Exchange Rate $ to Euros Onboard

[Pet Nit Noy]

As a rule you should always opt to pay in local currency. The only time when it might be cheaper to pay in [$$$] is where your home bank charges a foreign transaction fee higher than the DCC charge.

I've edited your reply to use US $$$ instead of pounds since that is the topic of the thread. No need to confuse the issue about a third currency, pounds.

This is what you wrote in post #20: If you are using a credit card always select "pay in your home currency" not local.

LHT28 and I took issue with that post. This post contradicts your earlier recommendation.

[Hawaiidan]

[/color]

I've edited your reply to use US $$$ instead of pounds since that is the topic of the thread. No need to confuse the issue about a third currency, pounds.

This is what you wrote in post #20: If you are using a credit card always select "pay in your home currency" not local.

LHT28 and I took issue with that post. This post contradicts your earlier recommendation.

 

 

Unless you have a local bank account in that country, all credit cards are going to default to your home country's currency

If I charged in euros, and had no euros in my bank and no bank account in europe with euros, how is it possible to pay in local currency if I have none...????

[LHT28]

Just came back from Europe recently

 

no retailer asked if we want them to convert to CAD

 

they billed us in Euro, NOK or DKK

 

Maybe for Brits they offer to convert to GBP ???

[Hawaiidan]

Just came back from Europe recently

 

no retailer asked if we want them to convert to CAD

 

they billed us in Euro, NOK or DKK

 

Maybe for Brits they offer to convert to GBP ???

 

Likewise... never ever heard of this.... You buy in local currency 100% and pay in yours. Only exception was in Poland in 1979 where there were dollar stores in Poland that only took US$$$

[pinotlover]

Pet’s explanation is not always correct. Some of the larger hotel chains and/or their franchises, for example, will have both Euro ( or home country) denominated accounts as well as US dollar denominated accounts. Charges in US dollars go directly into their dollar denominated account while Euro charges go into Euro accounts. There are no conversions for the $ transactions in that case. Other merchants doing regular Transatlantic business often times have the same arrangement.

 

One has to understand that for all credit card transactions there is a middle man between the shop owner and the bank(s). The directions given to the middle man drives where the money actually goes.

[ORV]

I have been asked a few times while paying with a credit card in a foreign country if I wanted to charge in their money or have them convert. There was an option on the CC machine. I always pay in the local currency.

[Mura]

On occasion we have been asked if we wanted to pay in USD or the local currency. (Not really lately!)

 

 

If I'm remembering correctly the advice has been to pay in the local currency -- if you ask them to charge you in dollars (or whatever YOUR currency is) there is a currency conversion charge, and then another one when the charge is converted to your home currency by your bank.

 

 

Paying in the local currency has always worked for us.

 

 

Mura

[rallydave]

Have read several versions of the pay in home currency vs. paying in the local currency. None of them were completely correct. First of all ALWAYS pay in local currency. This is because the merchant is converting the local currency to your home currency at a very unfavorable rate, sometimes 10% or more different than the million dollar rate the credit card companies use.

 

Some use the ploy that paying in your home currency will avoid foreign currency fees and that is untrue. Even if you pay in your home currency the charge comes across as a foreign charge and the transaction fee is charged. Others have said your local bank converts the foreign currency to your local currency. That is NOT true. The conversion is made by the company above your local bank that issues the card. That would be Visa, Master Card, American Express, Discover and all the other companies that have their name on the card but, NOT your bank.

 

Bottom line is to make sure you use only a credit card and not a debit card and make sure the credit card you use has no foreign transaction fee. There are plenty of cards like that available. And, always ignore the offer to charge you in your home currency and that will cost you plenty.

[Mura]

Dave is saying what I have always understood to be the case!

 

 

The last time (as I recall) that we were asked if we wanted to billed in the local currency or dollars was back in 2006, in Ireland!

 

 

Can't say that is the standard situation, of course.

 

 

Mura

[babysteps]

Dave is saying what I have always understood to be the case!

 

 

The last time (as I recall) that we were asked if we wanted to billed in the local currency or dollars was back in 2006, in Ireland!

 

 

Can't say that is the standard situation, of course.

 

 

Mura

 

In Ireland now. Most cc transactions are automatically euros (no choice offered). ATMs (many? We have only used one) give a choice euros or home currency. Stores oriented to tourists seem most likely to offer option to pay in home currency in a credit card.

[warburg]

Onboard two different O European cruises last year. Conversion rate typically ran about 90% of market. They only paid in paper, no coins.

