Purchasing Euros

[NCruiser2012]

I agree with the previous poster. Be careful with the limits you can get at an ATM. We had a limit in Rome of 250 euro withdrawal per day. We needed a lot more because we were paying for some of our tours with cash.

 

One thing I did was transfer some money into my teenagers' accounts before we left home. I did this just in case my ATM card got stolen or would not work. This worked out great. I was able to get the cash I needed. However, my bank charged a transaction fee for every ATM withdrawal.

[iancal]

Our experience in Italy is that there can be a significant difference between banks in the amount that they will allow you to withdraw from an ATM-as low as 300E and as high as 500 or 600E.

 

We often pay cash for accommodation in Italy in order to get a discount so it is not unusual for us to be looking for a 'generous' ATM. As I recall, the postal ones were good.

[cruisemom42]

Why is there an advantage in getting a card without the MasterCard or VISA logo on it?

 

Will any bank provide one of those?

 

Thanks.

 

GeezerCouple

 

A debit card with a MasterCard or VISA logo can be used just like a credit card to purchase something at, for example, a store or restaurant. A debit card without the logo cannot be used that way, it can only be used (together with a pin number) to withdraw cash.

 

So....if someone stills your debit card but doesn't have the pin -- they are out of luck. However, if they steal your debit card with MC/VISA logo, it's a lot easier for them to use the card. They either buy stuff with it, or they have confederates working in a store or restaurant who will run the card through and get cash.

[Cretia]

It's worth noting that even with these fees, the rate is still better than you would get from trying to purchase euros from a bank in the US and much better than you'd find at a money changer at an airport, hotel, or onboard a cruise ship.

 

Not to let the math nerd in me get out of control, but this is not necessarily true. If you are planning in advance, like I am, you can watch the exchange rate to possibly get better deals.

 

For example:

 

Today's exchange rate is $1.38. €500 would translate to (with an ATM fee of 3% + $5 service charge as in other examples) $715.70 today (there is an additional opportunity cost of the time spent finding at ATM that I am currently not calculating). If I had purchased €500 on July 1st, 2013, when the exchange rate was down to $1.30, even with a high estimated fee of 10%, it would still only be $715.

 

In the planning in advance situation, this would also be protection against the exchange rate going up (in the last five years, the highest the exchange rate seems to have been is $1.50 and the lowest $1.20).

 

The last couple of years saw a dip in March and July before reaching a peak in January-ish. However, this year we didn't see a drop in the exchange rate for March (Crimea?). I'm currently waiting to see what July will bring.

 

If anyone is still reading without their eyes being glazed over, I found a spifty website that puts exchange rates in neat graphic form here: http://www.oanda.com/currency/historical-rates/

[CruiserBruce]

Conversely, the rate can drop after you buy them at home, and thus you have lost money on your "buy in advance " plan. And there is no predicting when the exchange rate will go up or down. Previous years swings have no effect on this year's exchange rate moves. There is not a "it goes up in March and falls in September" type rule.

[Cretia]

I had a solid reply typed out but then the internet ate it.

 

So TL;DR

 

Exchange rates absolutely can be predicted. It's not for the faint of heart or for the easily bored, but people make millions daily on the FOREX market. The flucuations of the exchange rate are directly related to decisions made in the private sector, decisions made by governments, and decisions made by central banks. If you are paying attention, it's not hard to guess at the directionality of a change.

[CruiserBruce]

Yep, that is what the average traveler here on Cruise Critic is going to do....

 

Been to Europe MANY times (80+ days in the last 5 years alone). ATM is still by far the most cost effective way to go for Euros, for anybody except those who wish to invest a lot of time studying the FOREX world.

Edited April 29, 2014 by CruiserBruce

[cruisemom42]

Not to let the math nerd in me get out of control, but this is not necessarily true. If you are planning in advance, like I am, you can watch the exchange rate to possibly get better deals.

 

 

Uh-oh, now you've done it. Don't you know "math" is a four-letter word? ;)

[bisabella]

After reading through all the posts on this subject, I am still very confused over how the rates are charged. I called my bank today (Bank of America) and they said there is a 3% fee in getting euros at an ATM, but it was not clear to me if they also charge the 3% if I order directly through the bank - they told me I would have to go to my branch or order online. I went online and saw that their exchange rate was 1.43 (while the rate today is 1.36). If I went to the ATM today at the airport (FCO), would I get the 1.36 rate (or would it be higher that the published rate) and then 3% fee on top of that and then a transaction fee? I guess I am asking if anyone can explain the difference in cost between getting 600 euros at Bank of America before we leave or if I wait until we arrive at the airport.

