How do YOU exchange $$ to Euros?

[dickinson]

I have read that a lot of people think the best way to exchange $$ to € is at an ATM in Europe. How much less is it that way? Also, if you are on a private tour where you pay at the end do you ask the tour guide to make a stop somewhere so you can find a bank atm? (I hear it is better to use a bank ATM during the banking hours).

 

For example... right now the exchange rate on a currency converter says that a Euro would cost $1.06. At Wells Fargo right now the exchange rate is $1.1142. I also saw that they charge $5 to use a foreign ATM. (We have an ATM card and not a debit card)

 

Is it really better to get my Euros at an ATM or just purchase them in the US at Wells Fargo and why?

Edited February 26, 2017 by dickinson

[klfrodo]

Atm

[dickinson]

Thanks but how much does it COST you to do it at an ATM, what is your exchange rate and does a private tour guide find an ATM for you? These are my questions.

[MrsP_29]

We went to France and England in 2015. I got our euros from our bank and pounds from Wells Fargo. WF gave me a better deal as far as the fees go. Plus it was much easier. We used our debit card while we were gone and I don't remember any huge fees. I knew that if I had to I could get more when we got to our destinations but didn't have to. I brought home about 20€ and about 20£. Admittedly we were a little more generous on our last days.

 

I am too controlling (when possible) and could not have waited until arriving.

[SuiteTraveler]

I get our Euros at American express. I bring $1000US worth of Euros per week for the 2 of us and that is plenty. Who wants to be on a plane all night and then have to change money at an airport in order to get a taxi to your hotel?

[Husky61]

I purchased our Euros at our bank before we left. I did not concern myself with the exchange rate, it was too small to worry about.:)

[whogo]

Wells Fargo sells foreign currency at a markup of about 5.5%. A withdrawal from an overseas ATM with a Wells Fargo debit card will cost you 3% plus a $5 transaction fee. At these rates $200 is the break even point, either purchase will cost you $11 or 5.5%. If buying less than $200, buy currency. If buying more than $200, use an ATM.

 

These rates are not set in stone, better Wells Fargo customers may get better rates. Call your banker to find out and try to get the rates in writing.

[CruiserBruce]

This topic is discussed almost daily on the ports boards. ATMs are the cheapest, and the way we recommend and use. The fees a US bank will charge vary on an ATM withdrawal (most ATMs in Europe don't charge a fee) from $1 to $5, but the exchange rate is the lowest available to the general population.

 

What banks and other exchanges in the US charge varies widely, from 5% markup to as much as 12-15% in fees and marked up exchange rates. This seems to be easing in the last couple of years as so many people now use ATMs, banks are trying to be more competitive.

 

Be aware when someone says XXX doesn't charge any fees. In many cases their exchange rate is poor- they are trying to make money some way. ATM use usually avoids all that trickery.

[nikkilou1]

I was told to just use the ATM before our first trip to Europe three years ago. When we arrived in Berlin - with NO Euros at all we went to use the ATM and ALL of them in the airport were out of service. Needless to say now I get most of my Euros before my trip from Wells Fargo and then supplement at ATMs as needed. The difference in the exchange rate was negligible if any at all and even if it is a bit more it is worth it for peace of mind.

[FlyerTalker]

The real answer is - look in a mirror.

 

Are you the kind of person that wants to have every last detail wrapped up before they leave the house or are you willing to deal with some things when you arrive in a destination? Note that those who want you to buy before you leave highlight the peace of mind having currency when you get to the airport. Others say that it is not that inconvenient when you arrive.

 

I'm in the second group. I have rarely been "stuck" when it comes to exchanging funds. I have a no-fee ATM account that I only use when overseas. Every European and Asian airport I've been through have ATMs outside of baggage/customs. Takes just a few minutes, even if you want to "shop" different machines.

 

Finally, there is no one answer as to how much it "costs". There are potential fees from the ATM issuer, from the ATM machine provider and the actual exchange rate. Even there, some fees are percentages and others are flat amounts.

[dickinson]

What about going on private tours for the day you have to pay in Euros at the end? Do they stop at an ATM for you?

 

Has anyone actually figured out the exchange rate they got on their ATM withdrawal to know it really is less expensive as opposed to just being convenient?

 

I'm going on a 28 day cruise and have several private tours booked. Need lots of Euros.

[Hlitner]

Lets try to put it in proper perspective with some numbers. If you have an ATM card with a bank that does not charge you usage fees (our 3 cards are fee free) then you will get the wholesale rate of exchange (you can usually find this online at sites like XE.com) less a 1% International Transaction Fee (built into the exchange rate). This will always be your best rate. If you try to exchange cash (do not even think about Travelers Checks which are not accepted in many places around the world except some cruise ships) you can expect to pay 3-10%. It varies. The best rates used to be found at banks...but more and more banks in Europe (and elsewhere) will no longer exchange dollars.

