Holiday in Western Europe using Euros. Cash convert AUD to Euros in Italy vs. ATM withdrawal

Daedalus on 02/06/2014 - 13:37
Last edited 02/06/2014 - 13:44

going for a holiday in europe. from a purely financial perspective, which would result in less fees:

Bring AUD cash to europe and convert to Euros via money changers
Use my bank VISA/MASTERCARD debit card.

Assume for Option 2 I am using the citibank card which has no foreign exchange fees, otherwise other banks will charge 1% to 3%. However the rate is still 2-4% lower than the spot rate, so there is an implied "fee" there.

Whether or not Option 1 is superior depends on the money changer's margin relative to the spot rate. What are your experience, particularly in Italy?

EDIT: Mastercard/VISA actually offers spot rates so the only fee is the foreign exchange fee, making credit card withdrawals superior. I was looking at the bank's buy/sell foreign currency rates, hence an additional margin from spot rates
https://www.mastercard.com/global/currencyconversion/

is this right?

Financial

Comments

Riczter on 02/06/2014 - 15:57

+1

Open up a citibank plus account. No foreign exchange fee. Then just withdraw at ATMs.
http://www.citibank.com.au/plus3/index.htm
Usually always the cheapest option in any country that has ATMs that accept Visa.
- AnDyStYLe on 04/06/2014 - 13:23
  
  That link looks like it's broken (invalid source when clicking on Apply)…
  
  I've gone via this link http://www.citibank.com.au/aus/banking/everyday_banking/citi… but I can't find any info on free withdrawals at ATM when oversea using this Citibank Plus account?
  
  Can you confirm?
  - Riczter on 04/06/2014 - 16:28
    
    +1
    
    Try this one: https://www.citibank.com.au/AUGCB/apfa/augcb/ocmff/LandingPa…
    
    I can confirm that you don't get hit with foreign transaction fees when withdrawing at an ATM overseas. Citibank is only 1 of 2 institutions that i know of that do this.
    
    You still get charged the $2 or local equivalent fee for using the ATM if its not a Citibank ATM.
retiredfeline on 02/06/2014 - 16:13

What Riczter wrote. Money changing has higher costs especially for a less common currency like AUD.
niknah on 08/06/2014 - 13:47

I wouldn't bring cash to Europe at all. The touristy areas are full of pick pockets and scammers. Stay with the credit card as much as you can. Some shops may not allow you to use the pin or paypass and need you to sign and show ID.

Holiday in Western Europe using Euros. Cash convert AUD to Euros in Italy vs. ATM withdrawal

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