 

Also, another question is: Are the instructions at the ATM at the airport also in English besides Italian? I was in Italy 10 years ago and I remember having a bit of trouble trying to understand the ATM.

Edited June 3, 2014 by bisabella

[Hlitner]

Regarding the various fees, it is entirely up to your own bank with the exception of a 1% fee (hidden in the exchange rate) charged by Visa International to process an electronic ATM transaction. When banks like Chase are charging 3% on ever ATM transaction they are doing it because THEY CAN and further because their customers allow it! Many years ago we moved all of our money out of major commercial banks and now use mainly Credit Unions who do not charge these silly fees. We pay no extra charges on our European ATM withdrawals, have no minimum balance requirements, few to none nuisance fees, etc. Consumers should shop for banks like they shop for shoes or cars, but most are just willing to fall into line like little sheeps (is that a word),

 

Hank

[GeezerCouple]

After reading through all the posts on this subject, I am still very confused over how the rates are charged. I called my bank today (Bank of America) and they said there is a 3% fee in getting euros at an ATM, but it was not clear to me if they also charge the 3% if I order directly through the bank - they told me I would have to go to my branch or order online. I went online and saw that their exchange rate was 1.43 (while the rate today is 1.36). If I went to the ATM today at the airport (FCO), would I get the 1.36 rate (or would it be higher that the published rate) and then 3% fee on top of that and then a transaction fee? I guess I am asking if anyone can explain the difference in cost between getting 600 euros at Bank of America before we leave or if I wait until we arrive at the airport.

 

Also, another question is: Are the instructions at the ATM at the airport also in English besides Italian? I was in Italy 10 years ago and I remember having a bit of trouble trying to understand the ATM.

 

We used BoA in advance, and yes, they charged a higher exchange fee, similar to what you are seeing, but NOT another 3%, if we picked them up at the larger branch a few miles away. This larger branch also has Euros (and other currencies) on hand all the time.

If we picked the Euros up at the nearest little mall branch, there would have been a slight additional fee, and it would have taken a few days for them to order the Euros.

 

Using the ATM in Italy (Florence), it was tricky finding the right ATM (in the BoA network to avoid the extra fees) AND... as you are wondering, it was *not* obvious how to use the machine.

We had some Italian friends with us, and that was a good thing.

 

Maybe you can find a photo of the machine and someone here can help you with "what to press, and in what order"?

 

We also had some Amex Travelers Checks in Euros, from a long-ago trip.

They are almost useless these days. Only our hotel would take them in payment, and we had charged that in advance on an Amex that had no foreign transaction fees.

So we came home with those same Travelers Checks, and next time, we'll plan to use them to pay the hotel while we are there.

(We aren't going to wait too long to go back!)

 

GeezerCouple

[cruisemom42]

After reading through all the posts on this subject, I am still very confused over how the rates are charged. I called my bank today (Bank of America) and they said there is a 3% fee in getting euros at an ATM, but it was not clear to me if they also charge the 3% if I order directly through the bank - they told me I would have to go to my branch or order online. I went online and saw that their exchange rate was 1.43 (while the rate today is 1.36). If I went to the ATM today at the airport (FCO), would I get the 1.36 rate (or would it be higher that the published rate) and then 3% fee on top of that and then a transaction fee? I guess I am asking if anyone can explain the difference in cost between getting 600 euros at Bank of America before we leave or if I wait until we arrive at the airport.

 

Also, another question is: Are the instructions at the ATM at the airport also in English besides Italian? I was in Italy 10 years ago and I remember having a bit of trouble trying to understand the ATM.

 

 

To simplify matters (keeping in mind that to simplify is to generalize):

 

For ATM transactions:

• The exchange rate is at or marginally above the current official daily exchange rate.
  
• You may be charged a PER TRANSACTION fee (usually $3-$5) by your own bank; may be waived if you use an in-network ATM
  
• You may be charged a 1-3% foreign transaction fee by YOUR bank. Most larger banks charge the full 3%, some credit unions & others charge 1%, a very few banks offer accounts with NO fee. Probably not worth opening such an account for the occasional overseas trip.
  

