OK - so what is the current opinions on the best way to change money. Usually we have charged most things because with our credit cards because we got good exchange rates and no conversion fees. Now all credit cards we normally used have started charging a fee for conversion. It seems the options are 1)travelers checks where you pay a conversion fee and are inconvienent, 2) ATMs where you pay a transaction fee and can often only get a few hundred euro out at a time, 3) credit cards which now charge a conversion fee. So who think which way is best?

This message has been edited. Last edited by: Kim,

Having just returned from 3 weeks in Florence/10 days in Paris trip, I can tell you what I did, and would do it again in a heartbeat.

I took 1100E in 20's and 50's. I carried 1/2 of the cash in my shoulder-bag and the other half in a waist wallet...that way, in the off-chance that some mindless gleep ripped my handbag from my clenched hand, or my waist wallet somehow got misplaced, I'd still have some dineros left!

I took 2 ATM cards from 2 different banks, because it is more than possible one card won't work in an ATM, for some unknown reason...and yes, that happened to me. I upped my daily withdrawal limit to $2000, so there would be no problem accessing my money, if I needed a large amount for ???? whatever...

I took ATM cards that ONLY allowed me to withdraw money...not debit cards. I did not pay for anything with a debit card, only cash...better deals for paying cash in some places and I eliminated the per transaction fee that debit cards charge.

I also took 1 VISA and 1 Amex card, and called both companies before I left to let them know the dates I'd be leaving on my trip, where I was going and when I'd be home.

I only used my credit card 2 times...once for my apartment rental payment and once for an airline ticket from Pisa to Paris that I booked on the internet. I'm not about to give them the per/transaction fee they are now charging on international transactions.

When I arrived in Florence, I paid the balance of my apartment rental on VISA, so I'd have the cash for daily expenses. In the apartments I rented, I stashed the cash in a....(Nope, that's for only me to know! )

While in Florence and Paris, as soon as I could, I located an ATM close-by my rental that would accept my cards...that can be hard to find, trust me...and then used that one consistently.

I withdrew 400E or more at a time, to avoid multiple withdrawal fees on lots of smaller withdrawals. I did not pay for any purchase with a debit card.

Before I left, I arranged with the manager of both of my banks that there would be a reasonable fee structure for ATM withdrawals, and upped my daily limit to $2000. I also got toll-free numbers from each bank and credit card company that I could call from Europe, if a card was lost or stolen or if I ran into trouble accessing my accounts for withdrawals.

Traveller's cheques? Not even a consideration.

What else? ummmmm....that's it, I think...
There is also a FAQ on this subject...take a look here.

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Brenda

>>While in Florence and Paris, as soon as I could, I located an ATM close-by my rental that would accept my cards...that can be hard to find, trust me...and then used that one consistently.<<

I can't speak for Paris but--unless Brenda has a very obscure bank card--I can't imagine having difficulty finding an ATM in Florence or almost anywhere in Italy.

>>I took 1100E in 20's and 50's<< I am also puzzled for the rationale for bringing so much cash into Italy except to pay a security deposit on the first day of the rental. Apart from the obvious risk of losing the cash, the exchange rate for Euros is going to be less favorable abroad than in Italy using ATM withdrawals.

>>I only used my credit card 2 times<< Again, I can't agree with that strategy. I got a USAA credit card specifically for this trip to avoid the recent surcharge addons. For me, the convenience, the generally favorable exchange rate and the float greatly outweigh the negatives.

I am glad that the system worked for Brenda...but I would urge other travelers to consider other options for money management.

wino666,
Current wisdom hasn't changed. See http://www.slowtrav.com/europe/hs_money.htm

[QUOTE]Originally posted by Jim Zurer:

>>I only used my credit card 2 times<< Again, I can't agree with that strategy. I got a USAA credit card specifically for this trip to avoid the recent surcharge addons. For me, the convenience, the generally favorable exchange rate and the float greatly outweigh the negatives.[QUOTE]

I have always avoided getting involved in these financial discussions; however I have to agree with Jim here. In addition to travel, I also use my Visa (which has a 2.5% foreign exchange fee hidden within the exchange rate) for paying oversea suppliers for my store whenever possible - so I am making foreign currency charges continually! Using my Visa is my method of choice having compared it to the favorable rate but high fee charged by the Wire Transfer service I occasionally use. The convenience factor also weighs in for me!

But, if you really want to drive yourself crazy trying to figure out the different methods of currency exchange then I would throw the following thought out to you: At the moment I get double FF points on my Visa – the value of which you really have to include in the equation!

Hi wino!

I used my ATM card and paid cash almost exclusively on this past trip (two weeks in Sicily and one in Malta). My credit union doesn't charge a fee to access ATMs anywhere in the world, and I never had a problem finding one that worked. I checked the rate when I got home - it was just over the "bank rate" on each day that I withdrew cash.

