# Currency



## sueban (Apr 16, 2009)

Im traveling to Europe next month. Does anyone know if its better to exchange currency in New York or wait until we get to Rome.  thanks!


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## AwayWeGo (Apr 16, 2009)

*Money, Money, Money.*

It's nice to have a little of the local moola in your pocket when you get there.  

Then for best rates & lowest fees, go to a regular bank in the country you're visiting for major serious currency exchange. 

_Bureau de Change_ is not famous for low fees & good rates. 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## vincenzi (Apr 16, 2009)

We are going to France in July.  I will have some local moola.  But, I would like to use my American Express for restaurants, etc. Will we be able to use it?


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## Carolinian (Apr 17, 2009)

AwayWeGo said:


> It's nice to have a little of the local moola in your pocket when you get there.
> 
> Then for best rates & lowest fees, go to a regular bank in the country you're visiting for major serious currency exchange.
> 
> ...



That depends very much upon the country.  Here is eastern Europe, the Bureaux de Change usually offer better rates than the banks. Most places those located in airports are exceptions, so wait until you get into the city.  That used to be true in western Europe much of the time as well, until the euro came in, the number of bureaux de change went down, and with less competition, the rates (and commissions) went south.  The euro is one of the worst things that has happened to travel in western Europe.  Yeah, there may be a slight bit of convenience, but that is more than made up in the fact that it is harder to find decent exchange rates, and the sterile feel of having to use monopoly money instead of proud national currencies like the franc and mark.

In the UK, you can still often find a better deal in the big cities at a bureau de change.

Among Bureaux de change, always go for the local independent ones, which is where you get the best rates.  Chains like Travelex and Thomas Cook overcharge you on foreign exchane whereever you are.

One of the best bets in western Europe is an ATM card from an account that does not have the all too common 3% junk fee on foreign transactions.  This gives you the mid-market interbank rate, which is a lot better than bank rates for walk-in customers.  The key is to have an account at a credit union, Capital One, or one of the other institutions that don't impose the ripoff 3% junk fee.  Credit Unions usually impose a 1% fee from Visa, but Capital One does not even impose that.  There are also fees for out of network ATM's and again the same institutions minimize that.  For many major banks using an ATM overseas is no longer a good deal due to the junk fees.

Getting back to Bureaux de Change, it is not too uncommon here for them to give a better rate than even the mid-market interbank rate, and almost none of them charge a commission.  Sometimes the rates are so competitive that I can do double conversions with an exchange loss of only around 1% based on mid-market interbank rates.  A double conversion is something like dollars to local currency to euros.

Having local currency in your pocket when you arrive is highly overrated.  In almost every city in Europe I can think of, I can get into the city from the airport using plastic (Cap One card with no junk fees) and then get a good rate on currency exchange.  If I want to buy a newspaper to read on the way, airport shops almost always take dollars and give change in local currency, not at the best rate but without the commissions common at airport exchange booths.  Airport food outlets, like McDonald's also often take dollars and give change in local currency.  Most currency exchange options availible in the US give bad rates, high commissions, or both.


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## Carolinian (Apr 17, 2009)

As to Rome specifically, as a euro-using country, the bureaux de change rates have deteriorated substantially from the days of the lira.  The trick in the old days was to get off the train, turn right to go out the side door of the station (inside train stations, like airports, usually have exchange booths with bad rates, high commissions, or both, and I always take the train in from the airport), turn left and within 2 blocks on the right hand side of the street were 3 bureaux de change with good rates and no commission.  Now only one of those is still in business, and was often closed the last time I was there, and its rates while better than others were still not as close to the margin as in the says of the lire.

In Rome, I now use ATM's if I need money, always using my credit union ATM card to avoid the junk fees, or I use my Cap One visa card, again with no junk fees to purchase with plastic.  Generally, however, I bring euros with me, since I can get them in the country I work in through the bureaux de change with a double conversion often enough with only a 1% or so exchange loss.  I keep a good portion of my cash in euros anyway.  Since you are probably not travelling through an eastern European country, that would not work for you, unfortunately.


