Foreign exchange, credit, debit & ATM cards?

Over the last 10 years I've been handling money exchange for my foreign
trips with a mixture of credit cards (mostly Visa), ATM withdrawals and a
few hundred in cash carried in a money belt. I seldom visited exchange
counters. It was a no-brainer; the ATMs and credit cards gave the best rate.

I was a little concerned last year in Ireland when I noticed that in many
places the Visa charges were being converted, on the spot, and charged as US
dollars. I also understand that some US banks (but not my credit union) are
now adding an extra "foreign exchange fee" on top of the small margin taken
by the ATM or credit card company. The dollar conversion of those Irish
charges may have been a convenience to help Americans avoid the "foreign
exchange fee", but somehow I doubt it was totally to my advantage. I noticed
in the fine print on the reciept, that I could ask to be charged in Euros,
rather than dollars. I suppose this would have been best.

I'm curious if the ATM & credit card method is still the "no-brainer" it
used to be, particularly in Europe. Is there any real justification in
taking many Euros in cash or travelers' checks? Are there any new techniques
for handling Euro transactions that I should be aware of? I looked at the
AmEx prepaid cash card, but it seemed to have few advantages and numerous
fees.

--
Donald R. Newcomb
DRNewcomb (at) attglobal (dot) net

"Donald Newcomb" wrote in message
...
Over the last 10 years I've been handling money exchange for my foreign
trips with a mixture of credit cards (mostly Visa), ATM withdrawals and a
few hundred in cash carried in a money belt. I seldom visited exchange
counters. It was a no-brainer; the ATMs and credit cards gave the best
rate.

I was a little concerned last year in Ireland when I noticed that in many
places the Visa charges were being converted, on the spot, and charged as
US
dollars.

I have replied extensively to this practice, known as 'Dynamic Currency
Conversion' (DCC) on an earlier post. Find it on Google. Basically it's a
convenient way for retailers and their card handlers to make a profit on
currency conversion. Rates used are around 3% worse than interbank.

I also understand that some US banks (but not my credit union) are
now adding an extra "foreign exchange fee" on top of the small margin
taken
by the ATM or credit card company. The dollar conversion of those Irish
charges may have been a convenience to help Americans avoid the "foreign
exchange fee", but somehow I doubt it was totally to my advantage. I
noticed
in the fine print on the reciept, that I could ask to be charged in Euros,
rather than dollars. I suppose this would have been best.

You should have been given an option (to comply with Visa/Mastercard
International rules), but it doesn't seem to happen very often in practice.
Make it clear before you hand over your card that you want to be charged in
LOCAL currency. If they still put through in your billing currency, you can
insist on voiding it and do it again.

I'm curious if the ATM & credit card method is still the "no-brainer" it
used to be, particularly in Europe. Is there any real justification in
taking many Euros in cash or travelers' checks?

Cards are still by far the best way, but you need to be a little more
cautious. TCs are an anachronism and should only be used, if any, as a
fallback (around $100 or so).

Are there any new techniques
for handling Euro transactions that I should be aware of? I looked at the
AmEx prepaid cash card, but it seemed to have few advantages and numerous
fees.

Just stick to Visa/Master and ATM cards, but watch out for charges!

Alec

"Alec" wrote in message
...
I have replied extensively to this practice, known as 'Dynamic Currency
Conversion' (DCC) on an earlier post. Find it on Google. Basically it's a
convenient way for retailers and their card handlers to make a profit on
currency conversion. Rates used are around 3% worse than interbank.

Thanks for the pointer Alec. Fortunately this only occured at a few gift
shops and such, so the loss wasn't much. But I will keep an eye out for the
practice in the future. Those cents can add up.

--
Donald R. Newcomb
DRNewcomb (at) attglobal (dot) net