Opinions on foreign currency

[LynnMW3]

Hi, everyone. We've never been to Europe on a cruise, and are looking forward to our first TA in April.

 

We were wondering what is the best way to get local currency (Euros and pounds) once we've crossed the pond. Do most people exchange currency before sailing to have on hand, or use an ATM once you're in the ports you visit? Can the purser's desk exchange currency, and is there an extra charge? We'll be in Azores, Portugal, Spain, France and debarking in Southampton.

 

We'll definitely need money for taxis on our port days...are there ATM's at the ports?

 

Sorry if these are stupid questions...we just want to be ready. All advice is greatly appreciated!

[joeyancho]

Most places will take your atm card. You can get euros at any atm over there.You can get euros at your local bank if you want to have some in hand. Wouldn't buy them on the ship due to poor exchange rate.

[Colo Cruiser]

Hi, everyone. We've never been to Europe on a cruise, and are looking forward to our first TA in April.

 

We were wondering what is the best way to get local currency (Euros and pounds) once we've crossed the pond. Do most people exchange currency before sailing to have on hand, or use an ATM once you're in the ports you visit? Can the purser's desk exchange currency, and is there an extra charge? We'll be in Azores, Portugal, Spain, France and debarking in Southampton.

 

We'll definitely need money for taxis on our port days...are there ATM's at the ports?

 

Sorry if these are stupid questions...we just want to be ready. All advice is greatly appreciated!

 

 

We wait until we arrive.

We tried once exchanging money (Euro) in Denver prior and its expensive.

Doing it at the airport is expensive too.

The ship does not have favorable exchange rates either. If you do it onboard there is usually a currency exchange machine onboard. Again not favorable.

To get by until you find a currency exchange you could use the machine onboard for small amounts.

We find a currency exchange that has great rates in our Europe cruise departure city and in ports along the way.

Edited November 5, 2016 by Colo Cruiser

[junglejane]

Short answer, use your ATM card to withdraw cash. Best way to the best rate. A longer answer would address how to minimize ATM withdrawal and foreign currency fees.

 

If you want some currency to take with you, best/easiest way is to ask around your circles of friends (work, facebook, whatever) and announce a desire to buy someone's leftovers. Our experience is that some random person is overjoyed to get rid of them at a market rate. You can buy from AAA or your bank but you will wind up paying for the privilege. "No commission" means "poor exchange rate."

[RDC1]

If you can set up an account with Schwab Bank (part of Charles Schwab and Co). If you have their ATM they reimburse ATM fees and they do not charge an exchange fee for foreign currencies.

 

Ally Bank also does not charge exchange fees, but do not reimburse foreign ATM fees.

[CruiserBruce]

This is discussed almost daily on the ports boards.

 

ATM.

[eclue]

Just go to your local bank that offers exchanges and get enough euros to get you by for your taxis and incidentals....then use your card to get cash from the ATM ( using a card with no foreign transaction fees )...there are ATMs all over major cities in Europe.

eclue:rolleyes:

[Skai]

ATMs - However, keep in mind that ATMs attached to banks will often provide the best available exchange rates w/ minimal fees attached. Avoid (private)machines that aren't attached to banks. These often located in the most conspicuous touristed places w/ the intent to fleece naive tourists by charging ridiculous commissions that translate to an extremely poor exchange rate.

 

Of course a little cash is important to have for smaller purchases (taxis etc.), but the most economical way to make transactions abroad is to utilize a credit card with zero 'foreign transaction fees' whenever possible.

[Bruin Steve]

ATMs are easy to find and get you good rates...

Using credit cards...assuming you have a card like Capital One that doesn't have a foreign transaction fee works even better...

 

OTOH, IMHO, far more important than exchange rates is CONVENIENCE. Think a second about how much foreign currency you'll even need. If you're on a cruise, you've already paid for that in US Dollars ahead of time. Any pre or post cruise hotels, you've likely prepaid by credit card. Any shorexes through the cruise line or anything else you charge on the ship is in US Dollars. SO...the amount of foreign cash you will need is likely relatively small. Maybe some meals during pre- or post-cruise or in port, private tours if they don't take credit cards, taxi or bus money, minor tips--like to hotel bell hops, and some walking around money...

