The Money-Wasting ATM Mistake Too Many Tourists Make On A Trip To Europe

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The Money-Wasting ATM Mistake Too Many Tourists Make On A Trip
To Europe

The Money-Wasting ATM Mistake Too Many Tourists Make On A Trip To Europe - Explore

There are always plenty of hidden costs when gallivanting around the globe. This ATM mistake is easily avoided, despite what your instincts may be telling you.

www.explore.com

Richard

 

[CanuckTravlr]

I can't say that I have ever been offered the option of dynamic currency conversion at an ATM in Europe. Maybe it's at a third-party ATM, not one with a recognized bank? Or maybe it's something new, but I was in Italy and Germany just last year?

I've certainly been offered dynamic conversion at restaurants and retail stores, but always decline, as the article suggests.

 

[Talent312]

I concur that an ATM is unlikely to offer DCC.
I'd say that tourist mistakes at an ATM are primarily:
(1) Using a credit card instead of a debit card.
(B) Using a high-fee ATM, instead of a national-bank ATM.

 

[TolmiePeak]

Do you even need cash in Europe?

 

[Talent312]

True, in cities, you can get by with credit cards only.
A restaurant in Amsterdam posted "No Cash Accepted."

But I like to have some for things like tips and just in case.
In a week, we managed to use $300 USD in Swiss francs.
.

 

[1Kflyerguy]

Do you even need cash in Europe?

It will depend where you are going. Some locations you will need cash for the Taxi's or tips. Many places in Europe you can use a credit card to pay for a meal, but not the tip.

For better or worse Uber and ridesharing does not exist everywhere... Some taxi's will take credit, and others not so much..

 

[PigsDad]

Pay toilets usually don't accept credit cards.

Kurt

 

[ScoopKona]

Do you even need cash in Europe?

Only Japan is more cash-happy than Germany.

Germans routinely walk into a car dealership and buy a Mercedes with cash. I know to double my projected Euro needs when I go there. And it's been like this my entire life.

My solution to ATM screwage is to not have one. My Hawaii bank understands. But my mainland bank always acts like not having an ATM card is akin to not having indoor plumbing. "Wait, you don't have a card? Why?"

"Because if there's a problem, I have to prove that you guys were wrong. Not so with my credit card, where it's assumed that any fraudulent charges weren't my fault. That's why. No other reason. "

My credit card has no foreign transaction fees and utterly fair exchange rates. That and cash and I'm good in almost any country on Earth.

 

[TolmiePeak]

Only Japan is more cash-happy than Germany.

Germans routinely walk into a car dealership and buy a Mercedes with cash. I know to double my projected Euro needs when I go there. And it's been like this my entire life.

My solution to ATM screwage is to not have one. My Hawaii bank understands. But my mainland bank always acts like not having an ATM card is akin to not having indoor plumbing. "Wait, you don't have a card? Why?"

"Because if there's a problem, I have to prove that you guys were wrong. Not so with my credit card, where it's assumed that any fraudulent charges weren't my fault. That's why. No other reason. "

My credit card has no foreign transaction fees and utterly fair exchange rates. That and cash and I'm good in almost any country on Earth.

I got sick of poor treatment by banks. I closed all of my bank accounts. I just use my Fidelity Brokerage account for my financial services. I see no need to have bank account.

 

[ScoopKona]

I got sick of poor treatment by banks. I closed all of my bank accounts. I just use my Fidelity Brokerage account for my financial services. I see no need to have bank account.

Banks in Hawaii are aces. The few employees at my local branch all know me, so no worries there. On the mainland, I occasionally get the "what do you need, peon" attitude. Until they pull up my information. Then they're positively effusive.

 

[Talent312]

I got sick of poor treatment by banks. I closed all of my bank accounts...

This why I only use Credit Unions... no fees and excellent services.
The one I use that doesn't use paper slips. Just say what you want.
Although I've found some of them are more flexible than others.

 

[jehb2]

Do you even need cash in Europe?

Farmer’s markets and street fairs. I absolutely love happening upon a street fair. Although we spent a whole week in Scotland without spending any cash.

 

[WinniWoman]

How much money (Euros) would one need for a 16 day tour of Sicily/ Southern Italy? 26 meals are included with the tour, but obviously we would need more meal $ than that, plus when in airports.

We are not shoppers, so no plans for purchases to bring home. Obviously we might have some incidentals that come up during the trip.

