Help buying Euros dilema

[Hlitner]

The percentage on top of the flat fee was news to me. It seems to be common:

 

http://www.nerdwallet.com/blog/banking/debit-card-foreign-transaction-international-atm-fees/

 

This article is not totally accurate for most Americans. So lets relate what a banker once explained to moi. Most (not all) US/Canadian ATM/Debit cards work on various networks (such as Visa, Plus, etc) which make them compatible with ATMs around the world (although its good to have a 4 digit PIN and know it in numbers). When you use your ATM/Debit card in Europe you will usually not be charged a fee by the local bank (we are not sure if this is a specific European banking law). But your transaction must be facilitated by an International Electronic Financial Network and most of the time it is handled (in the background) by Visa International who electronically converts the currency and sends the transaction through to your North American bank. Visa International uses the latest wholesale rate of exchange (the best rates) and adds 1% as their cost of doing business. You will not see this 1% since it is built into the exchange rate.

 

Any other fees are those imposed by your own bank or Credit Union. For example, DW and I have 3 different ATM cards (our backup when we travel). Two of these cards are issued by large Credit Unions who impose ZERO (none) fees on foreign transactions. Our third card is issued by a commercial bank who does charge a transaction fee (I think it might now be $3) plus an additional percentage (3%) on foreign transactions. We do not use this 3rd card unless absolutely necessary :).

 

Over the years we have become big fans of large Credit Unions. In many cases the credit unions will actually pay us to use their services (as opposed to commercial banks that charge users for nearly everything). In fact, one of our credit unions actually reimburses us for fees charged by other bank ATMs. So if were to use a Chase ATM and get charged $3 for using that ATM, my credit union will actually give me that $3 back (immediately put into my account). This same credit union actually made a nice profit last year and simply gave a year-end dividend to all of its members (about 500,000 people). There are other good options for travelers i.e. we know a few folks that like Charles Schwab accounts.

 

Hank

[buggins0402]

Any other fees are those imposed by your own bank or Credit Union. For example, DW and I have 3 different ATM cards (our backup when we travel). Two of these cards are issued by large Credit Unions who impose ZERO (none) fees on foreign transactions. Our third card is issued by a commercial bank who does charge a transaction fee (I think it might now be $3) plus an additional percentage (3%) on foreign transactions. We do not use this 3rd card unless absolutely necessary :).

 

 

Hank

 

I think what you cited above was the point of the article. Personally, I always knew about the flat fee, but didn't realize that some banks get really greedy with the additional percentage.

[belkin]

We would like to use ATMs while in Europe but I have one question. How will I know the difference between a bank ATM and a private ATM?

[cruisemom42]

We would like to use ATMs while in Europe but I have one question. How will I know the difference between a bank ATM and a private ATM?

 

Best bet is to look for a bank ATM that is located right outside (or in the vestibule of) a bank branch. These are quite easy to spot. The ATM should have the same branding as the bank. There are many banks in various countries of Europe -- if you are worried you might familiarize yourself with a few of the more common banks in the countries you'll be visiting.

 

Sometimes, like at airports, in tourist areas of cities, you might find a bank ATM that is not next to a branch. The ATM should have bank branding (look above the machine) and should also display the bank name/information on the screen.

 

Here are a few examples of ATMs located at bank branches:

 

http://blogs.reuters.com/great-debate/files/2015/07/eu-drachma-1024x648.jpg

 

http://c8.alamy.com/comp/E6PE02/woman-withdrawing-money-from-atm-at-bank-of-scotland-dunbar-east-lothian-E6PE02.jpg

 

http://cdn.phys.org/newman/gfx/news/hires/2011/lacaixahasso.jpg

[belkin]

Thanks cruisemon42. I was most concerned about getting euros at the airport when we land and how to know if I was accessing a private ATM or one associated with a bank. Loved the bank pictures and I will try and familiarize myself with the banks before we go. Most of our time will be spent in Athens, Italy, and Barcelona.

 

Will the ATM show us how much in euros we will be getting before we complete the transaction?

Just thinking I would like to know and be able to cancel the transaction if I don't like the exchange rate.

[cruisemom42]

Thanks cruisemon42. I was most concerned about getting euros at the airport when we land and how to know if I was accessing a private ATM or one associated with a bank. Loved the bank pictures and I will try and familiarize myself with the banks before we go. Most of our time will be spent in Athens, Italy, and Barcelona.

 

Will the ATM show us how much in euros we will be getting before we complete the transaction?

Just thinking I would like to know and be able to cancel the transaction if I don't like the exchange rate.

 

 

To start with, you can usually select an English language option -- usually indicated with either a British or American flag.

 

You will be selecting your withdrawal amount in euros, not dollars. So if you select 200 -- that is what you'll get, in euros. You do not see the exchange rate, but in all my years of using ATMs, the rate is closer to the official exchange rate than you can get anywhere else.

 

It will be up to you you know whether your bank also charges other fees for withdrawal -- they are not generally charged by the European banks but by your own home bank (e.g., a $5.00 withdrawal fee, a conversion fee).

