ATMs vs Traveler's Checks

[Charles Lewis]

I've been using ATMs for foreign travel the last few years. I have just learned that my bank is charging a $5 per transaction fee plus 3% foreign currency conversion. Under these circumstances, is the ATM still a better deal? We are traveling this summer to Eastern Europe, and none of the "sister banks" are listed there.

[jfrenaye]

The best method is to use a credit card and accept the bank's conversion fees--typically much better than a hotel exchange rate or a Change Bureau. In the absence of that, I would suggest the travelers checks. You will still pay the conversion fee but you will not get socked with the ATM usage.



Also, exchange a small amount BEFORE your trip so you can tip and pay for a cab or a sandwich when you arrive without a hassle!



Hope this helps!

[Charles Lewis]

Thanks. That's what I've done in the past but with the new fees, I wasn't sure if it was still the best bet.



>>The best method is to use a credit card and accept the bank's conversion fees--typically much better than a hotel exchange rate or a Change Bureau.<<

[nancycoop1]

Check around with other banks (or better yet) a credit union. Many do not charge the $5.00 fee for ATM's. I have opened a small acount that I use for travel at a Credit Union that does not charge the ATM fee and only charges an additional 1% for currency conversion on VISA.

[Guest_HelenM_*]

American Express has a card that you can purchace and use as debit as travelers checks. They are offering a free companion ticket for purchasing one of these travelers check debit cards. :)

[SemiFreqFlyer]

I always carry cash, plastic and travelers checks. Use the one that gives the best exchange rate where you are at the moment. As I travel I write down exchange rates along the way, so that next time I know where the best is. Every exchange I have ever seen in a US airport is a total ripoff. I feel sorry for foreigners who do not know to change back in their home country where they may buy dollars for 20% less than over here. Sadly the US is not a tourist friendly place.

AAA members get free TCs as a member benefit. They now use Visa TCs, which turn out to be great in Asia as the major banks all seem to be Visa affiliates and cashing them is easy.

Until a couple years ago AAA gave out American Express TCs which I took to Europe. Harder to cash except in major cities, which all have a Amex office. Usually only one downtown, limited hours, but normally near where a tourist would go anyway. Amex offices will cash Amex TCs into local currency at their offices with no fee no commission and at a rate right at the international bank exchange rate. I have never beat free TCs in the states and free cashing at a top rate in Europe.

I find best place to change money varies so widely from country. Hotels and stores give horrible exchange rates. Using a debit card at the ATM of a major bank gives the official exchange rate, and yes they almost all add a 2% fee for doing nothing--you still get a net exchange at better overall cost than most other options. My bank charged no ATM use fee last time I used it in Germany, but they recently added a 1 or 2% surcharge which sadly everyone seems to be doing.

England is horrible in general, all the airport change places gouged something like 4 pounds flat per transition PLUS several percent. Ouch. The best exchange is McDonalds at Gatwick. If you only need a little GB pounds, buy a small fry at McD and they will take up to $20 US bill and give local change at a reasonable exchange rate, no fees or commissions.

Most places have little store front or phone booth sized private owned exchange places that are ripoffs to be avoided. But not always. When I see a exchange rate board that looks too good to be true, I figure there is some fine print in a language I can't read "Plus a 5 % "Transaction Fee"" or something. I sometimes change a $10 just to see how much true net I get back. A cheap cultural lesson even if I get gouged.

You mentioned Eastern Europe. The most reasonable exchange I have ever seen anywhere was in Poland. Outside the train station will be a little booth on the side of the sidewalk about the size of 4 phone booths. The sign outside lists the top 10 world currencies with a buy and a sell column run out to 4 or 5 decimal places. There spread is about 2 or 3% total centered around todays official world exchange rate. They make their living on this tiny spread between buy and sell. Period. No fees, no transaction fees, no paperwork, no passport, just your money times the rate on the board and here is your currency. It will spoil you so bad, you will want this kind of exchange everywhere you go.

