Capital One and ATM's??

You need to set up a money market account (NOT a credit card) with Capital One and then deposit a bunch of money into it. Then use their ATM card to withdraw from that account. No fees at all. I'm surprised the rep didn't tell you about that. That's what we've done in the past and it's worked perfectly.

Ciao Jeff, Two years ago we went to Italy. I'm dealing from memory here, but I'm pretty sure that what we did after researching this matter is this: I pre-paid my Capital One card. I slapped a couple thousand dollars onto it so it had a credit balance. Then, I pulled Euros out of ATMs in Rome. The card had a credit balance, so there were no "advance" fees. Call Capital One, or as I call them, Capone (Al Capone, get it? :-) )

You want a debit/atm card to withdraw money from a checking account. Sounds like you were asking about a credit card, they don't access cash from bank accounts. They only cash you can get from a CC is a high-interest cash advance.
In any event, withdraws at an ATM from a debit card don't incur foreign transaction fees, only point of sale transactions are subject to that.

We use the Capital One card for purchases in Europe, and an ATM card from our bank for cash withdrawal. you will need to take 2 cards with you for this purpose. If you use the credit card for cash, as the CS person stated, there is a big charge. We switched from Wells Fargo to Compass Bank several years ago when WF fees went up on everything. Compass Bank has no ATM fees, anywhere in the world, one of the reasons we chose this bank. You should check with your bank to see what the fees are for ATM withdrawals, here and in Europe. If it's too high, perhaps shopping around for another bank, or open an account just for travel at a bank with great or no fees and fund that account just for your travels.

<<"In any event, withdraws at an ATM from a debit card don't incur foreign transaction fees">> The European bank that owns the ATM won't charge you a fee, but your home bank in the U.S. may very well charge you a foreign transaction fee of as much as 3%.

Jeff,
You need an ATM or debit card to get cash from a bancomat. Call around to find one with low or no fees. This may help http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

Does anyone have experience taking US dollars and changing them at a bank in Italy? Will I get a better exchange rate there than at my bank in Nebraska? Do you advise using local banks for exchanging? I have waited too long to open a Capital One account, so now I have to use the smartest other options. I plan to take my debit card. My bank will charge me $15 per ATM withdrawal plus whatever the ATM charges. This is not favorable of course. Any advice you can share is appreciated!

I agree with the poster about a Capital One Money Market account. This is totally separate from your credit card. I have a Cap One credit card and the customer service reps do not know much if anything about the "online banking" part of Cap One which is what the Money Market account is. Go on their website (www.capitalone.com&#41; and look up online banking and then money market. It will answer all your questions. It does take a while to post the first deposit so don't wait until right before your trip. Their is no exchange fee or ATM fee. They use the Cirrus network I believe. My regular bank ATM card uses the Plus network (but with a fee every time I use it.) I am going to Paris in two weeks and set up my money market back in Feb so it is all set to go. I am taking both ATM cards but using capital one money market as my main and the regular bank one as an emergency backup. When you look at the money you will save with no fees, it makes sense to take the time to investigate this.

Thanks to all. I hope not to show any pickpockets "what's in my wallet". :)

It doesn't have to be a Money Market Account, any Capital One checking account has no international transaction fees. Keep the money you intend to use in a checking account not savings as the banks in europe do not give a choice of savings or checking. Be sure to have a numeric 4 digit pin. Cash advances are from credit cards, not debit cards (cards connected to checking accounts are debit cards). Be sure to let the bank know the dates and countries you will be traveling to so you don't get your account frozen.

At $15 per withdrawal, be sure you withdraw your maximum daily limit each time you hit an ATM.

$15 per transaction, that is way too much. How much is the max daily withdrawal? If it is $1000 it would probably be cheaper than exchanging cash, you take a big hit there. How long until you leave? It may not be a bad idea to have your bank get you euros.

Christa, If you use a bank ATM rather than a private ATM in Europe, that ATM will not charge you anything. The only fee you will pay is the usurious $15 fee charged by your home bank.

