Les Trois Mousquetaires go to France, Italy and maybe a few other places #10

And how do you pay for everything?

In the summer of 2000 the dollar is very strong against the French Franc. Ten years ago, I got 4.6 francs for every dollar. This year: between 6.8 and 7.2 francs! That means that our average hotel room (450FF) cost us $64 instead of $88! A big difference!

Now that I have had time to peruse through my expenses, I have been delighted to see that:

1. I got a great deal through my credit card. By chance, I am lucky enough to use Capital Bank who doesn’t charge a foreign currency surcharge! Many big issuers (Citibank, Bank of America, Chase…) charge 3% for card transactions in foreign countries.

2. Ditto for my debit card with Wells Fargo: no surcharge.

3. As to the exchange rates, another good surprise here too! I checked on different days when I physically changed some dollar travelers’ checks into francs and charged items on my credit card. The exchange rate was better on the credit card: 6.82 versus 6.73 on one day, 6.88 versus 6.8 on another. Considering that you often have to pay a fee to cash in your travelers’ checks (typically $4.00 no matter what amount is exchanged) using a debit or credit card in France makes the most sense.

I know that I will not bring dollar travelers’ checks on my next trip. First because they are not accepted anywhere, second because it costs you to exchange them for local currency and the exchange rate is not as favorable and third because they are bulky to carry (and I do not like to leave them in hotels or cars!). I had some French Francs travelers’ checks from AAA and you can use those in big department stores, however many small hotels or restaurants don’t take them!

I know, I know, travelers’ checks are “safe” because they can be replaced within 24 or 48 hours if lost or stolen. What I did is carry one card in a pocket on me, and one card in my mini backpack (I figure that it would be very difficult to have both stolen – or lost – at the same time!). Stolen or lost cards can be replaced very quickly, too, by using FedEx for instance. Just make sure that someone back home has copies of all your cards, with phone numbers to report any problem.

Check with your credit and debit card issuers what kinds of fees they have and if possible, switch to cards that do not add surcharges before your trip! Once you land, go to an ATM machine at the airport (there are many) and get some French Francs. You don’t even have to get francs before you get there but if you feel safer having foreign currency on hand, get a minimum from your bank before your departure. After all, there had been a armored truck strike the month before I got to France and many cash machines were empty for quite a while. Barring something like that, however, debit cards are an extremely easy way to get cash in France! And your can charge on your credit card almost anywhere!