[beadmakerone]

Originally posted by Charles Lewis@Apr 7 2005, 02:50 PM
I've been using ATMs for foreign travel the last few years. I have just learned that my* bank is charging a $5 per transaction fee plus 3% foreign currency conversion. Under these circumstances, is the ATM still a better deal? We are traveling this summer to Eastern Europe, and none of the "sister banks" are listed there.
226

[beadmakerone]

Using ATM's is great as longas your bank is within the "system" I have gotten a debit card, which goes to my account and that haws saved lotsof money in transaction fees. Most banks have this for either VISA or MC. The choice is one that shoudl be thoguht out because many countries only favor one card..... In Central America it is hard to use MC and almost impossible to use AMEX. :)

[tigers37]

Re the comment about AmEx Travelers Checks exchanged by American Express offices without charge. This is not my experience recently in Venice. They charge a fee and discounted the checks also.

[steve]

Originally posted by Charles Lewis@Apr 7 2005, 01:50 PM
I've been using ATMs for foreign travel the last few years. I have just learned that my* bank is charging a $5 per transaction fee plus 3% foreign currency conversion. Under these circumstances, is the ATM still a better deal? We are traveling this summer to Eastern Europe, and none of the "sister banks" are listed there.
226

[Sigh]

Re the comment about AmEx Travelers Checks exchanged by American Express offices without charge. This is not my experience recently in Venice. They charge a fee and discounted the checks also.

They used to be free, but all good things come to an end.

Perhaps this is why AAA dropped AX for Visa Checks.

AmEx used to be an upright company in the 60s and 70s. On the consumer blogs like Clarke Howard nowadays all I read are pure horror stories about what a total jerk company it has become. Pay late and AX uses nastier than average collection harassment. Their focus seems to be make millions for the CEO's golden parachute by shafting their own customers with interest and late fees. Yes all cards do that nowadays, but AX is worse.

[chuck2741]

If your bank is charging you $5.00 per ATM transaction I would change banks.
They are obviously not very customer oriented. I travel a lot and I found a bank
(for a minimum balance) that never charges me a fee. I pay most everything in cash and save 2-5% on every trip. Unfortunately the banks and credit cards
have discovered "fees" and it has become a cash cow. Why? Becuse they can.

[John Nigro]

Originally posted by Guest_HelenM_*@Jul 25 2005, 10:21 AM
American Express has a card that you can purchace and use as debit as travelers checks. They are offering a free companion ticket for purchasing one of these travelers check debit cards. :)
5356


Be careful of the debit cards -- they may only be usable in the US. The ones we purchased in local supermarkets can only be used in the US.

[purpleeagl]

Originally posted by John Nigro@Jul 26 2005, 09:59 AM
Be careful of the debit cards -- they may only be usable in the US. The ones we purchased in local supermarkets can only be used in the US.
5522


Also be aware the debit cards even with an MC or Visa logo may not work in Europe. I tried using my debit card in Ireland and England and it would only work at certain ATMs. Many merchants said the card would not work.

I did find I used to get a decent exchange rate with Diner's Club, but have not used the new Mastercard version yet.

[drwong]

Originally posted by Guest_HelenM_*@Jul 25 2005, 10:21 AM
American Express has a card that you can purchace and use as debit as travelers checks. They are offering a free companion ticket for purchasing one of these travelers check debit cards. :)
5356


If you're concerned about fees, forget about the AmEx Travellers Check Card. I looked into it <_< and after reading the fine print (which should be a mandatory class in law school), the costs associated with the card are more expensive than using a credit card or a paper travellers check. For starters, AmEx charges you $14.95 for the card itself. If you want an extra convenience card for a spouse or partner, that's another $14.95. Tack on another $9.95 for "expedited delivery" via UPS. Need cash? You'll have $2.50 less on the card each time you make an ATM withdrawl. Need to add value to your card? Be prepared to fork over an extra $5 for the privilege. Need a card reissued? That's another $5. If all these nickel-and-dime fees are whittling away your balance and you want to cancel the check card and cash it out, AmEx keeps $10 of the balance. And don't get me started on the rule and restrictions attached to the "free" companion ticket!!! :angry:

In contrast, paper travellers cheques rarely have associated fees. You can readily exchange them for cash at any bank, hotel desk, or currency exchange, and AmEx and AAA members can usually get paper travellers checks without paying a service charge. Citibank also provides a currency exchange service free of charge to its CitiGold members. And if you use a Citibank card to withdraw cash from any Citibank or affiliated ATM overseas, there's no withdrawl fee.

