Help buying Euros dilema

[tidygirl]

This is my problem if I buy Euros from my bank and I spend $5000 I only get 4064e that seems like a big loss! I checked on Travelex website in Venice Italy at the airport it said if I trade in $5000 I will get around 4900e Anyone know if that could be accurate? Last year we took all our cash with us and didn't have to worry, but I wonder if we hurt ourselves doing it that way?

I do not want to use credit cards and have to find ATMs with limits on how much I can get out, but I also don't want to arrive in Venice with no way to get cash!

I can't use credit cards on many of our tours as they want cash only.

Anyone ever do this and is there a limit how much cash you can get at one time?

[Jenna1983]

Absolutely no way would I travel with that much cash on me. Too much of a risk. I take enough to get transportation to the hotel/b&b and then either use my CC (much easier since I have no fees) and can just pay from my account to my card if I want. Or I use my Charles schwaab card and didn't have any issues paying (no fees) or getting enough cash.

[milolii]

I guess I am a little confused. Even at the current exchange rate of about 1.12, $5000.00 would bring somewhere around €4460

[milolii]

Sorry send button went off too soon. I do not see how you can get €4900 for $5000.00. The current exchange rate 1 $ equals .89€. But it would be hard to get even that rate. Maybe I misread it?

 

I agree with the other poster that you should take some funds with you.

[Keith1010]

May I ask why you need so much cash. Can you pay for some of the items via a credit card in lieu of requiring so much cash.

 

Keith

[Hlitner]

There really is no mystery to currency. The actual (up to the minute) wholesale exchange rates are accessible to all on various web sites (we like xe.com). You will not be able to get that rate, but by using ATMs you can usually get a rate discounted about 1 1/2% from the published rate. So if I were exchanging $5000 (US) today I would expect to get something close to 4400€. The Travelex numbers you cite are out of date and not realistic. And Travelex normally gives among the worst rates when compared to many other sources (especially bank ATMs). If you look at today's Travelex rate you would get a little less then 4000€ for your $5000 which is not a very good deal. Essentially they are charging you about $1.20 for every Euro while the current exchange rate is $1.114. That works out to about a 7% discount to the actual rate. In most European cities you will also find currency exchange shops/Kiosks and can often find deals with about a 3-4% discount. However, the reality is that unless you are exchanging a lot of money (we are talking thousands) one can argue that convenience often outweighs saving a few dollars. But since ATMs are usually the most convenient, and also give about the best rates, the machines are usually the best of both worlds :). The biggest downside to using ATMs are the daily withdrawal limits (often less then $500) which is one reason why we have multiple ATM accounts.

 

But you also need to be careful with fees (something Travelex uses). So I could quote you an excellent exchange rate and then charge you a 5% fee.....making it an awful rate. We would add that having spent over forty years doing extensive international travel, we have never purchased any currency inside the USA. Our primary means of obtaining any currency is to use ATMs in a country that uses that particular currency. We have 3 different Debit/ATM cards (drawn on 3 different bank accounts) that do not charge any ATM fees (except for the standard 1% transaction fee built into foreign exchange by Visa International).

 

Hank

Edited September 3, 2015 by Hlitner

[BBsails]

Hank's explanation is spot on. Study his response and follow his process in order to get funds for the lowest cost and the most convenience. There's a learning curve to understanding how to obtain funds in other currencies, and it would definitely be to your advantage to be teachable. I would encourage you to seriously consider using ATMs to get Euro. Like Hank, we have never (and will probably never) purchased Euro outside the US. We do bring home a few left over Euro at the end of our trip, just enough to get us through the airport and to an ATM should we need it at the start of the next trip.

 

Bon voyage

Betsy

[Hlitner]

We should have added one more option. Most cruise lines do sell (and buy back) Euros on their ships. Some lines like Princess actually have large currency vending machines and other lines (like HAL) set up a currency desk or just handle sales at Guest Relations. The currency rates charged on the ships vary by cruise line, but you are going to always pay a premium for the convenience. For those that only need a small amount of Euros it might be worth paying an extra 5-8% (approximate) to simply get Euros on the ship. We should have also mentioned that there are ATMs in all European airports but not all ATMs are alike :(. The bank ATMs are usually fine and offer decent rates. But we now see more and more private ATMs (some owned by Travelex) that are not as "generous" with their rates. So we always advise trying to find a bank ATM. We have heard some nasty rumors of European airports forcing bank owned ATMs out of airports in favor or private ATMs that generate a nice profit for the airport. We have not personally experienced this new development so will have to wait and see if this becomes a wide spread problem in the future.

