Planning a trip from Europe to New York City? One of the first things on your mind is likely how to handle your finances: Where’s the best place to exchange Euros to Dollars in New York? And more importantly, what’s the most cost-effective way to pay – credit card, debit card, or a prepaid travel card? Having navigated this myself countless times over 50+ visits to NYC and other parts of the US, I’m here to share my experience and guide you to the best exchange rates and payment methods without getting hit with unnecessary fees.
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Paying by Card in New York: Essential Information
In New York, you’ll find that card payments are widely accepted, whether you’re using a credit or debit card. In fact, since the pandemic, some establishments have even gone cashless, accepting card payments only.
Personally, I prefer not to carry large amounts of cash. I usually keep a small amount for minor expenses and pay for everything else by card. Upon returning home, I simply check my bank statements against my purchase receipts – a habit that keeps my finances in check.
How Much Cash Should You Bring?
I recommend carrying minimal cash. Estimate around $30 per person per day (or even less) for situations where card payments aren’t possible or when you prefer using cash. For a 7-day trip, I usually bring about $100 in cash, but this is just my personal preference.
Paying with a contactless card in a store in New York City, illustrating the ease of cashless transactions.
Credit Card vs. Debit Card: Which to Use?
A credit card operates on credit; when you make a purchase, the amount is charged against your credit limit. Your bank sets this limit, which could range from a few hundred to several thousand dollars. It’s best to check with your bank to know your credit limit.
When you pay with a credit card, whether in your home country or abroad, the point-of-sale (POS) system communicates with networks like VISA or Mastercard to authorize the transaction, provided you’re within your credit limit.
A debit card is different; it draws funds directly from your bank account. The spending limit is simply the amount of money available in your account at that moment.
Authorizing debit card transactions internationally can be more complex. Some establishments might not accept debit card payments, although you’ll only discover this when you attempt to pay.
CaixaBank, for example, advises:
“Please note that we cannot guarantee debit card functionality abroad, as transactions may be declined due to lack of line availability.
We recommend using credit cards whenever possible and carrying multiple cards to prevent issues like loss or exceeding limits.”
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What Credit Limit Should You Have for Unexpected Expenses?
First, remember that hotels usually require a credit card upon check-in, typically the one used for booking.
Hotels often charge the total cost of your stay upon arrival and then settle any extra charges, like minibar or laundry fees, at the end of your stay.
They may also hold an additional amount as a security deposit against potential damages or unpaid charges. This amount varies by hotel and stay duration. During my last stay, they held $200, which was released a few days after checkout, assuming everything was in order.
Therefore, if your hotel stay costs $2,000 and your credit card limit is $3,000, you only have $1,000 available for other expenses and emergencies.
Unexpected events can happen when traveling.
A selection of standard credit cards that may incur foreign transaction fees when used in New York.
- The pandemic highlighted how quickly borders can close, leaving you stranded. How would you pay for extended accommodation and meals?
- Snowstorms or hurricanes in New York can ground flights, delaying your return home (this is a real and frequent occurrence).
- You could lose your card or have it stolen.
- Card duplication or hacking is a risk.
- Demagnetization from mobile phones can render cards unusable.
- Medical emergencies can arise, requiring immediate funds.
It’s crucial to have a credit card with a sufficient limit for unforeseen circumstances. Being stranded far from home without access to funds is incredibly stressful.
When Asked, Should You Pay in Dollars or Euros?
Sometimes, when paying by card, the POS terminal might ask if you want to be charged in dollars or euros.
ALWAYS choose the local currency – in this case, DOLLARS.
If you choose euros, assuming it’s your home currency and the currency of your card, the merchant sets the exchange rate, which is unlikely to be favorable to you. You won’t know the rate beforehand, and it will almost always be worse than the actual exchange rate.
By choosing to pay in the local currency (dollars), your bank or card issuer will handle the currency conversion.
How Do You Pay for Hotels, Transport, Restaurants, and Shopping in New York?
As mentioned, I rarely carry much cash when visiting New York, keeping it only for very specific situations and as a backup.
Generally, I pay for absolutely everything using this card.
Before traveling, I estimate my expenses, with the hotel being the largest cost (and factoring in the security deposit). I always add an extra buffer of about $500 for unexpected situations, as you never know what might happen.
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A Visa credit card, widely accepted for payments throughout New York City.
Fees for Using Conventional Cards
You need to check the terms and conditions of your current cards. I recommend contacting your bank or card provider (VISA, Mastercard, etc.) directly, as fees vary.
For example, CaixaBank, when using their debit card outside the Eurozone, applies a 3.95% fee. Crucially, the exchange rate applied between the euro and the transaction currency depends on the day the transaction is settled between the financial entity and CaixaBank.
