Planning a trip from Europe to the Big Apple? One of the first things on your mind is likely how to handle your finances, specifically converting euros to dollars. Navigating currency exchange can seem daunting, but with the right knowledge, you can ensure you get the best exchange rates and avoid unnecessary fees during your New York adventure.
Having explored New York City countless times, I understand the common concerns and pitfalls when it comes to currency exchange. Many travelers worry about where to exchange currency, how much to exchange, and whether to rely on credit cards, debit cards, or cash. This guide is designed to provide you with expert insights on managing your money in New York, ensuring a smooth and financially savvy trip.
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Paying by Card in New York: What You Need to Know
New York City is incredibly card-friendly. You’ll find that almost every establishment, from bustling restaurants to charming boutiques, accepts card payments, whether credit or debit.
In fact, since the pandemic, some places have become cashless, accepting only card payments. For travelers, this is particularly convenient. Personally, I prefer not to carry large amounts of cash, so I opt for card payments for most of my expenses and keep a small amount of cash for minor purchases or situations where cards might not be accepted.
Upon returning home, I simply reconcile my card statements with my purchase receipts – a straightforward way to manage travel expenses.
How Much Cash Should You Bring?
While card payments are widely accepted, it’s wise to have some cash on hand. I recommend budgeting around $30 per person per day for situations where card payments aren’t possible or when you prefer to pay in cash.
For a 7-day trip, I typically carry about $100 in cash. However, this is a personal preference, and your needs may vary depending on your spending habits and comfort level.
Credit Card vs. Debit Card: Which to Use?
Understanding the difference between credit and debit cards is crucial for international travel. A credit card operates on credit; when you make a purchase, the amount is charged to your credit line. Your bank sets a credit limit, which could range from a few hundred to several thousand dollars. You should check with your bank to know your specific credit limit. When you pay with a credit card, the merchant’s payment terminal communicates with networks like VISA or Mastercard to authorize the transaction, provided you’re within your credit limit.
A debit card functions differently. It draws funds directly from your bank account, and your spending limit is determined by your account balance. The authorization process for debit cards can be more complex internationally. Some establishments, particularly smaller businesses or older payment systems, may not accept debit card payments. You’ll only discover this when you attempt to use your card.
Major banks often advise using credit cards abroad due to potential issues with debit card acceptance and for added security and travel benefits. Having multiple cards, including a credit card, is a smart strategy to prevent issues like declined transactions, lost cards, or exceeding limits.
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Credit Card Limits for Unexpected Expenses
When you check into your hotel, you’ll typically be asked for the credit card used for the reservation. Hotels commonly pre-authorize your card for the total cost of your stay upon arrival. On your departure day, they finalize the charges, including any extras like minibar usage or laundry services.
Additionally, hotels often place a security deposit hold on your credit card to cover potential incidentals or damages. During my last stay, a $200 hold was placed on my card. This hold is released after check-out, usually becoming available again within a few business days.
Therefore, if your hotel stay costs $2,000 and your credit card limit is $3,000, you’ll have a remaining spending capacity of only $1,000 for other expenses and unexpected situations. While it might seem unnecessary when everything goes smoothly, travel can be unpredictable.
Paying in Dollars vs. Euros at Point of Sale
Sometimes, when paying by card, the payment terminal may ask if you want to be charged in dollars or euros. ALWAYS choose to pay in the local currency – DOLLARS in New York.
If you select euros, the merchant determines the exchange rate, which will almost certainly be less favorable than the rate your bank would offer. By choosing to pay in dollars, your bank handles the currency conversion, typically at a more competitive exchange rate.
- The pandemic taught us that borders can close unexpectedly, leaving you stranded. How would you cover accommodation and food expenses?
- New York can experience snowstorms or hurricanes that ground flights, preventing your return home. (This is a real and frequent occurrence.)
- Your card could be lost or stolen.
- Card details can be duplicated or hacked.
- The magnetic strip can demagnetize due to proximity to mobile phones, rendering the card unusable.
- You might face a medical emergency requiring assistance.
These scenarios underscore the importance of having a credit card with a sufficient limit to handle unforeseen circumstances. Being stranded far from home without access to funds is a stressful situation you want to avoid.
How I Manage Payments in New York: Hotels, Transport, Dining, and Shopping
As mentioned, I minimize carrying cash when traveling in New York, keeping it only for emergencies and very small purchases.
I pay for almost everything using this travel card. Before traveling, I estimate my trip expenses, knowing that the hotel will be the largest cost (and involve a security deposit). I always add an extra buffer of around $500 for unexpected expenses, as travel can be unpredictable.
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Fees for Using Conventional Credit and Debit Cards
It’s essential to understand the fees associated with using your regular credit or debit cards abroad. Consult your bank or card provider (VISA, Mastercard, etc.) directly for the specific terms and conditions of your card, as fees can vary.
