Debit and Credit Cards

I just want to touch again on Debit and Credit cards.  The best Debit cards to use are usually credit union cards.  I know that the three credit unions that we have only charge a 1% foreign transaction free on ATM withdrawals.  Teacher's Credit Union does not charge any ATM fee but Navy Federal Credit Union charges $1.  NOTE:  Teachers Credit Union is 2%.  I am not sure about Honor Credit Union because we couldn't use it the last time we were in Ireland and Italy.  I called them yesterday and they were trying to push some travel card.  Banks are changing all the time.  We never had an issue with Honor until this past trip. 

You will see exchange bureaus and they will say no fee charged for exchange - however they will give you really crappy exchange rates.  Instead of giving you 88 cents on the dollar they only give you 81 cents which means you are giving up 7 cents on every dollar or 7%. 

GOOD NEWS THOUGH - THE EXCHANGE RATE IS BACK TO 89 CENTS ON THE DOLLAR.  OR THE OTHER WAY - $1.12US TO BUY 1 EURO.  LETS HOPE NEXT WEEK IT IS CLOSER TO 92 CENTS AGAIN.

If you have a regular bank card think about getting a credit union card.  I am not sure if it is possible in a week but it will save you 2% or more on every transaction plus up to $2 each withdrawal.  If you are with a different credit union than Teachers, Honor, or Navy - check their foreign exchange rate and ATM fee. 

AND DON'T FORGET TO RAISE YOUR DAILY LIMIT IF IT IS LOW.  So I called TCU today because I saw something online about $500 daily withdrawl limit.  I guess that is a one time thing and it is still only $400.  She then proceeded to tell me that they just raised it to $400 last year.  I told her she was crazy and I have been using my card for years overseas and it has been at $400 for as long as I could remember.  Then she asked why I wanted it at $500.  I told her I was heading overseas.  So then she asked if I wanted to put a notification on the card.  I told her I did online.  She said you can't online.  I had to explain to her how you definitely can online you just have to send a message.  SCARY!!

Lets talk about credit cards too.  Just this morning I received a fraud alert text for one of the credit cards I plan to take with me.  Someone had my card number and security code and charged something in London.  They had to put a stop on the account and send me a new card.  Thankfully they can overnight one so I will have it in time for the trip.  With that said - take more than one credit card.  If you only take one credit card and you lose it or there is fraud and they shut it down you will be SOL!  I normally take 3 credit cards also. 

DIRECTLY FROM FODORS:

Ten Simple Rules for Exchanging Your Money

1. ATMs are still the best choice for day-to-day funds.

Although some banks have high fees to use foreign ATMs, not to mention adding on high foreign-transaction fees (Bank of America, for example, charges $5 per withdrawal plus 3% premium on top of each withdrawal at a non-partner ATM), the ATM is still almost always the cheapest option for changing your money. And if your bank has international ATMs or partner banks abroad, you can sometimes save a little on your cash withdrawals; that's true even at BOA, which charges just 1% at member banks and no other fees. Capitol One Bank charges nothing for a foreign ATM withdrawal, while other banks such as Chase charge 3% on top of every withdrawal as well as a $3 fee. It pays to shop around for a bank if you travel a lot internationally.

2. "No-fee" bureau de change are usually the most expensive places to change money.

When you see a sign that offers "no-fee" currency exchange, be sure to check the rates. You'll notice that they are almost always significantly worse than what you'd get if you had simply taken money out of an ATM. It's a good idea to keep up to date on the latest Interbank rates (the rates banks pay for foreign currency) to find out if you are getting a good deal. A web site like www.xe.com can give you those rates, which change daily. At best, you normally pay between 4% and 9% of the total amount you are exchanging to change money into a foreign currency, and this cost is usually built into the bad exchange rate. You pay again to change your euros or pounds back into dollars, so think carefully how much cash you actually need on a day to day basis.