Money exhange???

[angls2u]

Okay Mediterranean cruisers! When and where is the best place to exchange American $$$ into Euros? :confused:

 

I want to exchange before we leave for the cruise, but I have read that the airport ATM is the best place. What are the fees in doing it that way?

 

Any suggestions???

[hkto]

ATM is fine but it'll dispense a limited amount of cash depending on customer and bank limits. 200-300 euro should work. Also most places takes CC so I don't think there is a need for large amounts of cash. Is ATM the best place? Again it depends on fees of customer's bank.

[CruiserBruce]

You have read ATM's are they best??? You have doubts? You have probably read everything we will say here.

 

Yes, ATM is the best. The rate will be bank to bank rate, which the lowest/best exchange rate. ATMs in Europe don't usually change a fee, so the only fee will be what your bank charges- anywhere from 0% to around 5% tops. You can't exchange money for better than that in the US, although some will swear a certain autoclub doesn't charge any fees. No, they don't, but their exchange rate is horrible.

 

The common advice, for security reasons, to use an ATM (not a Change location) behind security at the airport, or inside a physical bank location.

Edited March 9, 2016 by CruiserBruce

[hkto]

Yes I have doubts. ATM is not the best choice with my bank (TD). They charge $5 per withdrawal plus I am not convinced that rate is that good. Last year I bought hotel online and charged to checking account. Out of curiosity I checked historic rate for that day; they charged me 3.5% over interbank rate which is equivalent to full fee CC.

 

So all depends on amount. Local money exchange business here charges 2% flat. In my case for 100 euro ATM withdrawal will be more expensive, for larger amounts - may be cheaper. For F/X free CC its usually interbank rate + 1%. Every case is different

Edited March 9, 2016 by hkto

[-Lew-]

For your European cash requirements you'll need a debit card that does not charge foreign transaction fees and will reimburse you for for any fees that may be imposed by the owner of an ATM you might use. We carry two debit cards in the event one is swallowed by an ATM or is not accepted. We used a Schwab debit card when in Europe last fall and it's our go to card now. We also have a Capital One debit card, but I'm not sure they're offering no fee plus reimbursement for new card holders.

 

For credit card purchases, you need the same benefits...plus it's best to use a chip and PIN card (not chip and signature), in the event a PIN is required. We carry Chase Sapphire and Barclay Arrival+ credit cards, but there are more becoming available everyday.

 

[cruisemom42]

Yes I have doubts. ATM is not the best choice with my bank (TD). They charge $5 per withdrawal plus I am not convinced that rate is that good. Last year I bought hotel online and charged to checking account. Out of curiosity I checked historic rate for that day; they charged me 3.5% over interbank rate which is equivalent to full fee CC.

 

So all depends on amount. Local money exchange business here charges 2% flat. In my case for 100 euro ATM withdrawal will be more expensive, for larger amounts - may be cheaper. For F/X free CC its usually interbank rate + 1%. Every case is different

 

Canadians are lucky to have access to money exchanges that do not charge exorbitant interest. Unfortunately, there is no equivalent in the US. For us, ATMs are almost always the best bet for getting foreign currency abroad, especially if one has set up an account with one of the banks that does not charge any foreign transaction fee.

[cruisinlawn]

We share similar thoughts in regards to exchanging before leaving the states. First off we're paying via credit card as many tours as we can in advance, this is with a card that has no foreign transaction fees. Currently it is costing us apprx .11 cents on the dollar if I recall correctly. Additionally we plan to exchange and travel with euros prior to leaving the states. We know some of our tours and incidental expenses will be cash euro only. We'll get these from our bank, Bank of America. I've also read and seen that Wells Fargo offers this.

 

Additionally, we'll use the Visa/Mastercard with no foreign fees while on location (when it is accepted).

 

It may not be the cheapest or best rate however it works for us and we've concluded the additional monies spent above the 'best rate' will just have to be a portion of our holiday expense. Enjoy :)

[CruiserBruce]

Yes I have doubts. ATM is not the best choice with my bank (TD). They charge $5 per withdrawal plus I am not convinced that rate is that good. Last year I bought hotel online and charged to checking account. Out of curiosity I checked historic rate for that day; they charged me 3.5% over interbank rate which is equivalent to full fee CC.

