroll deposits while we are overseas, I don't want to worry about any fraudulent activity stemming from use of ATM card in Europe and creating a series of events that would have to be dealt with during or after our trip. 3). I direct deposit a percentage of my paycheck into our Vacation account, so when we go on vacation, money is already there.

dzdang,

OK, there are two different rates for getting Euros (or any foreign currency). They have nothing to do with each other. The rate you pay when you purchase actual currency here in the US from the bank and the rate the ATM charges you when you make a withdrawal of a currency in Europe. The rate at an ATM is controlled by the card network (Visa, MasterCard, Amex, and even Discover). The banks operating the ATMs don't care what the rate is because you ask for 100 Euro and they give you 100 Euro and they get paid 100 Euro. You get charged for the 100 Euro at the going Interbank rate as determined by the card network (the best possible rate) and the bank where you have your money never sees anything other than the USD equivalent. Everybody is happy. They may charge a withdrawal fee at the ATM or your bank may charge a fee for the convenience of letting you get money, but that's why you want an ATM Debit card that does't charge fees for you using it. When you buy foreign currency from a bank branch, they alone determine how much they will charge you in USD for the 100 Euro they sell you. It is always an inflated amount in their favor which cost you money. You can shop around by visiting the local branches of the various banks where you live and see who offers the best deal (i.e. closest to interbank rate). And yes, most card issuers do charge roughly the same 3% fee for any transaction outside the US so I could believe they all told you that.

What I meant by never letting them charge you in USD is this: there is a structure set up by the various card networks that allow any card transaction to be billed in your home currency, in this case USD, called Dynamic Currency Conversion (DCC). This is similar to buying cash at your bank branch in that the ATM or merchant you are paying pre converts the Euro amount to USD using a rate of their choice, NOT the Interbank rate and not in your favor, for the "convenience" of showing you an amount in USD on the receipt. The rate they choose can be several cents per dollar higher than what you would be charged by the credit card company network and what would show on your bank statement. So, always opt for getting charged and paying in the local currency. It will save you money!

I did not see a single ATM in Europe on my trips the past couple years that showed a Discover logo. I don't know if anyone there will take it. I have been told, but do not know for certain, that a Discover card will work where you see the Diners Club logo. But since the Capital One 360 card, or any one like it, doesn't cost you anything to get or use, why not. It is a MasterCard, which is the predominant card used in Europe. Also, the major point of having a Debit card that doesn't charge you fees is you can use it as many times as you want getting just the cash you will need and it doesn't cost anything. The is almost a bank with ATMs on every corner in Italian cities, towns and villages. While you don't want to run out of cash, there is no need to get a lot at any one time to drag around with you unless you have a large cash payment to make (And the Capital One 360 limit is around $1,000 equivalent per banking day anyway).

Hope this helps.

Thanks all.

I just opened a Capital one 360 checkings account today. Should receive my debit card soon. I am just going to use this to get all my Euros in Italy's ATMs.

Question: Would pretty much all the ATMS in Italy take this card?

Yes, I spent October in Italy the last two years an the card worked in every ATM I tried it in from Milan to Venice to Florence to Cinque Terra, to Rome. :-)

Awesome. And you said that there were no ATM fees charged by the ATM itself, no bank fees with Capital one, and no loss in conversion. I.e., you're getting a straight up USD to Euro exchange?

The exchange rate listed on conversion tables is the interbank rate, you will not get that rate, but one a few percentage points higher.

I can't remember whether I ever ran into an ATM in Italy that charged fees (I rather think I did), but they definitely exist in Spain. All ATMs offer you the opportunity to change the display to English. Do that. Then read every screen to be sure there isn't something going on that is not to your advantage. If there is, make a mental note of which bank's machine you were about to use, and go find a different one.

More and more places (ATMs, shops, restaurants, hotels) are beginning to offer non-locals the opportunity to have their transactions converted to their home currency right at the machine. Always choose to have the transaction denominated in the local currency.

No ATM card will protect you from the two types of charges I've just described. It's up to you to read the ATM screen and take the appropriate action, which might include walking away.