 

Many cruise lines will exchange US Dollars for Euros and the cost does vary. As a general rule the cruise lines will get about 4-8% depending on the cruise line.

 

So what does all this mean? If you are only planning on spending a few hundred dollars worth of foreign currency you should probably just opt for whatever is the most convenient and write off any excess cost as the cost of travel. But if you do a lot of international travel (we do) or will needs lots of foreign currency...the best method is to use ATMs. Since we do a lot of international travel (over 6 months in many years) we simply carry several ATM cards (each drawn on different banks/accounts) so that we have backups...and can also obtain more then the daily limit (often $500) attached to each card.

 

There are also credit cards. These charge anywhere from zero to about 5% per transaction. Our favorite is CapitalOne who does not charge any foreign exchange fees. We have carefully watched our exchange rates over the years...and our CapitalOne Master Card always gets the best rate (slightly better then any of our ATM cards).

 

We often get into discussions about currency (when traveling) and many folks will tell us that their banks and credit cards charge all kinds of fees. Our answer is very simple. Change your bank! We are amazed that folks continue to use banks (often the large commercial banks) that charge all kinds of fees to use your own money! It is not necessary to deal with these kind of folks, and they will only change when consumers get smart. Look to Credit Unions and some smaller local/regional banks for the best deals. As to credit cards, it has long bothered us that AMEX charges 2.7% foreign exhange fees on every transaction (unless you pay $450 a year for a Platinum Card).. We love AMEX...but simply avoid using it when out of the country. There are several MC and Visa providers (such as CapitalOne, Andrews FCU, etc) who have no annual fees and zero foreign exchange fees (other then the standard 1% international transaction fee imposed on any credit card). If your card is charging 5% and you do a lot of travel...think about getting a different card with no fee....and dropping the high fee/percentage card.

 

Hank

Edited February 27, 2017 by Hlitner

[CruiserBruce]

What about going on private tours for the day you have to pay in Euros at the end? Do they stop at an ATM for you?

 

Has anyone actually figured out the exchange rate they got on their ATM withdrawal to know it really is less expensive as opposed to just being convenient?

 

I'm going on a 28 day cruise and have several private tours booked. Need lots of Euros.

 

A private tour will do just about anything you want, including stopping at an ATM.

 

Not much reason to research what the rate was on ATM withdrawals. Both the receipt and your bank statement will usually tell you exactly what the exchange rate was at the moment of withdrawal. It will be right there in front of you.

 

You might want to know that some of us (like Hank, just above)have been to Europe ( and other countries) literally several dozen times (in our case for almost 200 days in the last 10 years). We are very familiar with the workings of ATMs and their rates and benefits. We post the exact same advice consistently on the many threads on the Ports boards.

 

We didn't originally use ATMs, but once we tried them the first time...no problem being the way to go.

Edited February 27, 2017 by CruiserBruce

[stealthy]

We use a Qantas travel debit card (Australian) that we load up with Euros (or multiple currency types) before we go on holidays and withdraw from any ATM. Also we can use at restaurants, shops ect and use it like a credit card. We only pay for the ATM charge but most are fee free. Easy, and you can track your spend and balance on your smart phone and even transfer money to the card while your away and top it up if the DW goes on a spending spree in the perfume shop on the ship [emoji6].

Surly a bank in the US has this type of card you can use?

[cruisemom42]

 

Has anyone actually figured out the exchange rate they got on their ATM withdrawal to know it really is less expensive as opposed to just being convenient?

 

 

Yes, I have figured it out numerous times. (Business travel/expenses). ATM is the cheapest. ATMs give you your money at the actual exchange rate, which fluctuates. The savings will be minimal if you're talking 200 euro but becomes greater when you're talking about 2000 euro.

 

Yes private tour guides will help you find an ATM if necessary.

 

You sound a little wound up about this. If it's going to make you worried or nervous, then get your money in advance and just write off the cost. But of course then you'll have to worry about how to safely transport it. ;)

[griffy116]

We took a small amount with us before we left...ATM at airport. We had a couple of days in Rome before the cruise and we used an ATM near the hotel. We notified the bank prior to our trip that we needed the daily limit increased (for ATM withdrawals). We ALWAYS had the amount in euros with us prior to the start of any tour both for the tour and the tip (in a zip lock baggie which we kept in the hotel room safe until the morning of our tour). We also kept a small amount of euros for incidental spending. We used a credit card or debit card for any purchases possible. We just didn't stress over $5, 10 or 15 exchange rate. In the grand scheme of the money we spent on the trip, it wasn't worth the aggravation.

