If you’re traveling abroad, local merchants probably don’t want your U.S. dollars. If you did not exchange money before leaving, after unpacking and settling into your hotel, exchange your American money for the country’s local currency, but do it the right way. Here are your options.
Key Takeaways:
- Exchanging dollars to a local currency can be costly, depending on the fees charged for the service.
- Airport and hotel exchange desks typically charge higher fees than the financial institution you bank with.
- The best option is to use your credit card while you are traveling and to withdraw money at a foreign ATM, if you can, to obtain cash.
- Other options include using a Travelex card or exchanging money at your local bank before you leave.
1. Airports
The first place nearly all travelers arrive in a new country is the airport terminal, and that is the first place where you will have an opportunity to exchange currency. The airport currency exchange rate isn't always the best. Why? Because airport-based currency exchange shops know that you might need local currency to catch a bus, train, or taxi, so they make big profits offering you the worst exchange rate.
Verdict: Don’t do it!
2. Travelex Money Card
You might show your age, but if you remember traveler’s checks, the Travelex card is similar. If it is lost or stolen, it can be replaced. In addition, because the card is not tied to your bank account, thieves cannot use it to get your money. This card also takes the headache out of the process, because you can buy the card online as well as at Travelex stores.
The Money Card is a contactless card that allows you to load up to six currencies onto a single card or exchange one currency for another as you travel from country to country.
But you will pay for the convenience. The fee to purchase the card depends on where you buy it and will include an additional card fee of $7.50. Exchanging currency costs you the normal exchange rate plus 5.5%. If you want a refund of your balance, that will cost you $20, and if you don’t use the card for six months, the company charges $3 per month in inactivity fees.
Verdict: There are better ways to exchange your money.
3. Exchange Money at Your Bank
Almost all banks and credit unions provide foreign currency for their customers, however, typically you'll have to order the currency in advance. In some cases, your bank will waive the fee associated with this transaction. Bank of America allows customers to order up to USD$10,000 in foreign currency online over 30 days. The bank does charge a delivery fee of $7.50 for orders less than USD$1,000 but waives the fee for all amounts above that.
Contact your financial institution at least a month before your trip if you're considering using this option.
Verdict: Using your bank is not a bad strategy, and if you’re a high net-worth customer, the bank will likely waive all fees.
4. Debit Card
Depending on your bank, you may be able to take your debit card to an ATM in the country you are visiting and withdraw foreign currency for little or no fee. If you are a Bank of America customer and use your card at partner ATMs, you will avoid some fees you would normally pay. In fact, you may only pay a 3% transaction fee—much lower than other options.
Verdict: If you can find a partner ATM, this is a good idea.
5. Credit Card
Finally, the best option. There is no shortage of credit cards that offer a 0% foreign transaction fee. If you don’t have one, you probably won't pay more than 3%—still a good deal compared to other options.
Use your credit card for as many purchases as you can, but be prepared before you arrive. Most other countries use credit cards, but the United States still uses magnetic strip or chip & signature cards. Before traveling abroad ask your card issuer for a chip & PIN card.
Verdict: Do it!
The Bottom Line
The best option is to use your 0% foreign transaction fee credit card for foreign purchases and a foreign ATM to pick up walking-around money. If your bank card doesn't work in ATMs in the country you're visiting, order currency from your bank before you leave. Other options, such as currency exchange cards and airport kiosks, are expensive options. Try to avoid them!
FAQs
Many European banks place their ATMs in a small entry lobby, which protects users from snoopers and bad weather. To get in, look for a credit-card-size slot next to the door and insert your card. Avoid "independent" ATMs, such as Travelex, Euronet, Your Cash, Cardpoint, and Cashzone.
What is the safest way to get cash in Europe? ›
Many European banks place their ATMs in a small entry lobby, which protects users from snoopers and bad weather. To get in, look for a credit-card-size slot next to the door and insert your card. Avoid "independent" ATMs, such as Travelex, Euronet, Your Cash, Cardpoint, and Cashzone.
What is the best option for spending money in Europe? ›
Travel credit cards
One of the cheapest ways of spending money abroad is a travel credit card. Like with debit cards, you can't just take any old credit card with you. Some will have non-Sterling transaction fees, as well as a hefty charge for taking cash out at an overseas ATM.
