Access currency at ATM in foreign country, or...
Jul 1, 2011, 7:53 pm
#1
Original Poster
Join Date: Oct 2008
Programs: BA Avios
Posts: 484
Access currency at ATM in foreign country, or...
First, I have tried but not been able to find any postings regarding my question.
I was curious about what is best currency strategy while traveling in Europe.
To try to clarify, would it be better for me to purchase foreign currency (GBP and Euro) at a 5% premium over "spot" before we go to Europe, or, would it be better to withdraw using local ATM's (in other words...is there less of a premium using local ATM's)?
I am not trying to speculate on what a currency will do, only the least expensive way to get a currency.
I hope this makes some sense!
Thank you to anyone who responds!
I was curious about what is best currency strategy while traveling in Europe.
To try to clarify, would it be better for me to purchase foreign currency (GBP and Euro) at a 5% premium over "spot" before we go to Europe, or, would it be better to withdraw using local ATM's (in other words...is there less of a premium using local ATM's)?
I am not trying to speculate on what a currency will do, only the least expensive way to get a currency.
I hope this makes some sense!
Thank you to anyone who responds!
Jul 1, 2011, 8:21 pm
#2
Join Date: Nov 2010
Programs: UA PE, FL A+Elite, X-DL Silver, X-AA Gold, HH Diam, Marriott Silv
Posts: 213
Ultimately it depends on the fees your bank charges, but generally use the local ATMs. Even with the fees my bank charges with a reasonably large withdrawal the rates are good so it works out well. You might want to check with your bank and travel guides to make sure there aren't any quirks you need to know about that would limit availability.
Jul 1, 2011, 8:30 pm
#3
Join Date: Sep 2009
Location: Charlotte, NC
Posts: 207
agree that ATM is the best way to go for cash. Travelers checks aren't as widely accepted any more and most places charge fees to cash them. as noted, check with your issuer regarding fees. There can be foreign exchange fees (%) plus a fixed per transaction fee (can be as high as $5 per transaction). Also, notify debit and credit card issuer that you are traveling abroad so they don't think the cards are lost or stolen and lock them down.
Jul 2, 2011, 8:09 am
#4
Join Date: Nov 2002
Location: LAX, SAN, ORD, MAA & COK
Programs: AA EXP 6+ MM, AC, DL (MM) & LT SC; All Airlines 10+MM, Hilton LT Diamond, Marriott LT Plat
Posts: 749
For cash withdrawals I use my E*Trade ATM card and any ATM fees charged by the ATM operator are refunded into my account by E*Trade. For credit card charges I use my Chase Bank Marriott Premium Visa card and unlike with most other credit cards no foreign currency fees are charged; the transactions are recorded at the then currency exchange rates.
Jul 2, 2011, 12:09 pm
#5
Join Date: Aug 2008
Location: ORD
Programs: United Silver, AA, Delta, Marriott, Hyatt.
Posts: 432
ATM is always your best bet. If you are with a major bank (like BofA), find out if they have a local partner that will not hit you with fees for using their ATM. Something to beware of are ATMs in certain (non-Euro) countries that dispense bills so large that smaller merchants refuse to accept! The quick fix is usually a trip to McDonalds. 
Jul 2, 2011, 1:28 pm
#6
Join Date: Feb 2007
Location: was ARN now BER
Programs: No travel, no cards. :(
Posts: 333
I have found ATMs in a few European countries that have a per-transaction limit of approximately $150. (Depending on rates, of course.) For instance, in Sweden, some of them have a per-transaction limit of 2000 SEK. You can do another transaction immediately, but that might cause you to be hit by ATM fees for a second time.
Find a bank ATM, rather than an independent, would be my suggestion. Otherwise, yes, I'm in the get-your-money-at-the-ATM crowd.
Find a bank ATM, rather than an independent, would be my suggestion. Otherwise, yes, I'm in the get-your-money-at-the-ATM crowd.
Jul 2, 2011, 2:06 pm
#7
Join Date: May 2010
Location: Wonderful Weald of kent
Programs: BAEC Bronze
Posts: 989
Much quicker and more convenient to use ATMs wherever you go.
I have used my UK card in AtMs in USA, France, Belgium, Netherlands, Germany, Cyprus, Dominica Republic, Egypt, Hong Kong, Norway and if we add my hubby (with the same bank) Aregentina, Chile, Mexico and Switzerland.
It does help if you advise your bank beforehand where you are going and when as this stops them querying transactions abroad which could result in the machine hanging on to your card.
I have used my UK card in AtMs in USA, France, Belgium, Netherlands, Germany, Cyprus, Dominica Republic, Egypt, Hong Kong, Norway and if we add my hubby (with the same bank) Aregentina, Chile, Mexico and Switzerland.
It does help if you advise your bank beforehand where you are going and when as this stops them querying transactions abroad which could result in the machine hanging on to your card.
Jul 2, 2011, 2:11 pm
#8
FlyerTalk Evangelist
Join Date: Dec 2000
Location: south of WAS DC
Posts: 10,131
depending upon conditions and demands, converting TC's or cash may be best. us banks do not do much conversion, i don't know how much is done now that much of europe has become eurocentric. in the past, one could convert tc's or cash for less than 1% from us dollars. you could call a big bank in country. ask for the change desk, also, ask for the "fee".
if you haul more than 10K in us$ out of the country, chances are, you have signed up for a pat down until they loose the paperwork in about 10 years.
if you haul more than 10K in us$ out of the country, chances are, you have signed up for a pat down until they loose the paperwork in about 10 years.