Most tips for everything included except for the main tour guide and one or two hotel transfers, airport wheelchair help and whatever else we aren’t thinking of.

 

[Passepartout]

How much money (Euros) would one need for a 16 day tour of Sicily/ Southern Italy? 26 meals are included with the tour, but obviously we would need more meal $ than that, plus when in airports.

We are not shoppers, so no plans for purchases to bring home. Obviously we might have some incidentals that come up during the trip.

Most tips for everything included except for the main tour guide and one or two hotel transfers, airport wheelchair help and whatever else we aren’t thinking of.

You will not need much. The main one being the tip for your guide (and driver)- and those can be in USD. I'd get possibly 100 Euros. Use CC for meals (they will bring the CC machine to the table), and if you still have some left over at the end, some can go to the wheelchair pusher and the rest to the guide.

If it turns out you need more, there is a bank ATM on darn near every corner. DO NOT use the currency exchange kiosk at the airport.

We are not shoppers either, but have found we enjoy going to the local markets where regular folks shop, and see what's there. Snacks and a cold drink back at your hotel are an enjoyable 'wind down' after a day of following a guide around.

Jim

 

[ScoopKona]

How much money (Euros) would one need for a 16 day tour of Sicily/ Southern Italy? 26 meals are included with the tour, but obviously we would need more meal $ than that, plus when in airports.

I think it's unlikely the tour is going to drop you off on the evening strolling street so that you can take part in the passeggiata. (Although they should). But there's still espresso in the morning and gelato throughout the day. There's Aperitivo during the passeggiata. You don't have to worry about hydration in Rome (best city water there is -- running all the time from public drinking fountains. Just fill up and go.) But the rest of the country is going mean frequent hydration purchases.

Italy is very much a "time for a nibble" culture -- much like Spain. And when in Rome...

We're lucky in that we had the best foreign currency exchange in the entire country a few miles away (Las Vegas). So we always just bought cash there. And since we're going back, it's no big deal if we bring too much.

Even though you say you're not going back, I'd still bring too much. I'd assume 20 euros per day per person for coffee, gelato, stuff you find on tour and similar. That's rather spartan. Add your tips. And then add a couple hundred on top of that as cushion. If you bring Euros home, gift it to a young relative going there for the first time. Unlike GBP, they don't expire.

I also bring a few $100 bills with me no matter where I go. It's been my experience that there few problems which can't be cleared up with a hunskie.

 

[x3 skier]

I had an interesting experience with ATM’s in Germany.

My late wife caught Pneumonia on a trip and was hospitalized in Bonn where she received excellent care. When it was time to leave, I had to get 500 Euros to settle accounts (which was later reimbursed by my insurance). So I went to a bank and attempted to withdraw the money. I was rejected even though the account had more than enough cash.

I trudged back to tell my wife and figure out whet next. After explaining, my wife who worked at a bank said in so many words “Dummy, there’s probably some limit on the withdrawal amount”. So I trudged back to the same ATM and collected 250 Euros without a problem. I then walked 2-3 blocks to a different ATM of the SAME BANK and collected another 250 Euros!

I then collected my wife and we went on our way having defeated the bank’s ATM restrictions on withdrawal amount.

 

[Talent312]

Tips, snacks, occasional beverages and little souvenirs...
There's also an occasional taxi to pay with Euro-cash.
IMHO, the Euros will disappear surprisingly quickly.

I'd start with 200 Euros and plan to draw 100-200 more.
I'd also keep enuff in the bank at home to draw more,
just in case.

We usually spend leftover Euros at airport(s) going home.
Once, we traded them for USD at an exchange window.
.



.

 

[GT75]

I haven't either been offered a dynamic ATM exchange rate. We do travel to Cabo, Mx often. When using a CC (with no foreign transaction fees) I always tell the restaurant to charge in pesos instead of dollars. The restaurant will take a cut on the exchange rate (like probably close to the tip amount).

 

[CanuckTravlr]

To drive home the reason why you don't do dynamic conversion, let me give you an example from yesterday.

I had to make a deposit on a website in the UK and it allowed me to do it by credit card, using PayPal as the intermediary. They offered to process it in either GBP or CAD. I chose to do it in GBP using my Canadian credit card. I am glad I did. The difference between what PayPal would have charged me using dynamic conversion and the rate my bank actually charged me was $223.10 CAD. That is a 4.3% difference that I was able to keep in my pocket!!

 

[Talent312]

I had to make a deposit on a website in the UK and it allowed me to do it by credit card, using PayPal as the intermediary....