For instance, some banks may charge a foreign transaction fee, often a percentage of each purchase made in a foreign currency. They also apply an exchange rate, which might not be the most favorable. ATM withdrawals abroad can also incur fees, both from your bank and the ATM operator.
Some banks, for example, may charge a percentage fee plus a minimum charge for international debit card transactions and ATM withdrawals. Credit card cash advances are generally more expensive, incurring higher interest rates and fees.
Wizink, for example, charges a 2% commission on payments made in currencies other than the euro. This can quickly add up over the course of your trip.
Therefore, the best approach is to contact your bank directly to understand the exact fees you’ll incur when using your cards in New York.
When I travel, I always carry multiple cards, primarily credit cards. As I mentioned earlier, I’m keenly aware of potential travel mishaps and want to be financially secure.
Hotel bills, as you know, can be substantial. Previously, I used to pay with my regular credit card (the kind most of us get from our banks) until I realized the hidden costs.
Because my primary card was linked to a euro account, I was charged a foreign transaction fee for every purchase in a different currency.
The example below shows a charge and commission from my hotel stay in New York in November/December 2021. I incurred €25 in fees just from the hotel bill (using a Wizink card with a 2% commission).
Before, these currency exchange fees were less transparent because they were embedded within the total charge, making it difficult to see the exact commission amount. However, I was always aware that I was being charged.
So, be aware that whether you’re paying for hotels, restaurants, shows, or anything else during your New York trip (or even booking in advance), any transaction in a currency different from your home currency will likely incur fees.
And remember, if you don’t see a separate line item for fees, it’s likely included within the total amount you’re charged.
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Avoiding Surprises with Your Regular Cards: Recommendations
I primarily use my travel money card for daily expenses. Since I travel abroad frequently, I prefer not to carry much cash for security reasons. However, withdrawing cash from ATMs without fees is convenient when needed.
Despite my regular credit card having high fees, I always carry it as a backup. Why?
- Hotels in New York place a security hold on your credit card upon check-in (as mentioned earlier), which is refunded upon check-out.
- Some establishments, particularly hotels and car rental agencies, may not accept debit cards, requiring a credit card.
- My credit card has always been reliable in emergencies.
- My credit card offers a credit line that can be crucial in unexpected situations, providing peace of mind.
I emphasize that I use my regular credit card ONLY in very specific situations and carry it mainly for peace of mind.
Card malfunctions are more common than you might think. Whether it’s demagnetization, theft, or simply a technical issue, cards can fail. This can happen with both credit and debit cards.
To avoid issues, I recommend carrying at least two cards – ideally one credit card and one debit card, but never just two debit cards.
Also, remember that hotels will block a certain amount on your card as a security deposit, which varies depending on the hotel and length of stay. You cannot decline this hold.
This hold is released when you check out, but the funds may not be available again for a few days.
Keep this in mind: if your credit card limit is $1,000 and the hotel blocks $500, you’ll only have $500 available for spending during your trip.
Alternatives to Traditional Cards (and 1% Fee Cards)
In recent years, travel money cards have become increasingly popular. These cards function like credit cards but operate on pre-loaded funds. Here’s how they work:
- They are offered by online banks with European banking licenses, regulated by financial authorities, and comply with European regulations.
- Anyone residing in Europe can apply for these cards. Initially, they are essentially empty cards.
- They often do not charge foreign transaction fees for payments in foreign currencies, especially this one. If considering a different card, always review the terms and conditions.
- Once you receive your card (physical or virtual), you don’t need to link it to your existing bank account or card. You simply transfer funds from your regular account or card when needed.
- These cards are “reloadable”, like prepaid mobile phone cards. This limits your risk in case of loss or fraudulent use. You can load any amount from $10, $50, to $1,000, controlling how much and how often you add funds.
- Sign-up and maintenance are usually free. You might only pay for physical card delivery if you choose to have a physical card in addition to the virtual one.
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Like bank interest rates and many things in life, card terms and conditions can change. This is why I constantly monitor changes and seek the most advantageous alternatives, as cards I’ve recommended in the past may change their fee structures.
How Much Money Should You Load?
Estimate your travel expenses: hotel costs, meals, transportation, shopping, and activities. Based on this, decide how much to load onto your travel card.
The hotel cost, usually the largest expense, is known in advance, making it easy to factor in.
In addition to my expense estimate, I typically load an extra $500 to $1,000 for unforeseen circumstances. Unexpected events do happen, though I won’t detail my travel mishaps here.
I always carry my regular credit card as an emergency backup for unexpected payments.
How to Reload Your Card
Travel cards usually have an “add money” or “reload” option. Depending on the card, options include Apple Pay, credit or debit card, manual bank transfer, etc. The process is typically very straightforward.
If you have any questions, contact the card’s customer service. They are best equipped to assist you.
