RE: Exchange Rates/Currency Conversion? Help!

A

Agent

Active Member
Can somebody please help?

Well, the good news it seems (at least to me) is that the Euro is weakening against the American Dollar, and the rate of exchange is better than it has been in months. When I checked the exchange rate back in March, The American Dollar was only worth .74 Euros, and today when I checked.....one Dollar was equal to almost .83 Euros.

My trip to Ibiza in July will be my first trip to Europe in 10 years, and I want to get the best bang for my buck....as would anybody! :) Can anyone tell me the best way to exchange my Dollars to Euros? I have seen many posts on here with similar questions, but it seems as if the answers vary! Are there any Americans on here that have been to Ibiza recently, and if so, how did you convert your money? Is it true that the best way to get money over there (to save the most money) is to take my ATM card and just withdraw cash this way? I was thinking of just not bothering with travelers cheques. It seems from what I have seen on here that they are the worst possible thing in terms of convinience and the money you actually get back! I will contact my bank today and ask them about the fees associated with my ATM/Credit Card, however I am sure they will try to have me convert my Dollars to Euros with them before I even leave the States (which I heard is not a wise choice either). I know for fact that based on the current exchange rate, and if there were ZERO fees, $2000 American Dollars would get me 1656 Euros. That is obviously based on todays exchange rate and not including any fees/commission that my bank or the ATM will charge for taking the money out in Ibiza. I also checked with my bank, and they said that if I give them $2000 American they will give me 1570 Euros before I even leave the States! So, this is where I need help!

I'm sorry for the long post guys, but I need expert advice here. Would I get the best deal with the 1656 Euros minus any ATM/Bank fees that I will incur in Europe, or would I be better off taking the 1570 Euros that I got before I left the States, which already includes all the conversion fees. I am half tempted to do this, because then if the Euro strengthens again within the next 30 days (which is when I leave for my trip), I am locked in with that price. However, the Euro could get weaker yet and I could have more money if I would have waited......and then there is the risk of traveling with all of that money, and having it taken! It would suck to be robbed/to lose almost 1600 Euros!

What should I do? :roll: Thanks a lot everybody!! And sorry again for the long post!
 
I'm in the same boat. Since I'll be dropping $4000 during my trip, the value of the dollar really impacts my overall budget.

I've been watching the dollar for the past 6 months and it's definitely doing a lot better now than it was during the past 6 months. I'm going to wait it out a bit longer and hope it gains strength. I believe it might grow even stronger with consumers taking vacations and spending more during the summer.

I'm interested in any response you get. If the dollar gets really strong I might go ahead and do what you are thinking of (US --> Euros before you leave).
 
The easiest way is to use your ATM and just take money per day as you need it. You are going to get charged 2 fees, the Banks ATM you use in Ibiza and an ATM fee from you bank here in the states.
 
Thanks for the responses! Do you know generally how much those 2 bank/ATM fees are? Is it still a savings over converting the dollar before I head overseas? If so, I definitely want to wait.....Does anyone else have any advice? It doesn't seem that I'm the only one with this question, so any posts would help us all out a lot! Thanks again!

Mike
 
Agent said:
Thanks for the responses! Do you know generally how much those 2 bank/ATM fees are? Is it still a savings over converting the dollar before I head overseas? If so, I definitely want to wait.....Does anyone else have any advice? It doesn't seem that I'm the only one with this question, so any posts would help us all out a lot! Thanks again!

Mike
Click to expand...

The ATM fee from Ibiza might be around $5 dollars and the one here less than $2. If you were to do 6 withdrawals you will have fees adding up to $42. The exchange rate you'll be getting is the one at that current time. So, your total will be $2,042 or 1701 euros.
 
I just retunred from Ibiza on the 12th. I used the bank and the ATM. My friend used travelers checks and went to a currency exchange and a hotel. My frist trip, the hoetl I stayed in had a decent rate. This trip, the hotel and the bank were ther worst. The best was the ATM. The currency exchange was behind the ATM (you have to look for decent exchange rates with them). The best thing to do is to use your ATM or credit card. The fee I got from any ATM was about $2. Make sure you call your ATM and Credit card and tell then you will be traveling to Ibiza and for how long. They may need to note that on your account, or they may suspend it for unusual activity. That happended to a friend over there once. I don't think Discovers is accepted either. Visa and MC are no problem. Have fun in Ibiza!!!! (take me back with you)
 
ibizaboi24 said:
I just retunred from Ibiza on the 12th. I used the bank and the ATM. My friend used travelers checks and went to a currency exchange and a hotel. My frist trip, the hoetl I stayed in had a decent rate. This trip, the hotel and the bank were ther worst. The best was the ATM. The currency exchange was behind the ATM (you have to look for decent exchange rates with them). The best thing to do is to use your ATM or credit card. The fee I got from any ATM was about $2. Make sure you call your ATM and Credit card and tell then you will be traveling to Ibiza and for how long. They may need to note that on your account, or they may suspend it for unusual activity. That happended to a friend over there once. I don't think Discovers is accepted either. Visa and MC are no problem. Have fun in Ibiza!!!! (take me back with you)
Click to expand...