Two thoughts: 1) Very nicely ask your bank (best to do in person) if they can waive remote ATM fees for you. It's surprising how many banks will do this. Or if their systems don't allow this to be done, they may reimburse you after the fact (especially if you humbly mention you want to avoid having to open an account at XYZ Bank in order to have these waived). 2) Before you do the above, check with some of the very small local independent banks in your area. Generally small banks don't have large ATM networks and will be more likely to have a set policy to waive foreign transaction fees (bank speak for what you are charged when you use an ATM that is not theirs, whether in the US or abroad). Just be sure their ATM card works in the major ATM networks (most will). Once you have knowledge of what these smaller banks will do, you are in a greater position of strength in talking with your primary bank. If that does not work, just open a small (most likely fee waived) checking account with the community bank and get an ATM card. Be sure you get an ATM card and not a debit card, as debit cards have greater potential for fraud complications.

In addition to the good advice already given, you should be aware that in addition to the fees for using an ATM outside of the US, many banks also charge a foreign transaction fee. For example, Chase now charges $5 each time you use an ATM in Italy, plus 3% of the converted rate. So assuming the US dollar was 1.4 to 1 euro, if I withdrew 250 euros I would wind up paying close to $16 to Chase. That would add up pretty quickly. My plan is to do what Margaret said and ask them to waive or refund the fees. If they won't, Capital One's basic checking account has no foreign transaction fees, and the fee for using an international atm is $2 per transaction, just as if you used a non-Capital One atm in the US. While opening another checking account may be a bit of a hassle, it's a much better option and can be done really fast.

A debit card isn't necessarily more likely to be used for fraudulent purposes than an ATM only card. Just use it in actual bank ATMs don't hand it over to anyone like a waiter in a restaurant or a person in a shop, then you should be safe. Most banks now issue debit cards as ATM cards because they have potential of making more money (from the merchant end) when you use it as a debit card.

If my financial institution wanted to charge me $15 every time I used an ATM machine in Europe, I would have gone elsewhere 10 years ago. I use an ATM DEBIT card from a local credit union that has no ATM fees and no mark-up. I only pay whatever fees the owner of the ATM machine charges. I also get local currency from an ATM machine at the last airport I arrive at in Europe and have never had a problem with that finding that is the cheapest way to get local currency. I also take along a credit card for use in emergencies or for hotel stays or for big purchases. Good luck and happy travels.

I've been agonizing over this as well, and think I finally have it figured out. (please correct me if my logic is flawed). Based on previous posts on the same topic, I checked with my local bank (Bank of the West) and they charge 3% plus a fee for ATM cards. I remember that after traveling to the UK several years ago, I was shocked at those fees when I got my bank statement. Then I checked with our credit union account (thinking the fee would be way less), but they confirm a fee of 1-3%. Based on advice from RS and previous posts, I've opened up a Capital One Checking account on line with Debit visa cards with 0% fee and 10 free ATM non Capital One withdrawals per month. I was thinking about getting a Capital one credit card since our Visa charges 3% and AX charges 2.75%, but since most major purchases will already be paid before the trip in USD, everything else would be cash from the ATM's. If we make a couple charges, for the $15-20 in fees, not worth opening up another credit card.

Also try a credit union. Both of mine don't charge an overseas transaction fee (just an out-of-network ATM fee) and I got a decent, but not amazing, conversion rate on cash withdrawals from ATMs in Spain last year.

So, Karen, with the Capital One Checking-what happens AFTER you use 10 free ATM withdrawals, which I can easily seedoing in Italy. Don't they say they have a million ATM's in their network (Mastercard?) If so, what constitutes an out of network ATM withdrawal that counts against your limit of Ten?

