# The BEST way to pay when you are abroad



## Passepartout (Jul 7, 2012)

Credit card? Debit? Cash? Airport exchange? Here's a comparison of the costs and safety of different forms of acquiring spending money when you travel to places that don't use your 'home' currency. http://bottomline.msnbc.msn.com/_news/2012/07/06/12598742-the-best-way-to-pay-when-youre-abroad?lite

This would make a good sticky. 

Jim


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## WinniWoman (Jul 7, 2012)

Good info, Jim. We used our Capital One extensively in Scotland. Some merchants did ask about being billed in dollars instead of pounds and we didn't understand what to do, but we chose pounds. However, Hertz pulled a fast one on us when we rented the car and somehow we "agreed to be charged the currency of our card" with the exchange rate at 1.6308618 including the conversion charge. Not sure how bad that was, as it seemed that the exchange rate was around .63 or .64 cents for everything else charged on my credit card in pounds, so it seemed in line with those. Live and learn, I guess!


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## WinniWoman (Jul 7, 2012)

The thing that made me crazy in Scotland was the VAT taxes on everything. We didn't buy anything, except at the airport, but we were charged VAT taxes at attractions and some restaurants. I would ask for the retail scheme form to get reimbursed, but they would look at me like I had ten heads! They would just say it shows the VAT on the receipt. But, some receipts were marked "This is Not a VAT Receipt". My understanding was that you could mail these retail scheme forms (407) out before you leave and the government would send you a reimbursement check, since foreigners are not required to pay VAT, but must do so upfront. We just chalked it up to the cost of traveling, but it was annoying.


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## x3 skier (Jul 7, 2012)

Great idea to make this a Sticky. 

Cheers


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## beejaybeeohio (Jul 9, 2012)

*Chipless Credit Card*

Once again, we encountered several situations in Europe when we could not use our USA credit cards (CapOne, BoA, Citicard, etc.) due to lack of chip technology.  

The most critical occasions were when needing to purchase public transportation tickets such as taking the RER in Paris or the Metro in Brussels.  Our options included standing in a long, long line to get tix from an agent (not available at our Brussels Metro stop) or using Euro COINS ONLY- thank goodness there was a change machine at CDG.

There was one restaurant in the Auvergne that could not process our cc.  The waitress' machine allowed for only the insertion of the chip portion of the cc card.

Question #1- When if ever will US issuers of cc's implement chip technology?
Question #2- When will European businesses stop accepting magnetic stripe cc's?

Maybe the answer to both the above is NEVER....Change will affect the profits of US banks and European business.


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## JudyH (Jul 9, 2012)

Get the Chase BA card, it has the chip embedded.


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## GetawaysRus (Jul 9, 2012)

There is a long FlyerTalk thread on this topic.
http://www.flyertalk.com/forum/cred...-available-today-chip-pin-chip-signature.html

Notice that post #1 has a link to a spreadsheet that lists the available cards, the annual card fee, and whether there are foreign transaction fees.


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## pedro47 (Jul 9, 2012)

These are some great tips.  We are headed to Europe & the Middle East laster in the year. I have purchase $500 dollars in euros currency.


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## beejaybeeohio (Jul 10, 2012)

*Wells Fargo*

We ordered euros from Wells Fargo.  Since there is no branch near us, they were delivered to our home (had to be there to sign for the package).  When the euro/dollar was at 1.26 we paid 1.31  and no other fee.  The biggest plus is that we charged the euros on an ff affinity card- it was a charge not a cash advance.

Will have to check into the Chase BoA card- what is the foreign transaction fee with them?


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## jehb2 (Jul 10, 2012)

*How about using a debit card at a bank ATM*

In Canada last summer I used the advice I got from several boards.  I went to an ATM inside a national bank.  I used my debit card to withdraw Canadian dollars.  My bank charged me $1.00.  Their bank charged me $1.50.  And I got the actual day's exchange rate.  That was definitely the best (easiest & cheapest) way to exchange money.  

I don't know if this is true for Europe though, and the article does not exactly address this as an option.


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## Passepartout (Jul 10, 2012)

jehb2 said:


> In Canada last summer I used the advice I got from several boards.  I went to an ATM inside a national bank.  I used my debit card to withdraw Canadian dollars.  My bank charged me $1.00.  Their bank charged me $1.50.  And I got the actual day's exchange rate.  That was definitely the best (easiest & cheapest) way to exchange money.
> 
> I don't know if this is true for Europe though, and the article does not exactly address this as an option.



What you describe is exactly how we acquire spending cash while abroad. It is the cheapest way to get it. Just remember that you are charged the same ($2.50 in the above example) for each transaction whether it's to withdraw $20 or $200, so the key to doing it cheaply is to get enough cash to last you a couple of days.