Did you noticed just one fee per transaction?


(1) CAJA DE AH.Y P 06/06 WITHDRWL PLAYA BOSSA D ES FEE

and

(2) VISA CHCK CARD - DEBIT 6 /7 ATM - INTERNATIONAL TRANSACTION FEE
 
To me it makes sense to just convert it all either before or after you get to Ibiza. Why would you pay ATM fees? To avoid carrying a lot of cash? I'm not quite sure I understand the justification of making ATM withdrawals UNLESS the ATM's exchange rate is lower than that of the bank/hotels/brokers (highly unlikely though). :?

Right now I could use an online broker and get 1640 Euros with $2000 US (1USD = 0.82 Euros). I send the broker $2000 and he sends me 1640 Euros. No fees, just flat out currency trading. If I was in Ibiza right now and took out $2000 cash from an ATM in one withdrawal and got the same exchange rate as the broker it would cost an additional $7 in fees (or whatever the fees are), correct? (This is assuming ATMs would even allow you to take out $2000 in one withdrawal, again unlikely). So it would cost $2007 to get 1640 Euros, right? Probably more if you had to use multiple transactions to get $2000 out of the ATM.

Am I missing something??? :? :?:
 
I don't think you're missing anything, and your logic makes sense to one degree. However, I think traveling with that much money is risky.....because if you lose cash, IT IS GONE! With an ATM however, your money is safe because you need a pin number to get it out! I would rather take my chances this way and pay a fee every time I use the service! Another advantage of only taking out what you need is that if you have money left over at the end of your trip, you don't have to convert it back again (which would cause you to lose even more money). If you only withdraw what you need for the trip.....you will probably save in the long run! Just make big withdrawals when you do take money out....maybe $500.00 Euros at a time or so =) I will have to research a little bit more, but it looks like ATM is the best way to go (unless of course the American Dollar gets weak again against the Euro. It is as strong as I have seen it in months, and who knows what the next 30 days hold for the exchange rate! I called my bank to find out how credit cards work. Bank of America charges 3% on the prices of your total oversea purchases! Or basically $75.00 for every 2000.00 you spend! ATM's are still looking to be the most promising! Hope this helps everyone else! If there is anyone who doesn't agree with this information, let me know so I don't make any foolish mistakes! :D See you all in Ibiza in 30 days!!!

P.S. And yes you are right.....assuming that the exchange rate was .82 Euros/dollar at the time, and each ATM withdrawal you make charges you $7.00, and for some reason the ATM let you withdraw $2000 worth of Euros, then you would be looking at $2007 dollars to get 1640 E!
 
j_love01 said:
To me it makes sense to just convert it all either before or after you get to Ibiza. Why would you pay ATM fees? To avoid carrying a lot of cash? I'm not quite sure I understand the justification of making ATM withdrawals UNLESS the ATM's exchange rate is lower than that of the bank/hotels/brokers (highly unlikely though). :?

Right now I could use an online broker and get 1640 Euros with $2000 US (1USD = 0.82 Euros). I send the broker $2000 and he sends me 1640 Euros. No fees, just flat out currency trading. If I was in Ibiza right now and took out $2000 cash from an ATM in one withdrawal and got the same exchange rate as the broker it would cost an additional $7 in fees (or whatever the fees are), correct? (This is assuming ATMs would even allow you to take out $2000 in one withdrawal, again unlikely). So it would cost $2007 to get 1640 Euros, right? Probably more if you had to use multiple transactions to get $2000 out of the ATM.

Am I missing something??? :? :?:
Click to expand...

