Is changing cash now becoming the best MSE option?

zagfles

I never thought I'd say it but changing cash seems to be becoming the best option when abroad in a lot of places. In these days of not needing much cash because everywhere takes cards, and the lack of fee free ATMs in a lot of places, the ATM fees can easily be much more than the saving in exchange rate.

For instance I was in Cyprus and wanted about EUR150 cash. All the local ATMs seemed to be charging 5 EUR and the current VISA rate I was getting on my cards was 1.156 so it would have cost £134.08. Found a supermarket advertising 1.14 GBP exchange rate with no commission, ie £131.58 for EUR150.

Similar when I was in Spain. Obviously changing cash in the UK remains generally a rip-off, but abroad in a lot of places it looks like BDCs can be better value than ATMs.

flaneurs_lobster

I don't know what a BDC is.

Are you suggesting that taking cash (presumably GBP) and exchanging within a country gives a better rate?

Don't think that's any great surprise, you are after all not paying the premium for not having to carry wads of cash around, with all the attendant risks that entails.

Worried_fool

You have missed out another important factor…

In major tourist destinations, most businesses are pleased to accept cards but apply dynamic currency conversion. It doesn't matter if you say you want to pay in local currency, they want their commission and so somehow the charge is always converted into sterling: and the fees can be brutal.

The only way to counter this is to make a point of paying in cash. And often the best way to obtain this cash is to exchange sterling at a local bureau de change (BDC).

flaneurs_lobster

I've also seen mention (I think on this board) of instances of non-EU cards having a charge applied by businesses within the EU to recoup their card processing fee, a practice which cannot be applied to cards from within the Union.

user1977

https://forums.moneysavingexpert.com/discussion/comment/82066379#Comment_82066379

Yes, recently experienced that in Denmark (I think applied by the bank rather than the merchant). But I think Denmark's the sort of place where they'd look at you funny if you tried paying in cash these days.

Brie

I've pretty much stopped checking exchange rates here in the UK but will simply get a convenient sum out at whatever supermarket I happen to be in. So recently got E500 to go to Crete. I think in the end I used about E50 so lots left over as everything else was on cards which have no fees, just the daily bank rate. I always pay in local currency. If I've been abroad and needed extra I'll just get some out of an ATM, no fees if possible (down to the local bank itself, not my card). This has included going away with a credit on my credit card knowing that the first thing I'm doing is getting some cash. Nice to have a bit for tipping etc.

flaneurs_lobster

Couple of

https://forums.moneysavingexpert.com/discussion/comment/82066406#Comment_82066406

Ditto, but I usually buy at John Lewis (1.25% cashback using their CC). The difference in rates between the usual High Street BdeC is usually only a couple of centimes when buying a few FFR.

Bit sad to hear that JL are closing their in-house BdeC counters but not surprised, I'm often the only customer when I visit.

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82066373#Comment_82066373

I've found avoiding DCC quite easy, just keep control of the POS device after (usually) tapping, or entering your PIN, and answer the DCC question yourself. Or I just say "in Euros if it asks". In the last 10 years or so with hundreds of foreign transactions I've never had a problem. In the early days of DCC I did get it imposed twice, once for a trivial amount and once at a hotel which I got them to reverse.

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82066327#Comment_82066327

Work it out, you used "BdeC counters" in another post 😄(Bureau de Change in case anyone still hasn't got it)

Yes taking GBP abroad and changing it there was the jist of my post as that's what I wrote about.

You don't pay a premium for not transporting cash, you pay a premium for the BDC to hold and manage cash supplies. But ATM providers have started getting greedy and the (generally) flat fees at ATMs can make them bad value for small amounts ie anything below about 200EUR or so.

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82066541#Comment_82066541

Centimes? FFR? Are you living in the last century 🤣

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82066406#Comment_82066406

What rate did you get, and when? Rates for changing cash in at UK BDCs are almost always a rip-off. For EUR500 you'd likely be better with an ATM abroad even if it charges, as the flat fee becomes less significant on a large amount.