The Final Tally
June 21st, 2006 by Grant in: Credit Cards, Travel
I just tallied up all my cash withdrawals from our trip to Europe, and compared the transaction and ATM fees to the fees that my local bank was trying to charge me just to convert currency.
The overall fee was 3% of the total currency withdrawn from the ATM, as compared to the 7% that my bank wanted to hit me up for to convert $100 USD to Euros…
So it turns out that using plastic does save you in the long run. In addition, I found that both Visa and MasterCard have prepaid travel cards. They work like travelers checks, but have a preset limit so that if the card gets stolen, you’re only out however much you have on the card at the time. Of course, they also have a “Zero Liability” policy such that you are not liable for fraudulent charges if the card is stolen, much like the card I already carry. So I’m not sure of the real benefit of using the card over my existing card…
Check out Visa’s TravelMoney Card if you are traveling abroad in the future…
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June 21st, 2006 at 5:53 pm
Grant-
Did you find that lower percentage consistant where ever you used the ATM card? Did you use the ATM card in the airport? That would solve the problem of getting cash at the arrival airport. Also, was the ATM percentage lower than at the currency exchanges at the airport or train stations?
David
June 22nd, 2006 at 2:00 pm
David,
I didn’t try getting cash from the airport. I noticed that at the currency exchange kiosks they posted the current exchange rates, and they were nearly 0.05 points higher than I expected from a bank. The DO have banks inside the airports, at least in Milan, with their own ATM’s but I didn’t think to try them out.
If I were hard pressed for cash in an airport, I’d find a bank sponsored ATM.
Interestingly enough though, most places in the airports (even the fast food places) take plastic. So there is really no requirement to have cash.
-Grant
December 9th, 2006 at 11:34 am
Grant,
I’ve had a similar experience traveling in France and also in Asia. I guess the fact is, in most places, you just don’t need cash anymore.
December 9th, 2006 at 12:30 pm
That’s proving to be true, Alex.
It never hurts though to carry a little cash in the local currency. You never know where or when you might need it. Also, there isn’t much that can’t be done with a good ‘ole twenty dollar bill. Seems as though it holds it’s value a little better in the local markets abroad than in a US grocery store!
-Grant