As of 2009, a dozen countries in Europe had adopted the euro as their official currency and others were planning to do so (the euro is already in wide use in some). So, unless you are going to restrict your trip to England, Switzerland, or another country that chose to retain its own currency, you need to know where to exchange American currency for euros. It's not difficult since you can swap currencies at almost any financial institution, at airports and probably at your hotel. The trick is finding places to exchange American currency for euros at minimal cost.
It's generally not a good idea to wait until you get to your destination to exchange American currency for euros. Doing so is not hard. You can find currency dealers at international airports who will sell you euros for dollars, but they charge high fees. Most hotels can also exchange major currencies, but again tend to be expensive. Another option is a local bank or other financial institution. However, as with banks in the United States, they charge their account holders a lot less than they will charge you. It is a good idea to check with your hotel or travel agent for the location of one or more places to exchange currency in case you are caught short of funds. But the best course of action is to avoid the high fees these providers charge unless it's an emergency.
You can exchange American currency for euros in two forms: as cash or as foreign currency traveler's cheques. Probably the best known provider of traveler's cheques is American Express. Traveler's cheques have the advantage of being insured so if you lose them or they are stolen, you can get a replacement, usually within 24 hours. Either as cash or cheques, you can convert as much money as you wish (for amounts over $10,000 you may have to fill out a verification form) at lower cost than the local alternatives discussed above. Use the link below to find an American Express travel office near you.
An alternative to American Express is to go through a major international bank such as Wells Fargo. Multi-national banks have competitive rates and most allow you to order foreign currency by phone (for Wells Fargo, 1-800-626-9430) or online (link below). You also have the choice of cash or traveler's cheques.
One more place to exchange dollars for euros is through a credit union. Because credit unions are non-profit financial entities, they can offer some of the lowest exchange fees and often have added features you may find attractive. For example, the State Department Federal Credit Union provides the same services as American Express or Wells Fargo. However, for amounts up to $2500, they also guarantee you will be able to switch unused funds back to US dollars at the same exchange rate, eliminating your risk of losses due to changes in currency exchange rates (see link below). In general, you have to be a member of the credit union. If you do much traveling out of the country, this feature alone could make it worthwhile to open an account.
In most cases, credit and debit cards should be used sparingly to buy euros, if you use them at all. Banks and other credit card issuers typically add up to 3% in conversion fees, both for currency conversion and purchases made in foreign countries. You may be assessed ATM fees of up to $5. Some credit cards charge a higher interest rate for foreign currency transactions as well.
Credit/debit cards can be invaluable when traveling if you must deal with an unexpected situation, so it's wise to have one with you for emergencies,. Just make sure you know what it's going to cost when you pull out the plastic. Read the terms that apply to the credit card carefully. Issuers frequently place the conversion fee disclosure deep in the fine print. Do not rely on reading your credit card statement. Currency conversions are often listed the fee added in to the total with no indication it is there. If you feel the fees charged by your current lender(s) are too high, shop around. There are some credit card providers who charge much lower fees.
