euro vs credit card

[zocko123]

Need some help.Is it wiser to use a credit card for purchases such as hotels, private tours etc being the exchange rate is so high

[D4]

I'm not sure what you mean. For Americans, the exchange rate right now is great! It was 1.5 when we were in Europe in November/December.

 

We use a credit card that doesn't charge extra for foreign purchases. Schwab and Capitol One are the ones I know of.

[chipmaster]

Need some help.Is it wiser to use a credit card for purchases such as hotels, private tours etc being the exchange rate is so high

 

$ is $, in the end you got to convert the currency, won't matter if its cash or CC. The one thing with CC is if you pick one like Capital One they don't charge an conversion fee and the rate you get is the going rate for that day.

 

You pay by cash / ATM is generally the same provided you don't have ATM fees, or if you exchange cash you can find a bank that gives the same official rate and NO exchange fee.

 

In general I don't think you can beat the fee/conversion for something like Capital One.

[zocko123]

Thanks for the info looks like I need a Capital One card.

[RHefley228]

Is it wiser to use a credit card for purchases such as hotels, private tours etc being the exchange rate is so high

 

I have no idea what you mean by this; the Dollar/Euro exchange rate is whatever it is on any given day, and using a credit card has absolutely no effect on that. Where you will get killed financially is changing money at a Bureau de Change; they'll screw you either on the rate or on the fees. Using an ATM card to get Euros is going to get you the best rate available that day; using a credit card will get you the best rate on the day the transaction posts to your account.

[zocko123]

Very good I guess it is sort of like gambling.It is good to know the odds

[m steve]

I got a Capital one just for my foreign travel as Citi and Chase add fees. I will also buy some Euros before leaving for taxis, local purchases, and for non credit card establishments. I'm figuring 100 E per day for the 2 of us. I can always get additional at a wailing wall.

[Hlitner]

As others have said, there are credit cards and than there are credit cards! It is the same with ATM cards. They are not all the same and much depends on your own bank. For example, our bank (a large credit union) charges absolutely no transaction fees when we use our ATM card so we get the wholesale rate of exchange minus 1% (the standard cut taken by Visa International who handles most ATM transactions for the bank). That 1% is the best deal and will beat any currency exchange kiosk or bank. But some USA banks do charge a transaction fee which can change the equation so you need to question your bank about fees. As to credit cards, the best card is still the ones issued by CapitalOne since they do not charge any fees (or rip you off on the exchange rate). Other cards vary on their fees (which are sometimes hidden) which can range from 1% to over 3%. As an example, American Express currently takes a nice 2 1/2 % on every transaction. Many other cards take 3% which sometimes shows as a separate fee on your statement but others just take their cut off the exchange rate. As to the comment that Americans have a great exchange rate, that depends on your perspective. We used to buy Euros for 89 cents but now a Euro costs approximately $1.40. This means that the US Dollar has lost more than a third of its value against the Euro over the last few years. A meal in Paris that used to cost us $100 now costs over $150 for exactly the same thing without even factoring-in price and tax increases in Europe. One interesting irony is that it is often cheaper to buy European goods in the US than in Europe (its why many Europeans come to the US just to do their Xmas shopping).

 

Hank