[tdew]

I usually hang onto left over traveler's checks too. It's a good emergency stash that you won't be tempted to spend without necessity.

[Dr Ryan James]

Just a note that here in Hungary, American Express closed their office and everything has been consolidated with Western Union. The exchange rates have dropped considerably and are close to robbery.

Since I live here, but have a California bank account, I have recently been victim to Bank of America's fees of $5.00 per withdrawal and now a conversion fee. Since I have been a customer of theirs for over 15 years and have $6,000 + in a savings account and $3,000 in checking, I am disgusted with these fees.

Dr. Ryan James

drjames@aces-hungary.org

www.budabab.com

[smwatk]

I'd change banks, and find one that makes ATM use affordable. It's still for me by far the easiest way to get cash abroad. My experience, and that of my clients, has been that more and more places do not want to cash traveler's checks, and you may get stuck having to find a bank and make sure you can be at it when it's open. ATM's for me still work best.

[missalf]

Sally, you're right -- we've had many smaller places refuse to take travellers checks, and if you're not in a really touristy area your chances for getting them accepted drop dramatically.

Maybe someone can post the NAME of a bank or a company that doesn't charge outrageous fees? I'm with everyone else, a $2.00 transaction fee PLUS a 1.00 conversion fee plus other stuff -- it's just not fair.

[Favors Cash]

you're right -- we've had many smaller places refuse to take travellers checks, and if you're not in a really touristy area your chances for getting them accepted drop dramatically.


No matter where you are nothing beats cash. I don't live on plastic at home, and for sure do not do so overseas. Same with TCs. The above comment re smaller places should not happen--forget about trying to use a plastic or TC there. If you do so you are creating your own headaches.

I take a mix of USD cash, TCs, and some plastic. With the TCs, I plan to try to cash them either once per week or once per country max. And cash at a bank or a a change window at the airport. Sometimes you get a tiny bit more with TCs. I figure they can clear them electronically like a check, and not have that foreign cash to physically transport to a clearing house.

I usually only charge the hotel bill. Do call the 800 number on your card before your trip and ask for the security desk. Tell them which dates you will be in which countries to alert them that charges from there should be you. Otherwise their computer will almost always trip a security feature (unusual charging patttern) and reject your charges. Might even freeze your account totally.

For everything else, there's local cash. I have never had a local refuse to take that!

For those worried about exchanging too much, and losing a few more percentages in the conversion to another currency, not a problem. When leaving a country, I keep enough local for the bus/taxi to the train/airport station, plus food and incidentals till I'm out the country. All my excess is paid toward the hotel bill--only the remainder is charged. Reduces the conversion fee charged on the hotel bill, and you have less to pay off when you get home.

[Stephen Delroy]

I prefer not to tie up a lot of cash before beginnning a trip. Using the ATM in a foreiegn country is convenient and you don't have to carry a lot of cash around. Try to consolidate those trips to the ATM and the transaction fee becomes trivial. Unfortunately the banks look for every way to take your money. I consider these costs just part of the total cost of the trip. As I only travel for pleasure, it isn't much on a yearly basis. :huh:

[Jeanie821]

I've never had the opportunity to travel internationally, but here's how I handle the ATM vs. travelers' checks question...

I don't hold any major credit cards, only a debit MasterCard (which charges all purchases against my checking account). The night before a trip, I withdraw whatever cash I need, leaving some in the checking account in the event of an emergency.

[drwong]

And in an unrelated story, American Express reported that earnings rose 16% in the last quarter, a new record high . . . .

http://msnbc.msn.com/id/8702490/

[Fluegelwesen]

I have to agree that TC are not what they once were. European banks charge a hefty fee, and often do NOT give a better exchange rate. I have stopped using them in Europe, but would like to know how they do in Asia. I has also happened to me that Amexco did not give a good exchange rate. As a matter of fact, in Frankfurt in 2004 Amexco advertised a good exchange rate in their window. When I tried to verified it inside, I was told it was yesterday's rate (at 1.30 p.m. they had not changed to the new rate????) and today's rate was lower.!!!
Banks, at least, in Europe charge hefty fees, added to a relatively low exchange rate. Sometimes you can do better at exchange bureaus, but compare by all means.
I have found that ATM give the daily exchange rate and if the card has been issued by a credit union there are no fees involved.