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## Carolinian (Apr 17, 2009)

vincenzi said:


> We are going to France in July.  I will have some local moola.  But, I would like to use my American Express for restaurants, etc. Will we be able to use it?



France is much better about establishments accepting AmEx than the country I work in, but Visa and MC are more widely accepted.

I would also beware of the junk fees with AmEx on foreign transactions.  I now use my AmEx only for purchases when I am home in the US or online from US-based merchants.  Outside the US, the CapOne cards, or most credit union visa or mastercards, are much better bets as they avoid all or at least the majority of the junk fees.


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## JoanE (Apr 17, 2009)

sueban said:


> Im traveling to Europe next month. Does anyone know if its better to exchange currency in New York or wait until we get to Rome.  thanks!



i'm also traveling abroad and checked with my bank- they suggest arriving with a little money, but using my debit card (as credit) and i also checked with capital one- neither charge an additional fee- just rate of exchange applies wherever. they also advise letting the companies know so they will be less likely to reject overseas transations
  happy travels,  joane


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## Talent312 (Apr 17, 2009)

For local currency, I recommend using ATM's with your bank's ATM/Debit card associated with a major bank.  However, I don't want to spend the first 24 hours even thinking about it, so I always get some b4 I go (even though the rates are poor).

The three online sources that I typically check are:
-- AAA-Travel (uses Travelex)
-- Oanda ... http://www.oanda.com/products/fxdelivery/
-- Wells Fargo ... https://www.foreignexchangeservices.com/
Of these, Wells Fargo has consistently had the best rates


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## x3 skier (Apr 17, 2009)

Carolinian said:


> France is much better about establishments accepting AmEx than the country I work in, but Visa and MC are more widely accepted.
> 
> I would also beware of the junk fees with AmEx on foreign transactions.  I now use my AmEx only for purchases when I am home in the US or online from US-based merchants.  Outside the US, the CapOne cards, or most credit union visa or mastercards, are much better bets as they avoid all or at least the majority of the junk fees.



I second that AMEX is useful almost every where in France but I also agree that it is not a particularly good choice of a credit card for foreign countries. After they started tacking on those ludicrous extra fees, I got a Capital One Master Card and use it when out of the country. The rest of the time, its in the safe. 

I also use my Credit Union for cash withdrawals as they charge no fees. If you do not belong to a Credit Union, just about anyone can find one to join. 

Cheers


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## Carolinian (Apr 17, 2009)

I checked exchange rates here when I went to lunch, an easy thing to do as they post big signs outside with the 5 or 6 most popular currencies.  At the independent bureaux de change today the spread between buying and selling rates is a little less than four tenths of one percent.  The spread at banks is a little over one percent.  You will not, of course, find spreads that low in western Europe, especially in euro-using countries.


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## DeniseM (Apr 17, 2009)

Don't forget to call the CC companies, and your bank, if you have a bank debit card, to let them know you will be using your card out of the country.  Otherwise, you may accidentally instigate a security alert on your acct. and possible have your card frozen when you use it in another country.


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## falmouth3 (Apr 17, 2009)

I use ATMs to get my cash.  There is usually one or more at the airport.  The only issue that you may have doing that is to make sure your password has only 4 digits.  It is my understanding that some (many/most?) ATMs in Europe won't accept a 6 digit password.  Also, if you only have the letters on they keypad memorized, make sure you know the corresponding numbers because you probably won't find letters on the keypad.

I also have used my credit union credit card outside the US because I was in shock when I came home from a trip to Canada and saw all the extra charges that AmEx put on my purchases.

Sue


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## Jimster (Apr 17, 2009)

*AMEX*

Amex is ok for France but other countries don't like it much in Europe because it has the highest merchant cost.  For example, in Ireland you might as well leave your Amex card home because no one wants to take it.  I think you are better off generally with Visa or Mastercard.  Also be aware that many local shops and merchants are not going to take any of them.
I also use my debit card at ATM's as mentioned several times.  One word of caution though and that is if you have a overdraft protection provision on your card.  Technically, if someone gets it away from you, they can drain your account and then wait for the overdraft protection to kick in and keep on taking out money.  For that reason, I have a separate debit card for travel which does not have overdraft protection and which is not linked to my other accounts or debit cards.


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