KC747

I am going to Paris at the end of this month and wondering what is the best way to minimize currency exchange fees.

I am going to bring AMEX (Platinum Cash Rebate Card), VISA (Chase Platinum Shell Card), and Diners. All issued in US.
From the posts I have read, I will try to minimize the use of AMEX overseas (due to the exchange rate and fees).

My question is what is the among followings:
1) Exchange USD to Euro in US
2) Exchange USD to Euro in Paris
3) Bring T/C to Paris
4) Use VISA or DC
5) Use ATM in Paris

Any thoughts or comments are appreciated.

Eugene

Number (5) is a winner, IMO. An alternative is a VISA/MC issued by a bank that does not add anything on top of the standard 1% mandated by both VISA and MC for transactions in foreign currency. My personal recommendation is a card from MBNA (an Amtrak MC is particularly good, because of no annual fee and earning points that can be exchanged 1:1 into UA, CO or YX programs).

KC747

Eugene:
Thank you for information.

If I use ATM in Paris, how does it work?
Do I just use my VISA card at ATM which has Cirrus Network?

BTW, how come the exchange rate at ATM is better?

Thank you again.

pdhenry

Same as in the US. Insert your card, select "English," enter your PIN and the amount (in Euros) you want to withdraw.

Even where the alphabet is different (Hong Kong, Thailand), the English selection will bring you to a familiar character set.

The only catch is to ensure that you have a 4-digit PIN. If you memorized your PIN as a sequence of letters, know the numeric equivalent since the keypad probably won't have letters above the numbers.

Eugene

Actually, that would not be prudent at all. If you use your VISA credit card at an ATM, you'd be charged cash advance fees. Stick with using your regular ATM/debit card, that would minimize fees. For example, the only fee my bank charges me is a flat fee of $1 for using ATMs abroad. As been reported elswhere, some banks even have up to several free ATM withdrawals a month, even when you do it abroad.

It's not necessarily the exchange rate that is better (although it's definitely better compared to cash exchange and TC exchange rates), but using an ATM/debit card eliminates most fees and surcharges (e.g., AMEX charges 2% extra fees for transactions in foreign currencies).

KC747

Eugene,

Thank you. I think my questions are all cleared. I will use my ATM card issued by Chase.

QuietLion

But check to see if Chase charges you a fee for using an international ATM!

SpuddBrother

I only use my ATM card to get cash, and I never use US cash or traveller's checks. I have done this in over 25 countries with no problems.

The only time things got dicey was in China, where only Bank of China ATMs would work for me (I don't know if this is still true), and they didn't have english instructions. I tried all of the different options until I got a screen that showed several different numerical choices like 100 200 400 800 1000 etc. I chose 1000 and my money came flowing out!

Kremmen

Many debit cards have overseas withdrawal fees, often a fixed amount per transaction. So, if you're going to use ATMs, check your bank's fees and be prepared to take big cash advances to minimise fees.

Using credit cards for purchases will almost always be cheaper than obtaining cash from an ATM for purchases.

As the financial institutions keep adding more and more fees, cash is looking more attractive at times. In Paris, there is an enormous range of rates at foreign exchange dealers. Near/on the Champs-Elysées alone, I saw exchange fees ranging from about 2% to over 10%. The 10% end is clearly a rip-off, but the 2% end is pretty similar to what your card will charge. (Hint: The cheap ones are the little ones hidden down in the back of shopping arcades with long lines of people queuing up to exchange money. The expensive ones are the ones right on the main street that nobody's using.)

pdhenry

I disagree. CC fees are 1-3% and ATM fees (charged by your bank) are typically a buck or two per withdrawal. I can generally withdraw $300 or $400 at a time for that $1 fee.

USAFAN

Watch out. With one of my cards I could not get money out of the ATM. It was a Money Market Checking Account and I had to press SAVINGS ACCOUNT at the ATMs in France and GB.

Kremmen

The 1% foreign exchange fee charged by Visa or MC, Plus or Cirrus, is going to happen no matter what type of card it is, so we can ignore that.

Let's assume your generous bank only charges $1/withdrawal for your $300. That's 0.3%. Your debit card won't give you cash back or frequent flyer or hotel points, which tend to be valued around 1.7%. The interest-free period on the credit card is worth about another 0.5%. (Depends a lot on what interest rates you can get on your money, of course. If your mortgage and bank account are one and money that you put off spending until later means more money off your mortgage, or other loans, that time delay on payment may be worth 1% or more.) That puts the credit card 2.5% ahead overall.

Even if the credit card company charges up around 3% for foreign exchange instead of the 1% minimum, it's still slightly ahead. And common charges of $1.50-$5 per transaction for debit card use at overseas ATMs, make it vastly more expensive that using a credit card.

Eugene

That's incorrect. At least for US-issued ATM cards, there is no "1% foreign exchange fee", only a flat fee charged by your own bank for transactions at foreign ATM's (my bank charges $1 for a cash withdrawal at an ATM abroad, and I can withdraw up to $500 at a time).

QuietLion

Of course, if you're only spending a few hundred dollars, the difference between 1% and 3% is a fairly small amount of money in absolute terms. It's still fun to get the best deal, but no need to stress out about it over $10.

bellwilliam

careful, what happen once to me was I did not get the exchange rate that was promise. I banged on the window to try to get my money back. the guy behind the counter (behind a window) just ignored me and watched his TV.