Getting euros from a US bank in advance of travel:

• The exchange rate will be marked up anywhere from a little to a significant amount compared with the current official daily exchange rate.
  
• Some banks charge a flat fee, but may waive that fee if you are ordering above a certain amount.
  
• Some banks charge to mail the euros to you (e.g., Wells Fargo) at home.
  
• You do NOT pay the foreign transaction fee.
  

Up until I got my Cap One account a couple of years ago, I used both of the above methods occasionally and I did the calculations many times -- the ATM always seemed to come out cheapest, even with the fees charged. The higher percentage tacked onto the exchange rate made the euros obtained via the bank less favorable.

 

Of course, this assumes that you try to take out a large withdrawal each time -- don't take out 20 euro here and 80 euro there. Otherwise that $5 fee each time adds up.

 

Now that I have a Cap One banking account with no ATM fee and no % charged, it's a no-brainer.

 

And the last word: Unless you are going to be spending thousands on thousands of dollars/euros, the difference between the methods used aren't going to break the bank (pun intended). ;)

[Pet Nit Noy]

Using the ATM in Italy (Florence), it was tricky finding the right ATM (in the BoA network to avoid the extra fees) AND... as you are wondering, it was *not* obvious how to use the machine.

We had some Italian friends with us, and that was a good thing.

 

Maybe you can find a photo of the machine and someone here can help you with "what to press, and in what order"?

 

I recommend using a local ATM as often as possible prior to your trip to become familiar with the sequence of buttons to push. That will give you the confidence and the experience to tackle an unfamiliar machine. I honestly don't know find the ATM in foreign countries to be that complicated to use, but here are some thoughts to help you.

 

Except for the time when you're asked to key in your PIN number, most of the entering of data will take place on the screen. You'll have to push actual buttons arranged vertically alongside the screen or touch a pressure sensitive screen. The PIN number gets keyed into a number pad that is arranged horizontally and can be shielded easily by cupping your other hand. After keying in your PIN number, you'll need to hit the button typically color coded in green. (The is the equivalent of the "enter" or "accept" button) You may have to hit this same enter button at other points in the transaction (e.g. after selecting the amount of cash you'd like to withdraw.)

 

The best thing about using an ATM machine is that it now reads a county of origin code embedded in your cash card number. The most sophisticated ATM machines either automatically display all the instructions in the language spoken by the country code of the card (in my case English) or the machine knows it is dealing with a foreign card and offers you a choice of languages. This is an example of when you'll have to use the buttons on the screen.

 

You can make cash withdrawals somewhat more easily if you always choose one of the pre-set money amounts displayed on the screen. However, customizing your withdrawal amount is easy enough. Just punch in the numbers, typically using the horizontal number grid that you used for your PIN. Watch the numbers carefully as they appears on the screen so you aren't off by a decimal point for the total cash you want.

 

If you run into difficulty, try the following:

o assume you've asked for an amount of cash that doesn't work with the size bills stored in the ATM. For example, many ATMs only load bills in denominations of 20. You'll have trouble taking 50 out of that machine, but an easy time withdrawing 40 or 60.

o assume the machine is running low on cash and is rationing how much money any one individual can withdraw. For example, even though 200 may be an option for one of the preset amounts of money, on a Sunday night, the machine may be allowing withdrawals of no more than 120.

o If you need more money than any one machine will give you, find another ATM associated with a completely different bank -- not a different branch of the same bank -- and simply repeat the process.

 

Finally, if you need to locate an ATM don't use that word when speaking to the locals. In Italy, the ATM is more typically called a bancomat.

Edited June 3, 2014 by Pet Nit Noy

[Got2Cruise]

 

And the last word: Unless you are going to be spending thousands on thousands of dollars/euros, the difference between the methods used aren't going to break the bank (pun intended). ;)

 

 

Exactly. And I wish people would realize that sometimes getting yet another credit card can mess with your FICO score. The few bucks you can save on fees are minimal compared to a higher interest rate you need to pay when leasing or taking a car loan.

[agabbymama]

With search working sometimes and not working sometimes, I have no idea where the post is, but someone posted about having a travel account (separate from their regular bank account) with the debit (no Visa/MC logo).

 

This sounds like a good idea to me, that way all your money isn't available if anyone should get your card.