 

Hank

Edited September 3, 2015 by Hlitner

[twin123185]

Wells Fargo is the most reasonable of the banks in my area of New Jersey. They have the best rate. Maybe there is a branch in PA near you. TD bank and Chase are just ok - about a percent less. Wells fargo sells on line but its not as easy as it used to be. No way I am going into Italy with $5000. I have never had a problem getting 500 Euros at an ATM. Best rate that way too by far.

Edited September 3, 2015 by twin123185

[tidygirl]

On the airport Travelex website when I punched in 4940 e it says $5000 US. So I was just not sure what was up or if I was misunderstanding it.

Why do we need so much cash? So far the tours we have booked are private tours they all say CASH only at the end of the tour. At 65e x 6 people that's 390 e plus a tip for 1 day! Now where am I going to get that much cash especially in Greece?

I guess I will probably just buy most of my euros over here and take the loss as I don't want to spend our short time in Venice looking for ATMs and hoping I can get enough out for the next 8 or 9 days.

Also remember cash will be divided among us and tucked safely away.

[Langoustine]

On the airport Travelex website when I punched in 4940 e it says $5000 US. So I was just not sure what was up or if I was misunderstanding it.

 

There's something wrong here. I just put $5,000 into the Travelex website currency calculator and it says that will get you 3,962.50 Euro (which is an absolutely terrible rate of exchange).

[milolii]

On the airport Travelex website when I punched in 4940 e it says $5000 US. So I was just not sure what was up or if I was misunderstanding it.

 

Why do we need so much cash? So far the tours we have booked are private tours they all say CASH only at the end of the tour. At 65e x 6 people that's 390 e plus a tip for 1 day! Now where am I going to get that much cash especially in Greece?

 

I guess I will probably just buy most of my euros over here and take the loss as I don't want to spend our short time in Venice looking for ATMs and hoping I can get enough out for the next 8 or 9 days.

 

Also remember cash will be divided among us and tucked safely away.

 

 

Hank has some excellent advice here, as usual.

 

I would be very skeptical of that Travelex website. Maybe hidden fees somewhere. Not sure.

 

I agree that spending time looking for local currency has it drawbacks. ATMs are everywhere, but it is not something I want to be concerned about, especially in Venice, as well as, many more of the wonderful cities in Europe.

 

I also understand the private tours and we take quite a bit of both €s and £s when we go using the money belts. If you have it split between six people you are most likely carrying less than we usually do.

 

 

Also agree with Wells Fargo for exchange if you can get it through them.

I also have the XE money converter app. There are several more out there but this one seems easiest to use. That will tell you the closest exchange rate. As stated earlier you will not get that rate and their are some fees involved either way you look at it. Sometimes fees are hidden in a higher exchange rate.

 

You will not be loosing almost 600 dollars, euros, or however you want to look at it as the exchange rate of dollars to Euros is not one to one. I think right now it is about one $ will get you about .90 € However, the exchange rate right now is very favorable for US citizens exchanging dollars for euros. So your dollar is going much further than those who traveled last year for example.

 

Today, Wells Fargo will give you about €4232.00 for $5000.00. Not too bad.

 

We take cash in local currency and always end up of at ATMs anyway. ((having too much fun)

 

Enjoy your cruise.

[trulytracy]

I have a similar question in the same topic. We are going to travel to Europe next summer for our 25th anniversary. This is a big deal for us and a huge trip. Getting the most for our travel dollar is important to us.

 

The exchange rate is favorable right now. I know it is impossible to predict where it might be next summer. Would any of you more experienced overseas travelers purchase some Euro now to play it safe?

[sheena12]

I just returned yesterday and I ordered 1000 euros from my bank at home which cost me 1100.00 I then did use the ATM machines but there seems to be a limit of 500 daily. I used cc as often as possible. You can also order from Amex..

[Gourmet Gal]

That is a crazy good exchange rate. Would you mind telling us what bank that was?

[twin123185]

Amex doesn't do foreign exchange anymore on line and $1.10 - don't believe it for a second. Impossible to get better than the official rate. They all have a 5-7% surcharge. Only way to get spot rate is using credit card or ATM. $1.10 was possible a couple of months ago. When it comes to predicting - forget it! When the dollar was $1.04 recently everyone was certain it was about to become 1:1. Then the dollar lost almost 10% in a week before rebounding a bit.