I used my MBNA credit card for the car rental in Sicily, and to pay for gas a couple of times ... a €50 fill up will do that to ya! I also had my AmEx card with me, but don't think I ever used it. Is their conversion fee still 2%? (Remember that they're outside the MC/VISA network so it's a flat rate.)

THanks for the info. I never use ATM cards at home because my wife deals with the logistics of banking and she doesn't like them. I never thought about upping the limit. Last time we went to Italy I used amd ATM i got specificalyl for the trip and it was a pain because we could only withdrawn about $400 at a time. So mostly I've always charged everything I could. I'll check into increasingthe limit on the ATM card I have stuffed in the safe somewhere.

wino666, I'd agree with you...so, get a couple of VISA/AMEX cards each, dust off the ATM card and have the bank increase your limit substantially...also I'd suggest getting extra cards as back-up, in case the first one fails for some unknown reason. I had 2 ATM cards from 2 different banks, and it definitely came in handy!

I also could only withdraw 400E at a time, because my limit was high, but it was available in multiple withdrawals, one after the other. Seemed like 400E was the magic number, as that was the limit that I, and a few others, found was available to us. I rarely wanted to withdraw any more that 400E at any given time, so that limited amount wasn't a problem....but several of us were able to take out 400E a few times in a row on the same day, so more was available if we needed it.

Jim Zurer, I think when you are a seasoned traveller like you are, this process would become second nature...but for me, as a first-time-to-Europe and also a solo traveller, it was pretty unnerving and I arranged the money/ATM card/VISA/AMEX thing the way I did, because it felt most comfortable and most safe for me. I'm not saying that anyone else should do it the same way...it worked for me, so I offer it in that light. I agree with you, there are bank machines all over Florence...my concern was not in being able to find an ATM machine, but finding one that my card worked in...so it could "show me the money!" (I was not looking forward to arriving in Florence with little money, and trying to track down an ATM that loved to interact with my card...)

As I was staying in a residential area, I had no idea where an ATM or Bancomat was located. Although the nearest ATM was very close...right around the corner, in fact...it wouldn't accept my card then, or ever, in the 3 weeks I was there.

Being a solo traveller on my first trip to Italy, I opted to carry some extra cash for this reason...after flying and airporting for well over 11 hours on an overnight flight, changing planes in the early morning hours on top of that, then getting to, and settled into, my apartment, unpacking my luggage, finding the grocery store and stocking up on food and snacks...I didn't need to add anything extra into my arrival that was stressful ...like searching for, and getting $$$ from, a Bancomat that may or may not be close to where I was staying.

I thought it was smarter for me to carry some cash for food and anything else that I might need it for in the first week or so, at least until I got my bearings a little bit. It was a good thing I did it this way, because it took me several days to feel like I was no longer jet-lagged, to shake the last dregs of a nasty sore throat and to begin to feel like I knew where I was going and how to get there!

I found 2 ATM's in Piazza Signoria, very close together...one would accept my card, one wouldn't. Who knows why...it just was. The machine that wouldn't accept my card simply posted a message on the screen every time I tried it that said I was 'not eligible for foreign credit' whatever that means. The very next machine spit out dineros like popcorn...who knows why!

I had several conversation with different people in the lines, while waiting to use the ATMs there, and nearly all of them experienced a glitch like that, on one or the other of the machines.

What worked for me was to find a machine in the area I was staying that accepted my card and gave me $$$, and then stick with it. Because I was a first-timer, I was also quite apprehensive about withdrawing money from an ATM, while standing alone at a machine in a really busy street or intersection. After a couple of times, I became more at ease with the process, but I was a tad nervous at first.

wino666, let us know what you decide to do! Good luck and may 'plenty money' come to you!

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Brenda

This message has been edited. Last edited by: BGE,

ATM machines are plentiful everywhere - we even have one in our little village of 600.

quote:

The machine that wouldn't accept my card simply posted a message on the screen every time I tried it that said I was 'not eligible for foreign credit' whatever that means.

Some machines are just for the bank's customers - generally, ATMs for all cards will have the logos of the cards they accept.

You should rarely have a problem. Very rarely, the satellite hookup will fail, so always have a little extra cash with you.

I would not think saving 1-2% here and there would be that important to most - as if someone budgets $5000 spending for a trip - it is only $100 - you could experience more than that with euro/dollar fluctuations.

Most VISA cards will have pictures of "logo's" of the networks that the ATM will accept. Common networks here are PLUS, STAR, NYCE and such. Most all ATM's will have a grouping of the networks they subscribe to printed on the ATM you can view prior to using the machine. The same would hold true for a gas pump, an airport cart machine, parking and tolls. PLUS seems to be the most widespread, but others are gaining market share. Perhaps others can speak to some of the more popular ones in Italy.

Sure is nice to see the $$$ gains the last week. We chose to open a savings account at Wells Fargo. We will get an excellent exchange rate we can view online daily and call the bank to "pull the trigger" to do the transaction and then go into the bank to collect the euro. No... I don't work for Wells Fargo either, they just have a VERY competative exchange rate.