 

And you are not going to hit it exactly, but can always get more at an ATM...

 

So, now, think about your schedule...what happens when you arrive...You could scramble around the airport looking for an ATM or an xchange booth...but, more likely, you'll be a bit preoccupied...and you may need local cash for a taxi or other transportation...you may need a Euro or two for a tip for your hotel bell hop. So, it's always good...and far more convenient to have some local currency on you when you arrive.

 

The rate you get at your bank may not be the best, but, remember, there is a hidden or direct fee in EVERY method of exchange. And, if you are only exchanging a few hundred dollars, what does that "bad" exchange rate really cost you? Twenty bucks? Big Deal...this trip is costing you thousands...don't micromanage exchange rates. Pay a little for the convenience if you must...

 

Also, remember not every country in Europe uses Euros...so, be very mindful of which countries you are visiting and what currency they use. Also, don't overbuy...you'll pay another fee changing them back into dollars. And you can't exchange coins...so, they become souvenirs...or buy a pack of gum or a chocolate bar on your way out to use up that change...unless you're returning soon (I go to Europe often, so I always seem to have a few Pounds and a few Euros laying about the house from the last trip)...

 

Good luck...

[easyboy]

We use our Capital One credit card for primary use since it has no forex transaction fee. We also have a Travelex cash passport for Europe trips. For small amounts in other local currencies, we just use the ship's currency exchange machine.

[IECalCruiser]

We have a financial account that has an ATM card with no transaction or exchange fees. We have used it in Estonia, Spain and Italy at bank ATMs. You need to be careful at airports as there are often private ATM's with terrible fees and exchange rates. We also have several credit cards with no exchange fees.

 

 

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[caribill]

Although what you say is correct, much of it does not apply to the OP who is taking a trans-Atlantic from Fort Lauderdale to London

 

ATMs are easy to find and get you good rates...

Using credit cards...assuming you have a card like Capital One that doesn't have a foreign transaction fee works even better... For ATM withdrawals, use a debit card. Using a credit card will involve fees and interest.

 

OTOH, IMHO, far more important than exchange rates is CONVENIENCE. Think a second about how much foreign currency you'll even need. If you're on a cruise, you've already paid for that in US Dollars ahead of time. Any pre or post cruise hotels, you've likely prepaid by credit card. Any shorexes through the cruise line or anything else you charge on the ship is in US Dollars. SO...the amount of foreign cash you will need is likely relatively small. Maybe some meals during pre- or post-cruise or in port, private tours if they don't take credit cards, taxi or bus money, minor tips--like to hotel bell hops, and some walking around money...

 

And you are not going to hit it exactly, but can always get more at an ATM...

 

So, now, think about your schedule...what happens when you arrive...You could scramble around the airport looking for an ATM or an xchange booth.. OP is not flying to Europe, but is taking the ship to Europe, so a European airport is not in the picture here.but, more likely, you'll be a bit preoccupied...and you may need local cash for a taxi or other transportation...you may need a Euro or two for a tip for your hotel bell hop. So, it's always good...and far more convenient to have some local currency on you when you arrive.

 

The rate you get at your bank may not be the best, but, remember, there is a hidden or direct fee in EVERY method of exchange. CapitalOne debit and credit cards have no hidden or direct fees when used in a foreign country. You get whatever the official interbank rate is at the time the conversion is done. And, if you are only exchanging a few hundred dollars, what does that "bad" exchange rate really cost you? Twenty bucks? Big Deal...this trip is costing you thousands...don't micromanage exchange rates. Pay a little for the convenience if you must...

 

Also, remember not every country in Europe uses Euros...so, be very mindful of which countries you are visiting and what currency they use. Also, don't overbuy...you'll pay another fee changing them back into dollars. And you can't exchange coins...so, they become souvenirs...or buy a pack of gum or a chocolate bar on your way out to use up that change...unless you're returning soon (I go to Europe often, so I always seem to have a few Pounds and a few Euros laying about the house from the last trip)...

 

Good luck...

 

It may be convenient, but using a ship's currency exchange machine (it is not an ATM) is about the most expensive way to exchange currency.