Are u talking about an online broker like, Oanda? http://www.oanda.com/products/fxdelivery/

Six rules for getting the best foreign exchange rate
http://www.smartertravel.com/advice/edsenior/advice.php?id=6985

3. The best way to get the cash you need for day-to-day small expenses is to use a debit/ATM card that does not assess a stiff fee for each overseas withdrawal. Bank of America is a member of the Global ATM Alliance that includes Barclay's (U.K.), Deutsche Bank (Germany), Paribas (France), Scotiabank (Canada), and Westpac (Australia). It offers reciprocal no-fee ATM use and no surcharge, so, again, all you lose is the standard one percent. CitiBank operates branches in dozens of countries around the world where travelers with Citibank checking accounts can withdraw currency with no fee or surcharge, again limiting your loss to one percent. Some smaller U.S. banks offer no-fee withdrawals at any other bank to their depositors—usually a limited number per month or per year. If your bank doesn't offer no-fee withdrawals, you'll pay up to $3 each time you use a foreign ATM. Obviously, you can minimize your losses by infrequent withdrawals of large amounts.
[/b]
 
ATM is the way that seems the most logical/inexpensive As far as ATM machines go, they will most likely tell you (at least they do in the US) what kind of fees you are looking at, and usually you have to agree to those fees before you are allowed to process your transaction! Thanks for all your help everyone.....I hope this helps others out in the future as well!

M
 
in travelling to ibiza from last year I came with five hundred dollars cash in US dollars...and CAME HOME WITH 500 US DOLLARS...never changed..

the exchange rates were shite at the airport....obviously
and i found it hard to find exchange spots at the hours I was seeking them
with the siestas and all and being that I stayed in the hills behind talamanca

I was very worried, altho I stayed at a VERY nice villa, theft is huge there from what I have been told from friends as well as the villa owner, and didnt want to leave my cash there

I did end up using the ATM at the gas stations for most of my euro withdrawals and got charged I believe 1.5 euros for the withdrawal and a $5.00 fee for each international withdrawal from my bank here (at the time Fleet)

I now have Bank of America as they merged with fleet and they indeed do NOT charge internationally as a prior post has said. I found it a much better way to get what I needed for the days activites at a nominal fee. It also kept my $$$ safe and kept me to my budget especially in going out to the clubs where a vodka limon cost 13 euros (WOW) a pop!!!!

It also kept me feeling safe should I lose my wallet or bag that I didnt have my whole vacation allowance at risk of loss or theft...Think about it would you regret paying the ATM fees if it meant the difference between having lost your money or not? Small change when considering how much you need in US dollars for a trip like this...Those are just my thoughts tho!!!
 
MyVenture said:
j_love01 said:
To me it makes sense to just convert it all either before or after you get to Ibiza. Why would you pay ATM fees? To avoid carrying a lot of cash? I'm not quite sure I understand the justification of making ATM withdrawals UNLESS the ATM's exchange rate is lower than that of the bank/hotels/brokers (highly unlikely though). :?

Right now I could use an online broker and get 1640 Euros with $2000 US (1USD = 0.82 Euros). I send the broker $2000 and he sends me 1640 Euros. No fees, just flat out currency trading. If I was in Ibiza right now and took out $2000 cash from an ATM in one withdrawal and got the same exchange rate as the broker it would cost an additional $7 in fees (or whatever the fees are), correct? (This is assuming ATMs would even allow you to take out $2000 in one withdrawal, again unlikely). So it would cost $2007 to get 1640 Euros, right? Probably more if you had to use multiple transactions to get $2000 out of the ATM.

Am I missing something??? :? :?:
Click to expand...

Are u talking about an online broker like, Oanda? http://www.oanda.com/products/fxdelivery/

Six rules for getting the best foreign exchange rate
http://www.smartertravel.com/advice/edsenior/advice.php?id=6985

3. The best way to get the cash you need for day-to-day small expenses is to use a debit/ATM card that does not assess a stiff fee for each overseas withdrawal. Bank of America is a member of the Global ATM Alliance that includes Barclay's (U.K.), Deutsche Bank (Germany), Paribas (France), Scotiabank (Canada), and Westpac (Australia). It offers reciprocal no-fee ATM use and no surcharge, so, again, all you lose is the standard one percent. CitiBank operates branches in dozens of countries around the world where travelers with Citibank checking accounts can withdraw currency with no fee or surcharge, again limiting your loss to one percent. Some smaller U.S. banks offer no-fee withdrawals at any other bank to their depositors—usually a limited number per month or per year. If your bank doesn't offer no-fee withdrawals, you'll pay up to $3 each time you use a foreign ATM. Obviously, you can minimize your losses by infrequent withdrawals of large amounts.
[/b]
Click to expand...

Great link Venture! Thanks for the info. There is definitely a few tips in there I'll pick up.

