exchange

EXCHANGING MONEY IN EUROPE: WHAT YOU NEED TO KNOW

How many people endlessly scour airfare comparison in hotel booking sites

looking for the best deal, pinching every penny but then waste all that effort by

paying huge fees when paying for their travel. Once you leave the country

deciding how you pay either cash credit card or even traveler's check can affect

the cost of your trip. What is the best option for you? Keep watching and we will

answer all your currency conversion options when you're traveling to Europe

but first don't forget to like, subscribe and comment. What is the best way to

exchange money? I t's a simple and good question with a multitude of answers

let's look at all the options. Exchanging cash. Avoid or at least minimize cash

exchange. On average at a bank you lose about 8 percent when you change dollars

into a foreign currency, when you use an airport currency exchange boost the hit

can be as much as 15%. If you do need to exchange money look for places that

don't charge a commission. Note the difference between the rates for buying,

the bank buys foreign currency from you to exchange into local cash and selling,

the bank sells foreign currency to you, the difference between the buy and sell

rates should be less than 10 percent. Hold on to your cash for emergencies the

ATM ate my card. Now some of you will not sleep unless you have some local

currency in your wallet before leaving home. If you haven't packed your bags you

may have time to shop around for the best rates. Many banks offer currency

exchange to their customers you may be able to order currency at a branch

location or by phone or online for pickup at a branch. Sometimes the service

carries a fee and sometimes this fee can be waived, if you ask. You can also order

cash or a currency converter, a number of websites sell foreign currency deliver

it to your home. Exchange rates here are less favorable and the delivery charges

will further eat into your funds Airport kiosks or stores convenient yes

a good deal hardly ever.These places should be a

last resort for emergencies exchange rates are poor and fees are numerous and

high. Cash is best for emergencies on the pro side its cash and someone will

exchange it the con you typically will not get a great conversion rate from

your money debit and ATM cards. Debit card use this at cash machines, ATMs to

withdraw local cash, which you'll use to pay for most purchases. Use bank ATM

machines, in addition to having a good or better rate than the actual bank teller,

the advantage to getting cashes ways that you can do it repeatedly you can

take out $300 worth and a couple days later do it again. However, in recent

years as more and more savvy travelers have realised ATMs are the best way to

go some places especially, European airports and tourist zones, have taken

advantage by charging different and much worse exchange rates at machines aimed

at international travelers. The bank ATMs at Gateway airports in Europe are being

replaced by foreign exchange machines. They promise " free"

withdrawal but charge a really bad exchange rate of 10 to the 11 percent,

for this reason if you can wait until you get into town I suggest using an ATM

and an actual bank. Some European airports still have real bank ATMs

elsewhere in the terminal just outside the arrival hall usually if you want to

hunt them down. Debit and ATM cards are best for getting cash in local currency.

The Pros: you will get the same great interbank exchange rate when you make

cash withdrawals with your debit or ATM card as you do when you make a credit

card purchase with ATM is available in major cities and airports all over

Europe this is generally the cheapest and most convenient way to get cash in a

local currency. Each cash withdrawal you make will

usually be subject to a currency conversion fee or an ATM fee or other

charges from your bank and/or the local bank that maintains the ATM, at the very

least you'll probably be charged the same transaction fee if any that your

bank charges when you use another banks ATM, however, many banks charge higher

fees for international ATM withdrawals either a flat typical one to six dollars

or a set percentage of your total withdrawal usually one to three percent.

Check with your bank before each trip abroad as these fees can change often

and without warning, to add insult to injury, you may also be charged a fee by

the owner of the foreign ATM because these small charges can add up quickly

you'll probably want to withdraw larger amounts and you might normally do at

home so be sure to have a safe well concealed place to keep your cash I

suggest a money belt. If you are renting a car you should be aware that debit

cards are not always accepted and may sometimes be subject to additional red

tape finally do not forget to call your bank and make it aware of your travel

plans as with credit cards sudden international activity using your debit

card could cause your account to be frozen.

Protip: Avoid dynamic currency conversion, this is what a merchant will ask you if

you would like your purchase done in your home currency versus the local

currency. Always, always, always get your transaction in the local currency or you

will be hit with a huge fee. Credit cards. Credit cards are the best for large

purchases such as airline tickets, hotel bills and car rentals. Generally paying

by credit card gives you a better rate than paying by debit card or cash but

this advice doesn't apply if you're not able to clear to balance each month the

interest you pay on the balance will only add to your cost. Figure out whether

your destination is plastic friendly if it is you can avoid many of these extra

travel fees with a no foreign transaction fee

card or debit card. Consider applying for one of these credit cards or debit

cards before you leave so that you can use it instead of cash whenever possible.

Avoid using the credit card at ATMs or you'll be hit with fees and intrests right

away for taking a cash advance. Pros: chances are good that you're going to

use your credit card more than currency and you should as there are a myriad of

advantages first you can carry less cash secondly you get the security behind

your transaction and if somehow you are ripped off like merchandise and never

ships or a hotel overcharged you can call your bank and dispute it some

credit cards increase warranties or offer loss replacement on purchase goods.

Finally you get whatever points or rewards your particular credit card

offers usually some benefits to the tune of an additional one to two percent

cons but the problem is that many if not most credit cards have hidden surcharges

for foreign exchange transactions which means that using one banks card over

another or even different affinity cards from the same bank can actually make

your transaction cost more or less than slapping down another piece of plastic.

Pro tip: two of the best travel credit cards on the market the chase mileage

Explorer Club specifically for United frequent flyers and the more general

Sapphire card have no international transaction fees this is increasingly

important thing to look for in at least one card in your arsenal the one you

should use overseas traveler's checks and money

cards are best for emergencies, the pros, traveler's checks are best for

emergencies because they provide more security than cash because they can be

replaced if lost or stolen while traditional traveler's checks have

largely gone the way of the dinosaur. Visa and Travelex offer travel cards

that are prepaid like traveler's checks but work like credit cards for purchases

and ATM withdrawals. Cons: the exchange rate for traveler's checks is not as

favorable as the interbank rate you'll get when you

a credit or debit card and very few merchants accepted checks for purchases

these days you'll also have to pay commissions shipping charges and/or

conversion fees to purchase and cash the checks the prepaid cards have plenty of

fees to look out for activation fees, charges for reloading the card ATM

charges or inactivity fees in most cases you're probably better off using your

own debit card. Thank you for watching and please like, subscribe, comment and

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