I'm wondering if I should cash dollars to euros before leaving home

[amy417]

OK guys...please bear with me. I am new to all of this. Between DH and i we have three capital one credit cards. Two visa and one mastercard. If I wish to make straight up purchases I can use these cards correct? Are credit cards taken most places in Europe?

 

Now...not only do I have to pay the markup for Euros vs USD conversion but different institutions charge you different prices for the privilege of exchanging the money. Correct?

 

Next..and this is important...what am I saving by using captial one credit cards for purchases? Also we use a credit union for our bank. Sometimes our debit card doesn't work in diffrent parts of this country. How can we be assured our debit card will work in Europe.

 

So I rented a limo for private tours in Rome and Livorno...I am renting an apartment in Barcelona for the four of us instead of two hotel rooms for the three days before our cruise...I will use Capital one when I make purchases...what else am I forgetting that will save us money? Does the ship provide currency exchanges? Is the fee exorbiant?

 

This thread is really helpful. Thanks in advance.

[cruisemom42]

OK guys...please bear with me. I am new to all of this. Between DH and i we have three capital one credit cards. Two visa and one mastercard. If I wish to make straight up purchases I can use these cards correct? Are credit cards taken most places in Europe?

 

Now...not only do I have to pay the markup for Euros vs USD conversion but different institutions charge you different prices for the privilege of exchanging the money. Correct?

 

Next..and this is important...what am I saving by using captial one credit cards for purchases? Also we use a credit union for our bank. Sometimes our debit card doesn't work in diffrent parts of this country. How can we be assured our debit card will work in Europe.

 

So I rented a limo for private tours in Rome and Livorno...I am renting an apartment in Barcelona for the four of us instead of two hotel rooms for the three days before our cruise...I will use Capital one when I make purchases...what else am I forgetting that will save us money? Does the ship provide currency exchanges? Is the fee exorbiant?

 

This thread is really helpful. Thanks in advance.

 

 

Let me try to answer a couple of your questions...

 

First, just because you have a Capital One card, doesn't mean you have THE one that doesn't charge the foreign transaction fee. Check with whoever issued the cards to you. Capital One, like all banks, has many different credit card options to appeal to different people.

 

Second, VISA and MasterCard are widely accepted throughout Europe. Places where credit cards may not be accepted include small "mom and pop" restaurants or shops, street vendors, some museums, etc. Many places are reluctant to take a credit card for just a small purchase, although they ARE legally obligated to do so. It's considered polite to try to pay cash for small purchases though...

 

Third, there is almost no way to get a straight exchange of money without a markup. The markup may be in the exchange rate used or in the "service charge" that is tacked on (and sometimes both!). Based on my experience and what I've read, you usually get a very fair rate of exchange from ATMs although you do get the dreaded transaction fee in most cases. Even figuring this in, the exchange rate is still better than you get with many of the money changers.

 

Fourth, what you are saving with THE Capital One card is the so-called "foreign transaction fee" that is added to almost all credit card purchases outside the US. It's a fee charged by your bank, presumably to cover THEIR costs in exchanging the currencies, but IMHO it's unjustified. Most credit cards have foreign transaction fees in the neighborhood of 2% to 3% for any purchase. So if you pay for a dinner in Rome that's the equivalent of $100 US, your bank will charge an extra $2 or $3. This is what you are saving by using the Capital One card.

 

About your debit card -- check on the back of the card and see what network(s) your credit union is part of......or you can just call your credit union. ATM machines usually indicate which networks they work with. I believe Plus and Cirrus are the most common. If you debit card does not work with either of these, you may have a harder time finding ATMs. Also, make sure you have 4-digit pin and that you know what the numbers are (rather than letters, as European keypads may differ from US ones).

[amy417]

Cynthia..thank you sooo much. Everyone...thank you sooo mcuh. This is our first and hopefully not last time to Europe and we are trying to get as much out of it as possible.

[Ephraim]

Today I went to my bank and bought 400 euros and it cost me $550 us dollars!! I need euros to pay for a tour in Rome and that will take almost half, the rest I figure will use in Barcelona and/or Rome. When I get back it will cost me $7.50 to change any euros back to us dollars.

 

Typical bank markup is 4% in either direction. So if today's exchange rate is

1 Euro = 1.2898 U.S. dollars

 

Then you need to expect to actually pay 1.3414 USD when buying and 1.2402 when selling. The further you are from financial centres that regularly deal with the currency the more that percentage will increase. If you are in New York you are likely to see that 4% but if you are in Montana I expect you won't see anything close to it. Their is an inherent risk for the bank in carrying foreign currency, the markup is how they pass on that risk to you. Obviously in Montana (just an example) they hold on to the currency longer and there is more risk.. hence the higher markup. Credit cards and head offices deal with foreign currency daily and electronically, therefore have less risk of exposure.

[marci22]

OK so it is best to use the ATM's to get euros. Two additional questions.

