Credit/Debit card usage in Europe

[kazu]

Lizxie68... Next time you do an ATM withdrawal in foreign currency go back and compare the BMO's exchange rate with the daily spot rate. If you are getting the spot rate that is good.

 

At least four Canadian banks that I know of, mine included do not mention their increased rate. They simply exchange at 2.5-3 percent higher than the spot rate. They do the same with Visa purchases. A number of web sites show the hourly rate as well as the average daily rate. The only charge I see on my bank statement would be the $5 ATM fee. The other $25 or so would be 'hidden' in the inflated exchange rate.

 

 

are you talking about the Bank of Canada's spot rate? It's unrealistic to expect to get that unless you have $$$$$$$$ (like millions I think).

 

The banks are taking the risk ordering the currency in while prices fluctuate.

 

There can be cheaper prices out their for foreign currencies in some big centres but the banks pricing is not the "rip off" that is being insinuated.

 

You pay a carrying charge for any inventory. And, the rates at ABM's in Europe have a different charge than if you bought cash at the bank that day.

 

Anyone expecting the spot rate is unrealistic unless they are a millionaire. sorry.

[Hlitner]

iancal, Hope you are enjoying Greece (a favorite country of ours). Regarding ATM fees in the USA it varies greatly from bank to bank. 2 of our 3 Debit/ATM cards have zero withdrawal fees and the third charges about $5 for a withdrawal in a foreign country. And there is also the nearly universal 1% fee (built into the exchange rate) imposed by Visa International who handles the actual transactions for a majority of North American banks.

 

Hank

[Blue Mudshark]

CREDIT CARD ADVANCE (CASH FROM CREDIT CARD) IS YOUR LAST RESORT!

That cash starts interest rate on EVERY ITEM on the credit card NOT JUST THE ADVANCE and there is NO Grace period on any purchase.

 

This is definitely not true with my credit card. This may be the case for your account with your bank, but it is definitely not universally true in all cases.

 

I've seen a bunch of inaccurate information on this thread. I urge everyone to get the rules for their accounts and cards from the issuing banks, and not from this forum.

[Bowie MeMe]

Blue Mudshark. I believe you that your credit card will give you a grace period on your cash advance but I think that is an exception! I just called the customer service number on my credit cards and asked if a cash advance cancelled the grace period for anything on that credit card. The answer for Capital One Chase and Bank of America were all yes. This means that you would have the whole credit card purchases start to pay interest on a daily basis and any new charges would also have interest from the time you made the charge. NO GRACE Period. This also becomes true if you do not pay in full by the due date. This interest rate varies according to your card plan but on my cards ranges from 15 to18% with daily accural of interest.

 

I agree that the only authority is your own account/bank and the paperwork that came with your credit card (you know that paper with the tiny print). I check my bank each and every foreign trip because banks can change things and you don't notice. I ask that a travel notice be placed on the card/ I ask if there are fees for use of out of system ATM/ I ask if foreign exchange rate or fees and I ask the interest rate for cash advance . I assume that there is no grace period on cash advance because I have never had a card that did allow cash advance with a grace period. I believe my advice on cash advance to be prudent-- and as always your experience may differ!

[iancal]

kazu..we have actually compared foreign visa purchases processed on the same day for bank visa and for those on our Chase Bank Marriott card. Exchange rate on the Chase card is 2.5 percent lower on average.

 

We did the exact same on two foreign bank withdrawals. The first on our bank card. The second as a cash advance on our Marriot card...preloaded with a credit balance In order to avoid any daily interest charge. the exchange rate charged by our bank was 2.5-3 percent higher than the rate charged by Chase Bank Visa. Both processed on the same day. A friend gave us the heads up on this. We were unsure so we tested it on our accounts. Two points to note. You need a credit balance on the Visa card to avoid cash advance interest charges and there is a 1 percent fee, minimum $5. ( but of course there is no ATM fee per sad on this transaction).

 

Not unusual. When we had cheque payments coming to us from the US it was always much more advantageous to have the funds converted stateside and then remitted to us in CAD than it was to deposit a USD cheque in our Canadian bank. Usually a two point delta.

