Currency exchange

Do a search on this board and you will find much on this topic, but here is the abbreviated version:

• Using an ATM, withdrawing from your Checking account is the way to go, cost to you is about 1% plus whatever your bank may charge for fees.
• Very few travelers on here take cash and exchange there, you risk carrying that cash and it will cost you, maybe in the range of 7-10%
• Travelex is not a popular name on here, as a last resort, maybe, but the cost is 10-12% to exchange
• Get from local bank...for small amounts it is a good option (couple hundred euro), many like to have cash in hand on arrival, best deal I have found is US Bank, at about a 5% cost

Two other points, have a back up, credit card or second account that you can get cash from, and in Spain (like many other places) be aware of Dynamic Currency Conversion (DCC). Basically the ATM will offer to do the transaction in you home currency, which means they will do the conversion, at a cost much higher (3% to 10%) than letting MC/Visa/Star/Plus or the network does. Decline or indicate to do the transaction in local currency, in this case euros. You will find this at the Barcelona Airport, and at ATMs in the Barcelona area.

You inform your bank where you are going to use your atm card and withdraw in your destination country. You will always receive a better rate of exchange with a strong currency in the destination currency.

Spanish ATMS try to fool you into withdrawing in dollars which gives you a double set of extortionate fees. So wise advice to be sure to select conversion in Euros and pay only one conversion fee. We ran into this in Spain consistently and much less so elsewhere in Europe.

Now is the time to also find out what kind of bank you have. Some credit cards charge 3% ; the one I use only the 1% built into the system. Some bank ATM cards charge 3% and add a withdrawal fee on top of that; the bank I switched to when my giant evil bank did that charges only 1% and no withdrawal fee. This really adds up if you travel much and who wants to reward the banks that are so hostile to their customers because they 'can do it.'

I have used lots of Spanish ATMs, but have not yet encountered any trying to do dynamic currency conversion. In Madrid, I always use a BBVA ATM right near my hotel (not far from the Prado), so maybe I haven't hit the ones that do that. I have also used ATMs in Cordoba, Salamanca, and elsewhere without seeing it. It's good to be aware that it could happen, though.

In regards to DCC, it is unfortunately becoming more and more common. It is especially prevalent in Airports where Travelex or other similar exchange firm has gained exclusive access to provide ATM service to the terminals. I have run into this example at London Heathrow and Berlin Tegel. Using a Bank ATM is one defense elsewhere, but I have encountered it at ATMs in greater London, Berlin HBF, Barcelona Airport, ATMs in Barcelona, and an ATM in the small town of Cadaques outside of Barcelona, all Bank owned.

It is also worth noting that some merchants will do this, sometimes without asking, just be aware and be insistent that they process in local currency.

Withdraw from your everyday account as long as the card has the blue Cirrus logo.
Take out larger amounts rather than lots of small withdrawals as (in Australia) there is a flat service fee for each withdrawal.
Look for bank ATMs in airports rather than Travelex or money exchanges.
Sometimes a small amount of the local currency in cash is useful on arrival for taxis, tips, drinks.

Here are Rick's excellent money tips. Read all the links, and you'll be an expert: http://www.ricksteves.com/travel-tips/money