 

1. What about in Turkey which uses Turkish Lira. Do you get those via ATms also

 

If you will only be in Turkey one port day, you may not need to convert to Turkish Lira. Our private tour quoted our price in USD. Every merchant we spoke to accepted USD or euro. So save yourself a step and figure out if you even need to go that route.

 

For credit card purchases, we used CapitalOne, and there were no fees.

 

For ATM use, we had a PNC card that charged no fees on either end (they absorbed the other bank's fee if you had a certain checking plan). Each ATM we used (France, Italy, Greece, Spain) had a limit of 300euro per withdrawal, but you could do an immediate second withdrawal (assuming you have the allowable daily limit at your home bank).

[cruisechums]

We got a few Turkish $ before we left and it was more than worth it. Enrty fees to attractions is where it really paid off.

[amy417]

Another money question guys. The apt we are renting and the pivate tours do not take credit crds they want cash. Is it worth my while to watch the exchange rates and if they drop, try to get euros now instead of in the airport? If this is a good idea then where should I go to get the best exchange fee?

Also can anyone tell me if the NCL Gem will do curency exchanges on board. Do they charge an outrageous exchange fee?

 

BTW...Ephraim that explanation was excellent.

[Donyb]

We also are renting an apartment and doing tours that require payment in cash. I have the same questions as the best way to go...buy here or get some each time we hit an ATM:confused:

 

We weren't on NCL but on Princess, they had a machine onboard and the exchange rate was horrible. In that respect, I would definitely go the ATM route.

[RM]

Has anyone used Travelers Checks in Euros??? Are they accepted pretty much everywhere? Can they be changed easily?

[cruisemom42]

Another money question guys. The apt we are renting and the pivate tours do not take credit crds they want cash. Is it worth my while to watch the exchange rates and if they drop, try to get euros now instead of in the airport? If this is a good idea then where should I go to get the best exchange fee?

Also can anyone tell me if the NCL Gem will do curency exchanges on board. Do they charge an outrageous exchange fee?

 

BTW...Ephraim that explanation was excellent.

 

 

If you need to get euros ahead of time, there's really only one thing to do. Look at the exchange rate that the bank/travel service is giving you, and compare it with the current actual exchange rate. You can check the exchange rate by Googling "currency converter." Be sure to factor in any service charges. Go with whoever has the best rate. I wouldn't count on getting a decent rate at any airport exchange.

 

Really, it's just soooo much easier AND exchange-wise it is best to use ATMs. If you need to increase the amount of money you can withdraw in a given day (your bank's limit), talk to your bank and they'll usually raise it. This is not the same as the individual machine's withdrawal limit. In Italy I believe these are mostly between 200-300 euro. You can get around this by having 2 debit cards (e.g., you can make a withdrawal and your SO can make a 2nd withdrawal) or by using 2 different machines.

[Taxguy77]

For me, the question is never so much whether places will take foreign money, including the USD. The question is more why anyone should think it's a good idea to try using foreign money in the place concerned. Sometimes there's a good answer to that question, but not often.

 

Some years ago, I spent a lot of time in Mexico. I knew a few small store and restaurant owners who loved USD, and saved all the $20.00 bills they could get. I always got a better rate from them than any regular source.:) And great service.:D

[amy417]

If you need to get euros ahead of time, there's really only one thing to do. Look at the exchange rate that the bank/travel service is giving you, and compare it with the current actual exchange rate. You can check the exchange rate by Googling "currency converter." Be sure to factor in any service charges. Go with whoever has the best rate. I wouldn't count on getting a decent rate at any airport exchange.

 

Really, it's just soooo much easier AND exchange-wise it is best to use ATMs. If you need to increase the amount of money you can withdraw in a given day (your bank's limit), talk to your bank and they'll usually raise it. This is not the same as the individual machine's withdrawal limit. In Italy I believe these are mostly between 200-300 euro. You can get around this by having 2 debit cards (e.g., you can make a withdrawal and your SO can make a 2nd withdrawal) or by using 2 different machines.

 

 

Thanks Cynthia..when I mentioned the airports i was referring to the ATM's in the airport. So am I thinking of the wrong ATM's? Or should I be using other ATM's. When you mention both my DH and I using the ATM cards to skirt the limit I'm confused. If the limit is per transaction, why can't I just put my card in twice. And if the limit is per account than my husband's card won't help. If I am missing something (and i usually do!) please explain. I am concerned because the minute we hit Barcelona I have to turn over a considerble amount of euros to get the keys to the apartment. The next two days I will be on a ship and need to have mucho euros when I meet the tour guides. I don't think the ATM will give me that much at once.

 

Cynthia and everyone thanks ahead of time for walking me thru this. Believe it or not, I am usually the logistics queen...but I just can't visualize how to get this done.

 

I need euro 700 when I land in Barcelona on the 27th...need about euro 300 for my two days there (extremely conservative for 4 people)...then board ship with first stop Cannes second stop Livorno (need euro 500 just for tour) third stop Rome (need euro 700 just for tour and vatican guide)

Is it possible to do all this thru ATM's with the current daily limits?