[belkin]

To start with, you can usually select an English language option -- usually indicated with either a British or American flag.

 

You will be selecting your withdrawal amount in euros, not dollars. So if you select 200 -- that is what you'll get, in euros. You do not see the exchange rate, but in all my years of using ATMs, the rate is closer to the official exchange rate than you can get anywhere else.

 

It will be up to you you know whether your bank also charges other fees for withdrawal -- they are not generally charged by the European banks but by your own home bank (e.g., a $5.00 withdrawal fee, a conversion fee).

 

That makes sense. We bank at 5th 3rd and they charge 3%. We have been considering joining a credit union and this may just be the incentive to finally do it. Since we cruise in September I have time to decide.

 

So far I have found a couple of great links listing banks in France and Greece. Now I just need to find Spain and Italy and I will be all set.

 

Thanks again you have been really helpful.

[Hlitner]

Keep in mind that all banks have ATM daily withdrawal limits. These are set by your own bank ($500 per day in the USA is very common) but can also be set at a lower level by the bank operating the ATM. If you try to withdraw more then your max amount the entire transaction will be refused. If you keep trying with the same ATM there is a chance that the ATM will "eat" your card. So we never try more than twice at a single ATM/bank. Know your daily limit (ask your bank if you are not sure) and convert that to Euros. Then we suggest staying somewhat under the max to allow for variation in exchange rates and fees.

 

Hank

[Capt_BJ]

I was a complete novice on this when we went to EU this summer past

 

I got Florins in the airport ATM in Budapest

 

and EUROs several times in ATMs between Hungary, Austria and Germany.

 

I never had a problem .... never really had a concern

 

altho once I had to sell EUROs to fellow cruiser who HAD over thought!!!!!

 

Don't sweat it (unless you bank really SUCKS on this sort of thing!!!)

 

OH .... I bank USAA . . . .

Edited January 23, 2016 by Capt_BJ

[belkin]

Keep in mind that all banks have ATM daily withdrawal limits. These are set by your own bank ($500 per day in the USA is very common) but can also be set at a lower level by the bank operating the ATM. If you try to withdraw more then your max amount the entire transaction will be refused. If you keep trying with the same ATM there is a chance that the ATM will "eat" your card. So we never try more than twice at a single ATM/bank. Know your daily limit (ask your bank if you are not sure) and convert that to Euros. Then we suggest staying somewhat under the max to allow for variation in exchange rates and fees.

 

Hank

 

Our bank limit is $500 and they did tell me I could increase it. Seems like I would be safe asking for $400 unless that is over the limit of the ATM.

 

I will remember not to try an ATM more than twice as well just be be safe.

 

Thanks

Mary

[belkin]

I was a complete novice on this when we went to EU this summer past

 

I got Florins in the airport ATM in Budapest

 

and EUROs several times in ATMs between Hungary, Austria and Germany.

 

I never had a problem .... never really had a concern

 

altho once I had to sell EUROs to fellow cruiser who HAD over thought!!!!!

 

Don't sweat it (unless you bank really SUCKS on this sort of thing!!!)

 

OH .... I bank USAA . . . .

 

 

Yeah this is our first trip to Europe and I guess I am a little nervous about trying to get money out of the ATMs if I go with none.

[CathyCruises]

It's essentially just like getting money out of the ATM at home except it's a different type of currency. Use all the same cautions you would use at home and you'll be fine v

[tidygirl]

Well we were "crazy" and took all our cash with us. My hubby, 4 young adult kids and I all wore money belts (under clothes) and just kept out a limited amount of cash to access easily. Once onboard the ship money went into the safe. We have done this the last 2 years, once cruising out of Spain and last Venice, also doing public transportation at that.

I think it would have been a major pain trying to get enough cash out of an ATM machine to cover what 6 of us needed everyday!

I go on vacations to see the sights not look for banks and ate machine. Just my opinion.

[cruisemom42]

I go on vacations to see the sights not look for banks and ate machine. Just my opinion.

 

I see this statement and I never understand it at all. Of course I go on vacation to see the sites, but I have never spent any amount of time looking for a bank or ATM. You just pass by them in the normal course of walking around. :cool:

 

Most people spend more time finding a toilet or shopping for postcards than I ever spent getting money out of an ATM!

[tidygirl]

Sorry but if you have a limit of 200-400 per day and you have 6 people you are paying for food and excursions (that require cash payment) that's not going to work.

[cruisemom42]

Sorry but if you have a limit of 200-400 per day and you have 6 people you are paying for food and excursions (that require cash payment) that's not going to work.

 

Most banks will raise your limit if you request it. Sequential withdrawals from the same machine usually can get around the "per transaction" limit. Or, with six people, perhaps two of the six could withdraw amounts.

 

I'm not suggesting everyone should only get euros from ATMS. I just disagree that one spends a huge amount of time looking for them, which is what you seemed to imply.

