16 Euros To Dollars

[Geralyn]

Wetravel to Europe annually. In the past when using a credit card and the clerk asks if we want the charge in dollars or euros I've said euros, which from past advice is the better way to go. That was when the euro was strong but now with the dollar so strong, is it better to ask that the charge be made in euros. Or, is it a wash?

It doesn't matter if the dollar (or Euro) is weak or strong, DCC is still a rip off. If you accept DCC, you will still get whatever exchange rate the retailer and their bank choose (both taking a cut), plus your bank still charges you for a foreign transaction.

Better yet, always pay in local currency (cash). Accommodations that take credit cards are the ones that charge enough extra to pay the credit card's commission. In Germany, at least, you'll save by staying in small places, and those places don't take credit cards.

In Germany, any hotel that wants to have more than 1 star has to take credit cards. As a result, there are a plethora of nice places in Germany with no star rating (why bother with stars if the most you can get is one?).

You (should) know what rate your bank will charge for currency conversion. You don't know what rate a merchant will charge you. It could be the percentage rate your bank charges plus an extra percentage for the business.

We also travel to Europe ever summer for about a month for 12 of the last 13 years and I can count on one hand the number of times we have used a credit card. We prefer to pay cash for everything except for a couple of times when we ended up in a hotel with a big bill. We also used a CC to pay for a rug in Turkey. We have never had a problem getting local currency from ATMs using a debit card tied to a checking account at a local credit union in the US. Sometimes we have to get cash over a couple of days to pay for larger bills, like B&Bs.

I know that ATMs are by far the most economical way to obtain Euros, but I happen to have some cash that I want to convert to Euros for an upcoming trip. What is the most economical (i.e., best exchange value, factoring in both exchange rates and transaction fees) method of doing this:

[For those who will ask why I would like to do this versus depositing it in my bank account and then withdrawing at an European ATM, lets just say I want some spending money that the hubby doesn't need to know about. Don't judge.]

If you have a major bank in your area (Wells Fargo, B of A, etc) then that is the best place to exchange dollars for euros in advance. If you have an account at the bank, you'll get a decent rate of exchange and a not too bad fee. I know that at least Wells Fargo used to let you exchange for euros even if you weren't a bank customer just with a higher fee. I can't personally confirm that currently for any bank because it was several years ago that I did it. Currency exchange booths at the airport both here and at your destination will charge a larger fee, not sure if their exchange rate would be different but they might be - I've never used one.

You only have a couple of choices. Try AAA. They sell currency packs. Cost will be about 10% or more. Depending on where you live some malls have currency exchanges -- TravelEx. Again probably 10% or more. And there are similar currency exchanges at major airports. And you bank can always get currency with a little planning. The bank could be a little cheaper under 10%.

PS -- Just saw above posting on AAA. In the currency exchange business there is no such thing as "No Fee." No Fee always means a poor exchange rate. So if they bury the fee in the exchange rate, it is still a fee.

I have a separate account and it's nickname is, "travel account", my husband knows about it but he doesn't care.

I prefer to transfer money to this checking account and use it as my primary travel account and thus keep track of my trip cost.

I typically have picked up euros or other currency at my local Wells Fargo before I leave on a trip. They typically need a day for Euros more for other currencies. (I live in a suburb of St. Paul/Mpls) I have an account with Wells Fargo only for this purpose. The last time I picked up Euros, I noticed that while I wasn't charged a "fee", their rate of exchange was pretty terrible in comparison to the current market rate. I was told that was their cost of doing business. I only needed Swiss Francs for a couple days and had about $10 Swiss Francs from a previous trip. I declined to even take any Francs and just took enough euros until I could get to an ATM in Europe. In Basel, I was able to use my limited Swiss Francs, a credit card and even a few Euros. In the future I will just order the bare minimum until I can get some in Europe. Also, if you charge anything in Europe, make sure the transaction goes through in that country's currency NOT USD.

I use a credit union ATM card with no service fees. I only use that card when traveling. I avoid using my Wells Fargo ATM card because they charge $5.00 and 5% on any cash withdrawal--a ripoff.

