Euro Conversion

Here's Rick's explanation of that
http://www.ricksteves.com/travel-tips/money

"Also at the local US bank they charge a "fee" in addition to the rate, so it's higher than the $1.10."

Not all US banks charge a 'fee', some don't if you are a customer of the bank. At least that's the way it was. A couple of years ago I was told at Wells Fargo that there was no fee if you were a customer. I wasn't so I paid a flat $5 fee, which wasn't so bad, especially if I had wanted a lot of euros.

The only reason to get the money before leaving the USA is:

a) you think the euro will be much stronger than the dollar by the time you arrive in Italy (not likely)

b) you want to have some euros in your possession the moment you land. There will be an ATM (Bancomat) at the airport, however, so you can have cash shortly after you land and before you exit the terminal in Italy

c) you want to carry a bunch of euros over on the plane, rather than waiting until you get over there before you have to keep track of them (hopefully in your money belt!)

d) you want to help maximize your bank's profits

As for the ATM at the airport, you'll get a much better exchange rate from an actual bank's ATM (there should be signage telling you what bank owns the ATM) rather than a currency exchange bureau like Travelex, who may have their own dispensing machines masquerading as proper Bancomats. If you make withdrawals throughout your trip (rather than making one humongous withdrawal - and an ATM might limit how much you can take out at one time), you'll see whether the exchange rate continues to drop in favor of the dollar, or if the euro makes a rebound. Have a great trip!

"Are they cheaper at the ATM's in Italy". The conversion is not done at the ATM (unless you get the dreaded DCC, Dynamic currency conversion, in which case say no). The bank that owns the ATM charges your bank the same number of Euros that you receive (plus a handling charge). The conversion is done at your bank.

Your bank will, in most cases, give a better rate for an electronic transaction than for physical money. An electronic transaction doesn't need a human being. If you are changing your own currency for Euros, then somebody has to count out those Euros, bag them, and ship them securely to your branch. All of which costs time and money, for which you, as the customer, has to pay in the form of an inferior exchange rate.

Actually the conversion is done at the network level - Cirrus, Plus. That conversion will be within 1% of the interbank rate at the time of the conversion. It is possible to withdraw euro in the AM at one rate and different rate in the PM. Difference will to a fraction of a penny. After the network does the conversion it is presented to your bank. From there any and all fees added will be added by your card issuer. That can range from 1 to 4% sometimes is called foreign transaction fee, currency conversion fee, and perhaps a single transaction of $2 to $5 dollars just for withdrawing your money. All fees set by card issuer so call and ask. Bank owned ATMs in Europe do not charge the user fee that is common in the US if it is not your bank's ATM.

Without a doubt, the cheapest and most convenient way to obtain euro is a debit card at a bank owner ATM in Europe. Get a hundred or so from WFargo so you have some spending money in your pocket when you land and get the rest from ATMs. I carry two debit cards tied to two different accounts.

I just went to Chase bank on Saturday and ordered 100 Euro's and it cost me $112.00. That was a bargain compared to past years. We usually bring back enough Euro's to start off the next trip, and we did last time but wanted a little more and with the rate this low we thought lets just get another 100. A lot of people don't mind starting with no money but we usually have a car service pick us up and want to pay cash and then we have a lay over at Frankfurt and don't want to run around to find an ATM, just be able to get a snack. As the Euro drops we will withdrawn more money this trip at the ATM and bring more back for future trips.