[IsanTom]

If your cruising later this year (2016), the Euro will be dropping to $0.97 to a dollar! When it drops below a dollar, I would start buying some Euros! I'm cruising in October, so I'll buy some when I arrive in Frankfort Airport!

[dogs4fun]

If your cruising later this year (2016), the Euro will be dropping to $0.97 to a dollar! When it drops below a dollar, I would start buying some Euros! I'm cruising in October, so I'll buy some when I arrive in Frankfort Airport!

I have heard rumors of the Euro possibly achieving parity with the USD sometime in 2016 but nowhere have I heard that this will definitely happen and that the rate will be $0.97 to the USD. May I ask how you came by this information?

 

Well we were "crazy" and took all our cash with us. My hubby, 4 young adult kids and I all wore money belts (under clothes) and just kept out a limited amount of cash to access easily. Once onboard the ship money went into the safe. We have done this the last 2 years, once cruising out of Spain and last Venice, also doing public transportation at that.

I think it would have been a major pain trying to get enough cash out of an ATM machine to cover what 6 of us needed everyday!

I go on vacations to see the sights not look for banks and ate machine. Just my opinion.

I travel to Europe every year and have never had a problem finding an ATM - never have to go out of my way to find one. Your bank can raise your ATM withdrawal limit if you request it. I use my CC for major purchases (no foreign transaction fee) and cash only for items that require cash payments. Just a thought.

[belkin]

It's essentially just like getting money out of the ATM at home except it's a different type of currency. Use all the same cautions you would use at home and you'll be fine v

 

I am sure it will be ok it is just a little fear of the unknown but it sure sounds like it should be fairly easy.

[CruiserBruce]

If your cruising later this year (2016), the Euro will be dropping to $0.97 to a dollar! When it drops below a dollar, I would start buying some Euros! I'm cruising in October, so I'll buy some when I arrive in Frankfort Airport!

 

And you can predict this how? The exchange rate is not on some planned schedule.

 

I have heard rumors of the Euro possibly achieving parity with the USD sometime in 2016 but nowhere have I heard that this will definitely happen and that the rate will be $0.97 to the USD. May I ask how you came by this information?

 

There have been predictions of parity for a couple of years now. Given that it has gotten as low as 1.04 euros to the dollar, that is pretty close to parity, and certainly far better than it has been for our last 3 or 4 Europe trips in the last 6 years, when we have seen it as high as 1.38.

 

So parity is fine, but not sure how one can predict .97 or anything similar.

 

We have never had any problem finding ATMs with little or no looking, there are just there, almost everywhere. We use credit cards a lot- not sure why a group of 6 wouldn't be using credit cards as well. I understand fear of the unknown...we have experienced it as well. We are trying to help you get past it so you suffer less than perhaps some of us have.

Edited January 24, 2016 by CruiserBruce

[Karennella]

We always take a fair amount of cash as we buy it in Sydney much more cheaply than the rate from an ATM in Europe. Otherwise it is credit cards. If we lose a credit card it is a total nuisance to get it replaced from home.

[IsanTom]

I keep up with the Financial News on a weekly basis and the forecasts for Euro is down and the dollar is up, so it's worth waiting before buying your Euros! Have a great cruise

everyone!

[trvlgirlmq]

I normally use the ATM exclusively for Euros but did go ahead and get the money we needed for the rest of our apartment rental payment and the taxi fare. I only did this because our flight does not arrive until 11 pm and in the event we had a problem with the ATM in the airport I did not want to have to look for another one late at night after 26 hours of travel with 2 kids!

 

Otherwise I always say the ATM is your best bet.

[dabear]

We take a few hundred dollars of local currency b4 we leave and then use atm's when we need more euros. Never had a problem and I prefer to save the 7 to 8 percent fee when buying foreign currency in the US.

[SLOTheta]

. The bank representative I spoke with said it is easy to do, but most folks don't know they can do that. We had been with the bank many years, so not sure if that made a difference

 

Hank, or others, do you keep separate accounts at different banks? I not sure most people do, as bank fees can be involved in doing this. So I guess it is possible that the monthly fees would/could out weigh the cost of exchanging fees. Thoughts?

.

 

 

I would recommend not removing daily withdrawal limits when traveling. I used to work internationally and we were told not to do this for safety reasons. I had two colleagues kidnapped, it's the petty kidnapping where they nab you as you tab a cab and take you by gun to your ATM. Luckily, both had lowered their daily limit (as we are told to when working in foreign countries). They only got $250 and $500. If they had no limit, their ATM would have been cleared out. The bank refunded their money and they got their money back, but it took awhile (10 days). Imagine having you account cleared out and hoping the bank will help you quickly.

 

Just last month, a friend was drugged in Brazil and they also took $500. Would have taken more if there wasn't a limit.

 

I Also recommend taking different ATM cards with you. If you lose one or get one stolen, you still have access to money. I also have several bank accounts with no fees. Schwab is great - no monthly and no ATM fees around the world. I also have 2 credit union accounts that have no monthly fees and no ATM fees.

 

 

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