What is best method for making purchases to save on exchange fees?

[swdke]

I have a question about which method of payment you used when buying meals, and anything else. Did you use credit cards for everything, or use ATM card to withdrawal cash and pay with cash for everything? Or a combination of both? I am just trying to find the best way to buy things and save on fees. I have always thought that you get better exchange rates on credit cards, or using an ATM card to withdrawal cash. But I see that on credit cards, they seem to charge an additional fee. So, I was wondering, what's the best way to buy things, meals, etc., and get the best exchange rate, as well as save on fees. Thanks.

[SheilaNC]

Steve,

We use the ATMs at the airport where we land and have found them readily available in all ports. We use cash only for small purchases, tips, and for those excursions where they ask for cash. Otherwise we use the credit card with the smallest fees. There are a few that do not charge a fee but you need to seek them out. Some folks say that they get one of those cards just to use when traveling. Since we don't spend a lot of money when in port, we figure fees don't amount to enough to worry about (given how much we're spending for the cruise). But if we were making bigger purchases or having lots of meals and expensive excursions, we'd get one of the no-fee cards, too.

[Missabby]

Steve,

We use the ATMs at the airport where we land and have found them readily available in all ports. We use cash only for small purchases, tips, and for those excursions where they ask for cash. Otherwise we use the credit card with the smallest fees. There are a few that do not charge a fee but you need to seek them out. Some folks say that they get one of those cards just to use when traveling. Since we don't spend a lot of money when in port, we figure fees don't amount to enough to worry about (given how much we're spending for the cruise). But if we were making bigger purchases or having lots of meals and expensive excursions, we'd get one of the no-fee cards, too.

+1 on what Shelia said. We use my credit union VISA card; no bank fees and VISA charges only 1%. My wife's bank VISA, OTOH, soaks us with fees. We use in only for emergencies (like the time when I forgot my PIN!).

[starskyfan]

Capital One has a mastercard that doesn't charge a foreign exchange fee. That's the main reason we got it, but it has now become our main credit card as we also earn points towards any airline. Brenda

[Missabby]

Watch out for a hidden fee. This does not apply to buying goods and services; only to taking out cash. We all seem to know about the bank fees and the credit card fee (typically 1% in the case of VISA); BUT there is also a finance charge on ATM cash advances. As I did not read the extremely fine print too well, VISA charges a finance charge on cash taken out on ATMs from the day you take it out until the day you pay VISA back. Since I never use my credit card for cash advances, I did not think about this. My foreign cash advance in Auckland's airport cost me a $2.16 finance charge by the time I got back home and paid our VISA bill. Now, $2.16 ain't much, but I really dislike paying finance charges of any kind! So overall, it pays to take out less cash and use credit cards more directly for goods and services.

 

Shelia has good advice - "We use the ATMs at the airport where we land and have found them readily available in all ports. We use cash only for small purchases, tips, and for those excursions where they ask for cash."

[sultan_sfo]

Using Credit Cards to withdraw cash is considered a "Cash Advance" and one will incur cash advance fees, foreign exchange conversion fee, and interest charges. But using an ATM Bank Card will incur only the non-bank ATM fee (for Wells Fargo -- a flat $5 fee per transaction). The exchange rate for ATM withdrawal will be the wholesale rate which is the rate used by VISA for credit card purchases except that VISA will tack on 1% or 2% foreign exchange fee and your credit card originator will tack on another 2%.

 

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only to taking out cash. We all seem to know about the bank fees and the credit card fee (typically 1% in the case of VISA); BUT there is also a finance charge on ATM cash advances.

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[rollingstone]

Check out the thread "best credit card to use in Australia". We have NEVER paid a fee or charge of ANY kind.