Should I exchange my money before going to Europe? ›
It's completely up to you whether you exchange money before you travel to Europe, or get your euros when you arrive. The only thing to bear in mind is that you have more control and more choice if you do it in advance.
What is the best way to get cash when traveling in Europe? ›
Cash & ATMs
ATMs are the best way to access money abroad and are increasingly available. Your bank or credit card company may charge fees for withdrawals overseas and may have a limit on the amount you can withdraw daily, so be sure to consult with your bank about this.
Is it better to bring cash or card to Europe? ›
Don't Expect to Get Too Far Without Cash
There's a lot that you can buy with a credit card in Europe, so bring at least one. But don't expect to get very far without a little cash, too—especially if you're a tourist. Transportation services, such as taxis and buses, often require local currency.
Is it better to get euros from ATM or exchange? ›
Where to Get Good Rates: ATMs and Local Banks. The best place to exchange money is a local ATM or a bank. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.
How much cash should I bring to Europe for 1 week? ›
A good rule of thumb, though, is that, on average, you should plan to carry between $50 and $100 per day in the currency of the country in which you're travelling.
Where is the best place to exchange money when traveling to Europe? ›
Head to your bank or credit union before you leave to avoid paying ATM transaction costs. You may even receive a better exchange rate. Credit unions and banks will exchange your dollars into a foreign currency before and after your trip when you have a checking or savings account with them.
Is $100 a day enough for Europe? ›
While it's possible to travel on $100 per day in Europe, it can be challenging, especially in larger cities or during peak seasons.
Euros to US Dollars conversion rates
| EUR | USD |
|---|
| 100 EUR | 108.30 USD |
| 500 EUR | 541.51 USD |
| 1,000 EUR | 1,083.03 USD |
| 5,000 EUR | 5,415.18 USD |
7 more rowsWhat is the cheapest way to get euros in the US? You'll need to compare exchange rates and fees for your bank with currency exchange services such as CXI. But a travel card such as the Wise international debit card can be a cheaper option, offering low fees and fairer, margin-free exchange rates.
How to avoid exchange rate fees in Europe? ›
How to Avoid International Transaction Fees
- Open a Credit Card Without a Foreign Transaction Fee. ...
- Open a Bank Account Without a Foreign Transaction Fee. ...
- Exchange Currency Before Traveling. ...
- Avoid Foreign ATMs. ...
- Ask Your Bank About Foreign Partners.
The 5 Best Travel Cards for Europe 2024
- Wise - debit card.
- Revolut - debit card.
- Travelex - prepaid card.
- 28 Degrees Platinum - credit card.
- Bankwest Zero Platinum Mastercard - credit card.
ATM fees abroad can start to add up, especially if you're living, working, or traveling across Europe. However, there are a few ways to avoid ATM fees. Opt for bank-owned ATMs, avoid DCC, and choose card payments to save money on your European adventure! To start spending your money without borders, check out Wise.
How to get euros before a trip? ›
Before your trip, it's best to do a currency exchange at your bank or credit union, which likely offers better rates and fewer and/or lower fees. Your bank or credit union may buy back leftover foreign currency in exchange for dollars when you return.
How to avoid ATM fees in Europe? ›
How to avoid ATM fees in Europe
- Get an account that doesn't charge withdrawal fees. Some banks don't charge ATM withdrawal fees. ...
- Steer clear from dynamic currency conversion (DCC) ...
- Opt for bank-owned ATMs. ...
- Make fewer, larger withdrawals. ...
- Know your exchange rates. ...
- Pay by card whenever possible.
There are several ways to get foreign currency before and during your trip. You can order foreign currency from your bank for a fee. You can exchange cash at a currency exchange kiosk, though the exchange rate will not favor you. You can also withdraw cash at an ATM at your destination.
What is the best payment method for Europe? ›
According to a 2021 survey of European consumers, digital wallets are among the most preferred online payment methods (44%). Cards closely follow (42%). However, adopting a one-size-fits-all approach to payments across Europe would be unwise.
What is the best way to receive money from Europe? ›
The Best Way to Send Money and Receive Money From Europe As a Global Exporter
- International bank transfer. ...
- Sending and receiving money through a high street bank sounds like a hassle. ...
- Step 1: Create an account.
- Step 2: Transfer money to your account. ...
- Step 3: Get your recipient's details. ...
- Step 4: Secure an exchange rate.