 

So all depends on amount. Local money exchange business here charges 2% flat. In my case for 100 euro ATM withdrawal will be more expensive, for larger amounts - may be cheaper. For F/X free CC its usually interbank rate + 1%. Every case is different

 

The OP is in the US, not in Canada.

[CruiserBruce]

We share similar thoughts in regards to exchanging before leaving the states. First off we're paying via credit card as many tours as we can in advance, this is with a card that has no foreign transaction fees. Currently it is costing us apprx .11 cents on the dollar if I recall correctly. Additionally we plan to exchange and travel with euros prior to leaving the states. We know some of our tours and incidental expenses will be cash euro only. We'll get these from our bank, Bank of America. I've also read and seen that Wells Fargo offers this.

 

Additionally, we'll use the Visa/Mastercard with no foreign fees while on location (when it is accepted).

 

It may not be the cheapest or best rate however it works for us and we've concluded the additional monies spent above the 'best rate' will just have to be a portion of our holiday expense. Enjoy :)

 

You are using a credit card that charges 11%? No fees, but an 11% markup/penalty on the exchange? Sorry, but that is not good.

 

Our credit card exhanges at 1 percent over the bank rate, plus a 3 % fee. But it is an airline card, so we get miles. Our backup card only has a 1% fee.

[hkto]

This company publishes historic interbank rates so one can always check bank or CC statement for that day. Retail rate should be 1% over that published one http://www.oanda.com/currency/historical-rates/ (click on Table tab)

 

Most of my previous transactions for two separate no F/X fee CC were in that interbank+1% ballpark +/- couple of cents.

[cruisinlawn]

You are using a credit card that charges 11%? No fees, but an 11% markup/penalty on the exchange? Sorry, but that is not good.

 

Our credit card exhanges at 1 percent over the bank rate, plus a 3 % fee. But it is an airline card, so we get miles. Our backup card only has a 1% fee.

 

I'll have to double check that with DW, it does sound high now that I do the math. Thanks for pointing out. :)

[Hlitner]

Yes I have doubts. ATM is not the best choice with my bank (TD). They charge $5 per withdrawal plus I am not convinced that rate is that good. Last year I bought hotel online and charged to checking account. Out of curiosity I checked historic rate for that day; they charged me 3.5% over interbank rate which is equivalent to full fee CC.

 

So all depends on amount. Local money exchange business here charges 2% flat. In my case for 100 euro ATM withdrawal will be more expensive, for larger amounts - may be cheaper. For F/X free CC its usually interbank rate + 1%. Every case is different

 

You have made your own case to find a new bank :). And we are quite serious. As very frequent international travelers we have no time for banks (especially some of the larger commercial banks) that kill their customers with fees, fees and more fees. There are plenty of decent banks and excellent credit unions that appreciate their customers and do not try to fee them to death. In fact, one of my credit unions (we are in 2) actually paid everyone a special dividend this year because they made too much money. And yet, we have no fees for withdrawals, get reimbursed for most fees charged by other bank ATMs, have no foreign exchange fees, etc.

 

There are also credit cards that charge no foreign exchange fees (CapitalOne and Andrews Federal Credit Union are two institutions that offer such credit cards). As one who spends up to 7 months a year traveling out of our home country (USA) we decided (years ago) to choose financial institutions that were helpful....not ones that screw their customers on a regular basis. The banks are aware that most customers will not switch banks, no matter what the bank does to screw their customers, and they take advantage.

 

Hank

[Keith1010]

Linda for lowest rates use the ATM's in country. Also when you can use credit card (not to get cash but for purchases) use that.

 

And if you only need a few hundred Euros or if your ATM won't give you as much as you need all at once you can always get some euros from your bank. Yes, you pay more but let's say you need 300 Euros and you pay 5% more for them at home vs. an in country ATM in the scheme of things we are not talking about a lot of money so don't sweat it.

 

Keith

[cruisinlawn]

I'll have to double check that with DW, it does sound high now that I do the math. Thanks for pointing out. :)

 

I stand corrected, our card cost us nothing. The current exchange rate at the time of transactions were equal to apprx .10-.11 cents on the usd. What I should have stated was the current exchange was costing us apprx .11 cents on the usd, sorry for the confusion.

 

At current, if we were to order euros today from BoA it would cost us roughly $1.15us per 1euro. (.05 cents bank markup, plus exchange which is around .10 cents on the dollar)...I think:confused: Please let me know if I'm interpreting this correctly:confused: I may not have worded in such a manner.