For ATM withdrawals with a debit card, the fee within the European Community is 4.5% with a minimum of €4, and 5% with a minimum of €4 for credit card withdrawals in non-EU countries.
Wizink, for instance, charges a 2% commission on payments in currencies other than the euro! 😱
Therefore, as I started by saying, it’s best to consult your bank directly, as conditions vary significantly.
When traveling, I always carry several cards, usually credit cards. I’m well aware that travel can bring unexpected situations, and I don’t want to be stranded without funds.
Hotel bills, as you likely know, can be substantial. I used to pay with a conventional credit card (the kind we all get from our banks) until I realized this…
Living in Europe and using a Euro-denominated card means you incur a foreign exchange fee when paying in a different currency.
This charge is from my hotel bill in New York in November/December 2021. $25 in fees just for the hotel, using a Wizink card that charges a 2% commission.
Previously, this foreign exchange fee was less visible, included within the total hotel charge, making it impossible to know the exact fee amount. Yet, I was fully 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 before you travel, any transaction in a currency other than your own will likely incur a fee.
And remember, if you don’t see it itemized, it’s probably embedded in the total purchase amount.
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Example of Wizink credit card fees for foreign transactions, highlighting the 2% commission charge.
Avoid Surprises with Your Regular Card: Recommendations
I use my prepaid travel card for daily expenses, and since I often travel abroad, I prefer not to carry too much cash for safety reasons. However, it’s not an issue because I can withdraw cash from ATMs without fees using my travel card.
Despite my conventional payment card having high fees, I still carry it as a backup. Why?
- Hotels in New York hold a security deposit on your credit card upon check-in (as mentioned earlier), which is refunded upon check-out.
- Some establishments, mainly hotels and car rentals, only accept credit cards, not debit cards.
- It’s a reliable backup that has never failed me.
- My credit card provides a credit line for emergencies, offering peace of mind.
I stress that I only use it in VERY specific situations and carry it mainly for mental reassurance.
Card issues are more common than you might think. Your card’s magnetic strip could demagnetize, it could be stolen, or it might simply malfunction. This can happen with any card, credit or debit.
To avoid problems, I suggest carrying at least two cards, ideally one credit card and one debit card, but never just two debit cards.
Also, be aware that hotels will block a certain amount on your credit card as a security deposit, and you cannot refuse this.
The blocked amount varies depending on the hotel and length of stay, and it is released after you check out, becoming available again after a few days.
Keep this in mind. If you have a credit card with a $1,000 limit and the hotel blocks $500, you’ll only have $500 available for your trip.
Using an N26 prepaid card for payments in New York, a popular alternative to traditional bank cards.
Alternatives to Conventional Cards (Avoiding 1% Fees)
In recent years, prepaid travel cards have become very popular. They function like credit cards, but you load them with your own money. Here’s how they work:
- They are offered by online banks with European banking licenses, regulated by financial authorities, and comply with European regulations.
- Any European resident can apply for these cards. They are essentially empty cards until you load them.
- They do not charge fees for payments in foreign currencies, at least this one. If you choose another, please check the terms and conditions.
- Once you receive your card (physical or virtual), you don’t need to link it to your bank account or regular card. You simply transfer money from your account or card when needed.
- You can “recharge” this card as you wish, like a prepaid mobile phone card. This limits potential losses in case of theft or fraudulent use. You can load $10, $50, $1,000 – you decide the amount and frequency.
- Sign-up and maintenance are free; you only pay for physical card delivery if you choose to have a physical card.
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Like bank interest rates and everything else in life, card conditions change over time. This is why I constantly update my recommendations and seek more advantageous alternatives.
How Much Money Should You Load?
Estimate your travel expenses: hotel costs, meals, transport, shopping, etc., and decide the amount accordingly.
You’ll know the hotel cost, which is usually the largest expense, in advance.
Besides this estimate, I usually add between $500 and $1,000 for unexpected expenses.
An information icon, signaling helpful tips and advice about using travel cards effectively.
I also always carry my conventional credit card for emergencies, in case I need to cover unexpected payments.
How Do You Recharge the Card?
These cards usually have an “add money” or “recharge” option. Depending on the card, they offer various methods: Apple Pay, credit or debit card, manual bank transfer, etc. It’s very straightforward.
If you have any doubts, contact the card’s customer service for assistance. They are best placed to help you.
What If You Have Money Left Over? How Do You Recover It?
These are payment cards that can be used in New York, Paris, Dubai, or your home country. When I have money left over, I continue using it at home and benefit from cashback offers, for example.
When Should You Load Money?
I always load money before starting my trip. Why?
Because my bank has strict security measures (like most banks), and sometimes I need to verify my identity via SMS. We know how roaming charges work abroad.
