Hello, I have been reading post from months ago on this subject BUT reading all the info.. 3rd party this fee that fee it is confusing. I spoke to someone at Travelex , 2 euro's when getting money our of an ATM no other fees if using your debit card preloaded with euro's.. anyone find out any different. I want to use cash , charge once in awhile but thought a card might help to have extra just in case. The bank here said it's a 10 dollar fee to get euro's but Travelex said they wave any fee for buying them if you get over a certain amount. One reason I like to use my credit card " purchase is guaranteed if there is a defect ect. " , even months later and this has happened too many times when buying overseas good or here in the states after giving a gift to someone or myself.
Posted by
Tresana, Highlands Ranch, CO, USA
23267 posts
This is simple. It has been repeat many, many times here ---- The cheapest and most convenient way to obtain local currency will always be a debit card at a bank owned ATM. Anything else will range from slightly more expensive to a whole lot more expensive. Pre-loaded debits cards generally range around 10% total to use the card. Most pre-loaded cards are not a good deal.
Posted by
Northamptonshire, England
32745 posts
Gail
I know it can be confusing, but please take my word ( a guy you've never met) that just the words of a guy you've met once (the Travelex guy) mean nothing when things aren't as he said.
You need to see it in writing. Either on the website or on a contract that he gives you that you can read carefully at your leisure.
Unless Travelex have gone into the charity business there will be all sorts of charges, some you may see and some you won't.
In all foreign exchange the amount you pay is more than the value of the money you are getting. It has to be or there would be no profit for the money seller. They wouldn't be able to pay the rent, advertise or pay their staff.
Foreign exchanges make their money by charging a fee to exchange the money or manipulating the exchange rate, or both.
Banks are very clear on their costs for using debit cards to take money out of foreign ATMs. They exchange at the interbank rate and then charge a fixed percentage above that, and they charge an amount for each use of an ATM. Some foreign ATMs (not many) charge another fee for using the ATM machine and the bank will pass along that fee, perhaps adding another fee.
The way to find out what fees a bank (or credit union or other institution) charge is to ask them.
The way a money seller like Travelex makes their money is by lots of fees and choosing a bad exchange rate, the rate at which they convert the money which may be quite different from the interbank rate.
Read, read, read and don't believe anything verbal.
Be assured that any place which advertises "commission free" or "no commission" will make it up in the rate.
There is no free lunch.
Posted by
Washington DC Region, USA
7049 posts
Don't buy anything - use an ATM and check what the transaction fee will be for withdrawals on your ATM card. I have a Credit Union ATM card that I use on all overseas travel and the charge is 1% of the withdrawn amount...there is NO separate charge by use, only percentage of amount withdrawn. So that's $1 for every $100 withdrawn and no extra charge simply for using the ATM for "x" number of times. Most bank cards will charge you separately for each withdrawal - that's why Credit Unions are best (they don't need to make any profits for their investors).
I use Capital One as my travel credit card - it has no foreign exchange fees. Obviously, don't use a credit card as a cash advance, only as a credit card for major purchases.
Posted by
Seattle, WA, USA
7737 posts
When Travelex says "no other fees" what they're not telling you is that they're giving you a worse exchange rate.
Posted by
Medford, OR, USA
5835 posts
https://www.ricksteves.com/travel-tips/money
We're a capitalistic economy and financial institutions will be generating net revenues one way or the other. Watch for fees, bid ask spreads on exchange rates. Bottom line is the cost in your currency for the amount of destination currency.
Posted by
OP
Cincinnati, Ohio, USA
91 posts
OK , got the message this time. I don't use my credit card to get a cash advance and I do have an account at a credit union so I will check with them.
THANK YOU
Posted by
Oxford, United Kingdom
5326 posts
There are countries where purchase of pre-paid or third party cards, directly or indirectly connected to your bank account can be cheap and a good option. The USA it seems is not one of them where forex is still treated as a premium product with fees way above the cost to the operator.
Posted by
82 posts
Shop around and be sure to read the fine print. My credit union charges nothing for making withdrawals in Euros while my bank charges 3%. I use a credit card with no fee to pay for large bills like hotels and special meals (always in Euros) and use cash for everything else. Also, I keep a stash of Euros on hand for the next trip so there is no urgency to find an ATM upon arrival. Finally, coins in smaller denominations are very handy for making a candle contribution in churches
Posted by
58 posts
There is an informative section on money concerns in Rick's Europe Through the Back Door guidebook, but basically, to reiterate what the other commenters have been saying, we agree that getting money out at an ATM machine is the best way to go. Here is a short summary from Rick's ETBD guidebook:
The Bottom Line: Here’s the best formula for saving money as you travel. Pay for most items with cash (use a bank that charges low rates for international ATM transactions, and withdraw large amounts at each transaction--keeping the cash safe in your money belt). When using a credit card, use a card with low international fees, and make sure your transactions are charged in the local currency--not dollars. Then smile and enjoy your trip, feeling very clever for avoiding so much unnecessary expense.