[drwong]

Sunday's Washington Post Travel section published two articles on the latest "scam" to squeeze more fees from unwary American travellers: dynamic currency conversion (DCC). Read all about the ruse and some tips on avoiding them here:

http://www.washingtonpost.com/wp-dyn/conte...5072900927.html (http://www.washingtonpost.com/wp-dyn/content/article/2005/07/29/AR2005072900927.html)

http://www.washingtonpost.com/wp-dyn/conte...5072900998.html (http://www.washingtonpost.com/wp-dyn/content/article/2005/07/29/AR2005072900998.html)

[missalf]

From the article referenced by DR WONG
DCC is a way for merchants and their banks to benefit from international transactions where they didn't before. <_< :( :angry:

Yes, they do need new and non-obvious ways to part us from our money. Has anyone encountered this wonderful autoconversion system when travelling internationally, and if so have you encountered any resistance to having the transaction run in local currency rather than through this system?

[leocha]

Capital One is not charging the 2% foreign transaction fee yet. It is a good card to use for everyday charges. I use a credit union card for cash advances. There is only the 1 percent Visa/Mastercard fee and that's it. Another credit union card I use charges a $1 cash advance fee. These are by far the best deals when traveling. The exchange rates are far better than with travelers checks or cash.

See my article on TRIPSO at
http://www.tripso.com/archives/2005/04/7_r..._for_cre_1.html (http://www.tripso.com/archives/2005/04/7_rules_for_cre_1.html)

Charlie Leocha

[SunBaby]

Pretty much everything I've read for the last several years recommends taking an ATM card when traveling. Friends did this when they travelled to Puerto Vallarta and unwittingly used a phony ATM which "ate" their card. There they were without much cash and a mess to straighten out. They certainly weren't able to fix it while on vacation and had to wait till they returned home. Does anyone know of a way to sniff out these phony ATMs ?






Originally posted by Favors Cash@Jul 26 2005, 03:41 PM
you're right -- we've had many smaller places refuse to take travellers checks, and if you're not in a really touristy area your chances for getting them accepted drop dramatically.
No matter where you are nothing beats cash.* I don't live on plastic at home, and for sure do not do so overseas.* Same with TCs.* The above comment re smaller places should not happen--forget about trying to use a plastic or TC there.* If you do so you are creating your own headaches.

I take a mix of USD cash, TCs, and some plastic.* With the TCs, I plan to try to cash them either once per week or once per country max.* And cash at a bank or a a change window at the airport.* Sometimes you get a tiny bit more with TCs.* I figure they can clear them electronically like a check, and not have that foreign cash to physically transport to a clearing house.

I usually only charge the hotel bill.* Do call the 800 number on your card before your trip and ask for the security desk.* Tell them which dates you will be in which countries to alert them that charges from there should be you.* Otherwise their computer will almost always trip a security feature (unusual charging patttern) and reject your charges.* Might even freeze your account totally.*

For everything else, there's local cash.* I have never had a local refuse to take that!

For those worried about exchanging too much, and losing a few more percentages in the conversion to another currency, not a problem.* When leaving a country, I keep enough local for the bus/taxi to the train/airport station, plus food and incidentals till I'm out the country.* All my excess is paid toward the hotel bill--only the remainder is charged.* Reduces the conversion fee charged on the hotel bill, and you have less to pay off when you get home.
5579

[morgholtz]

Originally posted by drwong@Jul 26 2005, 10:31 AM
If you're concerned about fees, forget about the AmEx Travellers Check Card.* I looked into it* <_<*


In addition I took the check card to Italy and I could not find an ATM that would accept the card. On the flipside, it was nice to charge goods using that card and the money would draw from that.

[Still Favors Cash]

"Pretty much everything I've read for the last several years recommends taking an ATM card when traveling. Friends did this when they travelled to Puerto Vallarta and unwittingly used a phony ATM which "ate" their card. There they were without much cash and a mess to straighten out. They certainly weren't able to fix it while on vacation and had to wait till they returned home.