Caveat: (1) Use BANK ATMs. Some private ones in malls, gas stations, airports, etc. will have more and higher fees. and (2) Debit cards are not covered by the 'limited liability' safety of a credit card. A thief could clean out the account- and more if you have overdraft protection on that account. So if you carry and use debit cards -at home or abroad- don't have more in those accounts than you could afford to lose, AND turn off the overdraft protection when you travel. With internet banking, you can move money between accounts as necessary. (3) Carry credit card(s) for purchases.

Jim


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## JudyH (Jul 10, 2012)

BeeJay, no foreign transaction fee with the Chase BA(  British Air)card


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## x3 skier (Jul 10, 2012)

JudyH said:


> BeeJay, no foreign transaction fee with the Chase BA(  British Air)card



+1

And I got 50000 Avios points good for about 5 short haul American Round Trips, eg DAY ORD.


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## spencersmama (Jul 15, 2012)

Passepartout said:


> (2) Debit cards are not covered by the 'limited liability' safety of a credit card. A thief could clean out the account- and more if you have overdraft protection on that account. So if you carry and use debit cards -at home or abroad- don't have more in those accounts than you could afford to lose, AND turn off the overdraft protection when you travel. With internet banking, you can move money between accounts as necessary.



I don't think this is 100% true anymore. It was when debit cards were new, but ours has had zero liability for quite a few years.  Luckily, I haven't had to test out the zero liability clause!


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## WinniWoman (Jul 15, 2012)

beejaybeeohio said:


> Once again, we encountered several situations in Europe when we could not use our USA credit cards (CapOne, BoA, Citicard, etc.) due to lack of chip technology.
> 
> The most critical occasions were when needing to purchase public transportation tickets such as taking the RER in Paris or the Metro in Brussels.  Our options included standing in a long, long line to get tix from an agent (not available at our Brussels Metro stop) or using Euro COINS ONLY- thank goodness there was a change machine at CDG.
> 
> ...



You can get a no fee chip and pin card at Andrews Credit Union. You join for $5.00 (on-line) and then apply for their Globetrek Visa Card. You also have to join a consumer group, which is free and the website has a link that you just click and your in like Flint! (Takes a second for that).

The card does have foreign exchange fees, but if you limit it to use only if you have to, it shouldn't be a big deal.


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## beejaybeeohio (Jul 15, 2012)

*British Air Chase*

Thanks for the tip on this cc.

Spoke to a Chase Visa rep yesterday re: their BA chip card.  He informed me that it was a chip/signature card, not a chip/pin card.  He stated that if I obtained a pin# for this card and used it, I would be charged as though it were a cash advance.

Does anyone have personal experience using this card to obtain public transportation tix from a machine?  Is a pin always required?


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## x3 skier (Jul 15, 2012)

beejaybeeohio said:


> Thanks for the tip on this cc.
> 
> Does anyone have personal experience using this card to obtain public transportation tix from a machine?  Is a pin always required?



AFAIK, you do need to sign but I have read on other boards, it does work in some automated machines. What seem to be the system is you get the handheld machine from a clerk/waiter/etc and instead of it asking for a PIN, it spits out a slip for signing. Better than a rejection of a swipe card but still not perfect. 

Cheers


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## Bella Santos (Sep 17, 2012)

Passepartout said:


> Credit card? Debit? Cash? Airport exchange? Here's a comparison of the costs and safety of different forms of acquiring spending money when you travel to places that don't use your 'home' currency. http://bottomline.msnbc.msn.com/_news/2012/07/06/12598742-the-best-way-to-pay-when-youre-abroad?lite
> 
> This would make a good sticky.
> 
> Jim



The best way to avoid hastles on overseas travel is to exchange you money for currencies of the country that you are planning to visit...


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## Timeshare Von (Sep 18, 2012)

Bella Santos said:


> The best way to avoid hastles on overseas travel is to exchange you money for currencies of the country that you are planning to visit...



But you will pay dearly to avoid the hassles!

We always use our Capital One credit cards for purchases when possible, and yes in local currency.  No fees makes these some of the best cards on the market.  We also have a Capital One checking account with an assigned debit card which provides us immediate access to local cash via ATMs, also w/o added fees.

On our recent trip to Ireland we had two places charge in USD rather than local currency (and at a very poor exchange rate).  One place said they had no other options with their new bank processing service and the other screwed up and then said they couldn't reverse the charge and redo.  Neither was a lot of money so it wasn't worth the hassle to make them fix it.

For some charges like the car rental or lodging, however, it would have been a different story.


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## amycurl (Sep 18, 2012)

I was noticing that American Express is not charging fees on the pre-paid gift cards if purchased with an AmEx card through the end of the year. Does anyone have experience with doing this and putting Euros on the card? Am considering this option for a Xmas gift for families members going with us to Barcelona next spring (dates yet to be determined--don't get me started--in-laws in charge of trip planning, which they admit is not in their gene pool... )


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