# Cheapest way to get Euros from ATM??



## Jwerking (Apr 13, 2008)

Going to Spain and France for a month - thus far, every bank that I have including HSBC and Citibank charges a 3% foreign exchange fee to draw out cash overseas.  Because we are renting a villa in France - who wants to be paid in cash - I need to draw out alot of money.  

Any suggestions?  

How about use of AMerican Express traveler's checks?  Are they cashed free if you can find an American Express office overseas?


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## falmouth3 (Apr 13, 2008)

Can you join a credit union?  Mine charges no fee for ATM withdrawals in Europe.  And if I used it as a credit card, they only charged me 1%, which VISA charges them.

Sue


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## MULTIZ321 (Apr 13, 2008)

J,

Here's an informative link - ATM Cards and  Foreign Transaction Fees - Four US ATM Cards Tested in Europe


Richard


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## Talent312 (Apr 13, 2008)

I like to order some Euros B4 leaving home.  IMHO, Wells Fargo offers the best deal for local delivery of foreign currency.


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## Carolinian (Apr 13, 2008)

I have never seen a decent deal to buy currency in the US, but then again, I have never found it necessary, either.  One can usually use plastic to get into town from the airport in Europe, and then find a good place to exchange.

With ATM's, you have to watch 1) the usage charge by your own bank, which can be as high as $5; 2) the usage charge by the overseas bank, which again can be as high as $5; and 3) the percentage fee which is at least 1% these days.  For 1) and 3) shop around in the US for a decent deal, which probably means a small bank or a credit union.  Most big banks want to rip you off on these fees these days.  2) however is a real crapshoot, as most ATM's don't tell you if they charge an extra fee or how much it is.  In some countries like Greece, all ATM's charge a local fee, and the issue is finding the lowest one (some guidebooks have that info), while in others like the UK, most do not but every now and then you run across one that does.  Generally, if it is attached to a bank in the UK, it almost always is fee-free, but if it is a standalone in a high tourist area, watch out.

If you are in eastern Europe, it is time to stock up on euros, but at exchange houses, not ATM's.  I general do three-currency transactions at exchange houses here, $ to local currency to € with a net cost for both currency transactions combined of around 1%.  Most exchange houses here do not charge commission and their spreads between buying and selling rates on $ and € is usually from half a percent to 1 percent.  You cannot convert $ to € directly, but have to convert $ to local currency, and then local currency to €.

Of course one of the currency exchange problems in countries that use the € is that so many exchange houses have gone out of business as a result of the adoption of the €, that it is hard to find a no-commission exchange house anymore and the spreads between buying and selling rates have widened noticably.  That makes in-country exchange houses often a very poor value in countries that use the €.

Years ago, you could buy Amex TC's from AAA denominated in francs, guildes, and marks in the US for no fee and at a very good exchange rate.  Few busineeses overseas took them, so you generally had to seek out the local Amex office, but they gave you the cash with no fee, so finding the office was the only bad part.  I priced doing that soon after the € came out, but at that time the rate was bad, so I never tried that route.  It might be worth revisiting Amex's rate on a € denominated TC if you are a member of AAA.  Of course, that is only if AAA has followed through on swtiching back to Amex after the numerous customer complaints they got while selling the really substandard Visa TC's.

Other than a reasonable amount of spending money in local currency, I keep my funds here in € or Swiss francs and convert usually weekly, so if I go to western Europe, I dont have to worry about converting to either of those currencies once I get there.  I don't generally see good rates here on the British pound, but I use plastic to get into London and then hit an exchange house across the street from VIctoria Station, where they have good rates and no commission.

Of course, if I am in Bulgaria, that is a great place to find small spreads between buying and selling rates plus no commission at exchange houses on a wide variety of currencies.  On one trip there, I even stocked up on Cyprus pounds for an upcoming trip at a really great rate.


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## BocaBum99 (Apr 13, 2008)

I was going to say "crow bar".  lol.


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## Carolinian (Apr 13, 2008)

One ATM problem here is that banks, while they don't charge a local fee to use their ATM, they exchange at their own exchange desk's buying rate for $ rather than at the interbank rate.  Bank exchange desk rates are almost always significantly worse than independent exchange houses or the interbank rate.

If I use my credit union ATM card, the maximum per day locally is about $250, so I pay 75 cents transaction fee plus 1% ATM conversion fee plus lose about 2% on a poor exchange rate, so it costs me about 3.3% to use an ATM compared to about 1% to use an independent exchange house.  Now, if I use my Wachovia ATM card, then it really gets ridiculous.


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## x3 skier (Apr 13, 2008)

My Credit Union charges does not charge fees anywhere for any currency. They use the bulk rate and I have been very happy with them. Just about anybody can join some credit union somewhere. 