So, as mentioned, I estimate my spending and load extra for emergencies.
Additionally, I 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 with my phone. I have an iPhone, and my card is added to Apple Wallet. It’s exactly the same payment system I use at home.
However, I cannot stress enough how important it is NOT to travel with just one card. Cards can stop working or get blocked, regardless of the bank. These things happen.
Some stores may not have contactless payment terminals. In such cases, if you only have a virtual card, you’ll be in trouble.
Paying with a mobile phone using contactless technology in New York, showcasing the convenience of digital payments.
How Do You Pay with It?
Personally, I have both a physical and a virtual card, but I pay for EVERYTHING with my phone. It’s much more convenient than searching for my wallet and card.
Most establishments have contactless payment terminals. I just hold my phone near the terminal, and payment is made, even with airplane mode activated (as shown in the photo above).
A person exchanging Euros to Dollars at a currency exchange counter, preparing for a trip to New York.
Where to Exchange Euros to Dollars Before Traveling to New York
To save time in New York dealing with currency exchange, I always exchange money before leaving home.
How do I do it? I simply visit several banks, whether I’m a customer or not. Here’s my method:
If I want to exchange, say, €600, I visit different banks and ask how many dollars they would give me for that amount and what commission they apply.
Theoretically, your own bank, especially if you have your salary or mortgage there, should offer a better exchange rate. However, this isn’t always the case. So, it’s best to inquire at several places.
Sometimes, they won’t explicitly state the commission, because it’s already factored into the exchange rate.
Bring paper and a pen to note down each bank and the exchange rate offered. Then compare to 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 conditions change.
Visual representation of a travel budget for New York, showing a mix of cash and card payments.
How Much Money Should You Exchange?
Well, as mentioned earlier, it depends on you and your budget. My article on how much a trip to New York costs provides a detailed budget breakdown that might help.
Keep in mind that you should order currency from your bank about a week in advance, as they need to order the dollars, and there’s a risk they won’t arrive in time for your trip.
Another important tip: ask your bank for $100 in small bills, preferably $20s.
Why? Because if you’re buying a MetroCard at a vending machine and your card doesn’t work (which happens to me often at these machines), you’ll need to pay in cash.
The “problem” is that these machines only give back a maximum of $9 in change, even if you’re owed more. So, bring small bills and keep them handy just in case.
Exchanging Euros to Dollars Without Commission
Don’t be fooled: any currency exchange involves a commission, either charged separately or included in the exchange rate.
Remember, banks are businesses aiming to make profit, not NGOs. They need to make money on every transaction.
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Euro to Dollar Exchange Rate in New York
Importantly, 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.
Also, if you click “View Chart” on the left, you’ll see two graphs. The top one shows the best time of day to exchange currency. However, unless you exchange money at that exact moment, rates fluctuate by the minute and hour.
The bottom graph shows the exchange rate trend over the last year. You can see the highest peak was in mid-October 2011, meaning if you had traveled then, you would have received more dollars per euro exchanged.
Screenshot of XE.com currency converter, demonstrating how to check the current Euro to Dollar exchange rate.
Where to Exchange Money in New York?
Honestly, I advise exchanging money in your home country at a bank that offers a good rate. I always exchange currency in Europe and have explained my method earlier.
If you choose to exchange money in New York, be aware that you’ll be at the mercy of the exchange rates offered, and you’ll lose track of the real value and commission. Plus, you’ll waste time comparing different exchange bureaus.
A currency exchange booth in New York, located near Times Square, which may offer less competitive exchange rates.
This exchange bureau in the photo above is near Times Square, hard to miss. Even though it advertises “0% commission,” their profit comes from offering a lower exchange rate.
Currency exchange bureaus aren’t common in New York; most are in tourist areas like Times Square. Be warned.
An ATM in New York City, offering cash withdrawal services for travelers.
Can You Withdraw Money from ATMs in New York?
Yes, but with a few points to consider:
- Before you leave, call the contact number on the back of your credit card and ask about ATM withdrawal fees. Fees vary depending on the ATM network (Servired, Telebanco, etc.) and can range from 2% to 5%, so it’s important to know beforehand.
- Importantly, while most ATMs are contactless, they don’t work with foreign cards. You’ll need to insert a physical card, whether credit or debit, to withdraw cash.
Best Time to Travel to New York for the Best Exchange Rate
Many factors influence exchange rates, including the global economic situation. It’s unlikely we’ll see the rates of 2002 again soon, when €1 equaled $1.50.
The system I’ve described can be used for exchanging Euros to Dollars or any other currency for international travel.
I hope this guide has been helpful and answered your questions.
First published in October 2012, updated in February 2025.