 

 

 

 

Most credit cards hit you with a 4-5% fee and of course the exorbitant interest rates starting immediately for cash advances. One must do their own math to calculate which is better for them.[/quote

 

Greeings from South Beach, pinotlover, from another Pinot lover. Good for the heart, I hear. DH and I lack enthusiasm for transaction fees so we only take cards abroad that don't charge them. I was pleasantly surprised just yesterday to learn that my JetBlue card is one of them. American Express Platinum and our Capital One cards will also be in our wallets. Prolonged stays in foreign ports can get expensive, so we prefer to skip the transaction fee. As far getting Euros abroad is concerned, if your bank has a branch where you are, use your bank card. Citibank has a branch in Berlin, and we got the locals' rate. In any case, enjoy your trip.

Mary

[pinotlover]

Stanley;

 

My credit cards do not charge foreign transaction fees on purchases from any merchant. However, they all charge fees on cash advances which is what happens when you use your credit cards to obtain foreign currency purchases.

 

Don’t confuse the two transactions! Check your cards closely.

[Valley Girl of VA]

I suggest to many that they open a Schwab bank account and get the fee free ATM/debit card. This is the card that I use when traveling all around the world. Before I leave the country, I limited how much money can be withdrawn in one day, in the event of loss of card. My husband has his own card and I bring another back up card, just in case.

 

I agree with several of the posters that it is best to pay in local currency. The only country where I was asked was in Singapore. If you choose US dollars, you do not know what conversion rate they will apply.

[roberts2005]

As to those coins that you have leftover. I always find something to buy at the duty free at the airport. I give in all my coins and bills I don’t want to take home.

[DrHemlock]

Dave is saying what I have always understood to be the case! The last time (as I recall) that we were asked if we wanted to billed in the local currency or dollars was back in 2006, in Ireland! Can't say that is the standard situation, of course.

 

 

Mura

I would add that a new trick we encountered recently in Spain is the merchant who doesn't ask -- they convert unbidden to dollars because the bank's name on the Visa card is American. Maybe you catch it and tell them to start over; maybe you don't.

 

Or maybe you catch it, but the merchant states resolutely that the charge has already been processed so the currency can't be changed (as happened to us).

 

This was a small merchant in a small town who was unlikely to have a US dollar account as mentioned above, so even though we have a "no foreign transaction fee" Visa, we still ended up paying the local conversion rate.

 

Not a big deal in this case, but it taught me to state clearly when extending the card: "Euros, por favor."

[Hawaiidan]

I suggest to many that they open a Schwab bank account and get the fee free ATM/debit card. This is the card that I use when traveling all around the world. Before I leave the country, I limited how much money can be withdrawn in one day, in the event of loss of card. My husband has his own card and I bring another back up card, just in case.

 

I agree with several of the posters that it is best to pay in local currency. The only country where I was asked was in Singapore. If you choose US dollars, you do not know what conversion rate they will apply.

 

You loose in the long run when using a Debit card..frequently I use mine once for an initial chunk of petty cash, tips and some cabs... Any purchase over $10,I use my credit card.. With a Chase CC, no transaction fee , bankers rate AND you earn FF or Hotel points you can use later A debit card gives you nothing back Debit cards were developed by the bank to eliminate float of your charge. They get your money in a micro second in stead of 30 to 45 days later. Second, using a debit card many times will get a lock on your funds for 7 days or more... The bank locks your account even if you had a thousand bucks you can not get at it if you charged a 150 hotel room or Rental car.... Debit cards work only for small cash access in a foreign country.

[Valley Girl of VA]

You loose in the long run when using a Debit card..frequently I use mine once for an initial chunk of petty cash, tips and some cabs... Any purchase over $10,I use my credit card.. With a Chase CC, no transaction fee , bankers rate AND you earn FF or Hotel points you can use later A debit card gives you nothing back Debit cards were developed by the bank to eliminate float of your charge. They get your money in a micro second in stead of 30 to 45 days later. Second, using a debit card many times will get a lock on your funds for 7 days or more... The bank locks your account even if you had a thousand bucks you can not get at it if you charged a 150 hotel room or Rental car.... Debit cards work only for small cash access in a foreign country.

 

I do agree with much of what you say and I use my credit card to get the points as much as I can. Many of my Chase cards, not all, are fee free but there are some times where I have to use cash. In Argentina, the cab would only accept Argentina pesos. In some of the local markets, it was cash only. Some excursions was cash only - not credit card. Trust me, I am a points hoarder but there are times when I need cash so I use the Schwab debit card to get the cash - not to pay a vendor with it but to get cash to use the cash.

