Planning a trip to New York City? One of the first things on your mind is likely how to manage your money, specifically how to change euros to dollars and get the best exchange rate. After countless trips to the Big Apple, I’ve navigated the currency exchange maze many times. I understand the worry of hidden fees and unfavorable rates, and I’m here to guide you through the most efficient and cost-effective ways to handle your currency exchange in preparation for your New York adventure.
This guide will cover everything you need to know about exchanging currency, from the convenience of card payments to the nuances of cash exchange and how to avoid unnecessary fees. Let’s dive into the best strategies to ensure your money goes further in NYC.
Paying with Cards in New York: What You Need to Know
In New York, credit and debit cards are widely accepted, making transactions incredibly convenient. In fact, since the pandemic, some establishments have even moved to a cashless system, accepting card payments exclusively. Personally, I prefer to carry minimal cash, relying on card payments for the majority of my expenses. This approach not only minimizes the risk of loss or theft but also simplifies expense tracking. Upon returning home, I simply reconcile my card statements with my purchase receipts – a straightforward way to manage travel finances.
How Much Cash Should You Bring to New York?
While card acceptance is widespread, it’s wise to have some cash on hand for situations where cards may not be ideal or accepted. I recommend budgeting around $30 per person per day for cash expenses, or even less if you plan to use cards extensively. For a 7-day trip, I typically carry about $100 in cash, but this is a personal preference. Assess your spending habits and plan accordingly, considering cash for smaller purchases, tips, or in case of unexpected situations where cards might not be usable.
Credit vs. Debit Cards in New York
Understanding the difference between credit and debit cards is crucial for international travel. A credit card operates on a credit line extended by the bank. When you make a purchase, you’re borrowing money up to your credit limit. This limit varies, so it’s important to check with your bank to know your spending capacity. When you use a credit card, the transaction approval process involves communication between the merchant’s bank and the card network (Visa, Mastercard, etc.), which is generally seamless.
A debit card, on the other hand, directly accesses funds from your bank account. The spending limit is determined by your account balance. However, international debit card transactions can be more complex. Authorizing a debit card payment abroad requires real-time communication with your bank, which can sometimes be problematic due to network issues or bank policies. Consequently, some establishments might not accept debit card payments, though this is usually only apparent when you attempt to pay.
Financial institutions like Caixabank highlight this potential issue:
“Remember that we cannot guarantee debit operations abroad, as you may encounter denied operations due to lack of line.
We recommend using credit cards as much as possible, carrying more than one card to prevent losses, credit limit exhaustion, etc.”
Therefore, for international travel, credit cards offer greater reliability and acceptance. It’s also prudent to carry both a credit and a debit card as a backup.
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Credit Card Limits for Travel Emergencies
When traveling, especially to a city like New York, having an adequate credit limit on your card is essential for unforeseen circumstances. Upon checking into your hotel, a credit card is typically required for incidentals. Hotels often pre-authorize your card for the total cost of your stay plus an additional amount to cover potential extras like minibar charges or room service.
Furthermore, many point-of-sale systems will ask if you want to pay in dollars or euros. Always choose to pay in the local currency, which is US dollars in New York. If you opt to pay in euros, the exchange rate is determined by the merchant, and it’s unlikely to be favorable. By choosing to pay in dollars, your bank will handle the currency conversion, usually at a more competitive rate.
- Hotels also commonly place a security deposit hold on your credit card to cover potential damages or unpaid charges. During my last stay, $200 was held as a security deposit. This amount is typically released after checkout, but it can take a few days for the funds to become available again. It’s crucial to factor this hold into your available credit. For instance, if your hotel stay costs €2,000 and your credit limit is €3,000, a $200 hold could significantly reduce your spending margin.
It’s easy to underestimate the importance of a sufficient credit limit until unexpected events occur. Travel can be unpredictable, and financial flexibility is key to managing emergencies.
- The pandemic highlighted the reality that borders can close unexpectedly, leaving you stranded. How would you cover extended accommodation and living expenses?
- New York can experience severe weather, such as snowstorms or hurricanes, which can disrupt travel plans and lead to airport closures. These are real possibilities that can extend your stay.
- Loss or theft of your primary card is another potential travel mishap.
- Card duplication or hacking are also risks to consider.
- Card demagnetization due to proximity to electronic devices can render it unusable.
- Medical emergencies requiring immediate assistance can arise at any time.
These scenarios underscore the critical importance of having a credit card with a sufficient limit to handle unforeseen expenses. Being stranded far from home without access to funds is a stressful situation to avoid.
