Originally Posted by
Rebelyell
Airport exchange booths are terrible, but many banks sell euros for five percent over the spot rate. So with the euro trading at 1.05 they would sell them at 1.105, or thereabouts.
Many people do not have a no-fee ATM card and don't have a servant available to spend the time to open such an account and manage it. So they have to just use their regular ATM card, which often will have a three percent foreign transaction fee plus a $5 ATM fee.
So for many people there will be no savings from waiting until they get to Europe to get euros. Furthermore, there doesn't seem to be any compensation scheme to reimburse people for time spent waiting for an ATM, since getting money already in your hand is instantaneous. Who is to pay the person who has their card eaten by an ATM? Everyone talks about how wonderful it is to take risks without acknowledging the risks involved with relying solely on an ATM card.
Certainly one should carry an ATM card, but one should never be without a few hundred dollars or more worth of the local currency prior to arrival.
Hmmm, took me maybe 20 minutes to apply for an online checking account with Capital One. A couple weeks later I had an ATM card with no ATM fees, no forex fees and which reimbursed me for some of the fees the ATM operator might charge. It takes less than 5 minutes to transfer money into the account when I need to refresh it, which I do maybe twice a year.
The advantages of using the ATM card are more than just getting a better deal on the exchange rate. It allows you to walk around with less cash to begin with and you are better able to judge just how much you will need for the trip.
Now, we do go to the Eurozone, UK and Canada enough that I just hang on to the leftovers between trips, so we always have some cash in pocket when arriving. But, for other countries I have not had any problem with hitting an ATM at the airport. I have to admit that we do not travel much to what are referred to as third world countries, so maybe they are different. But, this is still my advice to anyone traveling to Europe.