Paying for Accomodations

[naldridge]

I've skimmed through the Currency and Accommodations boards and can't really find what I am looking for, so sorry if this is a double-post.

How do you typically pay for hostels or other accommodations? We will likely be pre-booking, but if we put these on a credit card (even from the US), would we be hit with the foreign transaction fee, since the ho(s)tels are based overseas?

I'll be traveling with my husband so we will be paying basically double for accommodations (which are generally based per person, right?) and I am nervous about carrying that kind of money around in cash - especially when we will be staying 3 or 4 nights somewhere. I also want to avoid the ATM as much as possible, since there will be a service charge for that as well.

I saw that someone mentioned Captial One credit cards and that they do not charge foreign transaction fees - would it make more sense that get a Capital One card (with pin, of course) and use that throughout our trip?

Any words of wisdom?

[Mikul]

If you are booking with HostelWorld, you may have to pay the Foreign Transaction fees (according to your bank). You only place 10% down and the rest you pay in person at the hostel. I generally went to the ATM as soon as I arrived and withdrew money from the ATM to pay for my stay. I used a Fidelity mySmart Cash account, no foreign ATM fees and no foreign transaction fees. Since there are no fees, I would visit the ATM every 3 days or so. I did bring a Capital One credit card with me and used it only when I had no cash available or needed to leave a deposit (renting a scooter in Switzerland or quad in Greece).

[Eagle]

naldrdige,

Most credit cards charge a foreign currency fee in addition to exchange. I don't use any products from Capital One so don't have any first hand comments to offer.

It's a good idea to have at least one ATM card as well, as while most lodgings in Europe will accept credit card reservations, some will only accept cash for payment (that avoids paying the fees to the credit card firms). Note that your travel funds accessed by ATM must be in a chequing account with a four number PIN.

I can't remember if this was mentioned, but it's highly advisable for both of you to wear a Money Belt under your clothing (there are various styles available). If you split up your funds and cards, you'll be less likely to lose everything with one theft.

The "bottom line" is that some fees associated with travels in Europe are unavoidable, so it's necessary to budget for them.

Cheers!

[kayling05]

Capital One doesn't have foreign transaction fees for purchases, but DO NOT use it at an ATM as the cash advance fee is horrendous (ran out of money at the end of my study abroad and had to do this, it sucked). I would search around for a bank which does not render foreign ATM fees (mine only charged a one-time fee of $7.50 when I used mine overseas, on two separate trips, so it was worth it). Some banks, like Bank of America, have deals with foreign banks (with BoA it's Barclays in the UK, Deutsche Bank in Germany, and BNP Paribas in France) that if their customers use each other's bank when traveling no fees are incurred. I don't know about other countries, but BNP Paribas is ALL OVER France, so it shouldn't be a problem going to one of their ATMs. There's dozens in Paris alone.
If you can't do this, I'd just recommend taking out cash from the ATM no more than twice a week. Keep the extra in your money belt, and put just that day's cash in your wallet.

[rayanlee]

Really interesting