[SadieN]

.......

 

.............I also saw that they charge $5 to use a foreign ATM. (We have an ATM card and not a debit card)

 

..........

 

 

Since WF will charge you $5 per transaction, get the largest amount of money you can. ATMs will refuse your request if they do not have enough money.

[FlyerTalker]

What about going on private tours for the day you have to pay in Euros at the end? Do they stop at an ATM for you?

What about getting them at the airport when you arrive? Or if arriving the day before, at any ATM in the city? No rule that says you can't get them in Europe before you board the ship.

Has anyone actually figured out the exchange rate they got on their ATM withdrawal to know it really is less expensive as opposed to just being convenient?

Have checked this vs my account withdrawals. They are usually within a point of the interbank rank that I see at XE. At least as good as you can get otherwise.

I'm going on a 28 day cruise and have several private tours booked. Need lots of Euros.

As mentioned above, just get them before you board. And if you need more, lots of ATMs in every major Euro city.

[dickinson]

Lets try to put it in proper perspective with some numbers. If you have an ATM card with a bank that does not charge you usage fees (our 3 cards are fee free) then you will get the wholesale rate of exchange (you can usually find this online at sites like XE.com) less a 1% International Transaction Fee (built into the exchange rate). This will always be your best rate. If you try to exchange cash (do not even think about Travelers Checks which are not accepted in many places around the world except some cruise ships) you can expect to pay 3-10%. It varies. The best rates used to be found at banks...but more and more banks in Europe (and elsewhere) will no longer exchange dollars.

 

Many cruise lines will exchange US Dollars for Euros and the cost does vary. As a general rule the cruise lines will get about 4-8% depending on the cruise line.

 

So what does all this mean? If you are only planning on spending a few hundred dollars worth of foreign currency you should probably just opt for whatever is the most convenient and write off any excess cost as the cost of travel. But if you do a lot of international travel (we do) or will needs lots of foreign currency...the best method is to use ATMs. Since we do a lot of international travel (over 6 months in many years) we simply carry several ATM cards (each drawn on different banks/accounts) so that we have backups...and can also obtain more then the daily limit (often $500) attached to each card.

 

There are also credit cards. These charge anywhere from zero to about 5% per transaction. Our favorite is CapitalOne who does not charge any foreign exchange fees. We have carefully watched our exchange rates over the years...and our CapitalOne Master Card always gets the best rate (slightly better then any of our ATM cards).

 

We often get into discussions about currency (when traveling) and many folks will tell us that their banks and credit cards charge all kinds of fees. Our answer is very simple. Change your bank! We are amazed that folks continue to use banks (often the large commercial banks) that charge all kinds of fees to use your own money! It is not necessary to deal with these kind of folks, and they will only change when consumers get smart. Look to Credit Unions and some smaller local/regional banks for the best deals. As to credit cards, it has long bothered us that AMEX charges 2.7% foreign exhange fees on every transaction (unless you pay $450 a year for a Platinum Card).. We love AMEX...but simply avoid using it when out of the country. There are several MC and Visa providers (such as CapitalOne, Andrews FCU, etc) who have no annual fees and zero foreign exchange fees (other then the standard 1% international transaction fee imposed on any credit card). If your card is charging 5% and you do a lot of travel...think about getting a different card with no fee....and dropping the high fee/percentage card.

 

Hank

 

Thank you so much for this most informative post!!! This was exactly what I was looking for. I was looking for details not just "ATM is best place". I was looking for "why". I assume when you mention credit cards you mean to use when you purchase an item. If used at a bank it is a cash withdrawal and would involve high interest on a daily basis til it is paid back. We do have one credit card that does not have foreign transaction fees.

 

You sound a little wound up about this. If it's going to make you worried or nervous, then get your money in advance and just write off the cost. But of course then you'll have to worry about how to safely transport it. ;)

 

 

I don't understand why when someone asks questions about a subject they are not educated about people (you are not the only one) say they are "nervous", "wound up", etc. I am not nervous nor wound up. I am trying to learn about a subject that I know nothing about and then make the right decision for me.

 

For those who get their foreign money at the a/p atm... I have read on this site that it is not the best to do because you don't get as good an exchange rate or maybe the machine has been tampered with and there is a scanner or something reading your card that should not be there. Don't know if this is true but it is what I have read on here before. I have read it is best to get it at a bank ATM preferable outside a bank and during banking hours in case something goes wrong.

