Leaving for Paris next Thursday %26amp; was just wondering if it%26#39;s more economical to charge, when possible, or to just use cash (via ATM). Seems I%26#39;ll be charged a 3% currency conversion rate fee whether I use my ATM or credit card, so that%26#39;s a wash. So, does one give a better rate than the other? Any help would be appreciated!
|||
Generally, the fees will be down to your bank/cc company so they%26#39;re the ones who can advise. Your bank also sets its exchange rate although most use the interbank (%26quot;official%26quot;) rate.
3% is not cheap.
|||
In most cases, you will do better at the ATM, but there are credit cards that charge 1% or less, or at least used to.
|||
you probably dont have enough time, but I would call or visit a Capitol One branch immediately. They dont have the 3% fee, and they dont give you an unfavorable exchange rate to compensate for the lack of fee.
When Bank of America decided to institute a 3% fee for overseas charges in US dollars, I cut up the card and got a Capitol One. I%26#39;ve been charging things for an upcoming Ireland trip and they%26#39;ve been charging me the interbank rate. (Im just pissed I didnt book more a month ago when the euro was at $1.40!)
You should also call your bank and see if they have a relationship with any particular French bank so you can avoid the fee for using their ATM (not the currency transaction fee). When I was in Madrid, I discovered if I used a Caja Madrid ATM there were no fees.
And, if you havent let the bank know already that you will be in Paris, you should give them your dates so you dont have trouble using your ATM card.
|||
This is perhaps one of the most often discussed topics on this forum and as it probably has been a few days since we last hashed out this question, here are my observations about the costs associated with spending in France:
__________________
Credit Cards
1. Visa and Master Card charge a 1% all transactions made outside of the US whether the charge is in dollars, euros, pound sterling, or any other currency.
2. Most banks, particularly the large well known variety, add 2-4% service fee to all international charges or fixed fees per transaction or both. You will pay this in addition to the 1% Visa/MC currency conversion fee.
3. Many smaller banks or credit unions pass along the 1% MC/Visa currency conversion fee but few add any additional fees of their own.
4. These fees are non refundable. If you return an item or are issued a credit on your card, you will incur new and additional fees on the credit transaction.
5. Capital One and Schwab are the only credit card issuers of which I know that not only add no fees of their own to international transactions but absorb the Visa/MC currency conversion fees. Using these cards is the least costly means of doing business (making purchases) outside of the US. What Capital One or Schwab may charge for those carrying monthly credit card balances is another matter.
6. Discovery cards are not accepted in France (or Europe in general). American Express is accepted by hotel chains and more exclusive restaurants. AE is not widely accepted outside of well trodden tourist paths.
7. The only way to really know what you are paying for the privilege of using your credit card while traveling is to ask a knowledgeable representative at your bank. This website may help one understand the costs of international transactions:
http://www.xe.com/ccc/
___________________
ATM Cards
1. Few if any French banks charge for withdrawing money from their ATMs. This means transactions are at or near mid-market rates with no fees at this level.
2. Cirrus/Pulse add a 1% currency conversion fee. If your bank is tied to one of these services (and I am unaware of any US bank that is not), you pay the fee.
3. Few US banks will miss the opportunity to add fees and charges to international ATM transactions. The B of A/BNP alliance has been well discussed on this forum but it is not the only way to obtain euros at market rates. Again, many smaller banks and credit unions do not charge for international ATM withdrawals.
4. There have been several posts by those using 6 digit pin, ATM cards in France. This should clarify the 4 digit pin only myth that has been discussed many times of this forum.
5. If ATM withdrawals are tied optionally to either a checking account or a savings account, French ATMs will not offer a choice of accounts from which the withdrawal is to be made.
6. If you have difficulty making withdrawals from one ATM, try somewhere else.
7. When in need, remember that virtually all French post offices have ATM machines available.
8. Daily limits may make using ATM machines as a primary means to obtain funds for prepayment of apartments difficult. These limits are generally set by terms established by your bank, not necessarily a French bank.
9. If you typically withdraw cash optionally from either a savings or checking account, French ATMs do not offer this choice. Ask your bank which of these accounts is tagged as the primary account and expect withdrawals to be made from there.
10. The only way to really know what withdrawals will cost is to ask a knowledgeable representative at your ATM issuing bank.
__________________
Travelers Checks
1. ATM machines have made Travelers Checks obsolete.
2. Travelers Checks are expensive to buy, difficult to spend, and are generally exchanged for euros at rates less favorable than cash rates (direct dollar for euros).
3. Overall, I find no compelling reason to use them.
___________________
Cash
1. There may be many valid reasons which require one%26#39;s obtaining large cash amounts in euros; rental or apartment deposits/advance payments being one of the most common.
2. Generally, the most cost effective way of obtaining large euro amounts is to trade dollars in Paris (acknowledging the obvious risks). I have found the following offer the lowest overall cost to the traveler who needs such an exchange (usually at 2%-3% of the total transaction):
http://www.ccopera.com/
http://www.fcochange.com/
http://www.bureaudechange.fr/index.php
3. Bank of America customers may be able to exchange dollars for euros without a fee before departing the US. I might be a good idea to ask your bank what charges are involved with cash exchanges.
|||
Capital One...meaning as a credit card (not ATM), right?
I actually opened an HSBC online savings acct just so I could have an ATM card w/a bank that has branches in Paris. My %26quot;regular%26quot; account is with Chase...no branches nor affiliates.
For the person who was kind enough to post the long list of issues with each type of payment: You said Visa charges 1%...I called Chase, who issues my Visa, and they said 3%. I also called HSBC and asked what the currency exchange fee is to use my ATM card to get euros: also 3%.
|||
%26lt;%26lt;Visa charges 1%...I called Chase, who issues my Visa, and they said 3%.%26gt;%26gt;
In this case Chase is keeping 2%. Visa only charges 1% and this is for the %26quot;currency conversion%26quot;. The vendor also pays Visa a percentage of the transaction.
There are plenty of banks which do NOT add fees to foreign credit card transactions. Chase and HSBC are not one of these banks, they both add their own fees.
This website confirms what you have been told by the banks.
indexcreditcards.com/internationaltransactio…
Please note the explanation offered by this site:
---for banks that issue Visa or MasterCard branded cards, these numbers include the Visa or MasterCard fees---
|||
Got it...thanks!!
|||
The way I do things:
Credit card for large expenses like hotels, car rental, etc etc
ATM for cash withdrawal to pay for daily expenses... food, entrance charges, gas, souvenirs etc.
I don%26#39;t worry about what fees my ATM and credit cards charge on top because to me it%26#39;s just the cost of going to Europe.
Rob
|||
Sarastro,
Lots of good information, but as far as obtaining cash from Bank of America before leaving, not such a good idea.
While they say they don%26#39;t charge a fee, the rate they give is not good ( as of today $1.5388 per euro which is 5% above the spot rate) plus if they don%26#39;t have it on hand they charge a delivery fee as well.
|||
RickNJax,
I believe someone had written that they had been able to obtain euros from BofA in the USA at the mid market rate with no fees or commissions. I do not doubt the accuracy of this previous post but what was probably not clearly stated is that services of this type are not typically offered to most bank customers. Anyone with access to these types of benefits (non fee euro exchanges for example) are most likely large depositors and clientèle with a very significant banking presence.
Generally, I do not recommend exchanging dollars for euros in the USA unless the true rates of exchange obtained are better than what one may receive at the Parisian exchange bureaus listed above.
No comments:
Post a Comment