[dabear]

Absolutly the better exchange rates will be in the country that is the official currency. Don't buy more than a nominal amount of euros in the US as there is at least a 7% buy/sell difference than buying them in EU countries. .

[MATHA531]

I have a similar question in the same topic. We are going to travel to Europe next summer for our 25th anniversary. This is a big deal for us and a huge trip. Getting the most for our travel dollar is important to us.

 

The exchange rate is favorable right now. I know it is impossible to predict where it might be next summer. Would any of you more experienced overseas travelers purchase some Euro now to play it safe?

 

The reality is NOBODY knows. Next year, it might be $1.20. Or next. year it might be at par. Just relax and worry about it next year. Que sera sera...whatever will be will be.

Edited September 4, 2015 by MATHA531

[Langoustine]

The reality is NOBODY knows. Next year, it might be $1.20. Or next. year it might be at par.

 

Yep. When I took my wife to Germany in 2001 to see where I had been stationed with the 8th ID, the Euro was worth less than a dollar. Then it gained in value against the dollar, then it lost some. Ask our Canadian and Australian friends about how this works for them vis-a-vis the US $.

Edited September 4, 2015 by Langoustine

[Zoobaby2003]

Absolutly the better exchange rates will be in the country that is the official currency. Don't buy more than a nominal amount of euros in the US as there is at least a 7% buy/sell difference than buying them in EU countries. .

 

 

Would you buy the currency at the airport once you arrive?

 

Thanks

 

~ Jen

[twin123185]

Airports are the usually the worst place to buy currency. Especially in the USA.

[Gourmet Gal]

If you need money at the airport, for a taxi for instance, it would be better to find a bank ATM.

[marazul]

Airports are the usually the worst place to buy currency. Especially in the USA.

 

That is quite accurate if by the "worst place to buy the money" you mean at one of the exchange businesses like TravelEx. These are manned stores or desks, not machines. You will get a lousy exchange rate, plus high fees, etc.

 

The airport is a very good place to obtain money at one of the bank ATMs.

 

We always keep "leftover" money from our last trip to use next time. Before we leave on a trip, we notify our banks/credit unions of all the countries and dates we will be visiting. We have two or three very low or no fee bank cards we can use. As soon as we arrive at the first airport, we go to an ATM and get the max out. Depending on plans, we might use a different bank's ATM card to get more money out.

 

If you have access to a credit union, they have the lowest fees around. Do a search of credit unions on this board. Lots of good info. One of the best is Andrews FCU.

[jackinthebox422]

As I work in Germany and the EU and live in the US, here are some things to consider and pay attention to:

1. if you do not have Euros, wait till you arrive and get out of an ATM in the airport, you can use the Travelex and it is highly convenient, the 1-3% you may loose is not a big deal in my opinion.

2. Carrying $5,000 Euros in, really depends on the Country your arrive and what they ask you to declare on entry. That amount of money can move you to secondary inspection at Customs and seriously delay your trip. That much money will make you nervous and can draw unneeded questions at Customs / Immigration, oh, and what hotel you are staying in if there are room safes.

3. If your tours want cash, look for other tours. I pre pay my trips on my CC and tip in Euros, don't want the whole did you pay, how much non sense that can happen.

4. What I do is bring over travelers checks and go to a bank and cash them in. I do pay attention to the rates but again you can't hit it perfect without fees etc, you can minimize them. Chances are your local bank will want a sum of $500 to exchange and you will go through it, if you want local cash ahead of time do it this way, otherwise get what you need.

5. Lastly , use your cruise ship for Euros as well, the percent is less but safer and cleaner and you can sell them back

[Hlitner]

Have to disagree with the previous post about Travelers Checks. They are essentially obsolete and many banks will no longer cash them except for account holders. And banks in many parts of Europe have very limited business hours which many not always work for a traveler (especially if it is one of Europe's many holiday weekends). Travelers checks do work well on most cruise lines since they will cash them at Guest Relations. Travelers also need to be aware that many restaurants and merchants will no longer accept travelers checks. We once watched a couple panic when a Rome cafe refused their TCs (one at the table finally ran a block to an ATM and got some Euros).

 

Hank