Exchange Rates -Order Money Stateside v Local ATMs

This has been discussed on this site more than a million times. Get a better ATM card than one that charges you these fees (there are many options, one is a credit union)...and then just use an ATM once you get there. Even if you end up ordering money to get you started, you still need a debit card that doesn't rip you off overtime you try to get money out overseas. If you don't worry about your card getting skimmed or the ATM eating it in the States, then why worry about it anywhere else? Not worth worrying about tiny risks when you can protect yourself simply by taking good precautions, like having your husband carry another card or using bank ATMs where you can access a person in case of trouble. ATMs work everywhere, but you need a decent low-fee debit card (and no foreign exchange fee credit card for charged purchases). You'll pay a premium for ordering money beforehand. If that's worthwhile to you, then go for it. I carry very little cash on all my trips (only for small items like coffee, transport, mom and pop shops) and use the ATM on an as-needed basis. Items that tend to be expensive (including gifts, meals, etc) typically allow for credit cards for payment, so there's no reason to carry around wads of cash.

The ATM conversion rate and fees should not be "unknown." Banks must publish them in their card agreement documents. European bank ATMs rarely add any fee and any private ATM that does will warn you in advance. Please see https://www.ricksteves.com/travel-tips/money/card-fees.

What I meant by "unknown" is not knowing what the rate is until I get there. I know my Bank's rate is if I were to order in advance but I cannot compare to whatever ATM machine I would use once I get there.

What I meant by "unknown" is not knowing what the rate is until I get there.

Buying FX in advance can be either "speculation" or "hedging" depending on your objectives. It's speculation if you are gambling that your domestic currency will weaken (buy less FX) in the future. It's hedging if you want the comfort level of know what you are paying for FX. As Dirty Harry asks, "how lucky do you feel?"

Foreign ATMs don't typically charge additional fees (I've only seen some at the airport or very, very touristed spots...these are the exception), so the rates are the standard interbank rate (i.e. the exchange rate) and the additional fees charged by your bank or credit union. You have info at your fingertips to make the decision. You can get the exchange rate (interbank rate) online to calculate the markup on ordering currency.

Just make sure you know exactly what exchange rate you are getting and compare it with the current exchange rate you can find online. For example today the rate is 1€=1.18$. If they sell it to you for $1.25, the 7 cents spread is where they make the money.
If you use credit cards for most transactions (like hotels and restaurants), you won't need more than 700€ for the two of you for a week. If you do, just use the ATM for one or two withdrawals.

Please share with us the rate at which BoA is offering to sell you euro. Every time I've checked with them, their rate was much worse than what you quote, and of course was an entirely different rate than the one at which they would buy them back from you. There is no "official" rate - anyone can charge you what they think the market will bear.

Is .1 supposed to be 10-cent difference, or do you mean a 1-cent difference?

With ATM fees like that and 3% tacked on, getting your money in advance may be the way to go. Most of us answering have no charge ATM cards and 0% tacked on. You may want to open an account with a different institution for traveling.

but I cannot compare to whatever ATM machine I would use once I get there.

Amfield, the ATM machine owner does not set the exchange rate (unless you get conned into the dreaded DCC). The ATM charges the network the actual amount you took out (€200 or whatever). The network (the company with their logo on your card, Visa, Mastercard or whoever) converts this at the "interbank rate", which is the best rate you will get short of transferring millions, and charges your bank in to your home currency. Your bank may then add a "foreign transaction fee", either a fixed charge or a % or both.

The "interbank rate" is what you see on the internet, and is better than any rate you would get for exchanging cash.
It then comes down to the fees your bank charges.

As for not knowing the rate in advance, it could go up or down!

0.1 is a 10% difference...that is a high markup (and doesn't include the shipping fee)

Sorry. Bank of America's rate is $1.2473 for 1 Euro. The current rate when googled is $1.18 for 1 Euro. So yes the rate is for sure a lot worse with Bank of America. I just have only done this once and was shocked by all of the fees I incurred from Bank of America. It sounds like my best bet would be to open a checking account for travel with no foreign transaction fees.

I appreciate everyone's responses.

afield, yes thats what I expected. Its not a bad idea to have some euro on hand when you arrive, wherever you can conveniently get some, but not a whole trip's worth.

