Where is the best way to exchange dollars for euros for a trip to Milan? We are traveling from NYC and will need maybe €100 upfront to get from the airport to the hotel. But for the rest of the trip, should we exchange money before leaving at a bank in NYC or wait until we get to Milan? I heard we should avoid the currency exchange at MXP. I also heard that the exchange rate is best by withdrawing from an ATM, but the banks that we use have foreign exchange fees (Chase, Citi & TD Bank). We will plan to use our Citi AA Executive card wherever MC is accepted. Thx

Probably still at the ATM. You will get the best exchange. Check each of your bank's fees, but generally speaking it's still cheaper to use the ATM and pay your bank's fees for doing that rather than exchanging for foreign currency in-branch.

Have you considered opening a Fidelity or Schwab account ahead of your trip? Fidelity (IIRC) charges only the 1% Visa network fee and refunds any ATM fees charged by the owner. Schwab is similar.

Alternatively, TD Bank used to be somewhat competitive here, but I no longer bank with them so you'll need to verify this. At some point in the recent past, they charged $2.50 or $3.00 for non-TD ATM withdrawals, with no other fees (including foreign exchange fees) and some account types even had the flat fee waived. Find out what your account type offers you, but that may be your winner to use at the ATM in MXP.

I agree, at the ATM. Never go to a bank in the USA and ask to exchange dollars for euros. It will be a rip off. The only thing worse would be going to one of the Thomas Cook Foreign Exchange booths at the airport to convert your money.

There was an interesting TV story about this. A reporter went to the airport exchange booth with $100. He kept going back and forth exchanging dollars for euros then euros for dollars. With the seventh exchange he was broke, the $100 was all consumed in transaction fees.

At an ATM there is a usually a per transaction fee charged by the european bank and by your bank. That means it's best to take out all of the money you will need for your entire trip if you don't want to be hit with multiple transaction fees.

If you will ever go back to Europe it's probably a wise investment to take out a lot of euros by going to a bank there. I moved to Venice in 2010 when the exchange rate was 1.48 to 1.00, meaning that I paid 48% more for everything. Last week it was only 1.07 to 1.00, but it's going up and right now it's about 1.10 to 1.00. The dollar was getting so cheap over there that when it went down to 1.25 to 1.00 I bought a bunch of euros at that price, never thinking it would get down to 1.07. Obviously a mistake. But right now the euro is at an almost historic low. If you are ever going back to Europe it may be a good idea to just go to a bank and buy a lot of euros.

An ATM or USA credit card will always charge you the exact, official, published exchange rate. No chance of getting ripped off. The ATM or credit card will always get you the best rate. Some unscrupulous stores and restaurants will ask, "do you want to pay in dollars or in euros?" Always say in euros so that your credit card will give you the exact, proper exchange rate. Otherwise, the restaurant or store will just impost their own exchange rate, and it will be usurious.

The only problem is foreign transaction fees. If it's $5 per transaction, then instead of taking out $100 five times and paying 5%, just take out $1,000 one time and pay 0.5%.

This won't work if you are never going back to Europe and you return with 100 euros and have to pay an outrageous Thomas Cook exchange fees to convert back to dollars. Just figure out what your transaction fees are, and calculate your spending.

If you don't have a credit card without transaction fees just go to the ATM at the airport and take out as much money as you can, which will probably be 200 euros or else the machine will balk, and you'll be fine. Sometimes I call my bank beforehand and tell them I want that limit stretched so that I can take out 500 euros at a time, and they do it. I have a credit card without foreign transaction fees but in some of the areas that I go to like a coffee shop, they only take cash.

In sum, if you have a credit card that will charge you 4-5% with each transaction, just go to an ATM and see how much they charge. It's usually per transaction, so estimate and take out all the money you need at one time, and pay cash. You will have no trouble whatsoever taking euros out of an ATM machine at MXP in order to pay for your taxi into the city. You'll probably get hit with $5 in withdrawal fees.

I only ever use ATMs wherever I go should I need local currency.

etrade rebates the bank atm fee. i thought they charged 1% for cash withdrawals, but it reads line no 1% charge. fidelity has a similar deal, and so does Schawb. we draw money every other day or so, and pay cash for everything except hotel. did not work in russia. they crazy and thiefs there,

There are at least 5 ATMs in MXP, including one in the baggage claim area for passengers arriving from non-Schengen areas (such as the US). If you really do need to take a cab into the city instead of taking the cheap, reliable, convenient train service from the airport, just withdraw Euros from the ATM while you wait for your luggage.

ATM at MXP is the way to go. The fees are insignificant, and the rate is the best.

Also, call or email your bank or credit union in advance of your trip to advise them of pending foreign travel.

ATMs are the way to go. And an additional note that you should be able to use your MC at almost every restaurant and hotel but you may find that taxis and small shops (coffee bars etc.) are reluctant to take plastic.

I was reading somewhere that independent ATMs are cropping up all over the place, especially European airports, that are not much better than the booths. Some apparently even tout "no commission" but charge a very unfavorable exchange rate, quite different from what you'd get at a real bank. So, I think the common advice of "ATM" is quickly becoming a bit more complicated. ATMs that have the actual word "Bank" (or the foreign language equivalent) in the name, or are actually built into structures like walls or real concrete banks are better. If the word "Travelex" appears on the ATM, run, don't walk, in the other direction. Apparently, like half the airport ATMs in Europe now are Travelex.

Take the ATM at the Posta Italiana.

I am not sure if I lost much or not -- I asked Bank of America to exchange the USD to Euro for me couple of months ago. I did online then they shipped me the Euro -- actually they shipped to a local branch then I went there to pick up.

I kind of remember the rate at that time was around 1.2 to 1. Now it dropped. (The bank did charge a little more - for example they will charge 1.25 to 1 when the exchange rate was 1.2 to 1).