Converting dollars to Euros

[Cruising...our happy place]

Where do you recommend as the best place in the US to convert dollars to Euros? Bank? Airport? Elsewhere? Or on board ship? Know the exchange rate can change but not sure what the approx exchange fees might be. Thanks.

 

 

Sent from my iPad using Forums

[calliopecruiser]

Where do you recommend as the best place in the US to convert dollars to Euros? Bank? Airport? Elsewhere? Or on board ship? Know the exchange rate can change but not sure what the approx exchange fees might be. Thanks.

 

 

Sent from my iPad using Forums

Use an ATM when you arrive -- that gives you the best rate and also means you're not carrying a lot of money through airports. I usually convert a little bit before I go -- enough for lunch or a cab -- in case the nearest machines are too busy or broken, but most of the money I need I get there.

 

In my experience in Europe, some ATMs charge a service charge, but others do not.

[thinfool]

Where do you recommend as the best place in the US to convert dollars to Euros? Bank? Airport? Elsewhere? Or on board ship? Know the exchange rate can change but not sure what the approx exchange fees might be. Thanks.

 

 

Sent from my iPad using Forums

 

See post #2.

 

If you happen to need or want a good ATM account, Schwab bank and Capitalone have fee reimbursed/no foreign transaction fee ATM accounts available. Great for travelers.

[cruisemom42]

Agree with the above posters. Get a small amount ahead of time from a bank, if it makes you feel more comfortable. But ATMs have the best exchange rate (even factoring in service charges) and are readily available in every city, town, port -- in short, unless you're going way off the beaten path.

 

Do let your bank/credit union know that you will be traveling outside the US to avoid having your account frozen due to suspected fraud.

 

(Also good to know: try to use ATMs attached to actual banks. Don't fall for the Travelex machines in airports that LOOK like ATMs -- they are not.)

[Nitemare]

definitely not onboard the ship!

[marco]

And on another note....Last August we were in Europe and used a CC for most purchases. The majority of places asked if we wanted it charged in euros or dollars. If you choose dollars, there is no transaction fee and the charge is based on that days currency exchange rate. Worked out VERY well!

[snowskier]

I have changed my whole philosophy on this. I used to change a small amount before going and then use an ATM. Now I change a bit more before going.

 

If there just happens to be some type of event that causes chaos in the country or airport I am visiting, cash will be king. I don't want to be stuck with a just a credit card and no place it can be used if there is an emergency.

 

I do the same at home -- keep some cash tucked away -- when that hurricane, tornado, earthquake, wildfire comes, ATMs will be empty and chances of electricity being around is slim. Cash is king.

 

Just something to think about.

 

We all do things in a different way.

[whogo]

Are you a US resident? Expect to pay a markup of 5% or more at US banks. Any delivery or other fees make your effective markup much higher. I have not seen anyone beat Wells Fargo's rates. Avoid delivery charges by buying from one of their international teller locations.

 

US credit cards markup foreign purchases by anywhere from nothing to 3%. Check with your credit card issuer for details.

 

Withdrawing money from an overseas bank's ATM costs you 0% to 5% plus a withdrawal fee of $0 to $5. Check with your bank for details. European banks do not charge ATM fees, all fees are from your debit card issuer.

 

Travelex in US airports marked up currency 11% the last time I checked. Their $9.99 fee increases that 11%, especially on small purchases. The $9.99 fee is waived at some purchase point. An internet search will turn up phone numbers, call for a quote., if you'd like to double check the bad news.

 

Overseas exchange bureaus might sell currency at whatever they can get. I have been quoted markups of over 22%. Airport exchange bureaus get a particularly bad rap. I know of an exchange bureau in London which charges less than 2%, but good luck finding a place like that. I was badly short changed by a European exchange bureau in 1973 and have been leery ever since.

 

Your cruise ship may offer foreign currency. I was quoted a markup of about 6% on the Prinsendam last November.

 

If you remember your junior high math, you can figure the markup on any currency quotes you receive by comparing your cost to the interbank rate as shown on www.oanda.com or similar websites.