[nparmelee]

Has anyone used Travelers Checks in Euros??? Are they accepted pretty much everywhere? Can they be changed easily?

 

Not a good idea anymore. Most shops/restaurants will not take them, its a hassle for them to get them exchanged. If you do have them you may need to go to the banks to get them cashed and that means finding banks that are open and possibly waiting in lines.

[cruisemom42]

Thanks Cynthia..when I mentioned the airports i was referring to the ATM's in the airport. So am I thinking of the wrong ATM's? Or should I be using other ATM's. When you mention both my DH and I using the ATM cards to skirt the limit I'm confused. If the limit is per transaction, why can't I just put my card in twice. And if the limit is per account than my husband's card won't help. If I am missing something (and i usually do!) please explain. I am concerned because the minute we hit Barcelona I have to turn over a considerble amount of euros to get the keys to the apartment. The next two days I will be on a ship and need to have mucho euros when I meet the tour guides. I don't think the ATM will give me that much at once.

 

Cynthia and everyone thanks ahead of time for walking me thru this. Believe it or not, I am usually the logistics queen...but I just can't visualize how to get this done.

 

I need euro 700 when I land in Barcelona on the 27th...need about euro 300 for my two days there (extremely conservative for 4 people)...then board ship with first stop Cannes second stop Livorno (need euro 500 just for tour) third stop Rome (need euro 700 just for tour and vatican guide)

Is it possible to do all this thru ATM's with the current daily limits?

 

 

Sorry, when you said "in the airport" I assumed you meant at one of those exchange kiosks. An airport ATM will be fine.

 

With needing so many euros up front, it probably will make sense to have at least some in advance, even if it's a $10 or even $20 markup. Especially if it will ease your mind!

 

Also, you have a point about the "per transaction" thing. I think some machines will let you do that and others may not..... I'm a little unclear as in my experience I've had it happen where it wouldn't let me withdraw a second time, but it did let my then-DH do so.

 

I think the more serious issue is the daily withdrawal limit.

[Ephraim]

We also are renting an apartment and doing tours that require payment in cash. I have the same questions as the best way to go...buy here or get some each time we hit an ATM:confused:

 

We weren't on NCL but on Princess, they had a machine onboard and the exchange rate was horrible. In that respect, I would definitely go the ATM route.

 

ATMs. are your best bet.

 

Has anyone used Travelers Checks in Euros??? Are they accepted pretty much everywhere? Can they be changed easily?

 

I have Euro traveller's cheques. Many stores won't accept them, but some will. If they are American Express take a list of banks that will exchange them for free (as long as you cash €100 at a time.) Thomas Cook offices will usually cash MasterCard cheques for free. But ATMs are still more convenient and always dispense. Just remember to have a *four* digit pin and that your main account be your chequing account. Some machines won't prompt you for account in Europe.

 

Another money question guys. The apt we are renting and the private tours do not take credit cards they want cash. Is it worth my while to watch the exchange rates and if they drop, try to get Euros now instead of in the airport? If this is a good idea then where should I go to get the best exchange fee?

 

Also can anyone tell me if the NCL Gem will do currency exchanges on board. Do they charge an outrageous exchange fee?

 

BTW...Ephraim that explanation was excellent.

 

Thank you.

 

Currency fluctuations are too difficult to normally follow. Changes may be in the parts of a cent per day. Most changes in currencies happen because of a change in interest rate or a change in economy. For example, the Canadian dollar (my currency) usually increases in value when oil does well because Canada is a resource country. Both Europe and the US are service and industrial economies. Some of Europe is still going through growth and therefore the Euro's value is increasing over the USD. They are also under pressure at the central bank to lower interest rates, both reasons that they currency should continue to increase in value. But that's just my opinion and I could just as likely be wrong. It's a coin toss. I would suggest that you look at it once a week. Daily might drive you crazy, unless you add it to you igoogle page or something. If you want to know the daily rate type into google 1 EUR in USD (or if you prefer 1 USD in EUR).

 

I would NEVER exchange at the airport. It's just better to use the ATM. If you do need a large amount then consider buying traveller's cheques in Euros from American Express and getting a list of banks that American Express has deals with. You can cash American Express traveller's cheques at those banks with no fee (subject to a minimum of €100 usually). For example in Spain one of the banks is Banco Santander. But I would much rather rely on the ATM for smaller fees. Airports are extremely expensive and they pass on their horrible rate to you.

 

Note

For anyone who wants a quick currency calculation. Just type it into the Google search: 1 EUR in USD or 1 USD in EUR

 

Google will also do other currencies, as long as you know the currency code. The Turkish Lira is TRY, the Canadian Dollar is CAD and the Mexican peso is MXP. Just to name a few.

 

Google also helps convert Metric measurements to Imperial measurements (and US measurements). Just type 23 c in f and you get your answer.