There are other charges that can be assessed when you use an ATM that doesn't belong to your own bank; those are assessed (as far as I know) by your bank. Capital One doesn't assess such charges. I believe it also gives you about as good a conversion rate as you can get.

Yes, I have always been charged by Capital One exactly whatever the rate is you see when you google "1 EUR in USD" which is the Interbank rate, or close enough for the amount of money we are talking about. It is not "a few percentage points" off. This is both for ATM cash and Capital One credit card transactions.

The credit card networks use the Interbank rate. You do that when you move billions (nearly trillion) of dollars worth of money around every day. What your bank does by adding fees, adjusting the rate and such is what they do. IF you are paying several percentage points over the rate for foreign transactions, maybe you should find a bank that doesn't do that to you especially if you visit Europe often.

This discussion, as always, gets very muddled because posters use different terms with different means that are not always clear. There are three parts to an ATM transaction -- the ATM itself, the network, and the card issuer.

Whoever owns the ATM gets to set any fees for just using that ATM. In some fifteen years of using ATMs in Europe I have never seen an ATM charged a fee for using the ATM. However, in the US that is common when you use an ATM not owned by your bank. The ATM does NOT set the exchange rate, it is just processing your card.

The next level is the network that handles your card - Cirrus, Plus are the most common. There some other minor networks but I would make certain that my card works on either. Credit Union in the use tend to also use STAR. The network sets the exchange rate - that will always be the Interbank rate - PLUS a fee of about .75% for handling the transaction. That fee is buried in the exchange rate and cannot be avoided.

The network then presents that charge/withdraw to your card issuer/bank. This is where it gets messy and confusing. The bank can add anything it wants to the withdraw - withdraw fee of $5/transaction, a 1 to 4% currency handling fee, anything - BUT those fees must be fully disclosed (class action suit 20 years ago). This varies greatly and only the card issuer can tell you the fees. i.e. - my credit union charges 1% on the first six transactions in a 30 day period. After that it is 1% plus $1 per transaction. My back up card issued by my bank is $5/transaction and 3%.

Even if you card issuer charges fees, it will always be cheaper and more convenient to obtain local currency via a bank owned ATM.

PS - Knowing the exact Interbank rate is very difficult because it is a fluid rate that literally changes every minute. Most of the rates that you see published in papers are an average for the day or close of market or some single point in time. Even exchange rates on the internet will lag the real rate just because of time delay. But the difference will be in the three and fourth number - .00X or .000X. Short of a major financial crises the exchange rates rarely move more than a penny or so each day.

dzdang --
If you've never used an ATM card, be sure to try yours out before you leave home. Just make a small withdrawal to make sure the card works and you know what to expect.

Also, be sure to notify Capital One and Chase that you will be out of the country, so they don't block your cards when they see them accessed from a foreign country. They will need to know what countries you are visiting, and the dates.

Yes, there are a lot of Colorado people on this forum. Some of us get together once a month (third Saturday, 10 am) at Panera in the Aspen Grove Shopping Center in Denver (Santa Fe and Mineral). The next meeting is March 18. Join us if you can!

Question: Would pretty much all the ATMS in Italy take this card?

Not to add to confusion but sometimes certain ATMs have limits on the amount of cash they'll let you withdraw at one time. So say if you try to withdraw 300 euros and it rejects the transaction, try a smaller amount.

Oh, and should you have some euros left at the end of the trip? Just stash it away for your next trip; that way you'll have some to get you going right away when you get off the plane. We purposely come home with extra for that very reason.

One other thing: if the ATM you use has a limit of €250 per transaction, you can do one transaction after another to get to your own bank's daily withdrawal limit.

Be careful of ATMs with skimmer readers. Son studying at AUR and went to local ATM by a bank and next thing he knew, his account back here in States was drained - luckily, bank caught on and they only got $400...even at airport ATMs, be careful - perhaps move just enough $ for your trip into the debit account and then even if you are scammed by an ATM reader, you won't lose too much

This is like the pickpocket discussion. The scammer is a possibility but not a high probability. Put ATM scammer in Utube and see a number of ways to detect them. It is fairly easy.