Here is some more info for Lisa and anyone else who may want to read about the additional fraud complications that can happen with a debit card (vs. an ATM card). This particular link does a decent job of explaining the very basic differences between risk with ATM, debit, and credit cards. Your bank's electronic banking department can tell you even more http://www.ehow.com/about_5460012_difference-atm-card-debit-card.html The short version is that a pure ATM card can generally ONLY be used at an ATM machine and requires your entering your secret code. A debit card can be used just about anywhere, and often without your PIN number. So, if a thief gets your card (or just your number, since electronic skimmer fraud is up), a debit card can be used just about anywhere a credit card can. So, the thief could sit in the comfort of his own home making lots of on-line transactions.......or worse yet, he instantly sells your card number into the network of big crime, and in a flash, there goes your checking account balance (and your access to funds while you travel), leaving you the hassle of working it all out remotely and/or when you get home. Credit cards have great fraud protection, but then there are the cash-advance issues. I recommend having two cards: a pure ATM and a credit card that offers exact conversion of euro to dollars (without an up fee). That said, millions of people have no problem whatsoever with debit cards.......but, do you want to be among the unfortunate with a problem while travelling (or even while home)?

Sure there can be complications if something goes wrong and it would be a hassle but most banks will issue a Visa or M/C logo debit card as an ATM card now. If you just use it as such (ATM) and not as a debit card you should be okay. I am going to Italy with a debit card from both capital one and a credit union. If I want to buy something and not pay cash I will use a credit card (preferably capital one) not the debit cards, these are for getting cash from ATMs.

@ Jeff It all depends on where you live. Capital One offers online accounts in some areas, but not in all. I live in NJ and have access to a branch, so I can't open the account online. Your best bet is to call Capital One to see what's available in your area (based on your home zip code). Better yet, go into a branch if there's one in your area. I'm going into a branch this week, because I've gotten conflicting information from 2 different representatives. The first one (who seemed more reliable) said that Capital One does not have any atms outside the US, so all the atms in Europe are non-CO. Their fee for non-CO atm withdrawals is the same in the US as it is in Europe - $2 per withdrawal. Since they don't charge any foreign transaction fee, that's not too bad IMHO. The 2nd rep I spoke to said they don't charge any fees for non-CO atms and will reimburse up to $10 per month in atm fees charged by the atm owner. Of course this sounds much better to me, but she didn't really seem sure of herself. I can't say that I trust her explanation, but I'm hoping the 2 reps were talking about different accounts.

Because I didn't see anyone else state this yet: Any discussion of using an ATM, debit, or credit card in another country should include the reminder to call your bank, credit union, etc. before you go and tell them your card will be used in another country between this date and that date. If you do not do this, your card may not work when you get there. I add the advice to find out before you go what telephone number you will need to call from Europe when you discover that the financial institution has not "un-blocked" your card as you had requested. Get a non-800 number because a toll-free number may not work from outside the U.S.

I mispoke earlier on Captital One checking account Debit/MC transactions. -Not 10 free per month.... no ATM fees and even reimburse other bank's ATM fees up to $10 per month* -$0 maintenance or activity fees. -$0 finance charges for debit purchases. -$0 foreign currency exchange fees by Capital One Bank for purchases and withdrawals made overseas.
-When using MC as a credit card-You only pay for debit card purchases that you've authorized. Either way better than Bank of the West or my credit union.

Another choice is Charles Scwab. I have used it in Italy to South Korea with no fees. You have to set up an checking account (which pays some interest). You get a debit card that can be used with most ATMs. There are no charges for foreign use and, if there are charges by the ATM/Bank, they are reimbursed. You do need to tell them before you travel where you are going or they won't authorize a foreign charge.

Others have covered this pretty well. If you have a CO debit card, you effectively have no foreign transaction fee. Technically, CO charges a 1% ftf, but then waives it so the impact to you is zero (I suspect they do it this way for tax or other technical purposes). This doesn't mean that the ATM machine you are using doesn't tack on a transaction fee, just like at home when you use your debit card in another bank's ATM. By definition, the CO debit card must be preloaded with money in order for you make withdrawals. We keep a CO card specifically for foreign travel. IMO a "cash advance" on a CREDIT card is an absolute last resort (and one I've never had to use). Too expensive.