Yes, Oanda is a good example. Is there a downside (besides the insecurity of carrying lots of cash) to using someone like them opposed to ATMs? You can get travelers cheques and/or cash from most online brokers without any fees. Travelers cheques take care of the insecurity.

Subliminal Baby said:
Think about it would you regret paying the ATM fees if it meant the difference between having lost your money or not? Small change when considering how much you need in US dollars for a trip like this...Those are just my thoughts tho!!!
Click to expand...

It's hard to put a price on peace of mind...that's for sure.
 
Yeah....to me its a no brainer...but like I said those are my thoughts :D
I have lost all my $$$ on a vacation...once that happens...theres just no enjoyment no matter how hard you try!
 
I just got off the phone with Bank of America's Credit Card customer service AND Checking Acct customer service. There is a 3% foreign currency exchange fee on all transactions (hotel, restaurant, shopping, etc., ATM withdrawals are $5 bank fee + $X for the ATM use) if you use a Bank of America credit card or debit card overseas.

MyVenture's link recommends:

The best way to pay your major bills—hotels, restaurants, souvenirs, and such—is to use a MasterCard or Visa issued by a bank that does not add a surcharge to foreign billings. Among those banks are Capital One, MBNA, lots of smaller banks and credit unions, and the online bank, Bank Direct. You lose only the basic one percent for the conversion. MasterCard and Visa cards from other giant banks—including, unfortunately, all of the banks that cosponsor cards with major airlines—add a two-percent surcharge, basically for doing nothing. It's a pure gouge, and it increases your total conversion loss to three percent. American Express and Diners Club are in between, charging about two percent for foreign billings.

Time to get a Capital One or MBNA card.
 
I'm all set, I applied for a MBNA Visa and MBNA MasterCard. I'll be using these for most of my day to day transactions.
 
j_love01 said:
I just got off the phone with Bank of America's Credit Card customer service AND Checking Acct customer service. There is a 3% foreign currency exchange fee on all transactions (hotel, restaurant, shopping, etc., ATM withdrawals are $5 bank fee + $X for the ATM use) if you use a Bank of America credit card or debit card overseas.

MyVenture's link recommends:

The best way to pay your major bills—hotels, restaurants, souvenirs, and such—is to use a MasterCard or Visa issued by a bank that does not add a surcharge to foreign billings. Among those banks are Capital One, MBNA, lots of smaller banks and credit unions, and the online bank, Bank Direct. You lose only the basic one percent for the conversion. MasterCard and Visa cards from other giant banks—including, unfortunately, all of the banks that cosponsor cards with major airlines—add a two-percent surcharge, basically for doing nothing. It's a pure gouge, and it increases your total conversion loss to three percent. American Express and Diners Club are in between, charging about two percent for foreign billings.

Time to get a Capital One or MBNA card.
Click to expand...

Them, you did your homework! :D
 
Hey guys. Missed this discussion last night but you're all on the right track. THERE IS NO CHOICE. TAKE YOUR CREDIT AND DEBIT CARDS!! Cash, you lose. Travellers checks aren't that useful and you pay a commission to get them. Plus, you will always lose out in the exchange rate (and sometimes additional commission!) at the currency exchanges.

Costs when using the bank machines in Ibiza:

On the local end: The Telebanco machines in Ibiza do not appear to add an extra charge. Other bank machines can add 2 euros - it should be written on the receipt.

Back home: Wachovia, my bank in the US, charges $2 for an overseas transaction and my European bank, Raifeissen, adds $3 for a non-Raifeissen bank machine transaction.

Other thing to note: There's usually a 300 eur limit on transactions. That was fine with me... usually enough cash for a day and a half (or more, depending on how I spent money). Keep in mind that you can charge meals and other purchases on your cards... you don't always need cash!

Two downsides to charging:
- MBNA now charges an overseas transaction fee (the bastahds!) but it's very small. Wachovia and Raifeissen don't charge for non-cash transactions abroad.
- Also, about 1 in 10 places in Ibiza uses a bank that has credit card terminals that detect that you have a US card and calculate the dollar exchange rate automatically in order to bypass the Visa or Mastercard exchange system. My rental car and one of my dinners were charged in dollars at a 1.24/euro rate instead of 1.20. I was a little pissed, but the difference wasn't huge in the end.
 
Morbyd said:
- MBNA now charges an overseas transaction fee (the bastahds!) but it's very small. Wachovia and Raifeissen don't charge for non-cash transactions abroad.
Click to expand...

I spoke with MBNA customer service last night and they told me there were no transaction fees for overseas transactions.
 
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