I had a similar experience when paying for a small group tour in Provence. The tour operator accepted payments from 3 couples via PayPal. We each charged it to our CC's in local currency... US, Canadian & British.

 

[Carolinian]

Getting back to dynamic currency conversion and ATM's, this varies by country and by bank. The first European country I encountered this was in Poland about twelve years ago, and it was fairly common but not universal. Tourists need to be aware of it, as it spreads slowly elsewhere. With the ATM's, it was easy to reject using DCC. Also, if you buy tickets online with RyanAir, it will automatically use DCC on your ticket purchase unless you uncheck a rather obscure pre-checked box to negate DCC.

I have never had this happen personally, but I know of people who have had their hotel or restaurant bills presented using DCC, and had to firmly demand that they be corrected and processed in local currency.

A charge in local currency on a credit card is processed at the mid-market interbank rate, one of the best exchange rates you can get. DCC calculations are MUCH less favorable. There are NO circumstances in which one should allow DCC to be applied to any transaction.

 

[WinniWoman]

So let me understand: then always make sure the credit card is charged in local currency, correct?

 

[ScoopKona]

So let me understand: then always make sure the credit card is charged in local currency, correct?

Depends. My card has zero foreign transaction fees. I get whatever the bank rate is for whatever I charge. It doesn't matter how it goes through because the credit card bill is going to be the same either way. (I quite like that, seeing how much time we spend outside the US.)

You'll have to look up your card, and check. Usually just Googling "foreign transaction XYZ Bank Visa" will get you the answer. And, although it isn't as important today as it was 10 years ago, make sure your card does Chip-and-Pin transactions. If it doesn't, it's worth it to acquire a card which does. Europe is years ahead of us when it comes to credit card security -- which is why so much credit card fraud happens to US visitors. Thieves, waiters, hotel clerks, pretty much everyone will pull your information and charge whatever they can get away with, because our security is so lax compared to Europe. Privacy laws, too. But that doesn't affect us financially. In Europe, you have to opt in. In the US, it's hard to opt out.

Once, in Paris, an enterprising thief charged $10,000 worth of medical textbooks to my card. It was almost certainly the desk clerk at the timeshare I stayed at. But there's no way to prove it. One phone call and I had a new card and the charges removed. But whoever "did the deed" got $10K worth of books which he or she then certainly sold for at least a few thousand.

 

[WinniWoman]

Depends. My card has zero foreign transaction fees. I get whatever the bank rate is for whatever I charge. It doesn't matter how it goes through because the credit card bill is going to be the same either way. (I quite like that, seeing how much time we spend outside the US.)

You'll have to look up your card, and check. Usually just Googling "foreign transaction XYZ Bank Visa" will get you the answer. And, although it isn't as important today as it was 10 years ago, make sure your card does Chip-and-Pin transactions. If it doesn't, it's worth it to acquire a card which does. Europe is years ahead of us when it comes to credit card security -- which is why so much credit card fraud happens to US visitors. Thieves, waiters, hotel clerks, pretty much everyone will pull your information and charge whatever they can get away with, because our security is so lax compared to Europe. Privacy laws, too. But that doesn't affect us financially. In Europe, you have to opt in. In the US, it's hard to opt out.

Once, in Paris, an enterprising thief charged $10,000 worth of medical textbooks to my card. It was almost certainly the desk clerk at the timeshare I stayed at. But there's no way to prove it. One phone call and I had a new card and the charges removed. But whoever "did the deed" got $10K worth of books which he or she then certainly sold for at least a few thousand.

Oh I know which cards don’t have foreign transaction fees already. But isn’t charging in local currency a different issue?

 

[ScoopKona]

Oh I know which cards don’t have foreign transaction fees already. But isn’t charging in local currency a different issue?

Not for me it isn't. Your mileage may vary. You can always just call the number on the back of the card and ask.

I won't have an ATM card at all. They're nothing but trouble. But considering how easy it is to use a sniffer to get the card and pin number, I would NEVER use one outside the country. By the time you learn there's a problem, it's probably too late to do anything about it. The fact that you have to prove you didn't make the purchases with an ATM is problematic even if your native language in your native country.

I know too many people who have had their accounts siphoned because of ATM fraud to ever have one. If a pickpocket gets me, that's what, a few hundred Euros, tops? ATM fraud, depending on the bank account is basically "keys to the kingdom" -- or at least the keys to the treasury.