Jul 2, 2011, 4:53 pm
#9
Join Date: Jul 2007
Location: San Francisco/Sydney
Programs: UA 1K/MM, Hilton Diamond, Marriott Something, IHG Gold, Hertz PC, Avis PC
Posts: 8,156
If you're relying on cards, make sure you have a backup plan (of course, that applies for any means of payment, not just cards!)
Three times I've had cards either stop working, be eaten by an ATM, or get lost whilst traveling in foreign countries*.
Having a second card, on a different account, saved me in each occasion.
(* My own fault - after being used to ATM that return the card then the cash, I got caught out by an ATM in Peru that returned the cash then the card, and simply left the card in the machine...)
Three times I've had cards either stop working, be eaten by an ATM, or get lost whilst traveling in foreign countries*.
Having a second card, on a different account, saved me in each occasion.
(* My own fault - after being used to ATM that return the card then the cash, I got caught out by an ATM in Peru that returned the cash then the card, and simply left the card in the machine...)
Jul 3, 2011, 12:14 am
#10
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,720
If you're relying on cards, make sure you have a backup plan (of course, that applies for any means of payment, not just cards!)
Three times I've had cards either stop working, be eaten by an ATM, or get lost whilst traveling in foreign countries*.
Having a second card, on a different account, saved me in each occasion.
(* My own fault - after being used to ATM that return the card then the cash, I got caught out by an ATM in Peru that returned the cash then the card, and simply left the card in the machine...)
Three times I've had cards either stop working, be eaten by an ATM, or get lost whilst traveling in foreign countries*.
Having a second card, on a different account, saved me in each occasion.
(* My own fault - after being used to ATM that return the card then the cash, I got caught out by an ATM in Peru that returned the cash then the card, and simply left the card in the machine...)
Also ATMS are sometimes out of service. So it's always good to carry a couple of USD (or Euro) $100 bills for emergency exchange.
ATM is always your best bet. If you are with a major bank (like BofA), find out if they have a local partner that will not hit you with fees for using their ATM. Something to beware of are ATMs in certain (non-Euro) countries that dispense bills so large that smaller merchants refuse to accept! The quick fix is usually a trip to McDonalds.
It is hard to imagine any situation where a 5% premium would beat an ATM fee unless you are withdrawing <$100 per transaction. Wells Fargo charges $5 per withdrawal, but most banks charge less though 3% forex fees are common.
There is a running thread and a FT wiki on this subject with a lot of useful info.
Jul 3, 2011, 6:58 am
#11
Join Date: Mar 2006
Location: BFS
Programs: UA
Posts: 439
If you are with BoA, this link might help you. They have an 'alliance' with a series of banks around the world.
http://www.barclays.co.uk/Helpsuppor...P1242558955276
http://www.barclays.co.uk/Helpsuppor...P1242558955276
Jul 3, 2011, 9:32 am
#12
Join Date: Aug 2010
Location: LAX
Programs: AA Lifetime Gold but PlatPro thanks to LPs
Posts: 4,439
Here's what I do. Before leaving, I get a small amount ($50) of foreign currency from my local Wells Fargo. That way I have cash in the pocket when I walk off the plane.
Then, later, I get whatever I think I'll need for the next few days from an ATM.
Many people just hit an airport ATM upon arrival, but I usually don't feel like hunting down an ATM when I arrive. If I'm tired, I just want to leave the airport asap, and not waste time on an ATM.
Then, later, I get whatever I think I'll need for the next few days from an ATM.
Many people just hit an airport ATM upon arrival, but I usually don't feel like hunting down an ATM when I arrive. If I'm tired, I just want to leave the airport asap, and not waste time on an ATM.
Jul 3, 2011, 9:55 am
#13
In Memoriam
Join Date: Feb 2000
Location: Easton, CT, USA
Programs: ua prem exec, Former hilton diamond
Posts: 31,801
I'll buck the trend and say I prefer to get some money converted before I go. I'm lucky in that there is an exchange place I use that has great rates, but to me even if there was a bit of a fee, I don't care.
I am not saying that I don't use ATM's in other countries, if I need additional money I will use them, but for Euros and Pounds where it's easy to get them converted here first I just prefer to do it here.
My reasons
It's just not worth it for me to make multiple trips to an ATM throughout a trip to save a few dollars (which may or may not be a savings based on the exchange rate and bank fees you may or may not have to pay depending on your bank)
I am not saying that I don't use ATM's in other countries, if I need additional money I will use them, but for Euros and Pounds where it's easy to get them converted here first I just prefer to do it here.
My reasons
- I don't have to hunt down an ATM when I land
- I don't have to find another one because that one is out of money (quite common on weekends in the UK)
- Many ATM's in Europe are the capture the card type instead of swipe the card type, I don't like the chance of having it keep the card as several others have mentioned
- I don't need to worry about what fee my bank charges or what the exchange rate is
- I dont' have to deal wtih daily limits
- I have better things to do with my time than find an ATM and stand in line, etc
It's just not worth it for me to make multiple trips to an ATM throughout a trip to save a few dollars (which may or may not be a savings based on the exchange rate and bank fees you may or may not have to pay depending on your bank)
Mar 16, 2012, 4:01 pm
#14
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Intermountain West
Programs: Too many to list
Posts: 12,082
I'll hit the airport ATM upon landing in Dublin I guess. And I will be using a no-forex fee card.
Mar 16, 2012, 4:12 pm
#15
Join Date: Mar 2011
Location: HYD/CHI
Posts: 793
If you decide to go the card route (and I think you should), be sure to give the card issuer a heads up about your trip. The last thing you want is for your card to be frozen while you're abroad because of suspected fraud.