Debit and credit

Cash withdrawals with a credit card never make sense except in an absolute emergency, but where in Rick Steves' book does it say that credit card transactions are costly? Read this: Pay with credit cards or cash

I always use my ATM card - I've used it all over the world to get cash while traveling - and have not had any problems. I always tell my credit union that I will be traveling and using the
card in foreign countries.

Use a debit/ATM card to get cash. Use a credit card for purchases (hotels, shops, restaurants, tours, entrance fees, etc.) that you don't pay cash for. Notify the card issuers in advance of your travel dates and destinations. Have their overseas collect-call phone numbers with you, just in case. Sometimes a card will be put on hold, glitches happen in spite of all you do. Which is why many people take back-up cards. I'd rather get hit with a $5 fee for withdrawing cash on my other bank that be stranded. The trick is to find credit cards that do not charge a foreign transaction fee and to find debit cards that do not charge a withdrawal fee (or to get the ones with the lowest fees).

Your bank wants to sell you a credit card because they'll make more money from you. That's not to say that you may not need a credit card. Many of us have successfully traveled with only debit cards, but if you want to rent a car, you'll need a cc. You should take a back up debit, even to the same account. Call the number on the back of the card and report your travel dates and places. Then, a week before your trip, do it again.

We have been solely dependent on debit cards for the fifteen years or so with absolutely no problems. We carry two cards tied to two different account but have never had a problem with the first account. Do as the others have posted about notifications. Second, we always make withdrawals for both cards within the first couple of days just to be sure both cards are working. You do not want a back up card that doesn't work. You should not use a debit card for anything other than CASH at bank owned ATM. I doubt if Steves' book said that all "credit card transactions and cash withdrawals in Europe are very costly." You just misread it. It is common for credit card and debit cards to charge a 3% currency conversion fee, BUT that is still cheap compared to the alternatives. And there are many card companies that do not charge any fees at all. Capital One credit card is a good example of a no fee card and most credit union do not charge fees on debit cards. In Europe, about 95% of our transactions are in cash. We find it much easier and convenient to pay in cash. And sometimes you get a discount for paying with cash.

I also have never had an issue with a debit card in Europe. But you should have a second form of payment because things to do happen (stolen, lost, etc) whether it is another debit card or a credit card.

I agree with Debit card for cash, credit for purchases. I have never had an issue getting money out with the debit card. Capital One does not charge international fees for their visa. I typically bring my debit card, and at least 2 visa cards. I travel to europe often for work, and like to make sure I am covered "just in case". Never take money out with a credit card - way too expensive. Glenn

One caveat: in order to use your credit card at an ATM (which you should never do unless you have no choice), you'll need to know its PIN. Most Americans don't know their credit card PIN's, because at home we never need to.

One other point. Before ANY travel to Europe, I always notify the credit card company I will be traveling, and which countries and dates. This helps ensure no issues. Some cards make it VERY easy, and all i have to do is login to my account, and there is a short cut to fill an out of country notice. American Express doesn't require anything special - although AMEX is difficult to use as alot of folks don't take it in Europe (I find most of the business hotels do take Amex however - I tend to stay at Radisson Blu hotels a lot as they are convenient affordable and geared towards the business traveller. Glenn

Michelle, I haven't reviewed the advice in the guidebook for quite awhile, so can't remember exactly what it says. However, I suspect that what it was referring to was using a credit card for cash advances. That is indeed very expensive, as you'll be paying interest at a high rate from the moment the machine dispenses the cash. Using credit cards to pay hotel, restaurant bills, etc. usually has the same charges as at home, which is about 3%. One other point to raise regarding credit card transactions in Europe. If the merchant offers to enter your purchase in U.S. dollars, I'd suggest refusing and using the local currency instead. That involves something called "dynamic currency conversion" which doesn't provide the best exchange rates. The easiest and best way to obtain cash in Europe is with an ATM/Debit card, which usually applies the interbank rate for currency exchange. There may also be "service fees" charged by individual financial institutions for foreign currency transactions (you'll have to talk to your Bank regarding the fees they charge). Note that your travel funds must usually be in a chequing account with a four-digit PIN. Finally, don't forget to notify each of your Banks and credit card firms that you'll be travelling, so they don't "freeze" your cards. Cheers!

Once, just once, I needed my back-up ATM card. I was in a place where they only took local currency (and no credit cards), which my friends and I didn't have. It happened to be during the 2-3 hours that Capital One shuts down their internet connection for weekly maintenance - the wee hours of Sunday morning in the U.S. when it's late morning/early afternoon in Europe. I had to "eat" the $5 fee on my secondary card, but we really needed to have some food and drink. It's happened to me before, but when I could easily wait a few hours for more cash.

Hi Michelle, I recently went to Italy for the first time earlier this year. I pulled euro cash at BANK ATM's, as advised on Rick Steve's, very often, external companies set up an ATM right next to a bank to seem affiliated, and they charge exorbitant fees. I used my first Hawaiian bank debit, pulled out max Euro (think it was usually around €300, and go from there. I could only pull cash once a day, so max it out just in case, thee was typically $3.00 per, nt bad! Also, most US banks can order so euro for no fee, and just need a weeks notice to do so - next time I'll do that, so I have a few hundred euro on me (some people advise against this, seems fine to me). Also, call your credit cards and ask about fees to use them overseas, and currency conversions (they might charge additional). I pulled out an old Capital One, because Amex and ank of America charged ridiculous fees just to use in italy. Try to get a caitl one with miles/points (again, a "next time" for me). So, I used cred card for majors (hotels, if they didn't do a significant cash discount, maybe a nice dinner) and paid cash for most everything else! Have a wonderful trip!
Best shopping advice I wish I listened to: if you find it, and you love it, and you can afford it- buy it!!! You'll probably never get back to the store again on the trip - go for it!!! I'm wishing I'd gotten more Venetian masks, and Florentine leather gloves. Ahh, next time... :) ciao!