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Cash | Travelers' Checks | Exchange Rates Complete
Listing of Ed and Julie's by Ed Gehrlein and Harlan Hague
There are as many answers to the last question as travelers. Here are the facts so you can decide what's best for you. In a Nutshell ...
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Chase and OandA, among others, offer home delivery of foreign currency in the US. The typical exchange rate is worse than you can get in Europe, but if you feel you must have foreign currency ahead of time these may be the most cost-effective sources for many travelers. Do check the exchange rate and cost before you buy. |
Rates at US airports are usually terrible. The same is typically true in smaller US towns and cities. In major US financial centers (e.g. NYC, Chicago, San Francisco) you may find some large banks or foreign exchange dealers offering rates close to what you can get overseas.
void exchanging many dollars for a
foreign currency of a third country. If you change dollars to francs in Amsterdam you'll
take two exchange losses, going first from dollars to guilders, then from guilders to
francs.
e find we get fair rates in most
European banks, including airport banks windows. Most airports have at least one bank
exchange window open every day, for as many hours as flights are scheduled. We've never
been unable to exchange money at the airport on arrival.
In Switzerland we find most rail station ticket windows can exchange US dollars at a rate at least as good as the banks, and their hours are longer. American Express offices usually have good rates as well.
hile rates in Europe are generally
better than you'll get in the US, beware of rates in hotels, stores and hole-in-the-wall
'exchange' shops. Check the rate carefully; it's usually far from the going rate. Don't
hesitate to ask; it's your money.
An American Express survey found the following rates typical:
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Why more and more card issuing-banks are imposing added fees is another matter entirely. This is greed, having nothing to do with any legitimate cost. Many banks simply feel entitled to one to three percent of what you spend in Europe. Cash
Always have on hand enough local currency to get you through at least one expensive day. Julie and Ed normally keep enough cash on hand to keep us going for two or three days. Be sure to save enough local currency for your last day in a country.
Dollars tucked safely away make a good emergency "stash", and remember to keep enough dollars on hand (in cash or travelers' checks) for routine and emergency needs during your return trip in the U.S. before reaching home.
Travelers' Checks
Most stores and restaurants will not accept US dollar TCs. Places that will accept them (typically expensive shops and many hotels) will likely give you an extremely poor rate, typically at least 10% worse than the bank rate. So change them incrementally at banks (or AMEX offices) as often as you need to replenish your supply of local currency. There is a decided downside to TCs in foreign denominations. You'll usually buy them at a disadvantageous exchange rate in the US. If you have TCs left over at the end of your trip you'll take another exchange loss converting them back to dollars on your return. Euro-denominated TCs have the same problem. Touted as advantageous because they can be used in 12 countries, you'll still have 'foreign' currency left over when you get home. As well, many merchants/services will not accept TCs in whatever currency; if they do, they may charge an extra fee. TCs are best changed at a bank or a branch of the issuer (e.g. American Express). If, despite your best planning, you do have foreign denomination TCs left over, use this as a reason to take another trip. And, next time, get your TCs denominated in dollars so you can spend them at home on your return.
Exchange Rates
These are usually inter-bank rates, based on transactions of $1,000,000 or more. Individual travelers will get a rate 2-4% less.
Credit
and Cash Cards | ATMs | How Much to Take? Other
Financial Information to Help Plan Your Trip to Europe Complete
Index of Ed and Julie's Our Favorites Trip Tips and Tools Copyright © 1997-2001 E.J.
Gehrlein and H.H. Hague Traveling
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ow much money to take? In dollars?
Travelers' checks? Do ATMS use dollars? Are US credit cards accepted? Where do we get a
good exchange rate? What's best? 
he most common
money-related question we're asked is, "Where can we change dollars to (European
currency) in the US?" Our answer is, "Lots of places, but why would you want
to?"
More often than not, conversion in
the US will cost you from 10-20% of your hard-earned dollars, vs. as little as 1%
overseas.
ome travelers chafe at the exchange
'loss.' There's no reason to, as long as the cost is reasonable. Like any other retailer,
a currency dealer (whether bank or other) has overhead, inventory cost, and the right to a
fair profit for service provided.
ash, in the form of the local currency,
always works. It's never over the limit, never broken, never closed for a holiday.
ollars, whether in cash or traveler's
checks, are not routinely accepted for purchases in Europe. However, in an
emergency you may be able to find someone who will accept them or exchange them, though
likely at a poor exchange rate.
uropean banks tend to be open fewer
hours than at home and enjoy more bank holidays. It pays to check on bank schedules and
holidays when you arrive to avoid running out of cash on a Friday afternoon before a
three-day weekend.
ew of us can afford to lose money.
Beyond a few days' supply of cash, keep the remainder of your liquid funds in the form of
travelers' checks (TCs). The brand matters little, though American Express seems to have
the highest recognition and reportedly is excellent in providing replacements for lost or
stolen TCs.
ou can find current
rates from 
n some countries and at some dealers
you'll find a commission or transaction charge on your receipt. This is common and in such
cases the rate you'll get is usually closer to the inter-bank rate. If your
exchange transaction includes no commission or fee the rate will probably be a bit further
from the inter-bank rate.