[purduemom1]

And on another note....Last August we were in Europe and used a CC for most purchases. The majority of places asked if we wanted it charged in euros or dollars. If you choose dollars, there is no transaction fee and the charge is based on that days currency exchange rate. Worked out VERY well!

 

Allowing the merchant to charge you in dollars is called DDC-dynamic currency conversion and should be declines. Here is what Rick Steves has to say about DDC.

 

 

https://www.ricksteves.com/travel-tips/money/card-fees

Avoid dynamic currency conversion (DCC).

Some European merchants — capitalizing on the fact that many Americans are intimidated by unusual currencies — cheerfully charge you for converting their prices to dollars before running your credit card. Dynamic currency conversion may seem like a nice perk, but you’ll actually end up paying more. The dollar price is usually based on a lousy exchange rate set by the merchant — and to make matters worse, even though you’re paying in “dollars,” your credit-card issuer may still levy its standard foreign-transaction fee. The result: the “convenience” of seeing your charge in dollars comes at a premium.

Some merchants may disagree, but according to DCC provider Planet Payment, you have the right to decline this service at the store and have your credit-card transaction go through in the local currency. If you’re handed a receipt with two totals — one in the local currency and the other in US dollars — circle or check the amount in the local currency before you sign. If your receipt shows the total in dollars only, ask that it be rung up again in the local currency.

[cruisemom42]

And on another note....Last August we were in Europe and used a CC for most purchases. The majority of places asked if we wanted it charged in euros or dollars. If you choose dollars, there is no transaction fee and the charge is based on that days currency exchange rate. Worked out VERY well!

 

Did you double-check your receipts against your credit card bill when you got home? Because this is something most travel experts strongly warn AGAINST.

 

When you allow the store to charge you in your local currency, the credit card company still looks at it as a transaction in whatever currency is used in that country (e.g., euros) and will charge you a foreign conversion fee (unless you have a credit card that specifically waives this charge) of 2-3% usually. Even if that isn't true of your card, you are allowing the merchant to decide on the conversion rate, versus using the standard rate that would be applied via your credit card company -- which is very close to the actual dynamic rate. The merchant's rate is not as good, and can be quite bad...

 

This is called dynamic currency conversion, and I would advise against it, based on everything I've read. Here's a clearer explanation (5th paragraph):

 

https://www.ricksteves.com/travel-tips/money/card-fees

[marco]

Did you double-check your receipts against your credit card bill when you got home? Because this is something most travel experts strongly warn AGAINST.

 

 

 

 

Yes indeed, we did. No issues, no problems. And s far as I could calculate, the the exchange rate was what the "official" exchange rate actually was. We go somewhere in Europe 2 - 3 times a year and have never had a problem. Our next trip will be in May and whenever offered, we will opt for "charge in dollars". Friends have also done this and haven't had any problems.

Edited April 8, 2017 by marco

[wheezedr]

And on another note....Last August we were in Europe and used a CC for most purchases. The majority of places asked if we wanted it charged in euros or dollars. If you choose dollars, there is no transaction fee and the charge is based on that days currency exchange rate. Worked out VERY well!

Have to agree with cruisemom42 and purduemom1 that what you are advising is opposite to what all financial services would suggest. If you allow the local vendor to do the conversion you have given control of the exchange rate to them. You should always pay in the local currency so that your financial institution is the exchanging entity. You should carry one or more cards that have zero foriegn exchange fees. There are many of them from a variety of institutions.

In addition for the OP if you have an account at Schwab or a comparable brokerage you should be able to get a fee free ATM card. As previously noted make sure your ATM withdrawals are from bank ATM's.

[foodpolice]

Allowing the merchant to charge you in dollars is called DDC-dynamic currency conversion and should be declines. Here is what Rick Steves has to say about DDC.

 

 

https://www.ricksteves.com/travel-tips/money/card-fees

Avoid dynamic currency conversion (DCC).

Some European merchants — capitalizing on the fact that many Americans are intimidated by unusual currencies — cheerfully charge you for converting their prices to dollars before running your credit card. Dynamic currency conversion may seem like a nice perk, but you’ll actually end up paying more. The dollar price is usually based on a lousy exchange rate set by the merchant — and to make matters worse, even though you’re paying in “dollars,” your credit-card issuer may still levy its standard foreign-transaction fee. The result: the “convenience” of seeing your charge in dollars comes at a premium.