 

Bruce, thanks again for pointing this out. Enjoy:)

[kamarhan81]

Question for CruiserBruce. You mentioned that in Europe the ATM rate is bank to bank rate. In Canada we have 2 rates, buying rate and selling rate. So if my debt card does not charge a fee which it does not, it sounds like getting cash will be cheaper to get there. Am I understanding you correctly? Any yes everyone needs to check out there credit cards. I have checked and my visa charges 2.5% foreign exchange fee but my certain MasterCard does not. So needless to say I will be using that one for purchases.

[CruiserBruce]

As I understand it, the bank to bank rate is just one rate. And the ATM is usually bank to bank, plus 1%.

 

Most exchange locations- your bank for example, or the Forex places at the airport, will have a "buy" rate, and a "sell" rate. That way they can put a commission or mark up on both transactions. This doesn't work in your favor, almost all of the time.

 

We are Americans, so can't comment specifically on how banks in Canada do this. But the "buy" and "sell" operation is very common around the world in places where you can exchange currencies. At an ATM, you are not "exchanging", per se, you are simply getting money from your account. The ATM just happens to give you the local currency.

Edited March 24, 2016 by CruiserBruce

[thinfool]

As I understand it, the bank to bank rate is just one rate. And the ATM is usually bank to bank, plus 1%.

 

Most exchange locations- your bank for example, or the Forex places at the airport, will have a "buy" rate, and a "sell" rate. That way they can put a commission or mark up on both transactions. This doesn't work in your favor, almost all of the time.

 

We are Americans, so can't comment specifically on how banks in Canada do this. But the "buy" and "sell" operation is very common around the world in places where you can exchange currencies. At an ATM, you are not "exchanging", per se, you are simply getting money from your account. The ATM just happens to give you the local currency.

 

Bruce has this exactly right.

 

We find it exceptionally easy to use an ATM in the airport, before or after baggage claim, to obtain local currency in amounts that enable necessary land transactions (taxis, meals, etc)

[dabear]

We also find atm machines in Europe have the best rates, but be sure it is a bank, not a currency exchange company atm machine, which charges much more. We also find that if you have an account at Bank of America, the commission is only 5% so we take a few 100 euros to Europe to start.

[hkto]

The only sure way to know what bank will charge is to check on http://www.oanda.com/currency/historical-rates/ (click on Table tab) after you come back home. What you refer to buy and sell rates is the markup from that interbank rate for the day. I am TD customer and can tell you that ATM "rate" is not that great on Euro but much better on USD (1% from interbank).

 

The F/X free CC that you are referring to will probably give the best exchange but again check on oanda site.

[FloridaTourist]

If you want to purchase euro's in advance, if you are a AAA member they offer a very favorable exchange rate with no fee and deliver it right to your home. If you order under 1000 euro's there is a $7.50 delivery fee but 1001 and over deliver is free.

[CruiserBruce]

If you want to purchase euro's in advance, if you are a AAA member they offer a very favorable exchange rate with no fee and deliver it right to your home. If you order under 1000 euro's there is a $7.50 delivery fee but 1001 and over deliver is free.

 

It has been well documented around Cruise Critic that AAA does not give a great exchange rate. The mark up is usually in the 10% area, plus a delivery charge. Far cheaper at ATMs.

[cruisinlawn]

as of current the xe site is showing $1usd = $1.15euro. With that what could i anticipate the exchange be at an ATM as of now? I know the fee schedule and the concern to know and avoid those. Just curious on the current exchange. Hoping Bruce can help. :D TIA

[CruiserBruce]

At an ATM, your dollar will get about .85 euros, give or take a fraction of a cent.

Edited April 29, 2016 by CruiserBruce

[-Lew-]

 

as of current the xe site is showing $1usd = $1.15euro. With that what could i anticipate the exchange be at an ATM as of now?

I believe you have the numbers reversed. My XE app is currently showing €1,00 equals $1.1450US. $1.00US equals €0.8734.

 

Our experience with no-fee credit and debit cards is that the exchange used is pretty close to what XE shows for that day.

 

[cruisemom42]

 

Our experience with no-fee credit and debit cards is that the exchange used is pretty close to what XE shows for that day.

 

 

My experience has been the same.