Planning a trip from Europe to the Big Apple? One of the first things on your mind is likely handling your finances. You’re probably wondering about the best way to exchange Euros for Dollars in New York and, crucially, how to get the most bang for your buck. You might also be asking yourself whether it’s better to pay with credit cards, debit cards, or a prepaid travel card. Let me tell you upfront: travel cards often come out on top.
After countless trips to New York City – more than 50, not to mention my explorations across the rest of the United States – I’ve navigated this currency conversion puzzle more times than I can count. I’ve learned the hard way, so you don’t have to!
I’m going to break down exactly how I manage my money, secure the best exchange rates, and dodge those pesky hidden fees, ensuring you get the most dollars for your euros.
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Paying with Cards in New York: What You Need to Know
In New York City, you’ll find that cards are king. Whether it’s credit or debit, you can swipe, tap, or insert your card practically everywhere you go.
In fact, since the pandemic, some places have even gone cashless, accepting card payments only.
Personally, I’m not a fan of carrying large amounts of cash. I prefer to keep a small amount for minor expenses and rely on card payments for everything else.
When I get home, all that’s left to do is check my bank statement against my receipts – a little habit of mine to stay organized.
How Much Cash Should You Bring?
Since card payments are so widely accepted, you really don’t need to carry much cash. I usually estimate around $30 per person per day – or even less – for those situations where cards aren’t accepted, or you simply prefer to pay cash.
For a 7-day trip, I usually bring about $100 in cash. But remember, that’s just my approach. You might prefer to have a bit more on hand.
Paying for purchases in New York with a contactless travel card.
Credit Card or Debit Card? Understanding the Difference for US Travel
A credit card, as the name suggests, works on credit. When you make a purchase, the amount is charged to your credit line. Your bank sets a credit limit on your card, which could range from a few hundred to several thousand euros per month, depending on your credit agreement. Check with your bank to know your limit.
When you pay with a credit card, whether in your home country or abroad, the point-of-sale system communicates with networks like VISA or Mastercard. If the transaction is within your credit limit, it’s quickly authorized.
Debit cards are different. Your spending limit is tied to the funds available in your bank account at that moment.
The authorization process for debit cards can be more complex, especially when you’re abroad. It’s not always straightforward for a foreign merchant to get immediate authorization from your bank. This means some establishments might not accept debit card payments. You’ll only find out at the point of payment when you try to use your card.
Major banks often advise caution when using debit cards internationally. They may not guarantee debit card functionality overseas due to potential issues with obtaining online authorization.
Therefore, credit cards are generally recommended for international travel. It’s also wise to carry more than one card as a backup, in case of loss, exceeding limits, or other unforeseen issues.
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Setting a Credit Limit for Unexpected Travel Expenses
When you check into your hotel, they’ll typically ask for the credit card used for the booking.
Hotels usually pre-authorize your card for the total cost of your stay upon arrival. On your departure day, they finalize the charges, adding any extras like minibar purchases, laundry, or other hotel services.
Additionally, many hotels place a security hold on your credit card to cover potential incidentals. This hold can vary depending on the hotel and length of stay. During my last hotel stay, they held $200. If everything is in order upon checkout, this hold is released, and the funds become available again in about 3 days.
So, if your hotel stay costs €2,000 and your credit card limit is €3,000, you’ll only have €1,000 of available credit for other expenses and any unexpected situations.
You might think you don’t need a high credit limit, but travel can be unpredictable.
Typical credit and debit cards that may incur foreign transaction fees.
Consider these scenarios:
- Border Closures: The pandemic taught us that borders can close unexpectedly, leaving you stranded. How would you pay for extended accommodation and meals?
- Travel Disruptions: A snowstorm or hurricane in New York could ground flights, delaying your return home. (This happens!)
- Lost or Stolen Card: Cards can be lost or stolen, leaving you without access to funds.
- Card Duplication or Hacking: Card fraud is a reality.
- Card Demagnetization: A damaged magnetic strip can render your card useless.
- Medical Emergency: Unexpected health issues can arise requiring immediate medical attention and payment.