 

You put currency in to get currency out. There is a limit of inserting ten bills per transaction. There is a service fee of $4.50 per transactions. It is obviously better to insert ten $20 bills than twenty $10 bills as the latter transaction would require paying two service fees.

 

The Interbank rate the day I checked for selling Euros was $1.13204 for one Euro.

 

ATM debit cards used on shore will usually have a foreign transaction charge from your bank of from 0% (CapitalOne, for example) to 3% (Bank of America, for example).

 

So if your financial institution charges the full 3% rate, one Euro would cost $1.1660.

 

This compares (as shown below) to the Princess rates: one Euro would cost $1.2046, 6.4% over the Interbank rate. (The Princess service fee is in addition to that.)

 

 

The Princess currency exchange machines had the following rates that day. (I do not know how often they may change.)

 

To purchase Euros, you will pay $1.2046 for each Euro. Compare this to what using your ATM debit card on shore might cost. To sell Euros back to Princess, the machine will give you $1.0306 for each Euro, 14.44% less than you paid for them. Of course you will pay the $4.50 Princess transaction fee for both buying and selling the Euros. If you converted $100 into Euros and then back into US $, including the transaction fees you would end up with $77.21.

 

To be noted is that the machine does not say you are paying $1.2046 for each Euro. It shows the rate as $1 buys you .83015 of a Euro. Unless you have a calculator with you or are a certified MENSA member, you will not know that .83015 translates to paying $1.2046 for a Euro. Many people see the $1.0306 value for selling Euros to Princess and assume they are getting a great deal on purchasing Euros.

 

Of course you can buy Euros with other currencies. I did not look into those rates, but you should expect a loss of value of 14.44% plus the transaction fees. The machine also accepted the currencies of Canada, Australia, New Zealand, the UK, Switzerland, Denmark, Norway, Sweden and Japan.

[caribill]

ATMs are easy to find and get you good rates...

 

Many ATMs will ask if you want the ATM to convert the charge to US $ or let your bank do the conversion.

 

Always choose letting your bank do the conversion. If the ATM does the conversion it will be at a poor exchange rate and if your bank has a foreign transaction fee, it will still apply even if the ATM converted the transaction to your home currency.

[Host Jazzbeau]

I agree that the best way to get foreign currency in Europe is at an ATM, with one caveat: it has to be a BANK ATM. Travelex has ATMs with [i am told] very poor exchange rates. We have a Schwab debit card, so we just look for a bank-owned ATM [there has been enough news about banks since 2008 that most European bank names are familiar ;)] at the airport or train station, or outside a bank. [One other minor problem is that some European banks lock their ATMs in an outer lobby that can only be opened with a debit card from that bank -- but usually someone else will come along to use the ATM and let you in as they leave.]

[cruisequeen4ever]

As you've heard this far, many use ATMs. We don't feel comfortable doing that abroad; plus to us, it's a hassle to spend vaca time hunting down an ATM. We take a reasonable amount with us and then use the ship's foreign currency exchange machine onboard. We are ok with paying a higher fee because it's safe and secure.

 

 

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[-Lew-]

 

We also have a Travelex cash passport for Europe trips.

We purchased a Travelex Cash Passport Card a number of years ago, long before US banks began offering Chip & PIN cards with no transaction or foreign conversion fees. Their rate of exchange was terrible then and is so today. To load a Cash Passport card with euros today €1,00 costs $1.22...quite unreasonable!

 

With so many financial institutions offering no fee credit and debit cards today, there is no reason to subject yourself to paying anything above the interbank rate of exchange.

 

[san diego sue]

Dumb things I did over the years"

Went to AAA and got foreign money ( fees and bad exchange rate)

Went into a bank in Germany with U.S. dollars to exchange. Huge fee

plus really bad exchange rate. Probably the worse thing to do. Was with friends that say they go to Germany all the time and this was the best way. Found out they didn't know what they were doing and had no idea what it cost them.

Exchanging cash for foreign money on cruise ship. So confusing as to what the rate really is and when I finally figured out, totally stupid to do .

 

We get money in advance at Wells Fargo and then use ATM Bank owed

when we need more in foreign countries.

If you are going on private tours in Europe (instead of ship's tours),

not always time to stop at ATM's, so you need the currency ahead of time.

