Cash and Credit Card Needs While Traveling in Europe

How much and what kind of cash to have on hand, how to find an ATM, which credit cards to use, and what to expect with regard to foreign transaction fees are all important things to know when you’re traveling overseas. We’ve learned some things over the past several years that might help you save some money and make sure that you have the right cash and credit cards in each European country that you visit. 

We learned early on that it is better to use a bank-affiliated ATM than others that you might find in a market or on a street corner. We’ll talk more about that in a minute. We also found that some cities and towns have more and/or easier access to bank ATMs. For example, Jon and I found ourselves looking for a bank ATM in Verona, Italy. We had most recently been in the similar-sized Tuscan town of Lucca where bank-associated ATMs were plentiful and easy to find. To our surprise, we were unable to locate one in Verona by wandering around the city and consulting the internet. Luckily, we had enough cash on hand to make it to our next destination, but we don’t want you to face this same stress. Keep reading and we’ll tell you what to do.

Getting Cash

The Euro is the official currency in 19 EU countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. 

The countries that do not use the Euro as the official currency are Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and the United Kingdom. However, shop owners in some of these countries may take euros or even US dollars. Be careful of the exchange rate that these shop owners might use when accepting non-local currency. It’s always smart to have an idea of what the current exchange rate is. You can always calculate the exchange rate with an online calculator. Click here for an example. 

You have a few options for obtaining foreign currency for your travels. 

• Several weeks before you leave, you may order foreign currency through your bank or AAA. We tried this method a couple of years ago when we were traveling to the UK. We ordered British Sterling (pounds) and found that: 
• The exchange rate was not as good as when we used an ATM in the UK.
• The bills were almost all 50 pound notes or higher and many restaurants and shops would not take the larger denominations. Moreover, when we tried to get smaller notes at a bank, they told us that we had to be a customer of the bank to get change. They suggested we try the post office, which we did. The post office told us that they would not provide change for large notes. Finally, we decided to use the large notes to pay our hotel bill. After getting rid of the large notes, we used an ATM to get more cash in smaller denominations. 
• A UK shop owner told us that the lower denomination bills that we got from our US bank were “old” currency and, luckily, we were able to exchange those notes at a UK bank. We’re still not sure what the problem was with the notes, but the bank did give us new ones. 
• So, ordering from your bank in advance of your trip might not be the best option.

• Once you arrive in the country, use an ATM to get cash. If you absolutely must have some cash as soon as you land, then get a small amount (e.g. 100 euros) in the airport from an ATM machine. You can usually find one in the baggage claim area prior to clearing customs or in the public transportation area prior to departing the airport. In general, you should be able to travel into the city or town using your credit card to buy a train, bus, or shuttle ticket or to pay for a taxi. 
• Once you are in your city or town, look for a bank ATM that is in your bank’s debit card network. If you use an out-of-network ATM, you’ll be charged extra fees and the exchange rate might not be as good as the one a network bank might provide. 
• DO NOT USE THE CURRENCY EXCHANGE COUNTERS IN THE AIRPORT OR TOWN. The exchange rate will not be as good as at a network bank and they may add on fees (as much as 5%!). Last year, we found that Deutsch Bank in Italy provided the best rate and no fees when we used our Capital One 360 debit card. 
• We highly recommend that you have a checking account and debit card from a bank that does not charge foreign transaction fees. We learned the hard way that the fees can add up. A couple of years ago, we were using JP Morgan Chase for our banking and we paid extra fees everytime we got cash from an ATM in Europe. Fees may be a percentage of the cash you’re withdrawing (up to 5%!) or a set fee (e.g. $3.50). Note that you may be charged fees by your bank AND by the owner of the ATM.
• Do not use credit cards to get cash from ATM machines. Your credit card company will most likely charge you a high rate of interest beginning the day you withdraw the cash. 

• Lastly, bring foreign currency that you saved from a prior trip. If you’re traveling for the first time, this won’t be helpful for your arrival in Europe, but keep it in mind when you’re departing. Always travel back home with at least 100 euros, pounds, or other local currency if you know you’re returning to the country or euro region within the next few years. You’ll be ready to hit the ground running when you return to the country and you won’t need to worry about finding a bank right away. 

How to find an ATM in Europe

There are several ways to find an ATM. The least effective is wandering around and trying to spot a bank. We’ve had to use this strategy a few times when we couldn’t use our phone GPS because our cellular data wasn’t working well (for more info on cell phones, read our blog on tech issues here). A better strategy is to use your phone GPS to locate an ATM when you have access to WiFi, such as from your hotel.

The best way to find an ATM is to contact your bank prior to leaving the US and ask them if there are in-network ATMs near your hotel in your first stop in Europe. You can likely answer this question through the Internet. Try typing in “bank ATMs near your hotel name” in a Google search. Then, check with your bank to see if any of the nearby ATMs are in your bank network. 

We changed our bank to Capital One 360 last year because of the savings in foreign transaction fees and the availability of fee-free ATMs in Europe. It’s worked out well for us. On our trip last fall, we paid $0 in foriegn transaction fees and ATM fees. We also got a fair exchange rate. Check out their web page for more information.

Choosing a good credit card for European travel

Almost all establishments take Visa or Mastercard. If you have a debit card (which you should), then it is most likely a Visa or Mastercard. You can use it like a credit card in those establishments, but remember that the money will come immediately out of your checking account. In general, we use a credit card for purchases. We had a difficult experience in Bolzano, Italy, using our debit card in a restaurant. The server took the card and swiped it through a point-of-purchase machine. He gave us back the card, but then said the transaction did not go through. This happened twice more. In the meantime, I checked my Capital One 360 app on my phone and saw that the charge had indeed gone through. Language was an issue, and we were unable to resolve the multiple charges at that moment. We went back to our hotel, called the bank and they explained that we needed to resolve the issue with the merchant. We then eventually went back to the restaurant. Ultimately, their new point-of-purchase technology had confused the server, and we had to insist on talking with the manager to finally get the multiple charges refunded in cash. Be very careful when using your debit card with merchants. It’s not as simple to resolve mischarges as when you use a credit card. 

We have found that the best option is to have a credit card that 

• has no foreign transaction fees,
• earns rewards points or cash back, and
• is a visa or mastercard

We use the Capital One Venture card as our Visa. We also use the Platinum American Express Delta card as often as we can. We earn Delta miles for all of our purchases and then we use the miles to buy air travel. Both of those cards are free of foreign transaction fees. The American Express is not as widely accepted as the Visa. For example, we found that most places in Croatia did not accept the American Express card

The most important things to remember are 

• Use a bank-affiliated in-network ATM to obtain cash and take some extra cash home with you for your next visit
• Travel with a Visa or Mastercard that has no foreign transaction fees
• Use a credit card for as many purchases as you can to earn rewards and to manage disputed charges more easily

Happy travels!

Brian and Linda