These situations highlight the importance of having a credit card with a sufficient limit for unforeseen circumstances. Being miles from home without access to funds is incredibly stressful.
Euro or Dollar? Always Choose the Local Currency
When paying by card in New York, you might be asked at the point of sale if you want to be charged in dollars or euros.
ALWAYS choose the local currency – in this case, dollars.
If you opt to pay in euros, thinking it’s your home currency and the currency of your card, the exchange rate will be set by the merchant. This rate is unlikely to be favorable to you, and you won’t know the exact exchange rate being applied until after the transaction.
However, if you choose to pay in the local currency (dollars), your bank or card issuer will handle the currency conversion using their exchange rate, which is typically more competitive and transparent.
How I Pay for Everything in New York
As I mentioned, I carry very little cash when I travel to New York, just for emergencies and very small purchases.
For everything else – and I mean absolutely everything – I use this travel card.
Before each trip, I estimate my expenses, keeping in mind that the hotel will be the biggest cost (and they’ll place a security hold). I always add an extra buffer of about €500 for unexpected costs – because travel surprises are inevitable.
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Example of foreign transaction fees on a conventional credit card statement.
Hidden Fees: Commissions on Conventional Cards
It’s crucial to understand the terms and conditions of your regular credit and debit cards, especially regarding foreign transaction fees. Contact your bank or card provider (VISA, Mastercard, etc.) directly, as fees can vary widely.
For example, some banks apply a foreign transaction fee, often a percentage of the transaction amount, when you use your card outside the Eurozone. This fee is in addition to the exchange rate applied.
Consider this real example: A conventional credit card charged a 2% commission on payments in a currency other than the euro!
As I started out, the best approach is to check directly with your bank to understand the specific fees associated with using your card abroad, as these conditions can vary significantly.
When traveling, I always carry multiple cards, mostly credit cards. I’m very aware of potential travel mishaps and want to be prepared financially.
Hotel bills, as you know, can be substantial. I used to pay with my regular credit card until I realized the hidden costs…
If you live in the Eurozone and use a euro-denominated card, you’ll likely incur a foreign transaction fee when you pay in a foreign currency.
This fee is for currency exchange. This is a real charge from my November/December 2021 hotel stay in New York – €25 in fees, just for the hotel bill! This particular card (from Wizink) applies a 2% commission.
Before, these currency exchange fees weren’t always transparent. They were often bundled into the total charge, making it hard to see the exact fee amount. But I knew I was being charged.
So, whether you’re paying for your hotel, restaurants, shows, or anything else during your New York trip (or even booking in advance), anything charged in a currency different from your home currency will likely incur a commission.
And remember, if you don’t see the fee itemized, it’s probably included within the total purchase amount.
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Withdrawing cash from an ATM in New York City.
Travel Card Recommendations: Avoid Surprises and Fees
I usually handle my day-to-day expenses using a prepaid travel card. Since I travel abroad frequently, I prefer not to carry too much cash for security reasons. Withdrawing cash from ATMs is an option when needed, but it’s good to minimize ATM use to avoid potential fees.
Even though my conventional credit card comes with high fees, I still carry it as a backup for emergencies. Why?
- Hotel Security Deposits: New York hotels often place a hold on your credit card for security deposits during check-in (as I mentioned earlier). This is refunded upon check-out, provided there are no issues.
- Credit Card Requirement: Some establishments, especially hotels and car rentals, may only accept credit cards, not debit or prepaid cards, for security reasons.
- Reliability: My credit card has always been accepted and worked when needed.
- Emergency Credit Line: A credit card provides access to credit if I face unexpected large expenses – it’s a financial safety net and peace of mind.
I emphasize, I only use my regular credit card in very specific situations and keep it primarily for peace of mind.
Card malfunctions are more common than you might think. Cards can demagnetize, get stolen, or simply stop working. It doesn’t matter if it’s a credit or debit card; these things happen.
To avoid unpleasant surprises, I recommend carrying at least two cards: ideally one credit card and one debit card, or a combination of a credit card and a prepaid travel card. Relying solely on two debit cards isn’t ideal.
