Currency exchange

You obviously have not spent much time on this site. Frequent question with the same answer. The cheapest and most convenient way to obtain local currency is to use a debit card at a bank owned ATM in the country where you are. Bar none!!!!

To specifically answer you questions - banks will charge between 5 and 10% in the US for currency and the airport exchange bureaus (probably TravelEx) will be closer to 15% depending a little on the total amount changed. Personally I would get a hundred Euro at the airport or bank just to have some pocket change and then find an ATM after you land. Others prefer to hit the first ATM they find in the airport. Works either way. Depends on your comfort level.

PS Depending on the card issuer, some debit cards may charge as much as $5/transaction and/or a 3% conversion fee. Still cheaper than 10 - 15%. The key is many cards - especially on-line and credit unions - charge no fees or very low fee. My credit union charges 1% after the first six transactions/month. First six each month are free. Always check carefully with your card issuer.

pbn, look directly to the left on this page, and click on the button that says Travel Tips, then click on the link for Money, and you'll see what Rick has to say. Think of it as buying euro, not exchanging.

I just joined this forum so I hadn't looked around on it a whole lot yet. Just got his books recently. Thanks for the help!

Don't exchange anything - use an ATM once you get there (the airport). Be sure it's not a Travelex ATM but a normal bank ATM.

Photos, whatever you decide to do, keep in mind that if you get euro beforehand (through a bank, currency exchange, AAA), it will bea small percentage of the overall cost of your trip.

I used to order some through my bank, just to have some on hand when I arrive in Europe (took a few days, FedEx charge was reasonable, and I could select the denominations I wanted), but now I just keep the leftover currency for the next trip.

And welcome to the forum!

As I said earlier, some promote using the airport ATM. As an old engineer by training who likes back up to back up and redundancy on redundancy, I like having a hundred Euro in my pocket just case the airport ATM is not easy to find, or it is out of order, or none of the ATMs are bank owned (becoming more common) or am in rush. That way I can wait till the next day to find the ATM. And notify your card issuer's security section that you will be traveling in Europe and when.

Thanks again for all the help. My next question I guess would be on how much I am going to need euros? Do most places accept credit cards or are there a lot of places that will require cash? I'm trying to figure out how much cash I will really need.

Europe is more of a cash-friendly place. In other words, most stores accept only cash, higher class restaurants will accept cards, but most prefer cash. Hotels, B&B's, most want cash.

No problem getting cash, but go to a "bancomat",which is associated with a local bank, and is generally safer and reliable. Go during business hours when people are around.

Do notify your bank and credit card companies at home that you will be away in a foreign country, or they might "freeze" your account for suspected fraud. Also, make sure ask what your daily limits are for withdrawls. You may need to ask for an increase.

Try to use your debit card as much as possible to avoid fees. Also make sure you take more than one card, e.g. debit and/or credit, per family, in case one gets eaten by a machine, or stolen, etc. You will need a backup. We take 4 cards, but I am a bit OCD!

As Stan of KC notes, click on RS' money travel trips. The Cash and Currency Tips" in particular:
https://www.ricksteves.com/travel-tips/money/cash-tips
Excerpts from RS' tip follows:

Don’t buy foreign currency in advance. Some tourists just have to have euros or pounds in their pockets when they step off the airplane, but smart travelers don’t bother and know better than to get lousy stateside exchange rates....

Bring along some US dollars. While you won’t use it for day-to-day purchases, American cash in your money belt comes in handy for emergencies.... I carry several hundred US dollars as a backup (in denominations of easy-to-exchange 20s).... If local banks don’t have exchange services, you can always find exchange desks at major train stations or airports.

My take on RS' USD emergency money: I have brought along several hundred USD as back up currency in the event of ATM problems (I also have a back up ATM card/account), but have never needed to resort to currency exchange kiosks except to convert too many left over Czech CZK to dollars (I was headed to Norway after the CZ but the airport exchange service would not my CZK diretly to NOK). The benefit of emergency USD is that you can use it without a fee back in the States. After all, US Dollars are a world's preferred reserve currency, at least for now.

In two months bouncing around Italy (including 4 or 5 days in Rome) last year, it was my observation that places called "hotel" and other lodgings with an obvious reception desk in the lobby took credit cards. So did some smaller spots, but if Mario Vespi rents out a room or an apartment (in a building that might only have a tiny sign on the street), he probably wants cash. The online reservation sites like booking.com usually warn you if cash is expected.

I was often asked to pay the city tax (varies by city, perhaps also by cost of your room) in cash even when I could charge the room cost itself. Never asked why.

