Trip report: currency conversion, ATMs, cash, credit & tipping

Yup used Wise for 6 weeks across the Balkans, Hungary, Spain, Italy this year. Card or phone it works - plus I have an immediate notifcation on my phone on the actual charge in my home currency. We had the same experience trying to find ATMs that charged a reasonable fee - Croatia was the worst - 8% was the best available according to the guide on the cruise we did. We started changing euros instead! Fortunately in places like Italy and Spain there is no issue with using cards for everything.

I agree no need to tip - and not really possible if using contactless cards - which is what the locals do

Tipping is not necessary nor expected, but servers and housekeepers always, always appreciate it. It just does not need to be a lot. If you do not speak Spanish or Portuguese, how do you know if locals are tipping? They don't leave tips on tables, the tip is added to the credit card bill.

We were in Portugal last week. Only use the MultiBanco machines. ATM will ask if you want conversion, which is usually very high. You have to "reject" twice to get your money.

On trip #1, I made two visits to an ATM and was somewhat surprised at the hefty fees and not-so-favorable currency conversion rates made by ATMs (always associated with a large bank)

I agree with the fees, in Spain it seemed about half the bank ATMs I tried charged a use fee. Suntander, 7 euro on 140 euro, Caja Rural, 6 euros for about the same. I also have the Charles Schwab debit card, so fees were reimbursed, but it was a shock. You can certainly cancel the transaction and move to another ATM, but I only used 4 in a month, and that was more than I really would have needed to,

The Currency conversion fees though I have to take issue with, those you can avoid simply by declining DCC and proceed. Accepting DCC serves no useful purpose, and it is optional.

– however, the currency conversion rate was unknown.

Well, true, but you can be assured that it will be somewhere around 1%, and often with the changes in the rate, you barely notice it. Anyone who guarantees you a rate, is doing so by tacking on several percent to the cost...like DCC.

The cost from Wise for loading 1000 euros to the debit card was less than 5%.

I think for you, the attraction was maybe convenience, for which you paid something less than 50 euro for. To be honest, my credit cards and Charles Schwab debit are a better value, so I don't see the attraction.

I think there may have been a misunderstanding on the OP's part that Charles Schwab doesn't charge fees on its end only. It also reimburses you for any fees charged by the ATM as well. Therefore, no direct costs or fees to use Charles Schwab debit.

If you feel like Wise is the best choice for you, great! It always feels nice to find a product a person feels good about and it works well for them. However, using it was more expensive than using your Charles Schwab Debit card. Sometimes, the extra cost may be worth it if it gives you peace of mind and ease of use.

Tipping isn’t the norm in Spain, but it is expected in Portugal.

I am currently in Spain - the ATM at Caixa Bank charges €7 per withdrawal, so I have been using Banco Sabadell where the cost is €1.80 per transaction.

We were in Ireland in September. I used the Bank of Ireland ATM twice. I was expecting the $5.00 fees of Wells Fargo but Union Bank did not charge. In fact my 240€ withdrawal was $239.00. Guess I got lucky.

Crete yesterday. Euro bank. 400€ out of ATM WITH 3€ fee. That’s OK by me. No DCC. I don’t know the conversion at the time. Interbank rates I imagine. Used Schwab card.
OPs, less than 5% is a bit steep. But glad he found a way of satisfaction for his exchange.

I agree no need to tip - and not really possible if using contactless
cards - which is what the locals do.

You look at the bill, then you tell the service provider hiw much to charge you, then you tap. But some places can't add to the bills, at those put what you want in the little folder and hand it to them.

But do keep in mind that in Europe everyone gets a Living Wage, in Hungary for instance the minimum wage is nearly $500 per month.

@paul
With apologies, my calculation of the Wise fees (as a percentage of the amount converted from USD to euros) was WRONG. It is way less than 1%. In fact, for today: the fees for 1000 euros from USD is $8.18 (.0058%). 2000 euros from USD is $12.84 (.0064%). And, so on ...
P.S. if my math is off please let me know ;>

Well, the "less than 5%" charge to load is a relief, but in looking into it, you load an amount on, you can use it as a debit card, ATM withdrawals though, you get 2 up to $100 free, but then incur fees...plus whatever fees the ATM charges..

I still see no advantage over a Schwab account, plus with Schwab I pay no fee to them, and am reimbursed any ATM fees. Same with my credit card.

It is a good tool if you have limited credit and want an instrument to use in Europe, much better than "pre-loaded" Visa/MC cards or you want to budget yourself by paying from a cash reserve.. I suppose the Debit vs Credit debate, using them at POS devices still applies. Many do not like to use a Debit card for purchases in Europe, I have no real concern, though I use credit at home, and use it abroad as well.

That "Living Wage" thing bugs me. What does that even mean? The hourly wage is different in every country. In Germany, it just went up to 12€ an hour. If you are able to get a 40 hour a week minimum wage job, which is seldom and certainly not in the restaurant industry, you would gross 1920 € for the month. Take out 50% if you are single for your taxes, health ins. contribution, and social security. Leaves you 960€ to live off. Good luck finding an apt. in Frankfurt for less than 1000€ per month. Let alone food, phone, transport, etc.
So, please stop throwing out that Living Wage idea as an excuse not to tip.

Certainly servers and housekeepers that are surviving on minimum wage and would welcome a few extra € as a tip.

I'm trying to figure out the benefit of using Wise over something like Google Pay or Apple Pay. Anyone want to explain it to me?

I have a Charles Schwab debit card in addition to other contactless credit cards. I hardly ever use cash anymore.

It seems to me the potentially advantageous usage of the Wise account would be for converting dollars to euros or other currencies when the exchange rate seems especially good, for future use. Of course, that would be an effective money-saving technique only if one could consistently guess the direction of the foreign-exchange market.

I don't know about the rest of the forum, but I certainly didn't predict the recent significant strengthening of the US dollar.

Like I said, I think one benefit of Wise would be if you like to isolate some amount of cash for a trip, keeping it separate from your regular accounts. Whether you do that because of budgeting, that you maybe do not have multiple accounts, or only those that charge high use fees (lots of people still pay out-of-network fees and FTF), or you want to have something for a teen or young adult, that also may not have multiple accounts, or you are concerned about fraud (even an unfounded concern). It is a better deal than a card with high use fees, and a much better deal than the "Pre-loaded" Visa/MC cards that you pay to load, pay to use, and pay to get your money back. Looking at information online, that seems to be the market they are going for.

But if you are like me, have several good no fee credit cards and a couple debit cards, can control your spending, have the apps and a working phone to monitor your finances, then, No, no real advantage.

that would be an effective money-saving technique only if one could consistently guess the direction of the foreign-exchange market.

Anyone who could do this wouldn't be worried about saving money. They'd be making millions trading currency futures.

my postings have been few and trip reports have been zilch; this is partly due to the fact that I’m reluctant to call myself an “expert” with regard to itinerary planning, etc.

after the reception that a well meaning report gets, I can see why