Get a Charles Schwab account now, ASAP! This debit card is free of fees. You will pay NOTHING to the bank and get the best rate possible by using a bank ATM in Italy. Safer than carrying around a couple thousand Euro. When you get off the plan, get 200 Euro at an ATM in the airport and sail away.

We have had a Schwab account for about 7 years now and use it every day, domestically, traveling, and when we live in Rome.

Fidelity also offers a SmartCash account which rebates all ATM fees worldwide.

Getting Euros using an ATM once you arrive is, as a general rule, the least expensive way to obtain them. The cost involved will vary from bank to bank. However, it's always a good idea, in my opinion, to have some local currency in hand when you land. Getting two or three hundred Euros from your local bank will cost you a little more, but it will eliminate the hassle of trying to find a machine, the stress of hoping it works (they do occasionally malfunction), and doing it all while somewhat jet lagged. To me the small amount extra it cost to have money in hand when arriving is money well spent, and the extra cost relative to the overall cost of the trip is not, in my opinion, that much. Just one point of view

I don't see much benefit from getting Euros ahead of time. (Though I always bring whatever I had from the last trip with me - and I think I have about 30 Euros left from last time.) But, I have a credit union account that charges me $0 fee per withdrawal plus 0% conversion fee. (Most ATMs in Europe don't charge fees; I've never been charged one.) I don't get why people put up with big banks that make half of their revenue just on outrageous fees. My credit union is better in many other ways as well: better rates, fewer or lower fees, better service.

I always carry some USD with me as a backup in Europe - I can change them to Euros in case I have an ATM problem (though I have two ATM cards on two accounts; one is just for travel), but I've never been unable to get cash with an ATM in Europe, so I've never needed to get my USD changed to Euros at some high rate. And of course, I have credit cards, too. Paying more to get Euros ahead of time doesn't seem to offer me much.

Bob,
RE: Fidelity also offers a SmartCash account which rebates all ATM fees worldwide.

Read the fine print (footnotes).

Fidelity ATM/Debit Card:

1. All Fidelity ATM withdrawal fees will be waived for your Fidelity® Cash Management Account. In addition, your account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity® Visa® Gold Check Card linked to your account at any ATM displaying the Visa®, Plus®, or Star® logos. ATM reimbursements will be credited to the account when the transaction posts. Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.

For such a short stay, I would not worry about the exchange rate fluctuating. Before the euro, I traveled in Italy for several months and the exchange rate fell from 1600 lire per dollar to 900 lire per dollar. That doesn't happen now.

I also bring my leftover euro with me, at least enough for coffee at the airport and transportation into the first city.

About delivery to your door: pick the package up at the bank and have the teller count it out for you. It's a bank transaction with real money, your real money. Don't take chances with it.

am,

ATM's generally provide the lowest "interbank rate" so that's the method I always use. I'm not too concerned about a small service fee, as that's a minor detail on the overall costs of a European holiday so I don't worry about that. However, I try to make fewer cash withdrawals, but try to get the maximum amount possible each time. One major issue with ordering money at home, is that you'll be travelling with a huge amount of cash, which could be a problem if it was lost.

My usual method is to pack along €100-200 for travel funds, and then replenish from ATM's whenever necessary. I travel with at least two ATM cards (in case one is compromised or whatever - always wise to have a backup), and also take one or two credit cards. If you decide to use ATM's, be sure to tell your financial institutions that you'll be travelling so they don't freeze your cards.

One other important point to add (which was mentioned earlier) is that you'll have to vigilant to avoid the dreaded Direct Currency Conversion (DCC), which is becoming increasingly prevalent both for ATM withdrawals and credit card transactions. When making a purchase, if the POS terminal gives you a choice between having the currency conversion done in local or your home currency, always choose local currency (Euro or whatever) and have your home bank do the currency conversion. If you choose your home currency, they'll tack on an extra charge for the "convenience" of doing the conversion for you.

Most Italian ATMs allow at least 250€ withdrawals from ATM for customers of other banks (my Italian bank, as a customer, allows me to w/d 1000€, and non customers 500€).

But let's assume you withdraw only 250€, which is under $300.

At $0.07 per Euro spread, if you order from BofA now, that 250€ will cost you $17 in fees (spread), plus shipping costs.

If you withdraw the 250€ at the ATM in Italy, BoA will charge you under $9 (the 3% fee), plus $5 flat fee. The total is under $14. So even using the expensive BoA ATM card in Italy, is cheaper than ordering money from home from the same BofA.