 

We use the XE.com site to get the hourly or daily rates and then compare to market. I should not have used the term spot rate as this is indeed incorrect. But whatever you call it We save 2.5 percent on ATM withdrawals by using the method above vs our regular bank card. Adds up to a fair amount each year for us.

Edited September 21, 2015 by iancal

[kazu]

kazu..we have actually compared foreign visa purchases processed on the same day for bank visa and for those on our Chase Bank Marriott card. Exchange rate on the Chase card is 2.5 percent lower on average.

 

We did the exact same on two foreign bank withdrawals. The first on our bank card. The second as a cash advance on our Marriot card...preloaded with a credit balance In order to avoid any daily interest charge. the exchange rate charged by our bank was 2.5-3 percent higher than the rate charged by Chase Bank Visa. Both processed on the same day. A friend gave us the heads up on this. We were unsure so we tested it on our accounts. Two points to note. You need a credit balance on the Visa card to avoid cash advance interest charges and there is a 1 percent fee, minimum $5. ( but of course there is no ATM fee per sad on this transaction).

 

Not unusual. When we had cheque payments coming to us from the US it was always much more advantageous to have the funds converted stateside and then remitted to us in CAD than it was to deposit a USD cheque in our Canadian bank. Usually a two point delta.

 

We use the XE.com site to get the hourly or daily rates and then compare to market. I should not have used the term spot rate as this is indeed incorrect. But whatever you call it We save 2.5 percent on ATM withdrawals by using the method above vs our regular bank card. Adds up to a fair amount each year for us.

 

good for you! very inventive and very clever. My hats off to you.

 

Well done ;)

[MaisonRose]

Where I live (Luberon Valley, Provence) I have noticed that each year during high season, basically July and August, the banks lower the amount that can be withdrawn per transaction. I never tried to make two in one day (but will now that I hear that!)

 

During other times I can withdraw the Euro equivalent of $1000, but come summer it is usually $250 or $300. Varies by bank, so if I want more I just cancel the transaction and try elsewhere.

 

The Post Office ATMs give the best exchange rate, BTW.

The limit is so they don't run out of money (which can happen if it is market day in the town).

[Bowie MeMe]

Thanks for this warning. We will spend 10 days doing a self-drive tour of the Loire Valley of France before heading to Rotterdam for a cruise to Boston by way of Iceland and Greenland. Bet we will need money :p. Any comments on where to get our money? When are banks open? When are post offices open? Any ATM machines that we should avoid? Thanks for your help. Oh and one other question -- The Tour de France starts 2 days after we visit St. Michaels from St. Michael. Any thing we should keep in mind about this situation. We have a hotel in Lille which was the first availability for those last days of June.

Edited September 22, 2015 by Bowie MeMe

[Lizzie68]

Lizxie68... Next time you do an ATM withdrawal in foreign currency go back and compare the BMO's exchange rate with the daily spot rate. If you are getting the spot rate that is good.

 

At least four Canadian banks that I know of, mine included do not mention their increased rate. They simply exchange at 2.5-3 percent higher than the spot rate. They do the same with Visa purchases. A number of web sites show the hourly rate as well as the average daily rate. The only charge I see on my bank statement would be the $5 ATM fee. The other $25 or so would be 'hidden' in the inflated exchange rate.

 

I will take note, iancal. I am not going to be in the UK until next May, but you could be right and there could some additional charge hidden in there. Looking back, it doesn't seem like it but I will be sure to track it next time.

[iancal]

Hlitner...we are very much enjoying Greece. Weather is good, not too many fellow tourists, prices are down, and the food is wonderful. And the red wine is better than I remember it. The majority of tourists seem to be either French, German, or Scandanavian with the French outnumbering both combined.

 

If DW is reluctant to travel (I have itchy feet) I only have to mention Greece, Turkey, or Italy and her bags can be packed ion 20 minutes.

 

We searched for a cruise to add to this trip but there was nothing that caught our collective eyes that was both well priced, interesting, or turned our crank. We may be cruised out on this part of the world. Black Sea is on my list but the cruises have been watered down with extraneous ports that have little or no interest to us.

Edited September 22, 2015 by iancal