European Currency

European Currency

Cash, travelers cheques, ATM or credit cards?

The following countries use the Euro as their currency; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.

Countries that currently do not use the Euro are Britain, the Czech Republic, Denmark, Poland, Sweden, Switzerland and the Eastern European Countries. Many Eastern European countries will be phasing in the Euro between 2007 and 2012.

The toughest question now is "Should I use cash, travelers cheques, ATM or credit cards?"

Cash is of course the most commonly accepted form of payment in Europe. The only disadvantage to cash remains the possibility of theft. If you decide to bring large amounts of cash, use common sense. Only carry one day’s worth of cash in your pocket or wallet so that if you lose it, or are the target of a rare pick pocketing, you will only lose a small amount. The rest should be in a safe at your hotel or in a money belt. Never be seen digging around in your money belt in public - it's an open invitation for trouble.

Traveler’s cheques were the smart move for many years, but have become less common in the day of cash machines and credit cards. The largest advantage to Traveler’s cheques is that if they are lost or stolen they can be replaced. The largest disadvantages are that you can waste a lot of time trying to find a bank to cash them, or you settle for an unfavorable exchange rate when using them in a restaurant or shop.

ATM machines are very common in Europe, easy to use, and will almost always have the option for English. Before you leave home, check with your bank to make sure that your P.I.N. code will work in Europe, and find out any limit on what you can withdraw each day. (Most European machines will only accept a four-digit P.I.N. code.)

Credit cards are widely accepted in Europe and are very convenient to use, though smaller shops and restaurants may discourage their use or refuse to accept them at all. The largest advantage to using them is that you usually get the best exchange rate possible, but check with your card issuing bank before you go: some companies charge an additional “hidden” fee for currency conversion.

On trips taken with Travels with Friends, we recommend that you plan on spending $50-$75 U.S. dollars per person, per day while in Europe. This will cover a reasonable lunch, dinner, entrance fees to sights not included in the trip, and small souvenirs. If you enjoy extravagant meals, plan to buy a lot of souvenirs or expensive goods, then adjust your plan accordingly.

Great Tips

Never put all your eggs in one basket. Take a credit card with you even if you don't plan to use it. Take some Euro cash to get you through at least your first day or two. Don't rely solely on your ATM because cards have been known to demagnetize and become useless.
We prefer to get local currency (Euros) before we go. We usually bring with us all of the spending money that we will need for the duration of the trip. We don’t like to rely on a bank being open or a restaurant taking a card. It can also be a way to save money. EXAMPLE: Some small hotels offer a discount if you pay in cash, rather than by credit card. When you buy currency in advance, make sure you get it from a source that will buy back whatever you don’t use. Thomas Cook uses this policy.
Whatever form of money you take, make a daily budget and stick to it.
Call your credit card company before you leave to let them know when and where you will be traveling. Ask about your available credit and any transaction limits. In some countries it is a crime if your card is denied because you have gone over your limit.

Consider not carrying a wallet on your trip. Most banks can give you free sleeves for your bank card / credit card / license. Use one or two of these and keep these items in your front pant pocket or in a security pouch inside your pants.

Travels with Friends: Learn more about other European destinations and tips for traveling within Europe. www.TravelsWithFriends.com

Private Guides: See Europe and learn about its history with your own private guide. www.PrivateGuidesInEurope.com