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Currency exchange

Where should I go to convert $ to Euro here for a decent rate? When I am at the airport in Barcelona is it a good idea to go to ATM there or when I reach the town than do it there. Where are the best rates and withdrawal fees ? I m staying at Catalunya.

Posted by
19630 posts

As long as you use bank ATMs and decline Dynamic Currency Conversion, it will trade at the best interbank rate at that time, plus less than 1% fees. If the ATM tells you how much it will cost you in USD, they are using DCC which is a conversion rate the they choose (not in your favor). Also, many Spanish banks are charging ATM use fees. That will be disclosed just before they dispense the cash. All I can say is maybe you want to shop it around at various ATMs. Generally, the bigger the bank, the higher the fees. If there are any equivalents to US credit unions or saving and loan banks, they should have lower or no fees.

And don't forget that your bank may charge you "out of network" fees and foreign currency conversion fees. Open an account at a bank the does not charge those, there are many.

Posted by
2709 posts

You should go nowhere to convert dollars to euro. This is not a conversion, it is a purchase of euro with your dollars, and as it is a purchase you will pay a mark-up of 10% to the seller.

Hopefully your card is with a bank that does not charge fees, either usage or foreign transaction.

You go to any bank operated ATM and withdraw euro from your account. The mark-up will be under 1% for the network and the conversion will be at the interbank rate. You must make sure that you do the operation in euro, and not let the ATM offer you the amount of dollars this represents, this is the dreaded DCC - “Dynamic Currency Conversion”, and the only convenience to this is to the owner of the ATM, who will charge you several percent for the convenience of guaranteeing your rate.

Note that some Spanish banks are now charging significant ATM fees. These can be avoided by using an ATM owned by any foreign bank, for example we used Deutsche Bank ATMs on our visit to Spain. If I recall correctly, they have a branch on the square.

Posted by
23177 posts

The cheapest and most convenient way to obtain local currency will ALWAYS be a debit card at a local, bank owned ATM in the country. Even if fees are added by your bank or the ATM (rare) that you are using, it will be cheaper than any alternative. Money exchanges in airports or even your bank in the US will often add fees up to 10% or more. Some of those fees will be hidden in an increased exchanged rate. A debit card is the only way to fly.

Posted by
26829 posts

Unfortunately, ATMs charging fees were not rare when I visited Barcelona in 2016, and I doubt that the situation has improved. I just kept trying different banks' ATMs until I found one that didn't charge a fee. Santander Bank ATMs were among the ones with no fees at that time, but I don't know what its current policy is.

Read the ATM screen very carefully. And decline DCC, which can cost you a great deal.

Posted by
1286 posts

Yes, as above just use a cash machine ( "ATM"), at the airport or in town, but -

Quite a few Spanish banks do charge a withdrawal fee at their cash machine if you're not a customer. Strictly, I think they are not charging you, but your own bank - which may, of course, pass the charge onto you. It's only a euro or two, so arguably not worth worrying about, at least for a short holiday. And there are some banks that don't have a fee, so you can shop around for one of them (La Caixa might not, and they are big in Barcelona). The cash machine will tell you if there is a fee and how much, you can cancel at that point.

This is different to DCC which you'll also come across a lot assuming your account is "US dollar based" or otherwise not Euro. When I use my sterling account British card, I'd guess I get offered DCC about three times out of four. Obviously, I don't get it with my euro-denominated Spanish bank card, but I still get a withdrawal fee sometimes. Always decline DCC.

Posted by
26829 posts

I don't remember the range of ATM fees I saw (but refused to pay) in Barcelona during my 2016 trip, but I have definitely seen 5-euro fees on some European ATMs. That would add up quickly. It's my impression that some ATMs charge percentage-based fees (very odd amounts sometimes show up), which might be more tourist-friendly if you want to make a small withdrawal, as I usually do.

Posted by
5503 posts

Except in Budapest six years ago, I've never used an ATM in Europe. I typically purchased euros, swiss francs, etc. before I left home. The last time I realized that the exchange rate I was getting was terrible. The bank (Wells Fargo) touts that if you have an account with them, there is not charge for the purchase of foreign currency. However, I learned that they weren't providing the currency as a service, its a money making practice. When I'm in Europe, when I'm using a credit card, I often have the option of paying in the local currency or USD. I always decline USD because the cardholder typically does not get a decent or fair exchange rate. So, on my upcoming trip we will start with some leftover Euro, but can someone share what I can expect at an ATM? If I talk to my bank before I leave, will they tell me which institutions will have ATMs without fees? I'm assuming that a debit card with Wells Fargo is more advantageous than the one through my small credit union. Will there be a prompt during the ATM process in which I can decline DCC? What is the typical dollar maximum at these machines? I need to pay about 150euro for my nights in the pueblos blancos of Spain.

Posted by
5697 posts

@jules, check with your bank and credit union to see if they have relationships with banks in Spain for lower fees. When I went to Spain about 10 years ago Bank of America had a list of its partners for which BofA had lower, but not zero, transaction fees; I have since switched to using the Schwab debit card for all foreign ATM's so fees are not a problem (Schwab reimburses local bank fees) and I can just use the most convenient bancomat when I need cash.
Each bank can set its own daily limit (your bank and the dispensing bank) but often €300. You can always ask for what you need and if that amount is not authorized, try for smaller amounts until one is approved.