 

My debit card tied to my savings and checking account stays home. I had an incident at my own branch, when the machine kept my card. It happened to be on a Friday, so I was without my card until Monday when the Credit Union was open so I could retrieve the card. If I were traveling in a foreign country, and something like that happened, your card is lost for the remainder of the trip.

 

We all travel differently. Everyone has to decide what is best for them.

[bunnyrab]

This will be our first time to Europe. After reading about all the pickpockets in Italy & Spain it makes me nervous to use an ATM in public. how do you hide the money away after without the wrong person watching? The exchange at our airport is charging 18% over the closing rate. $1000.00 Cdn. = 608E This is going to be an expensive trip.

Closed at l.47 today.

Edited June 11, 2014 by bunnyrab

[cruisemom42]

This will be our first time to Europe. After reading about all the pickpockets in Italy & Spain it makes me nervous to use an ATM in public. how do you hide the money away after without the wrong person watching? The exchange at our airport is charging 18% over the closing rate. $1000.00 Cdn. = 608E This is going to be an expensive trip.

Closed at l.47 today.

 

Some ATMs are set into a little recessed area or entranceway of the bank. These are good to use. If you are with someone, that person can serve as a shield so others can't see where you are stowing the money.

 

On the other hand, if you are putting the money in a money belt or pouch under your clothing, it's unlikely you'll run into trouble. For the most part pickpocketers aren't muggers. They want to take advantage of folks who are careless and inattentive.

 

I've traveled on my own as a woman in Europe for years and have used many ATMs during that time without ever having a problem or feeling that I was watched or followed.

[corkpopr]

We always use atm's in Portugal, Spain, France, & Italy. We have five digit pins and have never had a problem. Also, you can walk into a bank and exchange u.s. dollars for euro's for a flat five euro fee. You get actual rates & no markup like from a u.s. bank. Do not exchange at your hotel desk that can cost 20 % .

[CruiserBruce]

Some ATMs are set into a little recessed area or entranceway of the bank. These are good to use. If you are with someone, that person can serve as a shield so others can't see where you are stowing the money.

 

On the other hand, if you are putting the money in a money belt or pouch under your clothing, it's unlikely you'll run into trouble. For the most part pickpocketers aren't muggers. They want to take advantage of folks who are careless and inattentive.

 

I've traveled on my own as a woman in Europe for years and have used many ATMs during that time without ever having a problem or feeling that I was watched or followed.

 

Agree totally. Unless you are getting money from a very public ATM like in a bus or train station, it is safe and easy to quickly tuck your money away. We have done it twice on this current 15 day land tour of Italy.

[lisiamc]

We always use atm's in Portugal, Spain, France, & Italy. We have five digit pins and have never had a problem. Also, you can walk into a bank and exchange u.s. dollars for euro's for a flat five euro fee. You get actual rates & no markup like from a u.s. bank. Do not exchange at your hotel desk that can cost 20 % .

 

These days, they will want to see your passport for money exchange, so this is a good reason to take your passport ashore for that day.

[mafiadon]

I have gotten my euros from Wells Fargo bank and had them delivered to my home the next day. Here is the website, it answers all your questions

 

https://www.foreignexchangeservices.com/index.html?partnerid=FES&serviceType=help

[rocklinmom]

We leave for Europe next week and also ordered Euros from our bank (Bank of America). It was a very reasonable fee and only took two days to get them. We received 20, 10, and 5 Euro bills (for a total of 500 Euros) and it cost us $727 with the exchange rate and seven dollar shipping fee. I want to have Euros with me when we arrive in Venice to use for the water taxi, snacks, bathrooms, etc.

[Got2Cruise]

I order from Wells Fargo all the time. We would rather have the Euros in hand instead of worrying about ATM. I also find it easy to budget my money. If there are any Euros left over I use them for next trip or even give as gifts to family members traveling to Europe in the near future.

[rebeccalouiseagain]

I just get them in the international terminal in the airport stateside. I don't want arrive tired in a foreign country with no money in hand. I usually buy about 100 Euros and these are my emergency funds. I usually charge whatever I can and if I need more cash, I just go to an ATM.

[bunnyrab]

Thanks All. Arriving Sunday Oct.12/14 Barcelona. Hispanic Days. (holiday Monday) Banks won't be open till Tuesday I would assume. Option would be Barcelona airport. Anyone purchased E there? Are E about the same size as U.S. bills? Do have money belts. Thanks.

 

Wells Fargo won't work for Canadians.

Edited June 12, 2014 by bunnyrab