[Mura]

I do agree with much of what you say and I use my credit card to get the points as much as I can. Many of my Chase cards, not all, are fee free but there are some times where I have to use cash. In Argentina, the cab would only accept Argentina pesos. In some of the local markets, it was cash only. Some excursions was cash only - not credit card. Trust me, I am a points hoarder but there are times when I need cash so I use the Schwab debit card to get the cash - not to pay a vendor with it but to get cash to use the cash.

 

Normally we use local currency unless we know that the locals prefer U.S.dollars. But I'm surprised that your Argentina cab driver would only accept pesos. From what I've heard, their currency is in terrible shape. When we were in early 2002 -- admittedly quite a while ago! -- everyone seemed to want U.S. dollars.

 

When we did the Black Sea cruise on Regatta in the summer of 2012, most of the guides wanted dollars.

 

I sympathize with locals wanting their own currency because if you give them dollars, euros, whatever, they will have a currency exchange fee to deal with. Why would they want to do that?

 

But it remains true that in SOME countries, the dollar (or euro) is still supreme.

 

Mura

[rallydave]

Another recent example to watch out for, just purchased a day pass on Swiss transportation system and while checking out the web page gave me a choice of US dollars or French Francs. Well, easy to spot the difference as the Swiss Franc and USD are close to at par and the price in USD was about 8% higher than par so easy to pick Swss francs as used a no Foreign transaction credit card and saved over $10 that paying in USD would have cost. Not a lot of money but money that would have been spent for absolutely NOTHING!!!!

 

Didn't think this would happen buying from home on the internet but, it did so be watchful when purchasing from a foreign country on line.

[Hawaiidan]

I do agree with much of what you say and I use my credit card to get the points as much as I can. Many of my Chase cards, not all, are fee free but there are some times where I have to use cash. In Argentina, the cab would only accept Argentina pesos. In some of the local markets, it was cash only. Some excursions was cash only - not credit card. Trust me, I am a points hoarder but there are times when I need cash so I use the Schwab debit card to get the cash - not to pay a vendor with it but to get cash to use the cash.

 

Glad to hear.... I am hard core, If the dont or wont take my CC Taxi, Tour etc then I find someone who will. I ask taxis before entering if they accept.. Folks who say no, suddenly remember they do when you turn to walk away!! Amazing how that happens. There is NOTHING in a local market that interests me except to take a photo...its 99.9% junk and probably made in Bangladesh or China ( makers of manyHawaiian crafts)

[Aloha 1]

I suggest to many that they open a Schwab bank account and get the fee free ATM/debit card. This is the card that I use when traveling all around the world. Before I leave the country, I limited how much money can be withdrawn in one day, in the event of loss of card. My husband has his own card and I bring another back up card, just in case.

 

I agree with several of the posters that it is best to pay in local currency. The only country where I was asked was in Singapore. If you choose US dollars, you do not know what conversion rate they will apply.

 

Absolutely right! We do the same. The additional plus is that Schwab bases the conversion at the then current FX market rate, which is always lower than what your bank would charge ( via VISA, MC,etc.). No ATM or other fees. Just came back from Europe and my ATM conversions matched the FX market rate every time. Only use the card for cash and everything else I use points cards like Costco VISA where you also get 4% back for foreign travel charges!

[JPR]

Ask your bank for their best rate for VIP customers. (At least you’ll find out what they really think of you!)

[Cruise Junky]

You loose in the long run when using a Debit card..frequently I use mine once for an initial chunk of petty cash, tips and some cabs... Any purchase over $10,I use my credit card.. With a Chase CC, no transaction fee , bankers rate AND you earn FF or Hotel points you can use later A debit card gives you nothing back .

 

I hate blanket statements like this. My husband's debit card gives him cash back every year. I let him buy the big stuff and our foreign currency before we leave.

[Paulchili]

I hate blanket statements like this. My husband's debit card gives him cash back every year. I let him buy the big stuff and our foreign currency before we leave.

 

Money back is not all bad but does it give him enough money back to buy international business class tickets like a card giving back miles (for same amount of spending)?

[Cruise Junky]

Money back is not all bad but does it give him enough money back to buy international business class tickets like a card giving back miles (for same amount of spending)?

 

Oh, I'm not saying it's better, just that not all Debit cards are complete duds. Especially on places that don't take credit cards. I'm in the Dan camp of charge what you can for points.