Also, remember that hotels will block a certain amount on your card as a security deposit, which impacts your available spending limit during your trip.
This hold is determined by the hotel and can vary based on the hotel type and length of stay. The blocked amount is released when you check out, but it may take a few days for the funds to become available again.
Keep this in mind when planning your finances. If you have a credit card with a €1,000 limit and the hotel blocks €500, you’ll only have €500 of spending available for your trip.
Using an N26 travel card for payments in New York.
Travel Money Cards: Smarter Alternatives to Traditional Cards
In recent years, prepaid travel cards have become increasingly popular. They function like credit cards, but you load them with your own money. Here’s how they work:
- Issued by Online Banks: These cards are typically offered by licensed European online banks, regulated by financial authorities, ensuring they meet European regulatory standards.
- Accessibility: Anyone residing in Europe can apply for these cards. Initially, they are essentially empty cards until you load them with funds.
- No Foreign Transaction Fees: Crucially, many of these cards, like this one, don’t charge fees for foreign currency transactions. However, always double-check the terms for any card you consider.
- Independent of Bank Accounts: Once you receive your card (physical or virtual), you don’t need to link it to your main bank account or credit card. You simply transfer money to it when needed from your regular account or card.
- Preload and Control Spending: You “recharge” or load these cards with funds as you need, like a prepaid mobile phone card. This limits your risk in case of loss or fraud, as the potential loss is capped at the card’s balance. You decide how much to load – €10, €50, €1,000 – and how often.
- Low or No Fees: Sign-up and maintenance are often free. You might only pay for physical card delivery if you opt for a physical card in addition to a virtual one.
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Like bank interest rates, and just about everything else, card conditions can change over time. Cards that were once highly recommended might alter their terms. It’s important to stay informed about any changes and look for the most advantageous options.
How Much Money Should You Load?
Estimate your total trip expenses: hotel costs, meals, transportation, shopping, and activities. Based on this estimate, decide how much to load onto your travel card.
You’ll know your hotel costs in advance, which is usually the biggest expense.
Beyond your planned expenses, I recommend adding an extra €500 to €1,000 for unforeseen circumstances… because they do happen!
Important information to consider when managing your travel finances.
I also always carry my traditional credit card as an emergency backup for unexpected large payments.
How to Load Money onto Your Travel Card
Travel cards typically offer an “add money” or “top up” option. Depending on the card, you can usually load funds via Apple Pay, credit or debit card, manual bank transfer, and other methods. It’s usually very straightforward.
If you have any questions, contact the card’s customer service. They are best placed to assist you.
What Happens to Leftover Money?
These are payment cards just like any other, usable in New York, Paris, Dubai, or your home country. If you have leftover money after your trip, you can continue using the card for everyday spending at home and still benefit from any cashback rewards or other perks it offers.
When Should You Load Your Card?
I always load my travel card before I start my trip. Why?
Because my bank (like many others) has strict security measures. Sometimes, I need to verify transactions via SMS. We all know about international roaming charges!
So, as mentioned earlier, I estimate my trip expenses, add a buffer for unexpected costs, and load the card before I leave.
And, I always carry a traditional credit card as a backup, just in case (hoping I never need it!).
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Physical or Virtual Card?
I pay for almost everything with my phone. I have an iPhone, and my card is added to my Wallet. It works exactly the same way as paying in stores at home.
However, and I can’t stress this enough, it’s VERY IMPORTANT not to rely on a single card. Cards can malfunction, get blocked, or be declined – regardless of the bank. These things happen.
It’s also possible that some merchants might not have contactless payment terminals. In these cases, if you only have a virtual card, you’ll be in a tricky situation.
Paying for purchases in New York using contactless mobile payment.
How to Pay with Your Travel Card
I personally have both a physical and a virtual card. I carry the physical card but pay with my phone for almost everything. It’s much more convenient than fumbling for my wallet and card.
Nearly all establishments have contactless payment terminals. I just hold my phone near the terminal, and done! Payment goes through even with my phone in airplane mode (see photo above).
A currency exchange location in a tourist area, potentially offering less favorable rates.