How I Manage Payments in New York: Hotels, Transport, Dining, and Shopping
When I travel to New York, I minimize cash usage for security and convenience. I pay for almost everything using this card. Before my trip, I estimate my expenses, with the hotel being the largest cost and factoring in the potential security deposit hold. I also add an extra buffer of about €500 for unexpected situations.
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Commissions on Conventional Card Payments
Understanding the fees associated with using your regular bank cards abroad is essential. Check the terms and conditions of your credit and debit cards with your bank or card provider (Visa, Mastercard), as fees vary.
For example, CaixaBank, for debit card transactions outside the Eurozone, applies a 3.95% fee, in addition to the exchange rate, which is set on the day the transaction is settled between financial institutions. ATM withdrawals with debit cards in Europe incur a 4.5% fee (minimum €4), and outside Europe, credit card cash withdrawals can attract a 5% fee (minimum €4).
Wizink, for instance, charges a 2% commission on payments made in a currency other than the euro 😱. These fees can quickly add up, diminishing your travel budget. Always confirm the exact fees with your bank before traveling.
I always carry multiple cards when traveling internationally, primarily credit cards, recognizing the potential for unforeseen expenses. Hotel bills, which can be substantial, were previously paid with my standard bank credit card—until I realized the hidden costs.
When using a euro-based card in a foreign currency, a currency exchange commission is charged. This commission, while often not explicitly detailed, is embedded in the total transaction amount.
This charge and commission is from my November/December 2021 hotel stay in New York, amounting to €25 in commissions for the hotel bill alone (using a Wizink card with a 2% commission).
Previously, these currency exchange commissions were less transparent, bundled into the total charge, making it difficult to discern the exact fee. However, the cost is always there.
Therefore, be aware that any transaction in New York or online, made in a currency different from your home currency, will likely incur a commission. If the commission isn’t itemized, it’s included in the overall price.
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Avoiding Surprises with Your Regular Bank Card: Recommendations
I typically use a prepaid debit card for daily expenses and prefer to carry minimal cash for security reasons when traveling abroad. While my conventional credit card has high fees, I always carry it as a backup for emergencies. Why?
- New York hotels often place a hold on your credit card for a security deposit upon check-in (as previously mentioned), which is refunded upon check-out.
- Some establishments, particularly hotels and car rentals, may only accept credit cards.
- My credit card has always been reliable in emergencies.
- It provides a credit line that can be crucial in unexpected situations, offering peace of mind.
However, I only use my conventional credit card for very specific situations and keep it mainly for psychological comfort.
Card malfunctions are more common than you might think, whether due to demagnetization, theft, or technical issues. This can happen to both credit and debit cards.
To mitigate risks, I strongly recommend carrying at least two cards: ideally one credit card and one debit card, and never rely solely on two debit cards.
Also, remember that hotels will block a certain amount on your card as a security deposit, which is standard practice. The amount varies by hotel and length of stay. This hold is released after check-out, but the funds may not be available for a few days.
Be mindful of this hold’s impact on your available spending money. If your credit card limit is €1,000 and a €500 hold is placed, your usable credit is reduced to €500 for the duration of your stay.
Alternatives to Traditional Cards (and 1% Commission Cards)
In recent years, prepaid debit cards have become a popular alternative for travelers. These cards function like credit cards but draw from your pre-loaded balance. Here’s how they work:
- These cards are offered by online banks with European banking licenses, regulated by financial authorities, and compliant with European regulations.
- Anyone residing in Europe can apply for these cards, which start as essentially empty cards.
- They often offer commission-free payments in foreign currencies, like this one. Always verify the terms for any card you consider.
- 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 funds from your account as needed.
- These cards are “reloadable,” similar to prepaid mobile phone cards, limiting your risk in case of loss or fraudulent use. You control how much and how often you load funds.
- Sign-up and maintenance are typically free, with potential charges only for physical card delivery if you opt for a physical card.
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Like bank interest rates and many things in life, card conditions can change over time. Therefore, it’s essential to stay updated on terms and seek out the most advantageous options.
How Much Money Should You Load onto a Prepaid Card?
Estimate your travel expenses: hotel costs, meals, transportation, shopping, etc., to determine how much to load onto your prepaid card. The hotel cost, usually the largest expense, is known in advance, making it easier to budget.
In addition to my estimated spending, I usually load an extra €500 to €1000 for unexpected situations. It’s always wise to have a buffer.
I also always carry my conventional credit card for emergencies, should unexpected payments arise.
How to Reload Your Prepaid Card
Prepaid cards typically offer an “add money” or “reload” option with various methods: Apple Pay, credit or debit card, manual bank transfer, etc. The process is usually straightforward.
If you encounter any issues, contact the card’s customer service for assistance. They are best equipped to guide you through the process.
