Euros, Credit Card Purchases

Usually the best method with the best exchange rate is to use a debit card linked to your bank account at an ATM in Italy. ATM machines are every where. Check with your bank or credit union for fees etc. That transaction usually gives you the best exchange rate you can get. Depending on your account daily withdrawal limit, you may want to ask your bank to raise your limit while you are in Europe. Remeber to inform your bank and your credit card companies about your overseas travel, so the transactions won't flag your card for a fraud inquiry. Exchange bureaus and exchange kiosks usually nick you for more costs on the transaction. Either through fees or a bad exchange rate. A lot of folks like to get a 50 or 100 euro to have in their pocket on arrival. But you could just hit the ATM at the airport.

I like to arrive with some euros on me. That way, I can buy a cup of coffee, snack or take a taxi to the hotel without first looking for an ATM machine. On our last trip, ATM withdrawals were limited to 250 euros (even though our credit union's limit was $400/day) and every transaction incurred about $6 in fees. As much as possible, we used our Cap One card. It was widely accepted in cities, not so much so in smaller twons. We also carry backup credit and debit cards in our money belts in case of theft or a machine "eating" our cards. And our "emergency" cash is several hundred US Dollars in the money belt. If worse came to worse, they can always be exchanged at a money changer (at a terrible rate - that's why it's for emergencies only. We've never had to do that, but it gives me peace of mind)..

I use the capital one card also because there are not transaction fees. It works well. I usually go over with several hundred Euros and withdraw the rest from atms. There are limits an machines that can range anywhere from $150 Euros to $500 Euros so you have to plan accordingly, We always travel with mutliple cards using two different accounts. We do this for serveral reasons. First, if we lose a card or a machine eats a card (which did happen once) we have a back up account. Second, it helps you get around the limit if you want to take more money out in a single day.

Should have also mentioned, just remember you deposit the money in dollars but withdraw in Euros! So, if you withdraw $100 you are really withdrawing signifcantly more depending on the exchange rate. My wife made this mistake and wondered why she was overdrawn at the end.

Your question seems to get asked at least weekly. You can find additional information by going to: "Graffiti Wall > Money/Communications > ATMs: Minimizing Fees" or by using the "search" feature at the top right hand corner of this web site. The search feature should bring up lots of information. Most everyone here uses a DEBIT CARD tied to a CHECKING ACCOUNT to get foreign currency. Some chose to get it in the US and pay the higher fees or exchange rates while others wait until we land at our destination airport to get them thus saving some money. I am not sure how the CapOne credit card works in getting money from an ATM machine but I hope it is not treated as a cash advance which can be real expensive. I should get one and find out.

Capital One has checking accounts also, with no ATM transaction fees, and they have a feature that enables you to do an electronic transfer of funds from your regular account in another bank into theirs, in the event that they do not have branches in your area. So you might consider opening one of their online checking accounts also, then you can just transfer money into it (for free) from your regular bank, and withdraw at the ATM in Italy without having to pay a foreign transaction fee on the ATM withdrawal. Incidentally, I have a USAA checking account that I occasionally use, and as far as I can tell, they do not charge a foreign transaction fee on ATM withdrawals either. I mention that in case you already have a bank account with them, or use them for your auto/home insurance.

I am not sure how the CapOne credit card works in getting money from an ATM machine but I hope it is not treated as a cash advance which can be real expensive. I should get one and find out. Any time you use a credit card to take cash out, it will be treated as a cash advance - don't do it!

Correct, use the capital one as a credit card to pay not to withdraw cash. Use the separate ATM card for cash.

Using an ING Direct / Capitol One debit card is the best; thank you to the prev poster about Capitol One! Here's why I signed up: ING Direct / Capitol One is the only one that doesn't charge a transaction fee to withdraw funds!!! will charge 2.2% fee to exchange dollars to foreign funds; but in UK, Mexico, and Australia ING has surcharge free locationsthe mobile app gives you locations no minno fees free bill pay through eBills (this is where you can set up to have your monthly bills paid automatically to be paid from your checking acct this is so exciting!!! I've been asking that other place to do this for years!!!!) have paper checks avail for $5...i didn't take this offer no overdraft fees, but have overdraft protection where ING will email you a notification; there's a percentage you pay while the money is on loan, but w/ email notification this shouldn't happen ;) checking rate .2% APR; savings rate .8% APR (I've seen this as high as 1%, but I'm interested in the $0 foreign funds withdrawl transaction fee right now debit card is accepted by merchants like a credit card for opening an account, get $50 for making three transactions within 45 days if you lose the card overseas, they'll send you a new one my new card should arrive within 5 business days; but since the processing center is St Cloud, MN, this could be sooner easy sign up at www.ingdirect.com down side is that you can't have a TOD nor beneficiary listed on the account... I'm not your broker; this is what works for me, and maybe for you too :)

Credit unions give the lowest fees for ATM use. My husband went to India a few weeks before my trip to Italy, and he had 3 ATM cards with him. He withdrew a small amount using each one to find which one gave the best rate. US Bank charged 2% plus $5. On Point credit union charged 2%. Columbia credit union charged 1%. Guess which one I used exclusively in Italy? I had about 55 euros with me before I arrived in Milan (hubby exchanged his leftover rupees into euros for me), but it wasn't needed. ATMs are everywhere, and I was easily able to withdraw more euros before I left the airport.

However, you do not have to use a debit card to find out the rates. Just call your card issuer and ASK.

Not sure I completely follow Mardell's posting. The Capital One debit card is NOT the only card that does not charge transactions fees. There are lots of cards both credit and debit that do not charge currency conversion fees. Most credit unions debit cards do not. Many of the internet banks do not so just look around and ask. And remember all fees are determined by the card issuer.

Frank, There are two categories: TRANSACTION FEES (usually a couple of dollars if using an ATM out of the bank's or it's partners network); and CURRENCY CONVERSION FEES (varies depending on the underlying bank, which can be 0%-7%). ING is an internet bank that's partnering with Capitol One, that has partnered with some European based banks to eliminate the transaction fee. Withdrawing foreign funds from my brick-and-mortar Wells Fargo bank has no transaction fee and doesn't charge a currency conversion fee; when I'm at the teller. But, my Capitol One-ING debit card will be with me when I run out of the cash, since Wells Fargo isn't in an ATM network in the area I'll be visiting. Hope that clears it up for you :)