I have seen that this question has been asked a number of times, but I couldnt find one thing: What is the exchange rate that ATMs in Italy provide? Are they the same as what is the bank exchange rate advertised for that day? For example, today's exchange rate for Euro is $1.316 or so. So if I had withdrawn Euros in an ATM in Italy, would I have gotten an exchange rate of $1.316 as well? I understand there will be a possible per transaction fee charged by my bank and a % fee that my bank might as well charge, but I am interested to find out what will be the exchange rate I will be getting. Thanks in Advance!
Posted by
Tresana, Highlands Ranch, CO, USA
23310 posts
You will get very close to that. The interbank rate is set almost minute to minute during the day so the rate you see in the paper is an average for the day. Second the network (PLUS or CIRRUS) always adds a small percentage of about .5 % or a bit more to the rate so if the paper says $1.316 you probably get a rate close to $1.32 to maybe 1.33. Regardless, the bank ATM will always give the best exchange rate and it will be within one percent of the interbank rate for that day..
Posted by
Seattle, WA, USA
7737 posts
It doesn't really matter what the specific exchange rate is at the ATMs because they are always the best rate you can get. If you have time before you leave, set up a Money Market account with Capital One to avoid paying any fees at all.
Posted by
Wichita
831 posts
San,
This should help http://usa.visa.com/personal/using_visa/exchange_rates_faq.html Today's Visa rate is $1.310112
Posted by
Van Nuys, CA, United States
77 posts
Why are ATMs so much better than getting it here in the states? My AMEX store wants to charge $1.42 for a euro? Unfortunately I have to have money for an apartment in cash upon arrival so I may get stuck for the higher amount.
Posted by
Oak Park, Illinois
4535 posts
Thomas - every euro seller in the US will charge at least 5-10% in fees or higher exchange rate. No one has ever found someone selling them cheaper. Whereas using an ATM in Europe will typically cost 1-5% in fees - depending on your particular bank. Keep in mind two things when looking at the cost to exchange money - the actual exchange rate and the fees. Some places advertise low or no fees, but their exchange rates are high. With an ATM you may get some fees, but the actual rate will be within 1% of the interbank rate. For your situation having to pay a large cash expense, you can either eat the fees to buy euros now or arrange to pay in installments with a downpayment if the operator is willing. A money order might also be a little cheaper than just buying euros here.
Posted by
Am Fork, UT, USA
84 posts
We have the same problem as we are renting apartment in Rome and need cash payment. There are plenty of ATM's around in cities in Italy. Call and get your ATM limit raised. Also, see if your landlord will allow you to pay half when you arrive and then get the other half the next morning from the ATM again. If your rent is only about 500-700 then you should be able to get your bank to raise your limit to that. Remember the exchange rate and fees though, so that you don't over extend at your bank.
Posted by
Temora, NSW, Australia
337 posts
Shouldn't you have more than one source of funds when overseas ?. I already operate 2 accounts linked to debit VISA cards with minimal fees. I plan to use both those and our main account (Mastercard link) while overseas. If I go the aparment route then it just means several atm transactions while still maintaining my current daily limits. Thanks for the advice on the ATM exchange rates, I was overestimating the impact of the exchange rates regards
Posted by
OP
Red
2 posts
Thanks All! I just came back from my trip - I used the debit card and found that the rate was probably the best - much better than what Travelex or any other exchange service offered. The exchange rate was very close to the bank rate. I found that credit unions are much better than national banks for ATM withdrawals in Italy. Mine charged no transaction fee. Only the 1% that Visa charges. But be aware that some of the foreign banks might have a transaction fee.