Exchanging Dollars to Euro

I will be taking a group of about 25 students this winter to go to Spain and was wondering about the best way to exchange dollars to euros. Is it smarter to exchange in the US or wait until arrival in Spain? Within Spain, is it smarter to do it in the airport or go to a bank? Keep in mind that we will have a larger group. Thanks for the advice. I love this messageboard. It is perfect.

I guess I should narrow that down a little. How about this? Would it be smart to take for example a visa travel card (that allows ATM usage) instead of traveler's checks or cash to exchange. That way one can use ATM machines (which I read in another post was the way to get the best exchange rate)? Does anyone have experience doing this? Any examples are greatly appreciated!

I usually do a combination of both. Before I leave the US, I get some Euros from my bank. That way, I have enough money to hold me over for a while once I arrive. I also take a debit/credit card that I can use to make purchases and also get money out of the ATM.

I tend to stay away from traveller's cheques. I usually only will keep some cash in my purse and then everything else in my money belt. That way, if something were to happen to my purse, I would still have my credit card (to use at the ATM, etc.)

Hope that helps!

Hi Cardfan,
Yes, do have your students take prepaid debit cards. They're the way to go. I posted some information about them here.

I've been doing this for a few years. Occasionally a card won't work. A card MUST be activated in the US before use abroad, and we've found that it is best to activate it at an ATM machine, and not online. Online activation is not reliable.

If a kid is using a standard ATM card, connected to a bank account, be sure they call the bank so it can be used abroad and not frozen due to unusual activity.

I would recommend that the kids take some cash (not more than $100) in case a card doesn't work, or they use it up! (They should keep it in a money belt under their clothes.) I have also given loans to kids with a card that doesn't work, and I charge the parents afterwards. No one has abused this, the kids were very careful with expenses, and the parents have been very grateful.

Don't be afraid of the warnings about a card that doesn't work - they usually do, and they are definitely better than any other method of getting euros!

You should have some euros with you on arrival, but the kids can get them there at ATM machines.

If you choose the ATM way, be sure that the cards' PINs are 4-digit long. In Spain, all PINs are that long and, therefore, ATMs work that way. I am not sure if their software can deal with longer PINs but, to be on safe ground, I'd change the PIN to that length.

ATM, a few travelers checks for emergencies, 100 American.

Now that I live here in Madrid for awhile (I'm United Statesen), I'm finding I'm NOT being charged any kind of fee by withdrawing money at the Caja Madrid ATMs using my USA-based bank debit card. At first I was simplying buying things like groceries & paying restaurant bills with that same debit card but was being charged an "International Transaction Fee". So since then I just take out cash from the ATMs and use that. And according to my USA bank statements, I'm getting that day's exchange rate (according to http://www.MadridMan.com/currencyconverter.html ) and not being charged anything extra.

Saludos, MadridMan

MadridMan: Thanks for response. My bank is Bank of America, and they say that the Barajas Madrid ATM, as well as any ATM in Barcelona will take their VISA credit/debit card. By chance is your bank in US B of A ? I have also thought of opening an account with another bank if they have free withdrawals. Thanks. Scott

Nope. Mine is Huntington bank , mostly only found in the midwest. I expect to try my same ATM card from this bank in Barcelona while there these next 2 weeks. As I recall, I usually do get charged a transaction fee when I use other, non-Caja Madrid bank ATMs.

Saludos, MadridMan

I think you'll find there is always at least a 1% currency conversion fee buried in the exchange somewhere. All three of my US banks/credit unions now break out the amount separately.

Thanks everyone for your help on this one. I guess I will just bite the bullet and pay the $5 each time. I just hate fees !!! My bank allows $1500 withdrawal every 24 hours, so that is nice. So now it will be limited on the withdrawal amount of the ATM. MadridMan, have a great 2 weeks in Barcelona!!

Be aware you guys!! I used Caja Madrid bank and they didn't charge me,and my bank statements didn't show any charges until about 2-3 months later ($3/each time...even just to check my balance. I ended up with a delayed bill of about $45..not too much, but still a $45 fee).
Could just be my bank (Washington Mutual). Credit unions have a lower fee(around $1.50).
Good luck, have fun!!

Does anyone know of a credit card company that doesnt charge a fee for foreign currencies... Mine never used to and apparently started because my last trip I had 300 $ in fees for paying for my rental car and hotel and things.. I read in one of the travel magazines that there was a company (could it have been chase maybe? ) That didnt charge an exhange fee for foreign currency transaction but now I cant find that magzine article and I was wondering if anyone had any leads? Thanks

My American Express card ( from Costco- no annual fee) does not charge a fee, but not that many places will take it. My Visa and Master Cards all charge 3% fee, no minimum and no maximum charge.