Does anyone know of a way to sniff out these phony ATMs ?"

Uh, pay cash and don't use the ATM machine?

Actually I will only use an ATM that is in the wall of an actual major bank, figuring it is real. And I try to do it during hours the bank is open, in case the machine eats the card.

Why does everyone feel so scared carrying cash? I would much rather loose $1000 cash (no, I am not rich--that is my entire trip money for 2 weeks) than my passport. Considering the hassle it would cause in a foreign country.

One tip: carry a pair of tweezers with long wide thin tips with grooved insides for good grip on plastic, which are now allowed by TSA. A common trick is to use gum or tape to put a little resistance to the card, causing the machine to keep it, till the owner gives up and leaves. The crooks are waiting, and rush over with their tweezers and pull out the card.

Live by ATMs and Plastic, Die from ATMs and Plastic.

Yes they have a place, but total dependence on them is foolish.

I just looked, and in April my US Bank converted at the official rate and then added 3%.

MC and Visa always get 3% of every domestic purchase you buy. If you pay cash, the merchant gets 3% more net than if you charge it. Amex gets 5 to 6%, which is why many merchants will ask "got another brand of plastic?" The MC/Visa rules used to forbid "discounts for paying cash" to keep you from knowing how much they suck out of everything you charge. Why complain about a foreign 3% when you pay a domestic 3% every day and consider it business as usual?

[toskalynn]

I've always believed in traveller's checks. In Mexico, they're the best way to go because there's an exchange house (casa de cambiar) on every corner. They're all in competition and the rates are sometimes better than the official exchange.

That all changed when I went to Europe 2 years ago. I got traveller's checks, in euros no less, and was absolutely unable to use them at all. They wouldn't take them in the Charles de Gaul airport giftshop, they wouldn't take them in the Tuscan town of Lucca. We had to go to the bank and stand in line and pay to have our checks converted. Conversely, our friend who used the ATM had no trouble and sat in a cafe watching the crowd while we negotiated the bank. I vowed never again. When we went to England a few months later, I used the ATM, got the proper exchange and had NO service charge from Wachovia or the English bank. It was a wonderful experience.

Bottom line: Mexico and south America I would probably use the TC's but Europe is definitely the place for the ATM.

[plet39]

I've had the best luck with my ATM for foreign travel. I keep my "travel fund" in a credit union account, since my credit union charges only $1.00 per foreign ATM withdrawal. Although a few ATMs in local banks in Australia wouldn't accept my credit union's ATM card, I was usually able to find an AZ branch somewhere close. Also, since I wasn't sure about being able to find an "affinity" ATM right away, I got $100 in Australian money before I went.

I used my credit card (one that doesn't charge an extra percentage over Visa's 1%) for hotels and major purchases and was very pleased with the exchange rate. I also took $1,000 in Amex traveler's checks and ended up bringing most of them home. The bank charges to exchange were rather high--and forget the Thomas Cooke exchange in the airport! The only convenient Amex office on that trip was in Sydney, but they didn't charge me to cash the checks and their exchange rate was at least as good as the banks.

I'll probably still get a few traveler's checks for foreign travel, but probably for use stateside.

[C.J. ROBINSON]

I HAVE FOUND THE USAA DEBIT CARD, FOR USAA MEMBERS, TO BE THE BEST BET FOR MONEY CONVERSION. THEY DON'T HAVE AN ATM FEE AND WILL REIMBURSE THE CARD HOLDER FOR MOST ATM FEES AT OTHER BANKS. IN 2004, WHEN THE POUND WAS $1.82, I WAS ABLE TO GET 100 GBP FOR A TOTAL OF $182.00.
I ALSO NOTICED IN 2004 THAT THE BARCLAY BANK DIDN'T CHARGE AN ATM FEE IN BRITAIN.

[Paul Friedrich]

Originally posted by missalf@Jul 26 2005, 02:29 PM
Sally, you're right -- we've had many smaller places refuse to take travellers checks, and if you're not in a really touristy area your chances for getting them accepted drop dramatically.