Cheers


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## Icarus (Apr 13, 2008)

Your best bet is to find a bank or CU that does not charge additional fees for foreign ATM usage. (Foreign means either or both overseas and outside the banks own network.) Most will just charge 1% over the wholesale exchange rate, which is a much better rate than you will ever find as an individual. Anybody charging more than the 1% is just doing it for pure profit. And you also have to try to find one that doesn't charge you to use out-of-network ATMs, which is another fee on top of your ATM transaction. The ATM you are using should list any fees they charge you to use their ATM.

The exchange rate is typically the average wholesale exchange rate on the day the transaction posts to your account. (Plus the 1% fee.)

The article cited by MultiZ is a good starting place.

If you were actually going to Bulgaria or Eastern Europe or other countries that Carolinian mentioned, you might want to follow her advice, if you actually knew which were the good exchange houses and wanted to carry tons of US$ with you on your trip. But for most mere mortals that are just occasional travelers, you're not going to do better than your ATM card if you can avoid ones with extra fees and can try to avoid ATMs with extra fees.

But you did say you were going to France and Spain.

I don't carry any foreign currency when I travel overseas. I find and use an ATM at the airport upon arrival. On the other hand, I would characterize my foreign travel as traveling to major countries and destinations like London, Hong Kong, Bangkok, Paris, etc. If I were traveling to some out of the way place, I would research it first.

-David


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## Blues (Apr 13, 2008)

This TUG post discusses this issue, and may be worth a look.  In particular, try the link that abbekit posted in post #3.  It links to an article at flyerguide.com that lists a large number of banks and the fees they charge for 1) credit card usage, 2) ATM transactions, and 3) debit cards at point of sale.

Edited to add - Just looked at that flyertalk link, and it's clearly wrong about Citibank.  It says 2% for Citibank, and I can confirm that they charge 3%.  So use the information there with a touch of skepticism.


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## x3 skier (Apr 14, 2008)

One other thought. You will likely wind up with some left over Euros or Pounds or whatever. Some people donate them at the airport but I always keep them for the next trip. 

Gives me some funds for airport incidentals until I can get to an ATM in my Credit Union system to avoid the Airport ATM bandits. Right now, I have some pesos, Pounds and Euros ready for our next adventure.

Cheers


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## falmouth3 (Apr 14, 2008)

I had about 50 pounds left from when I used to travel to London on business a few years ago.  When I acquired the money, a pound was worth about $1.50.  When we went to Scotland last year, the pound was worth $2.04.  I made out well holding on to them.   

For our dinner the last night, we pooled all of our money, including all the change.  We decided we had just enough for dessert.  We came home with about 30 pence.  Now that's cutting it close!

Sue


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## Jwerking (Apr 19, 2008)

Blues said:


> This TUG post discusses this issue, and may be worth a look.  In particular, try the link that abbekit posted in post #3.  It links to an article at flyerguide.com that lists a large number of banks and the fees they charge for 1) credit card usage, 2) ATM transactions, and 3) debit cards at point of sale.
> 
> Edited to add - Just looked at that flyertalk link, and it's clearly wrong about Citibank.  It says 2% for Citibank, and I can confirm that they charge 3%.  So use the information there with a touch of skepticism.



Thank all TUGGERS for the great info - you guys are great!  THe flyerguide link was particularly helpful and current  

So it is going to be the Capital One credit card for purchases - which I already had from prior TUG postings.  But I just called and the rep stated there is now no fee for using the card overseas, where before they passed along the 1% Visa fee.  Does anyone know if this is true?

Will also make ATM withdrawals from my Capital One money market acct that I opened a few months ago based on some promotion.  Per the Flyer Guide article and confirmed via phone calls to bank reps - there is NO foreign transaction fee and no ATM fee from Capital One.  Yippee!  Unfortunately, there is a $500 daily limit - which is workable-  and I need to test the ATM card locally to see if it works - since I have never used it.   

THANKS AGAIN!!!!

Joyce


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## PClapham (Apr 19, 2008)

Right-Capitol One is what we used in England last year-no fees.
Anita


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## Blues (Apr 19, 2008)

Another confirmation on the Capital One CC.  Used it all over Spain, Portugal, and London last September.  No fees whatsoever.


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## Carolinian (Apr 21, 2008)

My Cap One platinum CC carries no exchange fee.   I can use that card here and then move money by the internet from my US based bank account to the CC.

Quirks in local currency exchange rates here at the independent exchange houses sometimes create an opportunity to convert $ to € in a three-currrency transaction at better than the mid-market rate.  Last week, for example, both $ and € had both buying and selling rates below the midmarket interbank rate, do I was able to sell $ at 0.8% below the interbank midmarket rate and turn around and buy € at 0.9% below midmarket interbank rates


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