When are you going to Europe?
Did you know that the Euro (€) is at a 9 year low against the US Dollar? What that means for you, is that your dollar will go further in Europe! Earlier this week, the Euro was at 1.17, in other words $1.17=1€. I can remember one of my trips when the Euro was at $1.47. To help put that in perspective for you, let’s look at a shopping scenario for you. If you are in Europe and find an item for 100€, with an exchange rate of 1.17 the item will cost you $117. However, with the higher exchange rate of 1.47, that same item will cost you $147. Which would you rather pay? I know I would much rather pay $117!
The Euro is the second most traded currency in the world after the US dollar. There are 19 of the 28 countries in the European Union that use the Euro as their official, primary, or only currency. Those countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Also, some of the overseas territories of European Union members use the Euro as their official, primary, or only currency. (For example, on the French side of St. Martin in the Caribbean the Euro is the official currency.)
Something else to consider along with the exchange rate in Europe is how to get cash exchanged when you are in Europe. To get cash, the best exchange rate will be found using your bank / debit card at an ATM machine in Europe. Of course you need to check with you bank before leaving to see which banking machine system your card is compatible with. The ATM machines will charge you a fee for the exchange, but depending on your bank and the bank you are using in Europe, those fees are much lower than using a currency exchange booth at the airport, and most times lower than the fees for pre-purchasing your currency. Please avoid the currency exchange booths if at all possible; the fees are exorbitant most of the time. If you must use them upon arrival because you need it for taxi fare, or you find your card won’t work, only get the bare minimum you need until you can get to an ATM machine or contact your bank. Another option, but one I don’t recommend, is to use your credit card and get a cash advance at a bank. With credit cards, the interest on a cash advance often starts the day you take out the advance, not on the billing cycle date. In addition to that, there is also a fee to do the transaction.
Using credit cards in Europe also deserves your attention and fore thought before traveling. For your credit card purchases, you will want to check with your credit card company ahead of time and make sure your card can be used in Europe. Many places in Europe have gone to chip technology with their credit card processing; it is recommended that you have a credit card with a chip. Also, as a note, the most widely accepted cards in Europe are Visa and MasterCard. American Express is not as widely accepted, and Discover Card is rarely (almost never!) accepted. Another thing to consider with your credit cards is the foreign transaction fees. You may want to consider obtaining a credit card that does not have foreign transaction fees.
As always, regardless of where you travel, always alert your bank and credit card companies what countries you will be visiting and the dates you will be traveling. It is always the recommendation to use credit cards outside of the country and not debit cards. Debit cards are a great convenience, but they are not credit card and do not have the same policies when it comes to fraud protection. Many debit cards are not even able to be used outside of the US. Prepaid credit cards are never a good idea outside of the US either; the vast majority of them cannot be used outside of the US.
Have you always wanted to visit Europe? Now is a great time! If you can’t visit now, but plan to in the relatively near future (approximately 1 year), you can always look at purchasing Euro’s now to use on your trip later. Now is the time to think about that trip to Italy you have always wanted to take, or maybe you have always dreamed a visit to France, Spain, Germany, or Ireland. Where ever your dream takes you, we can make that dream a reality!
Happy Travels,
Kelley