Maybe someone can post the NAME of a bank or a company that doesn't charge outrageous fees?* I'm with everyone else, a $2.00 transaction fee PLUS a 1.00 conversion fee plus other stuff -- it's just not fair.
5572


I use Bank One. The charge is $1.25, but occassionally I have been hit with a "host bank" charge of up to $1.50. There is no exchange rate shrinkage, so it's still the cheapest way to travel in Europe. The reason that Debit Cards won't work in Europe is because they have a different system that uses a three digit PIN. European credit cards work the same way and I maintain one (through a Swiss bank) in case the ATMs go down. Otherwise, I use only the ATMs. If this is your first experience with the Euro and the way it has increased in value against the dollar, make sure you know how much you are going to spend and have an ATM limit that is high enough to cover your daily spending needs. The ATM card can be used only once a day and if you have a $200 card limit and a $400/day need, you are in trouble. The banks will freely increase the limit and I carry one for my MM account as well in case there is some unusual need.

[drwong]

Originally posted by SunBaby@Aug 4 2005, 08:07 AM
Pretty much everything I've read for the last several years recommends taking an ATM card when traveling.** Friends did this when they travelled to Puerto Vallarta and unwittingly used a phony ATM which "ate" their card.* There they were without much cash and a mess to straighten out.* They certainly weren't able to fix it while on vacation and had to wait till they returned home.** Does anyone know of a way to sniff out these phony ATMs ?
6297


Not really, except to avoid an ATM whose card slot looks phony or suspicious - The UT Police Department used illustrations taken from Bradesco, a Brazilian bank, but it should give you and idea of how it's done:

http://www.utexas.edu/admin/utpd/atm.html

"I read about it on the Internet so I know it MUST be true!"

[anneo123]

TC really aren't easy to use anymore...many places won't accept them. While a bank or AMEX office might not charge a "fee" to cash them, they are making it up with a lousy exchange rate. If you buy Euro TC, then find you can't use them, when you re-deposit them at home, you have paid a conversion fee (in the form of a mark-up on the exchange rate) twice...once when you bought them, once when you re-deposit them.

If you really feel more comfortable carrying some TC for emergencies, buy them in your home currency. No exchange rate loss unless you actually have to cash them.

ATM cards remain the best way to get cash, but you need to watch the fees your bank will charge. European banks cannot charge you for making a foreign withdrawal (which by definition is a bank other than your own...has nothing to do with what country you are in), but your own bank can charge whatever it wants. That's where customer service comes in! Either have an account at a bank with a large alliance whereever you will be travelling, or with a credit union or bank such as USAA which doesn't charge for foreign withdrawals, or make sure your normal bank won't charge you outrageous fees. Banks do incur costs in processing transactions from another network, so a small charge (I think up to $2) is reasonable, but $5 is ridiculous! Make fewer large withdrawals to minimize fees, rather than taking out small amounts numerous times.

Credit cards....watch out! VISA/MC network adds a 1% fee to the exchange. Most banks tack on 2% extra for nothing. Capital One and USAA are the only two I've found that don't. (MBNA just added that 2% recently). Amex charges a total of 2%. Some now also charge a separate "foreign transaction fee" on top of this currency conversion charge. Read the fine print!

Hope this helps!
Anne

[Dr Ryan James]

I am an American living in Budapest, Hungary. I have been here for over three years and have a small B and B. I can tell you that guests who come to Hungary with Travelers cheques have a difficult time getting them cashed. Store will not usually accept them and they have had tough times finding a bank that will. When they did, the exchange rate was worse than the added fees they would have paid using an ATM.

In addition, American Express has closed their office here. They have consolidated their services with Western Union. I recently went to get a cash advance on my Amex card. The exchange they were offering was 179 Hungarian forints to the dollar. The exchange booth rates around town at the time were 202 to the dollar.

I have an account of over 13 years with a bank in California, with over $6,000 in savings and as much in checking and they still charge me $5.00 for every ATM withdrawal and a 3% 'conversion fee'. This bank has now sucked up banks on the east coast, so they are becoming quite the monopoly. I use my credit cards for everything, including groceries and then pay it with online banking. It saves me lots of money.