[thinfool]

European cities are awash with ATM machines. Far more so than the US. We have never had any problem finding what we needed and have never had to wander around trying to find one.

 

As far as security, European banks pioneered the use of chipped cards, meaning that they have been far more security conscious than US banks for far longer.

 

Finally, regardless of what you decide to do, be sure that you notify your bank and credit card companies of your travel plans, usually within a week of departure. Having a card suspended by the fraud department unnecessarily is frustrating and time consuming.

[cynbar]

We figure out how much we expect we'll need, go to our local bank and get euros or pounds or whatever before we go. Yes, we pay a fee, but we keep our receipt and can exchange it back without additional fees after our return. To us, it's not worth the hassle of hunting down ATMs while on vacation ---- and we were once quite put out by a passenger on a private tour who had the driver looking everywhere for an ATM and taking valuable time from our tour. Also, I have heard of people who had a hard time finding an ATM at their arrival airport, or faced a very long line. So, I realize others have very different views, but this works for us and the small additional cost is worth it .

[lstone19]

I agree that the best way to get foreign currency in Europe is at an ATM, with one caveat: it has to be a BANK ATM. Travelex has ATMs with [i am told] very poor exchange rates.

 

I have heard that about Travelex ATMs (and I believe all ATMs at London-Heathrow are Travelex machines) but I've also heard that so long as you take out the local currency and don't have them do the conversion (read the screens carefully), you'll get your bank's exchange rate. What you want to avoid is what's called "Dynamic Currency Conversion" where the merchant's bank converts it at time of sale or withdrawal. For the "convenience" of knowing immediately what your charge will be in your home currency, you're getting a very poor exchange rate.

 

Regarding Travelex, to demonstrate how bad their exchange rates are, I was looking to convert about USD100 to a couple of foreign currencies I'd need just to have a small starter amount. Comparing Travelex ("no commission" but a poor rate) to Bank of America (better rate but a $7.50 delivery charge to have the currency shipped to the local branch), even with that delivery charge (7.5% on a USD100 exchange) Bank of America was better (but you must be a BofA customer).

[flamomo]

We figure out how much we expect we'll need, go to our local bank and get euros or pounds or whatever before we go. Yes, we pay a fee, but we keep our receipt and can exchange it back without additional fees after our return. To us, it's not worth the hassle of hunting down ATMs while on vacation ---- and we were once quite put out by a passenger on a private tour who had the driver looking everywhere for an ATM and taking valuable time from our tour. Also, I have heard of people who had a hard time finding an ATM at their arrival airport, or faced a very long line. So, I realize others have very different views, but this works for us and the small additional cost is worth it .

 

I agree wholeheartedly. I take the time to sit down, review my travel details, and estimate how much I know for sure I will need for taxis, tours, tips, and other known expenses requiring foreign currency, tack on an additional 30-40% for unspecified unplanned expenses such as souvenirs, meals etc., and have my local bank order the funds for me. It comes in a day later, I pay a small one time fee, and I am all set. I have a credit card with no foreign transaction fee that I can use for some purchases if needed. I have never, thus far, had to use an ATM in a foreign country or the currency machine on a ship, and hope never to have to.

If using ATMs in foreign countries is something that works for others that's great for them. I am much more comfortable getting everything lined up and in hand before I leave home.

[jdeanski]

I took an ATM card on a TA last spring and never used it. Credit cards are easier and more secure.

[caribill]

I took an ATM card on a TA last spring and never used it. Credit cards are easier and more secure.

 

Using a credit card to withdrawn cash at an ATM is considered as a cash advance subject to fees and interest charges from your bank.

 

Using credit cards to make purchases is fine, but at an ATM use a debit card.

[jdeanski]

Using a credit card to withdrawn cash at an ATM is considered as a cash advance subject to fees and interest charges from your bank.

 

Using credit cards to make purchases is fine, but at an ATM use a debit card.

 

I agree but what I was trying to say was I had no need to withdraw cash because I used my credit card everywhere.

[thinfool]

I agree but what I was trying to say was I had no need to withdraw cash because I used my credit card everywhere.

 

Have you been on itineraries other than the Caribbean, New England, US west coast or Alaska?

Edited November 7, 2016 by thinfool