Spending money in Europe

Most travelers I know use their ATM/debit cards to obtain cash at ATM's in Europe, and pay cash for most purchases. They use credit cards only for larger items, such as hotel or rental car bills.

Also, most on this forum are adept at finding lower fee cards.

European banks don't charge you to use their ATM's. The fees you pay will be determined by your American card issuer.

ashley,
This may help http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

Hi Ashley. I do what Tom said; I take cash out of the ATM for day-to-day expenses such as meals, gelato, entrance fees, souvenirs, etc. and I use my credit card for larger expenses such as hotels. I have an ulterior motive to use my credit card for larger purchases though, because I earn mileage points so that I can return to Italy in the future!! Have a great trip.

Cash is still important in Europe. Often hotels will give discounts from 5 to 10% for payment in cash. On our last trip of 33 days we charged exactly two items. One, a hotel room because they would not give us a discount for cash. The Capital One credit card does not charge the 3 % currency conversion fee.

Second, since you sound inexperienced, DO NOT let the merchant charge your card in dollars. He pretends to be doing you a favor. One, you get a bad exchange rate and two, you still get hit for the 3% currency conversion even though it is in dollars. ALWAYS pay in the currency of the country you are in.

Are their ATM locations that are safer to use than others? We will be in Rome in 2 weeks. Are most ATM's outside or are there some inside banks? I would think it would be safer to go in a bank vs. being out in public eye.

Frank's tip about ALWAYS paying in the currency of the country you are in is totally correct. It should even be printed in bold letters.

We've found that more and more hotels in Europe are asking if you want to be charged in euros (or pounds), or in dollars.

Always pick the foreign currency. The reason is that the exchange rate your hotel gives you will NEVER be as good as the rate you get from your own bank.

Amy: yes, there are ATM's inside banks in Rome - and yes, those are the safest locations.

I use cash whenever possible, obtained through an ATM machine. You get the best exchange rate even with the transaction fee. If I have to use a credit card, I use my Capitol One card because they don't charge a foreign transaction fee.