Should I bring Euros for my Baltics Cruise?

[nomadguy]

Doing Baltic capitals tour next month. Typically, I calculate how many Euros I need throughout the trip (various private excursions) and then make ATM withdrawals along the way rather than walking around with all that money strapped to my belly at the start of the trip. When we get to Russia I'll probably just exchange $100USD onboard ship for Rubles for 3 days of lunch and bathroom pocket change for two people. I'll be using #s in London/Southampton, then Euros mostly the rest of the trip. I hear that the Russians are very eager to help us with our greenbacks so if I don't exchange for rubles I can probably find some helpful Russian!

[geomancer]

Generally speaking, these are your options:

 

1) Get cash in advance through your bank or Travelex. At the time of this post for a point of comparison Bank of America would do €100 = $125.91 and Travelex is worse at €100 = $131.77. Both of these rates are worse than the inter bank exchange rate. While on the surface Travelex sounds bad, you can select one of their stores/booths in the airport and get free pickup and avoid shipping charges. That may or may not work out depending on how much you need and if your local bank will even do currency exchanges. The more cash you get, the more that poorer exchange rate will hurt you.

 

2) Get cash at the airport. This is the absolute worst option available as most people know. Each store/booth sets their own rates, and they're always terrible. (Note that if you order it online ahead of time, you don't get the airports horrendous rate).

 

3) Use a credit card in an ATM. This is another awful choice, and probably even worse than those airport kiosks. Credit cards treat this as a cash advance, even if you have a no foreign fees card. So while your exchange rate will be the inter bank rate (the best you can ever get) you will be hit with an immediate and very high interest rate. There is no grace period on interest for Cash Advances.

 

4) Use a debit card in the ATM. This one can be murky, but is generally the best option for most people. Just like using a not-your-bank ATM in the US, you can get hit with a transaction fee by both your own bank and the bank that owns the ATM. Several US banks will waive their own fee for X times or X dollars per month but you'd still get the fee from the bank that owns the ATM. The exchange rate will always be the inter bank exchange rate which is the best you can ever get. Some banks do charge a conversion fee though of 1-5%. This is another reason the cost can be "murky".

 

PRO TIP: If you have a connecting flight through Heathrow, I believe the ATMs there give you the option of getting € or £. Most ATMs in the UK do not charge fees, even in the airport. I have a vague memory of this when I visited the UK last year and got cash in the airport so forgive me if I'm wrong or it has changed since Brexit =) You do still have to worry about your own bank tacking on a fee.

 

WARNING: Be absolutely sure that the ATM is charging your bank in the foreign currency. That is how you get the inter bank exchange rate. If you select the option to withdraw funds in USD you will get the bank's much worse exchange rate!

 

5) Get cash from your hotel (if staying a night before the cruise). While the rate will not be as good as the inter bank exchange rate, it will be better than the airport kiosks. Only a good option if you found the only place in the world without ATMs or you're afraid to use your debit card outside the US.

 

6) Network with your friends, co-workers, or local community. Offer to buy any leftover currency they have from their own trips at the current rate (you can google this easily). This has no fees. I did this once with a co-worker buying their leftover currency.

 

7) Forget cash and use your no-foreign fees credit card. This is similar to the debit card in an ATM in that you get the inter bank exchange rate (which again is the best you can ever get) however there are no fees of any kind. Obviously doesn't cover every situation, but a vastly superior option when available.

 

WARNING: Be absolutely sure that the terminal is charging in the foreign currency. That is how you get the inter bank exchange rate. If you select the option to charge in USD you will get the terminal processor's much worse exchange rate!

Edited May 4, 2018 by geomancer

[SRF]

Today's quoted rate is $1.1938 per 1 Euro.

 

I just got out some Euros from an ATM at CDG airport today, and paid $1.20099 per Euro. There was a 2 Euro fee charged by the ATM, but the quoted rates was based on also converting that fee, so a 100 Euro withdrawal cost 102 Euro, which cost $122.50

 

So you paid about 6-7% to get it before you went.

[Wine-O]

Generally speaking, these are your options:

 

3) Use a credit card in an ATM. This is another awful choice, and probably even worse than those airport kiosks. Credit cards treat this as a cash advance, even if you have a no foreign fees card. So while your exchange rate will be the inter bank rate (the best you can ever get) you will be hit with an immediate and very high interest rate. There is no grace period on interest for Cash Advances.

 

 

Great Post! Just to piggy back on #3, my bank charges a fee to get a credit card cash advance from an ATM.

 

I've found more & more recently that bank ATMs are giving you the option to let them do the conversion in U.S dollaars. Make sure you do the transaction in the local currency and let your bank do the conversion, or it will cost you 2-3% additional conversion fee in addition to whatever fees your U.S. bank charges you.

[123funcruiser]

Merchants will accept just chip cards with no issues. Also remember the dreaded VAT taxes. They add up on food and beverages fast.

 

All of the card reading terminals have the option to either use the chip, or to swipe the card. Some may in addition have the option of contactless payment. But magnetic stripe is absolutely no problem.

 

Your comment about the taxes should be better given to Europeans travelling to the US. In Europe you pay exactly the price on the price tag or the menu in a restaurant. No tax added at all, as all pricing has to include tax. Your bill however often will show the tax amount.

[123funcruiser]

Ok, to be serious.

5. Meet me in the pub on the ship, and buy me a beer.

 

LOL, but that wouldn´t make him spend any Euros.:p