Dr. Ryan James
www.budabab.com

[happy traveler]

[FONT=Arial][B][SIZE=1]My Bank One debit card has started charging 1.50 per foreign usage. Seems not to be unreasonable to me. Stopped using Travelers checks long time ago. Generally get currency at the airport ATM's where ever we land. Had some funny experiences, because they were not in English. Some how we've managed to find a friendly assist. All part of building those travel memories!

[Carolejtex]

Originally posted by Charles Lewis@Apr 7 2005, 02:50 PM
I've been using ATMs for foreign travel the last few years. I have just learned that my* bank is charging a $5 per transaction fee plus 3% foreign currency conversion. Under these circumstances, is the ATM still a better deal? We are traveling this summer to Eastern Europe, and none of the "sister banks" are listed there.
226

We used our ATM from our credit union which charged $1 per transaction. It was better than using the credit card.

[mtileston]

My experience is that a debit MC or Visa is my best bet in Europe (along with some local currency). I use 2 different banks: a small local bank and a credit union. Neither one charges a foreign currency fee, nor do they charge any fee above the 1% currency conversion fee that MC and Visa charge (unlike my MBNA and Chase Visas that charge 3% and 2% respectively for "foreign transaction fee" - a profit center for them while doing nothing for me).

I've only had one incident where the card was rejected and that was because of a system error (I used the card at that same place on a daily basis). I've also found that the exchange rate is far better than anything you will get at a foreign bank or exchange window.

Recently, my father-in-law brought his credit card and a ton of Amex TCs with him to Norway. Each time he went to cash one of the checks at a bank, it cost him something like the equivalent of $20 USD.

So, I say bring the debit card, but make sure it's with a bank that doesn't gouge you on fees.

[lafr]

The question of traveller's cheques vs. ATM has no answer really. It depends on:
i) whether your bank charges you to use ATM or not (there is always a fee of approximately $2 to $4 by the foreign ATM) If your bank charges a fee on top of that then you are better using T. cheques.
ii) Some countries do not readily accept T. Cheques therefore you are better getting cash from an ATM
iii) Some foreign banks charge a healthy fee for just converting T. Cheques to cash even though the cheques may be in their currency therefore you are better off getting cash from an ATM
iv) Some countries have very active pickpockets, thieves etc. therefore you are better off using T. Cheques and just exchanging for limited amounts of cash.

and the list goes on........

It's sort of like.... at which end of a boiled egg should one begin to eat?

B)

[Richard Cisak]

The best way to use Amex Travellers checks overseas is to buy them in the U.S. in the currency of the country you are going to. For a recent trip to Italy, we bought traveller's checks in Euros here in the U.S., and were able to cash them in the Amex office in Rome at no charge.
Originally posted by Sigh@Jul 26 2005, 07:57 AM
Re the comment about AmEx Travelers Checks exchanged by American Express offices without charge. This is not my experience recently in Venice. They charge a fee and discounted the checks also.

They used to be free, but all good things come to an end.*

Perhaps this is why AAA dropped AX for Visa Checks.

AmEx used to be an upright company in the 60s and 70s.* On the consumer blogs like Clarke Howard nowadays all I read are pure horror stories about what a total jerk company it has become.* Pay late and AX uses nastier than average collection harassment.* Their focus seems to be make millions for the CEO's golden parachute by shafting their own customers with interest and late fees.* Yes all cards do that nowadays, but AX is worse.
5495

[honey2]

I have stopped using travelers checks.I have had many reslu bad stories about using them. I usually take cash and a credit card that I know will cost me extra. I am willing to pay whatever the cc fees . Most of the places I have been seem very happy to see american dollars.

[Guest_Tommie Imbernino_*]

I just returned from Italy and although I was charged from my bank I still think ATM's are the easiest. You also get the best currency exchange rate - much better than banks.

[Guest_Paul Friedrich_*]

Since I wrote 8-4, BankOne has begun the change-over to Chase. The rules have changed. I just returned from Switzerland, Italy and France where I used my ATM card in all three countries. There were no charges on my account by the foreign banks. Because of the minimum balance I maintain, Chase has made no charge at all to my account and the conversion is at bank wholesale rate. I just checked with the bank and was told that without the minimum balance, the charge is now $3 per use. That's still cheap considering that there is no conversion fee.