I%26#39;m already back, but I want to ask this for further trips. There was a lot of discussion a while ago about the new 3% charge on visa use. One poster said you know after all the money you%26#39;re going to spend on the trip, you%26#39;re skawking about 3% and I sort of agreed. Well now I%26#39;m back and I%26#39;m not sure I agree. This 3% really seems to ad up. My problem is, I don%26#39;t want to bring cash, too worried about getting robbed or pick pocketed. Would it be cheaper to use cash from the ATM%26quot;s. The problem here is that you always seem to run out of cash. Anyway curious what you all thought. It really affected me on my hotel bill, for $1500 I was charged 46.00 It may not seem a lot, but it could have been a meal.
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Things are a trade off. You can only use your ATM up to a daily withdrawal limit. These limits usually vary from $300 per 24 hour period to several hundred. Each time you use your ATM card their is probably a fixed dollar amount (not a percentage) %26#39;..foreign currency withdrawal..%26#39; transaction fee charged to your account by YOUR bank (not the French bank) which may range from a couple of dollars per foreign ATM transaction to $5 per foreign ATM transaction. Some banks do not apply this fee if you use one of their correspondent/partner banks (Bank of America uses BNP in France...but if you use any oher bank%26#39;s ATM , BoA charges you a fee).
It sometines varies, but the basic %26#39;network%26#39; that your ATM card may also tack-on a 1%, hidden fee that will be %26#39;..buried..%26#39; in the foreign exchange rate calculation---using the avarage daily %26#39;..inter-bank..%26#39; exchange rate + 1%. It%26#39;s barely noticeable and all but impossible to discover unless you read the very finest print in the Terms %26amp; Conditions of your ATM account information.
When using €uro cash withdrawn from foreign ATM%26#39;s, in order to save on per transaction withdrawal fees there will be a tendency to withdar larger sums than you might otherwise to r4educe the total %26#39;cost%26#39;. In the process, you wind up walking around with more cash in your pocket than you might otherwise. The actual potential for %26#39;..theft..%26#39; is really pretty slim. %26#39;..horror stories of pickpocets and other petty-thieves-of-opportunity tend to be greatly exaggerated with the re-telling (of the %26#39;..a friend, of a friend%26#39;s, sister%26#39;s, cousin%26#39;s, co-worker%26#39;s, nephew....was pickpocketed in...%26quot;). But that%26#39;s not excatly the point. Even if the odds are slim indeed that you will be similarly %26#39;victimized%26#39;; you find yourself with the anxiety of that potential nonetheless, by carrying more cash than you need to....and you give up much of the relative convenience and security of those cards you%26#39;re carrying anyway. So against $46 dollars in credit card fees saved on a hotel bill, some portion of that saving will go towards additional ATM fees and charges and increased aggravation and anxiety.
Everything is a trade-off....make %26#39;em carefully.
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There already has been much written here about these fees and I agree that they do add up and are more financially significant that most realize. These costs are also difficult to specifically identify as they are usually part of the exchange rate computation.
Maybe we should suggest anew that all of us check with our banks and confirm exactly what we are being charged for the privilege of using our credit cards when traveling. Visa or Mastercard take a 1% commission on all charges in currencies other than US dollars. Costs above this are at the discretion of the card issuing institution. Some banks charge nothing above this 1% fee. If your bank adds additional fees to international transactions, you may want to switch to another institution that does not. If you seldom travel, these fees may ultimately be meaningless. If however, you do travel (and I further speculate that many forum readers travel a great deal) why not take the savings associated with these needless fees and purchase a better grade of wine for your cave?
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Tavelbug
I agree with KDKSAIL that it is trade off and you need do what you feel comfortable with.
Personally, I like using credit card but not when I do not get charged extra for using credit card. What my bank earns from the exchange rate is not something I can avoid thus I do not worry about it. I would definitely pay $2000 in cash instead of $2600 on credit card. I am happier to spend the $60.00 on a nice meal or something else... Exception being I have a small monthly phone bill and the phone company charges 1% extra for using credit card, it%26#39;s only 40 cents extra so I am quite happy to do that rather than going to the counter to pay.
I grew up in a country where everyone carries lots of cash around, so it does not bother me too much carrying quite a bit of cash if I have to.
I also use ATM to withdraw cash from my bank%26#39;s partner bank overseas, so I don%26#39;t need to pay the $5 withdraw fee. Then again, only do it when it%26#39;s really convenient, not worth wasting 20 minutes walking around trying to find a free ATM.
Like a lot of things, it does come down to individual. It%26#39;s like some people would pay 18% interest on their credit card because they do not make full payment by the interest free period.
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Sorry I mean - I like using credit card but not when I get charged extra for using it.
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Even if it isn%26#39;t widely accepted in Paris, I would still have an AMEX as backup for the places which take it, there is no supplement charge except on the exchange rate for the customer.
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