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When traveling to Europe, where the euro is the predominant form of currency, what is the best way to handle converting your US $ into Euros? |
Here are a couple of suggestions from clients who recently traveled abroad.
- Don’t bother with traveler's checks. They create a problem when trying to cash them. Most shopkeepers will not cash them so you will need to find a bank.
- Call your bank (ATM card holder) to see what type of fees they might charge for you to use your ATM abroad. These fees might be called “cashpoints” in other parts of the world. In one client's case (her ATM was through Wachovia), the bank only charged a 1% service fee for using the ATM in Switzerland. They did not charge any other ATM fees (but check with your bank on that too, before using).
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Using an ATM machine has recently been considered to have the best rates and lowest fees but that might be changing soon, so even if you have used your ATM to convert money previously, please recheck with your bank for the most current rates. Some banks have started charging ridiculous fees (up to $10 per ATM transaction or 2-3% for withdrawing cash overseas). It is best to check with the bank first so you are not surprised later.
ATM machines are pretty readily available in most cities in Europe and may be the most convenient way to access money without having to purchase huge amounts at one time. This was the conversion method of choice for most of my clients. |
- Call your credit card companies to find out if they charge just the conversion rate (ie: Capital One credit card) or the conversion rate plus a 1-3% fee. Each credit card companies have different rules so please check ahead. When my group called 8 different credit card companies, the only one that did not charge a fee on top of the conversion rate was Capital One. I am not pushing this credit card- I do not own or carry one. This was information from 3 clients who called 8 different credit card companies between them.
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Do not use your credit card for cash withdrawals. Most credit card companies charge very high fees plus immediate finance charges. |
- Advise your bank (ATM card holder) and any credit card companies that you will be using the cards overseas. They will need to note this in your record so that they do not shut down your account due to potential fraud. Please do this approximately 2 weeks prior to departure.
- Check the exchange rates before you leave on your trip to see what the most current rates are. You won’t get the same rate (bank to bank rate is always lower) but you have a point of reference.
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Converting money in advance can be handled in a number of ways. |
- One client who was taking all private tours off a Mediterranean cruise needed to pay each driver in cash (Euros) upon being picked up for the tour. They felt that they needed to have the Euros readily available and ordered the Euros at their local bank. They were mailed the money within a couple of days.
- There are a number of currency exchange services that I will be looking into in the future for my clients use. Keep checking back in the near future and I may have some more info on this.
- Convert a small amount of money in the airport before you leave. The exchange rate may not be the best, but this will give you some local currency for tipping cab drivers, bell hops. Etc.
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If you are not great at math, bring a small calculator with you to figure out the conversion rate. It may save you some time and frustration. |
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