In Europe, I am very careful to only use bank.ATMs and I get the funds charged in Euros,.not U.S. Dollars.

Bank or currency exchange kiosk home or aborad charge you for the convenience one way or another. The test is to look at the conversion rate (and fees if any) for USD to EUR and for EUR to USD. For example at today's Interbank rate, if a bank or kiosk is marking up the exchange by 5%:

robinsegg, your question was pretty specific. I'd say the most economical way to get euro is to find someone who just returned from a trip and buy any they have left over at the current interbank rate. Its a win-win for both of you.

You'll just have to check with your bank and local AAA and do the math. My bank, for example, charges a $15 flat fee for any transaction, plus their own marked-up exchange rate. Not good, but not worth it to me to open a new account somewhere else. Each state's AAA is a separate entity, and some offer good exchange packages, and some don't. Mine, for example, would have to order euro from the neighboring state, and then charge me for the privilege.

Although it is definitely possible to spend more in fees than one would have with the Liquid Card, it doesn't look like an especially good deal to me. Why not open one of the Capital One accounts that charge no fees for overseas ATM usage? Or look for a local credit union that has a similar policy?

robinsegg, I guess my question would be how REALLY important is it that Himself doesn't know about the money? Reason being, I'm thinking any kind of account usually involves communication from the bank in the form of statements and whatnot so, well, a bank account could be difficult to hide, especially if you share an email account.

So if it's REALLY important that he doesn't know, then exchanging at a bank before you leave if probably the best way to go, exchange rate be darned. No judging here as I'm sure, Ms. Robin, you have your reasons for keeping the nest egg under wraps but worth the question?

If you do any type of transaction at a bank where you have an account they will most always make some sort of notation in your account which may appear on your statement. If secrecy is your goal, this might not end up that way.

At my former bank, whenever I did a currency exchange (this was long before ATMs on every corner) they did a deposit of the cash and a withdrawal of the foreign currency along with associated fees. It showed on my statement. My current bank requires any cash being presented for any purpose to be deposited first into your account and then they do back office credits and debits to complete the transaction.

Most banks here in the US will not do a foreign currency sale to you without an account. Whether you can find one in your area depends on where you are and what banks they are. Many say Wells will do it -- not in my area. They only want to talk to you if you have an account or are opening one with them. In Europe, no bank will exchange currency any more unless you have an account. When I asked in Italy about it (I was having minor debit card issues which cleared up the next day), they told me it takes 7 - 10 days for them to exchange the currency and get Euros back to credit to your account.

The only way I can think of to do this and be guaranteed only you will know about it, and unfortunately it is probably the most expensive, is to use the airport exchange booth either at your departure airport in the US or arrival in Europe.

I think the best way is to withdraw it at a bank ATM while you are in Europe. I was in Paris last month and my bank charged me $5 fee per transaction and the excharge rate was the market rate on the day of withdrawal. For this reason you should try to withdraw one large sum to avoid paying the fee multiple times. Check with your bank to make sure you have a reasonably high withdrawal limit if you use a travel checking account.

I bought some from Wells Fargo here in US and was charged a 7.2% fee, i.e. they quote an exchange rate 7.2% on top of the market rate. Last year they only charged 4.5%, so they are getting greedy!

It's not greed. It's marketplace capitalism. No one is forcing Wells' customers to buy their Euros or FX here in the States. Those buying FX from Wells or other domestic national banks with similar mark ups are doing it for the convenice and security of arriving with FX currency in their pockets on hitting the ground.

The concept of free markets is we have choices and vote our dollars. Some of us wait until arrival to withdraw our FX in local currency from a local ATM cash machine using or no or low transaction charge ATM/debit cards.

The exchange rate for buying euro is set in the morning at 5% above the Interbank Rate. Their rate is fixed for the day; the Interbank Rate changes all day long, so it might not be 5% when you look, and

According to this internet page, Mark, the charge for a withdrawal at a non-Wells Fargo ATM outside the US is $5. They do charge 3% for an over-the-counter withdrawal or for an international debit card purchase transaction.

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