Some merchants may disagree, but according to DCC provider Planet Payment, you have the right to decline this service at the store and have your credit-card transaction go through in the local currency. If you’re handed a receipt with two totals — one in the local currency and the other in US dollars — circle or check the amount in the local currency before you sign. If your receipt shows the total in dollars only, ask that it be rung up again in the local currency.

 

This is also true for the ATMs. One of the options given is for the ATM to convert the currency for you. Don't choose this option & choose the option to withdrawl in the currency of the country you're in, ie: Euro while in Germany, Hungarian forint while in Budapest, etc.

 

Note, while in Hungary or any other European countries where you withdraw "local currency" make sure you take only the amount you really need, unless you plan to return to that country, say Hungary some other time. For example the Hungarian forint is not readily accepted in other European countries or if it is, you may likely loose out in the exchange factor. However, when in Germany, taking out more Euros will not be a problem, as a lot of other European countries uses it as their local currencies & that you're more likely to visit these places more.

[Cruising...our happy place]

Thanks! Very helpful reminders. Take care of a key "to do" list item.

 

 

Sent from my iPad using Forums

[CPT Trips]

And on another note....Last August we were in Europe and used a CC for most purchases. The majority of places asked if we wanted it charged in euros or dollars. If you choose dollars, there is no transaction fee and the charge is based on that days currency exchange rate. Worked out VERY well!

 

That is contrary to my experience. Not only was I charged a premium on the conversion from euros to dollars by the vendor, but the foreign transaction fee was added by my bank.

[Hlitner]

The bottom line is that anytime you "convert" currency you pay a price...which does vary. Exchanging on a ship is generally a pretty lousy exchange rate but may not be an issue for those that are not planning on using a lot of Euros (or other foreign currency). The best deal on Euros (and nearly any currency) is to simply use local ATMs. But this assumes your ATM issuing bank does not charge you ridiculous fees. There are plenty of Credit Unions and smaller regional banks that do not charge any foreign exchange fees for using an ATM....other than the standard 1% transaction fee (built into the rate). Many banks (in Europe) will no longer exchange currency and the various money changing agencies can often take 5-10% (by using a lousy exchange rate and sometimes charging fees).

 

ATMs are easy and, for those of us who spend a lot of time traveling (we are out of the country more than 6 months a year) it makes sense. And we disagree with the poster who suggested allowing merchants to charge your card in dollars. In most cases (and there are exceptions) that is actually somewhat of a con. The process is known (in the industry) as DCC (Dynamic Currency Conversion) and its more complicated then you might think. But the merchant will usually set their own exchange rate (which is often among the worst) and then you still will likely pay a foreign exchange fee (or percentage) levied by the credit card company. You can Google "Dynamic Currency Conversion" and read about the con....which is to say that you will always do better by insisting the merchant charge your purchase in the local currency. If you don;t want to look it up here is a link to a Rick Steves article that includes some of the info:

https://www.ricksteves.com/travel-tips/money/card-fees/

 

As to credit cards, there are some that charge zero foreign exchange fees. One of the best is the CapitalOne Master Card (no annual fees and no foreign exchange fees). And now there are plenty of other good cards..with no foreign exchange fees. Since we do a lot of international travel and much of our trips are very independent (no tours) we go through lots of foreign currency...so this stuff matters. But many cruisers who book cruise line excursions (and pay in dollars) really do not spend enough foreign currency to make that much difference. Consider that if you spend $1000 of foreign currency on your trip...even if you pay 5% you are only losing $50.

 

Hank

[marco]

Fortunately, we've always had good experiences. When they say "euros or dollars" I take out my phone, do the calculation and figure what the euro price would be in dollars. When the ring it up in "dollars" the receipt I have to sign is in dollars, not euros. It's always been what I expect it to be and that's always been the the amount that on my CC bill when I get it. I guess we've been fortunate to never have had an issue and it's always worked out for us.