Hi - we are going on a trip to Italy for 2 weeks in late June and I'm wondering the best way to handle the finances for spending money. I know there are ATM machines everywhere and that we can use the credit card in most places, but I understand from my bank that every transaction incurrs a 3% exchange fee. Is there any way to avoid that fee without just simply having to carry a stash of cash?
Thoughts?
ciciara
1
euro-traveller
Even with 3% surcharge, credit cards and ATMs will provide the best value for paying for your trip in euro. There are some banks and card issuers that don't levy extra fees for foreign use - certain credit unions in US, and Nationwide in UK, for example. Buying euro before arrival will cost at least 5% in fees (often hidden in the exchange rate used), and I don't recommend travellers cheques as they are difficult to cash (many Italian banks don't touch them) and charges are high.
So the best way is to get a small amount of euro before arrival (in case ATMs at airport are out of order) and withdraw cash every few days and pay for major things with credit cards. Take at least two debit/ATM cards linked to different accounts and two brands of credit cards, so if you lose or can't use one for whatever reason (e.g. demagnitised, computer faults), you still have access to funds.
2
aubo23
Carrying cash won't avoid that fee - exchanging cash (and TCs) usually costs at least 5%, so you are 2% down for starters.
Depending on where you are in the world you may be able to find a bank that doesn't charge that 3%, though you haven't got long to set up an account once you do.
'No commission' BTW means 'commission hidden in exchange rate'.
3
hello_bamboo
changing one currency to another is ALWAYS goingt o cost money. how else do you think moneychangers and foreign currency desks make money? ATM is easiest and safest.
4
jane
I am in the UK and bank with the Nationwide who do not charge to withdraw funds abroad. I think they offer the Bank of England exchange rate too. We have found this the cheapest way to put funds into my account and withdraw at ATMs.
5
sweetdee
I am in the US and purchased Euros from my bank for a small fee. I found that using ATMs in Italy charged higher fees than my bank. I also used a credit card that did not impose ant fees.
6
hello_bamboo
> I found that using ATMs in Italy charged higher fees than my bank.
I bet it wasn't. what exchange rate did you get from your bank? did you compare that to the rate an ATM would give you? Too many people incorrectly assume that the fixed fee is all there is. the biggest charge is the exchange rate used. A 3% exchange fee is actually not bad if this is against the interbank rate. many cash exchange desks use a 10% difference vs the interbank fee (but charge 'no commission'!)
apart from that, getting EUR in the states means you need to carry cash for the whole trip with you. think about what that would cost if you were to lose it or were mugged.
7
lindyneill
atms in italy are called BANKCOMAT..maybe if you load up your credit card with credit they wont charge you for using it..
8
luddite2002
#5: Credit card for purchases, debit cards for cash. Otherwise you get a cash advance fee as well as an exchange rate fee for credit cards and you have less fraud protection on purchases for debit cards.
9
alanr
<blockquote>Quote
<hr>I found that using ATMs in Italy charged higher fees than my bank.<hr></blockquote>
It's highly unlikely that you were charged a fee by an Italian ATM. Unlike the US ATMs in Europe are normally free to use. The only people charging fees will be your bank.
For the OP, check with YOUR bank as they may have agreements with foreign banks to allow fee-free withdrawals - eg Bank of America & Barclays Bank
Pro tip
Lonely Planet
trusted partner
trusted partner