What Happens to Leftover Funds?
Prepaid debit cards can be used anywhere cards are accepted, whether in New York, Paris, Dubai, or your home country. If you have leftover funds, simply continue using the card for everyday purchases at home and enjoy benefits like cashback, if applicable.
When Should You Load Money?
I recommend loading funds onto your prepaid card before starting your trip. Why? Because banks often have strict security measures, sometimes requiring transaction verification via SMS. International roaming charges can apply, and it’s simpler to manage top-ups before you leave.
As mentioned, I estimate my travel expenses, add extra for contingencies, and load the card before my trip. I also carry a traditional credit card as a backup, just in case.
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Physical vs. Virtual Card
I personally pay for almost everything using my mobile phone. With an iPhone, I’ve added my card to Apple Wallet, making payments as seamless as in my home country.
However, I must reiterate the importance of not relying solely on one card. Cards can malfunction or get blocked, regardless of the bank. Even with contactless widely available, some merchants may still lack this technology. In such cases, a physical card is essential.
How to Pay with a Virtual Card
I carry both a physical and a virtual card, but I primarily use my mobile for payments for convenience. Contactless payment terminals are ubiquitous in New York, allowing you to simply tap your phone to pay, even with airplane mode activated (as shown in the photo above).
Where to Exchange Euros to Dollars Before Traveling to New York
To save time in New York, I prefer to exchange currency before my trip. How? By comparing rates at different banks, regardless of whether I’m a customer.
For example, if I want to exchange €600, I visit several banks and inquire about the dollar amount they would offer and any applicable commissions. Theoretically, your primary bank, where you have your salary deposited or mortgage, should offer a better rate, though this isn’t always the case. It’s best to ask multiple institutions.
Note that sometimes commissions are not stated separately but are included in the exchange rate.
Bring a pen and paper to record each bank’s offer and exchange rate, enabling comparison to find the best deal. I always repeat this process before each trip to New York, as bank conditions can change.
How Much Money to 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.
Remember to order your dollars from the bank about a week in advance, as they need to order the currency and ensure it’s available before your trip.
Another important tip: request $100 in small bills, specifically $20 bills.
Why? Because if you plan to purchase a MetroCard from vending machines for subway and bus travel, and your card malfunctions (which happens to me frequently), you’ll need to pay in cash.
The “issue” is that these machines often have limited change. Even if you’re owed $10 in change, they may only dispense a maximum of $9. Small bills are essential for these transactions.
Exchanging Euros to Dollars Without Commission
Don’t be misled; all currency exchanges involve a commission, whether explicitly stated or embedded in the exchange rate. Banks are businesses aiming to profit, not NGOs. They make money on every transaction.
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Euro to Dollar Exchange Rate in New York
I always use XE.com as a reference for real-time exchange rates. As shown in the image below, by entering €1, I can see the current exchange rate.
Clicking “View Chart” on the left provides two graphs. The top graph indicates the best time of day to exchange currency, though rates fluctuate constantly. The bottom graph shows the exchange rate trend over the past year. The peak in mid-October 2011 indicates that exchanging euros then would have yielded more dollars per euro.
Where to Exchange Money in New York?
Honestly, I recommend exchanging money in your home country at a bank offering a favorable rate. I always exchange currency in Spain using the bank comparison method described earlier.
If you opt to exchange money in New York, you’ll be subject to the rates offered, potentially losing track of the real exchange value and commission, not to mention the time spent comparing exchange bureaus.
The exchange bureau pictured above is near Times Square, easily accessible. However, despite advertising “0% commission,” their profit comes from offering a less favorable exchange rate.
Currency exchange bureaus in New York are not abundant, mostly concentrated in tourist areas like Times Square. Be aware of this limited availability and potentially less competitive rates.
Can You Withdraw Cash from ATMs in New York?
Yes, but with caveats:
- Contact your bank before traveling to inquire about ATM withdrawal fees. Fees vary based on ATM network affiliation (Servired, Telebanco, etc.) and can range from 2% to 5%. Knowing this beforehand is crucial.
- Importantly, while most ATMs have contactless readers, they may not work with foreign cards. You will likely need to use a physical card to withdraw cash, regardless of whether it’s credit or debit.
Best Time to Travel to New York for Favorable Exchange Rates
Many factors influence exchange rates, and given current economic conditions, reaching the favorable rates of 2002 (€1 to $1.50) may be unlikely in the near future.
The strategies outlined here apply not only to exchanging euros to dollars but also to exchanging currency for travel to any country.
I hope this guide has been helpful and clarified any doubts you may have.
First published in October 2012 and updated in February 2025.
