Originally Posted by manwillneverfly
2. ATM debits: Invariably better than CCs these days and could be the best money-saving choice in the Euro zone and other developed countries having plenty of ATMS. But you’ll need to withdraw multiple times because exact cash costs can’t be known in advance. For this reason, it’s crucial to know any conversion and transaction fees at your home bank, and move the account or start a new one at a bank with better terms if needed for frequent travel.
Agreed on the above. However, let me add a caveat. A few banks and credit unions will charge an additional fee for "declined" ATM transactions. Your daily limit in the States is pretty straightforward. If you try to withdraw funds you don't have or if you know your limit is $500 and you try to withdraw $600, you probably deserve a "declined" charge, if for nothing else but sheer stupidity.
But overseas, you're withdrawing in a foreign currency while your limit is in American dollars. So if your withdrawal is anywhere close to your limit, you have to guess at the current exchange rate. If you guess wrong, it seems kinna unfair to penalize you for guessing wrong. I just cancelled one of my ATM cards for this specific reason.
Using cash may work well in Carribean countries where USD are readily accepted. However, elsewhere the Thomas Cooks and Travelexs will kill you with conversion costs! Overall, the cheapest way to convert is to use a low rate (1%) CC for major purchases and ATMs for smaller purchases.
If you travel to one specific country repeatedly, it might be worthwhile to set up a bank account there, and have funds transferred in via a Currency Broker like XEtrade. It can be done all online, and their conversion rates will undercut ANY conversion rate you can get from any bank, and absolutely blow Thomas Cook/Travelex right outta the water!!!