A larger percentage of the restaurants I frequented did not like credit cards, but I do not go to expense-account places, more casual spots where a middle-class Italian might eat. In general, charge slips at European restaurants do not have a line for you to write in a tip, even in places where some sort of tip is usually left. So that means keeping some small bills and/or euro coins for the waiter's tip even if you are charging the meal.

I didn't shop in Rome, but I wouldn't be surprised if the mom-and-pop places refuse cards. It's my impression that many small European shops operate on thinner margins than what's typical here. There seems to be less revenue coming in per staffed hour, so it's harder for them to absorb the credit card fees. This is just speculation on my part, of course. A flashy touristy spot with jacked-up prices will probably take cards. You'll see the decals on or near the door.

I never had any trouble locating an ATM when I needed one. If you want to make a few, higher-value ATM withdrawals for convenience, use a money belt or in-room safe. Don't walk around carrying a wad of euros in your wallet.

photos,

"My next question I guess would be on how much I am going to need euros? Do most places accept credit cards or are there a lot of places that will require cash?"

For the most part, you shouldn't have any trouble using credit cards at larger hotels and restaurants, but smaller operations may only accept cash. One other issue you may encounter if using automated payment facilities such as ticket Kiosks is that they may only accept Chip & PIN credit cards. You shouldn't have any problem using old fashioned magnetic strip credit cards at attended locations in Italy such as hotels, etc.

Regarding a point mentioned above, I always prefer to have €50-100 when travelling for Taxis, meals, etc. until I get settled in my first location. I always have money left over from previous trips, so I don't have to obtain any from local banks.

There's nothing wrong with buying a small amount of euros before you go, to have with you on arrival. But make it small (say, €50-100). I agree that the small amount extra this will cost you is, in the grand scheme of what a European trip costs, not worth worrying about.

See if a large bank near you will order euros for you. Or, see if you know anyone who has been to a euro-zone country; they most likely have some money left that they can sell you, at a more favorable rate than a bank will.

And, yes, do read all of Rick's money tips in the links here, so you too can be an expert: https://www.ricksteves.com/travel-tips/money

The reason (as I understand it) the city tax is often taken only in cash is the transaction fee the hotelier must pay on credit card transactions. So that payment (which is pretty small) to the government creates an additional expense for the hotelier, eating into the profit margin.

As a European I would like to call out some of Ricks money tips. They might be true for certain parts of Europe, but it's a big and diverse continent and his tips are overly generalizing.

1. Europe is a 'cash' place and credit cards might not be widely accepted.
   This might be true for Italy and other Southern European countries, but it is definetely not true for Northern Europe and Scandinavia in particular. Here cash are accepted, but credit cards used for almost every transaction. The ABBA Museeum in Stockholm is even no cash, credit card only.
   However you might prefer to use cash in some restaurants, if you don't want to hand over you credit card and let it out of your sight.

2. bring along severel 100's US dollars as a back up. The US dollars is the worlds back up economy.
   This might be the case for third world countries with weak economies, but not in a strong economy like the Euro zone. Most places in Western Europe would only accept US Dollars at a mark up, and if you want to exchange them, you would have to pay the 15% or so fees as mentioned earlier. Bring a second credit card instead.

Everyone has their own strategy for obtaining euros. Years ago we would obtain about 100 € at our home airport just to have some wam (walking around money) when we land. Now we are in Italy every year, so we just return with a few hundred euro for the following year's trip. Obtaining some euros at the airport will cost you a small amount of money and when you consider the cost against the expense of the trip...it's minimal.

As for the airport Bancomats (ATM)...our policy is not use them. We prefer to only use Bancomats attached to a bank and only while the bank is open. If the machine eats my card we can go in and ask for help to retrieve it.

Another cogent strategy is to open a Charles Schwab checking account because they do not charge ATM fees and will reimburse you if the Bancomat does charge a fee. There is no minimum balance and no monthly charges.

Buon viaggio,

I agree with Morten, I have always wondered why RS says not to take euros to Europe (unless they are leftovers), and yet says to take hundreds in US$ - the same rule of exchange rates applies in both cases.

I also like to use bancomats at a bank site during banking hours. I once crashed an ATM in a Warzawa train station - it literally went offline, card was retrievable but I took a hit from my bank.

I'm in the camp of land with 100 euros in my pocket (and also some US dollars), then use ATMs or credit cards after that.

I also think the idea of Don't worry Martha these foreigners will always like our American bucks is quite outdated. And will cost you. If I had tried to use USD at a Migros in Switzerland, they probably would have opened the trap door under my feet. Use the local currency. Nowadays it's very simple to find places on the internet (or even local banks or credit unions) that will get you euros.