Exchanging Euros to Dollars Before Traveling to New York
To save time in New York dealing with currency exchange, I always exchange money before I leave home.
How do I do it? I simply shop around at different banks, whether I’m a customer or not. Here’s my strategy:
If I want to exchange, say, €600, I visit several banks and ask how many dollars they would give me for that amount and what commission they charge.
Theoretically, your own bank, especially if you have your salary or mortgage there, should offer a better exchange rate. But that’s not always the case. So, it’s best to inquire at several places.
Be aware that sometimes banks don’t explicitly state the commission, because it’s already factored into the exchange rate they quote.
Bring a pen and paper, and note down each bank, the exchange rate they offer, and any stated commission. Then compare to choose the best deal.
It’s simple: I go with the best offer. Every time I travel to New York, I repeat this process because bank exchange rates and conditions change.
Planning your travel budget and currency exchange for a trip to New York.
How Much Cash Should You Exchange?
Well, as I mentioned earlier, that depends on your personal spending habits and your budget. My article on how much a trip to New York costs provides a detailed budget breakdown that you might find helpful.
Keep in mind you’ll need to order foreign currency from your bank about a week in advance, as they need to order the dollars, and you risk not getting them in time for your trip if you leave it too late.
Another important tip: ask your bank for $100 in small bills, preferably $20s.
Why? Because if you’re buying a MetroCard from a vending machine for the subway or bus and your card doesn’t work (which happens to me constantly with these machines), you’ll need to pay in cash.
The “problem” is that these machines usually only give back a maximum of $9 in change, even if they owe you more. So, use small bills and keep them handy just in case.
Exchanging Euros to Dollars with No Commission?
Don’t be fooled: all currency exchange involves a cost, whether it’s explicitly stated as a commission or built into the exchange rate.
Remember, banks are businesses aiming to make a profit, not charities. They need to earn money on every transaction.
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GET YOUR FREE CARD HERE
Real-Time Euro to Dollar Exchange Rate
It’s important to have a reference point for the current exchange rate. I always use XE.com. As shown in the image below, you can enter €1, for example, to see the current exchange rate.
Additionally, if you click “View Chart” on the left, you’ll see two graphs. The top graph shows the best time of day to exchange currency (although rates fluctuate constantly).
The bottom chart shows the exchange rate trend over the past year. You can see the highest peak indicating the most favorable exchange rate period in the past year.
Using an online currency converter to check the Euro to Dollar exchange rate.
Currency Exchange in New York: Not Recommended
To be honest, I advise exchanging money in your home country at a bank that offers a good exchange rate. As I mentioned, I always exchange currency in Spain and have explained my method.
If you choose to exchange money in New York, you’ll be at the mercy of the exchange rates offered, and you’ll lose the benchmark of knowing the real value and commission. Plus, you’ll waste time comparing different exchange bureaus.
A currency exchange booth in New York City, possibly in a tourist hotspot.
The exchange bureau in the photo above is near Times Square, hard to miss. But even if it advertises “0% commission,” their profit comes from offering a less favorable exchange rate.
Currency exchange bureaus aren’t that common in New York. Most of the few you’ll find are in touristy areas like Times Square, so be warned.
Using a credit card at an ATM in New York City.
Using ATMs in New York to Withdraw Dollars
Yes, you can withdraw cash from ATMs in New York, but there are a few points to consider:
- ATM Fees: Before you travel, call the contact number on the back of your credit or debit card and ask about ATM withdrawal fees abroad. Fees vary depending on the ATM network and can range from 2% to 5%, so it’s important to know this in advance.
- Contactless Limitations: While many ATMs have contactless readers, they often don’t work with foreign cards. You will likely need to insert a physical card, whether credit or debit, to withdraw cash.
Best Time to Exchange Currency for a New York Trip
Many factors influence exchange rates, including the global economic situation. It’s unlikely we’ll see the exchange rates of the early 2000s again, when €1 bought $1.50. Those were the days!
The advice I’ve shared applies not only to exchanging Euros for Dollars but also for exchanging currency for travel to any other country.
I hope this has been helpful and answered your questions!
First published in October 2012, updated in February 2025