 

This is my second trip overseas. The first I booked the cruise 6 weeks in advance so all private tours except for one were all booked. We mostly did ship excursions so therefore it was paid with $$ on our ship accounts. The one private tour we were able to pay in $$ although the other two couples did have Euros. No one asked to stop at an ATM.

 

This trip (like our last) is a TA followed by the next cruise. 28 days. Booked long in advance and am on several private tours. No getting to Europe a few days in advance and finding an ATM.

 

I appreciate the feedback I have received. I am sure it will also help others who are planning their European vacations.

[flamomo]

I am an "all my ducks in a row" type of traveler and always carefully plan for my needs for foreign currency, for known expenses such as tours, plus some extra currency for unplanned expenses. I choose to order currency from my bank, pay the one time service fee, with the understanding that the exchange rate might not be quite as good as if I used ATMs in Europe to get currency. I am willing to accept that in the interest of my comfort level.

 

I also always notify the credit card companies of my travel plans, and also the bank with whom I have my ATM cards.

I have a separate ATM card for a checking account I set up to use when I am traveling outside the USA, in case I need to obtain more currency while out of the country, as I prefer not to use my primary account then. Fortunately, so far, I have never needed to. But should I somehow lose that ATM card, or if it was stolen, no one could access my primary account.

[calliopecruiser]

I was told to just use the ATM before our first trip to Europe three years ago. When we arrived in Berlin - with NO Euros at all we went to use the ATM and ALL of them in the airport were out of service. Needless to say now I get most of my Euros before my trip from Wells Fargo and then supplement at ATMs as needed. The difference in the exchange rate was negligible if any at all and even if it is a bit more it is worth it for peace of mind.

 

I always get a little bit of local currency before I go, just in case the ATMs nearby are all lined up or out of service. Just enough for cab fare into town, perhaps a little more. Then I get any more cash I need from ATMs when I'm there.......it saves me from carrying a lot of cash through airports (always risky areas for pickpockets), and not all ATMs charge a $5 service fee. I found that it depended on the bank and the location (on both my trips to Spain and Portugal); if they wanted to charge me a fee, I canceled the transaction and tried a nearby machine.

 

 

As for getting money while on a tour, just ask your driver to take you to an ATM. They'll happily do it (I did that taking a cab from Auckland port to my rental car as I had no NZ$).

[NMLady]

I have read that a lot of people think the best way to exchange $$ to € is at an ATM in Europe. How much less is it that way? Also, if you are on a private tour where you pay at the end do you ask the tour guide to make a stop somewhere so you can find a bank atm? (I hear it is better to use a bank ATM during the banking hours).

 

For example... right now the exchange rate on a currency converter says that a Euro would cost $1.06. At Wells Fargo right now the exchange rate is $1.1142. I also saw that they charge $5 to use a foreign ATM. (We have an ATM card and not a debit card)

 

Is it really better to get my Euros at an ATM or just purchase them in the US at Wells Fargo and why?

 

 

We have a Wells Fargo checking account so before a cruise we order foreign currency so we'll have it on hand, especially if we have an early tour in the first port. To us, the higher conversion rate and the fee is worth the convenience.

 

If we need more we find an ATM and get more, using our Capitol One card which has no foreign fees.

[Bizmark'sMom]

I buy enough foreign currency to get me through the first day -- cab fare, meal, incidentals. If I haven't been able to pre-pay for my apartment (assuming I'm in the city for a few days pre-cruise), I buy enough currency to pay for that.

 

And then I use ATMs. My bank refunds any ATM fees, so I use whichever one is most convenient. I do notify my bank to let them know I'm traveling, and to increase the daily withdrawal amount. My credit card also has no foreign transaction fees. I have been on tours and had the guide point out the ATM. You just have to ask.

[dickinson]

We have a Wells Fargo checking account so before a cruise we order foreign currency so we'll have it on hand, especially if we have an early tour in the first port. To us, the higher conversion rate and the fee is worth the convenience.

 

If we need more we find an ATM and get more, using our Capitol One card which has no foreign fees.

 

 

If you use your Capitol One card at an ATM aren't you taking out a cash advance? My understanding is that has high interest rates. Maybe I'm wrong.

[cruisemom42]

If you use your Capitol One card at an ATM aren't you taking out a cash advance? My understanding is that has high interest rates. Maybe I'm wrong.

 

 

Perhaps she meant a Capital One debit card. I have one and that is what I use for foreign travel (separate account).

 

Using a credit card to get cash from an ATM is almost never a good idea.... As you say, the interest rates are high and begin accruing immediately.