I live with my ATM... and rarely use my credit card.
My ATM gives me money FREE from the machines..( I am a BofA client) but my credit card charges me.

I can take out a cash limit of 1,000 Euro a day ( 500 a time, Italian banks, and not at all banks)

BUT I can also use it as a credit card and it takes it out of my account, like writing a check.

I only use my credit card.. if I need Credit!

Judy...
Me, too! I love the 'free' factor with my ATM card...
My credit card is for those times when I have to confirm a flight/ticket sales/reservation over the phone or internet, otherwise, I'm a cash kinda girl! 'course, I'm also the credit card company's poorest client, because I pay my balance off each month, so they don't make a huge amount of $$$ from me!

I truly live with my ATM card for deposits and withdrawals, when I am here at home...so it was very cool for me to discover that I could also access my accounts from Florence with my ATM card(s)...(I had 2 banks give me an extra card each, just in case...)

I think the banks in my neighborhood in Florence only provided ATM access to their clients, so using ATMs in downtown Florence was what I had to do...found one that worked and it loved my card, so I stuck with that one. In Paris, I stayed in a residential neighborhood also, and there was a bank a block away, and it never failed me!

I'm not sure what the VISA/AMEX people have decided lately as a usage charge per transaction, all I do know is that my ATM cards are pretty close to being free when I travel...it was a learning experience for me, before my trip, when I went in to both of the banks I use, asked the person in charge of this kinda thing for a specific breakdown of the ATM vs VISA/AMEX charges...and, neither of them knew the answer! It took a bit of time until they cobbled together the information...probably because they don't have a lot of clients asking these questions!

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Brenda

Diva--are you still there in Florence? I have B of A, and I called them about using my ATM in ITaly, and they said there has been a change and now there is a $5 fee per transaction. The only banks that did not have a fee were Barclays in England and Deutsch in Germany (none in Italy, Switzerland, or Spain). This was a recent change because I had to talk to 3 different people to get the correct answer.

Medgirl,Not only is BofA charging $5/transaction they also charge 1% for conversion to dollars.ALL banks with a VISA logo charge 1%-3%,as of now, which may be invisible as it just reduces the exchange rate.Your bank makes money somehow.That is why I went to my credit Union today to change to a checking there which has a .85 charge and 1% conversion fee.RR

This message has been edited. Last edited by: Robert Rainey,

My ATM card costs me 1%, as mentioned in the posts above. It is really obnoxious that most credit cards have a 3% surcharge for currency conversion now, but in the scheme of things, the 2% difference is trivial.

You might lose 100% to theft if you carry cash...that's nontrivial. You might lose half a day changing money if you carry TCs...that's nontrivial. But ATMs, credit cards, whatever, it is not worth sweating the small stuff.

This message has been edited. Last edited by: RK,

My change to the credit union card will save me 50 dollars or more,anyone who has an extra 50 dollars please forward it to me i will gladly accept.RR

quote:

That is why I went to my credit Union today to change to a checking there which has a .85 charge and 1% conversion fee.RR

Robert, not that I keep track of your life, but weren't you distraught when we all had that lunch last year in Florence because your credit union card somehow didn't work?

Marian good memory,Yes that's because I had a savings account,now it is a checking account as well with a 1000 dollar daily limit! also has a visa logo so can be used as a charge card.
RR

Robert, for B of A, do you know if there are Barclays or Deutsche branches in Italy, and if so--are they "free" (minus the 1%) to use just as they are in the UK and Germany?

I am planning on using a combo of cash and credit cards. I called each of my credit cards and it seemed that the fees would vary from 1-3%. I'm going to use the Visa that I get 1% rewards on, so that should eat the 1% fees....

All Atm's and Visa will have a 1-3% currency exchange charge.If you find those two particular banks there is no $5 surcharge but still a 1% currency fee which isn't bad,but 3% when you may be spending lets say 3000 dollars
would be a 60 dollar difference.I would say that it is easier to find a credit union or other institution with a low fee and not spending time searching for those particular banks.RR

Robert, have to disagree slightly. There was no surcharge on our ATM transactions last month - I checked the exchange rates on the days we withdrew and they were comparable to the rate I was seeing in the papers but then again, our bank could be an anomoly.

I agree , we always get a rate of no more than 3 cents above and most of the time lower than what I am looking at on CNBC Europe..... We have a checking account with 5/3 in Louisville and just make cash withdrawals from the bank right around the corner in San Venanzo. Sometimes we get a rate less than what is on TV.We are never charged a fee altho we know people who are charged $5 for every withdrawal. I Would never bring more cash than absolutley necessary because the rates in the US are terrible. When I go into AAA to get an IDP I always ask what their rates are and cringe .So I guess we have a good bank too. It's a good thing because if not ,with the weakness of the dollar and a lot bank fees too, we couldn't afford to live here.Art