What Happens to Leftover Money? How to Recover It
These travel cards are payment cards, usable in New York, Paris, Dubai, or even at home. If you have leftover funds, you can continue using the card for everyday spending domestically and still benefit from any cashback rewards, for example. Alternatively, you can usually transfer the remaining balance back to your bank account, although there might be a small fee for this.
When Should You Load Money?
I always load money onto my travel card before starting my trip. Why?
Because my bank (like most) has strict security measures, and sometimes I need to verify transactions via SMS. International roaming charges can apply, and connectivity can be unreliable.
As mentioned, I estimate my expenses, load an extra amount for contingencies, and carry a traditional credit card as a backup, just in case (hopefully never needed).
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Physical or Virtual Card?
I pay for everything using my phone. I have an iPhone and have added my card to Apple Wallet. The payment process is identical to how I pay in stores at home.
However, I must reiterate: it’s CRUCIAL not to travel with only one card. Cards can malfunction, get blocked, or be lost, regardless of the bank. These things happen.
Some businesses might not have contactless payment terminals. In these cases, lacking a physical card can be problematic.
How to Pay with Your Card
I have both a physical and a virtual card, but I primarily pay with my phone. It’s much more convenient than searching for my wallet and card.
Nearly all establishments have contactless payment terminals. I simply hold my phone near the terminal, and payment is processed instantly, even with airplane mode enabled (as shown in the photo above).
Where to Exchange Euros to Dollars Before Traveling to New York
To save time in New York and handle currency matters proactively, I always exchange currency before departing.
How do I do it? I shop around at different banks, whether I’m a customer or not. Here’s my approach:
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 fees they apply.
Theoretically, your primary bank, where you have your salary deposited or mortgage, should offer a better exchange rate – but this isn’t always the case. It’s best to inquire at multiple banks.
Be aware that sometimes banks won’t explicitly state a commission, as it’s already factored into the exchange rate.
Bring a pen and paper to note down each bank’s name and the exchange rate they offer, so you can compare them later and choose the best option.
It’s simple: I go with the best offer. Every time I travel to New York, I repeat this process, as bank exchange rates and conditions fluctuate.
How Much Money Should You Exchange?
This depends on your personal spending habits and 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 that you should order your dollars from the bank about a week in advance, as they need to order the currency and ensure it arrives before your trip.
Another important tip: ask your bank for $100 in small bills, specifically $20 bills.
Why? Because if you’re buying a MetroCard from vending machines for subway and bus travel, and your card doesn’t work (which happens to me frequently at these machines), you’ll need to pay in cash.
The “problem” is that these machines often give a maximum of $9 in change, even if you’re owed more. So, bring small bills for these situations.
Exchanging Euros to Dollars Without Commission
Don’t be misled by claims of “no commission” currency exchange. All currency exchanges involve a cost, whether it’s a separate commission or factored into the exchange rate.
Remember, banks and exchange services are businesses aiming to make a profit. They are not charities, so they will generate revenue from every transaction.
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Euro to Dollar Exchange Rate in New York
It’s important to track the current exchange rate. I always use XE.com as a reference. As shown in the image below, by entering €1, for example, I can see the current exchange rate.
Furthermore, if you click “View Chart” on the left, you’ll see two graphs. The top graph indicates the best time of day to exchange currency. However, unless you exchange currency at that exact moment, rates fluctuate constantly.
The bottom graph shows the exchange rate trend over the last year. If you look at the highest peak, you can see when the euro was strongest against the dollar. Traveling during such periods would mean getting more dollars for each euro exchanged.
Where to Exchange Money in New York City
Honestly, I advise exchanging currency in your home country at a bank offering a good rate. I always exchange currency in my home country (Spain) and have explained my method above.
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 the real exchange value and commission transparency. Plus, you’ll waste time comparing different exchange bureaus.
The exchange bureau in the photo above is near Times Square, easily accessible. But even if you see “0% commission” signs, their profit comes from offering a less favorable exchange rate.
Currency exchange bureaus are not very common in New York. Most are located in tourist-heavy areas like Times Square, so be aware of this limited availability.
Can You Withdraw Money from ATMs in New York?
Yes, but with a few important points:
- Before you leave, call the contact number on the back of your credit or debit card and ask about international ATM withdrawal fees. Fees vary depending on the ATM network (e.g., Cirrus, PLUS), and can range from 2% to 5% per withdrawal. It’s essential to know this beforehand.
- Importantly, while most ATMs have contactless readers, they often don’t work with foreign cards. You’ll likely need to use a physical card to withdraw cash, whether credit or debit.
Best Time to Travel to New York for Favorable Exchange Rates
Many factors influence exchange rates, including the global economic situation. It’s unlikely we’ll see euro-dollar parity like in the early 2000s, when €1 equaled $1.50.
The currency exchange strategy I’ve described applies not only to converting euros to dollars but also to exchanging for any foreign currency for travel to other countries.
I hope this guide has been helpful and answered your questions about managing your money when converting euros to dollars for your New York trip.
Originally published in October 2012 and updated in February 2025