Posted by
2709 posts

Jules - From any bank owned ATM you can expect your withdrawal to convert at the interbank exchange rate, plus a percent increase for the friction of getting cash from the network, depending on your card that can be anywhere from .2 of 1% up to a whole 1%. European banks did not charge any fees for ATM withdrawals, but it is now being reported that some Spanish and Italian banks (note that means banks that are Spanish or Italian companies, not banks from other countries that have branches in Spain or Italy) are charging fees for ATM withdrawals. And of course your bank could also be charging fees for using ATMs other than their own, and also could be charging fees for foreign transactions. Wells Fargo?.? You haven’t run away from them yet? They do nothing for a customer if they can’t also make substantial profit on it. Recommended no-fee banks here have always been such as Schwab, Capital One, and host of credit unions.

As for what to expect at ATMs, you are limited first by whatever your maximum daily withdrawal limit is for your card, this is set by your bank. And if it is a joint account and each of you has a separate card with a different number, then that daily limit applies to each card. You are also limited at any ATM machine by its own limit on withdrawal amounts, and this is usually lower than your bank’s daily limit. But this does not stop you from making additional transactions to get the amount you need, or from going to another machine to get it, your total limit for the day is set by your own bank.

And your bank won’t know anything about what to do at foreign machines, certainly not inside the branch (and certainly not Wells Fargo). If you have Schwab or CapOne, their 800 number customer service might be able to answer this, as they often deal with this. But in general, you should be able to use any debit/ATM card at any bank-owned ATM in Europe, as it is the network that handles the transaction, and most everyone is involved in this. We have never had a transaction refused in bank ATMs in about 20 countries.

Posted by
26829 posts

It is entirely possible that your credit union ATM card will give you a better deal than your big-bank card. My credit union charges me nothing and supposedly refunds fees charged by the ATMs. I have never tested out the fee-refund business, because I want to be nice to the other members rather than soaking them for my travel habit. You need to call the 800 number on the back of each card and ask about use in European ATMs. You should do the same thing with your credit cards, because some of them are much better than others, fee-wise.

To be clear, there are two possible fees you could get hit with when you use a European ATM: a fee charged by your credit union/bank (if you don't have good ones) and a fee charged by the bank operating the ATM itself.

You won't know about fees charged by your bank/credit union unless you call ahead of time; otherwise, you'll just come home to a statement showing the extra charges, which may include a flat fee of something like $3 or $5, a percentage-based fee, or both.

If an ATM is going to impose its own fee, you will know during the transaction if you read every screen carefully. If you see information about a fee (e.g., you've asked for 100 euros but something like 105 euros shows up), cancel the withdrawal and go try an ATM belonging to a different bank. In Barcelona I had to try several ATMs before finding a non-fee ATM, so you may need to be patient. I happened to be on the Ramblas, which has quite a lot of banks, so I just kept walking along, trying each one.

I don't like to walk around with a lot of cash, and I prefer to charge when I can on a mileage credit card, so I have never bumped up against an ATM limit. However, I know that each ATM has a limit per transaction, which can vary but is probably a few hundred euros, and your bank/credit union almost certainly also has a limit, which may be a per-day cap (rather than per transaction). You may be able to get around the ATM limit by performing more than one transaction. If you anticipate an issue with your bank/credit union's daily limit, you can request that it be raised. The institution may or may not agree to do that, of course. It's a good idea at least to ask what the limit is, if you plan to pay cash for lodgings or other substantial expenses.

A third possible problem is that you may be standing in front of an ATM that is almost totally out of cash or completely empty. If you ask for more money than the machine has in its dispenser, you will get nothing. Very, very often the message displayed by the ATM (or sometimes just printed on a receipt) will not make it clear what the specific problem is. It's natural to panic a bit in that situation, thinking that your ATM card isn't working. Just take a deep breath and walk to another ATM.

Posted by
32 posts

Thanks, what a credible information from all of you, how to use ATM in Spain. Here we could not get from our bank and AAA cause they have to be told B4. Tomorrow will go to Travelx and exchange the dollars. It's good to have enough cash so you don't HV to play tag with the ATM overseas. So nice to have the knowledge so you can take the right action.

Posted by
2709 posts

I am sorry, but I fail to see how walking in to Travlex and letting them sell you cash for a 10% profit is the right action.

Posted by
3514 posts

I guess if you feel more comfortable with a small amount of Euros in your pocket on arrival, using Travelex is not the worst thing to do. Key word being small.

Not what I would do. I definitely would not get all the money I expect to need for my trip from Travelex.

Posted by
23177 posts

I am curious, Mirzanx, how you come to the conclusion that exchanging money at a TravelEx is a best practice when every posted response supported used a debit card at a bank owned ATM in country? If you are want to take all of your cash in local currency prior to departure, then go through your bank. It should be cheaper than using a TravelEx at the airport. Using a TravelEx at the airport is the least recommended option.

Posted by
26829 posts

Aside from the cost of exchanging physical cash either in the US or in Europe, it's not a good idea to walk around with a wad of any type of cash. The European pickpockets are many and talented.