Travel Tips: Should You Carry Euros or Use Your US Credit Card in Europe and India?

When planning a trip from the USA to Europe or India, one of the key considerations is managing your finances abroad. The dilemma often revolves around whether to carry Euros (or other foreign currencies) from the US, exchange money at the airport, or rely on your US credit card. Here are some crucial tips to help you make the best decision for your travels.

Best Option: Use Your US Credit Card with No Foreign Transaction Fees

Why Using a Credit Card is Ideal

Using a US credit card that does not charge foreign transaction fees is the most convenient and cost-effective option. Here are some reasons why:

  • Credit card companies often provide better exchange rates compared to currency exchange services.
  • No need to carry large amounts of cash, reducing the risk of loss or theft.
  • Earn rewards, points, or cash back on your purchases, which can offset some travel costs.

Second Best: Withdraw Money from Local Bank ATMs

Benefits of Using Local ATMs

Withdrawing money from ATMs in the destination country can be advantageous if done correctly:

  • Some US banks have partnerships with foreign banks that waive ATM fees. For instance, Bank of America customers can withdraw cash from BNP Paribas ATMs in France without incurring non-Bank of America ATM fees.
  • Despite a possible 3% foreign currency fee, the exchange rate is usually better than airport or currency exchange services.

Tips for Using ATMs Abroad

  • Use a US debit card that does not have foreign transaction fees.
  • Withdrawing cash using a credit card can lead to high-interest charges from the date of withdrawal, in addition to fees.

Least Preferred: Exchanging Money at Airports

Drawbacks of Airport Currency Exchanges Exchanging money at airports should generally be avoided due to the following reasons:

  • Airport currency exchange counters typically offer less favorable exchange rates and charge higher fees.
  • There may be limits on the amount you can exchange, leading to multiple transactions and higher costs.

If You Must Exchange Cash

  • Buy a small amount of Euros (or other foreign currencies) before you leave the US. Wells Fargo, for example, offers better rates than many airport exchange services.
  • Only exchange enough to cover immediate expenses upon arrival (e.g., €200-300).

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