Currency Conversion - where is best rate?
 

If someone is traveling from the US to France, should they convert dollars to euros in the US or wait until they arrive in France?

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Michael Steinberg
Editor
BizTrip
http://www.biztrip.com

Widthdray money from an ATM in France, if their bank doesn't have a foreign surcharge on widthdrawals. Even if they do the rate will still be better then pretty much any other way to convert money.

Your ATM is the best rate. My rate is consistently about one cent more than the interbank rate.

ATM definitely. Especially if your U.S. bank has a branch there - I know there's a Citibank branch - there may be others.

Just make sure you have a second ATM card or credit card along in case your primary card doesn't work. I had this happen once in England, and was glad I had an alternative card to draw money on.

ATM's with an ATM card, not a credit card.

The host bank may charge a fee, but it is usually small.

Some ATM machines add a fee that is not small. Had a $10 fee added in FLR.

The amount one can withdraw from a given ATM machine on a given transaction can be small. $100 or $200US equivalent.

The total amount of withdrawal on a given day is not large. Usually about $500US.

Agree with the rest - ATMs. In France and Japan, the ATMs I have accessed had optional english language instructions. As with ATM use in the U.S., use appropriate caution - be aware of your surroundings and person(s) lurking nearby.

I always use ATMs. Note that European ATMs generally do not accept PINs over 4 digits long. If yours is longer (some US banks let you have as many as 8) you'll have to switch to a 4-digit PIN before you leave.

FYI: Most Japanese banks don't accept US ATM cards. You have to find one enabled for US ATM Cards.

I've used ATM's overseas many times with good results, even in Croatia & Slovenia. One caveat: some countries do not place letters along with the numbers on the buttons. So, if you've memorized your PIN as a four letter word (say, JEFF, HOPS, or CASH), you need to also memorize the four numbers.

JP

My ATM card has the Star and Plus logo. Worked fine for me in Tokyo, Osaka, Kyoto, Fukuoka and Kumamoto. Must be lucky.

So if you a have five-digit PIN where you use letters to remember it, like Bosco or JorEl, you're really in trouble? http://www.flyertalk.com/travel/fttravel_forum/wink.gif

I would like to go against the grain a bit here and put my vote in for some good old travelers checks in U.S. dollar denominations.

If you need a small amount of cash ATM's can be very expensive. In Paris last summer I was charged a five dollar fee for using my ATM card by the machine that originated the transaction. If I could read french I would have been aware of the fee, but I do not. In addition my bank in the U.S. charges a five dollar foreign transaction fee. So it cost me more than ten dollars every time I used the ATM. I use my credit card for must large purchases and I do not like walking around with a lot of cash so I only get one hundred dollars at a time. The result is that ATM transactions cost me more than ten percent. Travelers checks are free from AAA and most banks. If you loose them you have some recource.

Another problem with ATM and a caution we should all be aware of is; never use an ATM card in an unattended machine. For some reason ATM machines sometimes have trouble processing foreign transactions and when this happens the machine keeps your card. This has already happened to me twice. The first time I spent an extra weekend in Penang, Malaysia waiting for the bank to open and return my card. The second time the bank was open and was able to return my card. The lesson I have learned is do not depend too much on your ATM, and it is not always the safest or cheapest!

Just out of curiosity, do you remember the name of the French bank that charged that fee? I have a fair number of visitors here in Paris that go the ATM route, and I'd like to know which machines to tell them to avoid.

I normally buy a few hundred dollars in foreign currency prior to departure from a foreign currency exchange in my community. His exchange rates are very good and certainly much better than the airport exchanges. I, too have noticed that some foreign ATMs will charge a fee of a few dollars, plus my U.S. bank will charge a "currency conversion fee." If you do reside in West Los Angeles, the name of the currency exchange is: Bretton Woods, located at 11659 San Vicente Blvd. (Brentwood). The proprietor, Mr. Scott, is very pleasant to deal with and I have used his services for many years.

AAA has AMEX TC's in € and £ denominations. The discount rate is very small. Under 2%, and sometimes close to 1%.

There is no charge for the TC's, and they can be redeamed at AMEX locations for no charge. I have also redeamed them in hotels and department stores for no charge, and have paid for expensive meals with no charge.

Interesting.

The American Automobile Association (AAA) recently switched from American Express traveler's cheques to Visa traveler's cheques.

I would prefer having traveler's cheques in € denominations over using my ATM card in a European ATM machine, especially if it results in a better exchange rate and lower fees.

A representative at the local AAA office near where I reside told me that people have had a tough time using their Visa traveler's cheques in € denominations in Europe, even at establishments which accept the Visa card! This has resulted in people returning with unused traveler's cheques.

Can anyone confirm whether or not this is true?

I am also curious to know about the travelers cheque situation.

Should I have the cheques issued in Euro currency, or US currency? is there an advantage to either?

Also, do i just go to a bank in europe to cash them in? how does it work? any caveats with the visa travelers cheques?

Do not know about the Visa TC's. The Visa site is here.

http://www.usa.visa.com/personal/sho...h2_/index.html

Before the ATM, and the euro, I would buy AMEX TC's in denomonation of the country I was visiting.(no ITalian Lira) for about a 1% premium, and could cash them at any AMEX office for no charge. Expensive restaurants took them. Department store would cash them. I had the same results with City Bank TC's.

The fine print on that website has a number to call for:
The Center is multilingual and may arrange refunds using a network of over 380,000 locations in more than 300 countries

Years ago I opened a citibank account so that I could have an ATM that didn't charge if used at another banks ATM. Also, citibank is an international bank so that many countries have branches. My former bank charged $3 per transaction. Most banks in Europe do not charge a fee, at least that has been my experience in England, Spain, Belgium and Italy. My brother has used one in Argentina and Israel without a fee. So you might need to shop around in Europe to see which ATM's do not charge a fee. Without fees at each end, the ATM is by far the best rates. I bring TC also just in case, but rarely use them. Also bring some cash. Buying the local currency in advance forces you to use them up, whereas buying US $ at least if you don't use them you can bring them home and use them. Also Britain is not on the EURO and I am not sure what other countries are not. If you are not near a citibank, you might want to shop around your local banks to see which has an ATM that doesn't charge a fee. It could be worth opening a travel account.

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Ms.DtG

ATM card by far is the best...The biggest
rip off I ever saw was changing money at Logan Airport in BOS.

In Germany the SECOND best is the German Post Office.

ATM cards are the best. I carry an English and US ATM card and had no problems so far. The exchange rates are the best and the cards I carry do not charge for ATM transactions.