Planning a trip to New York City from Europe? Understanding the euro to dollar exchange rate and the best ways to manage your money is essential. After countless trips to the Big Apple, I’ve learned firsthand the smartest ways to exchange currency, pay for things, and avoid unnecessary fees. Let me share my expert tips so you can make the most of your budget in NYC.
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Paying by Card in New York: What You Need to Know
New York City is incredibly card-friendly. You can use credit or debit cards practically everywhere. In fact, since the pandemic, many places prefer or even exclusively accept card payments. I personally prefer to carry minimal cash and rely on card payments for most expenses. It’s convenient and makes tracking expenses much easier when I get home.
How Much Cash Should You Bring to New York?
While cards are widely accepted, it’s still wise to have some cash on hand for small purchases or situations where cards might not be ideal, like tipping in cash or smaller vendors. I usually estimate around $30 per person per day, or even less, for those cash-only moments. For a 7-day trip, I typically bring about $100 in cash, but this is just my personal preference.
Paying with a mobile phone using contactless payment in New York, showcasing the ease of digital transactions.
Credit Card vs. Debit Card in the USA
Understanding the difference between credit and debit cards is important for international travel. A credit card allows you to borrow money up to a certain limit set by your bank. When you make a purchase, you’re essentially using credit that you’ll repay later.
A debit card, on the other hand, directly accesses funds from your bank account. The limit is your current account balance.
When traveling internationally, credit cards often offer more reliable acceptance. Debit card transactions may face authorization issues in some establishments abroad. While this is becoming less common, especially in tourist-heavy areas like New York, it’s something to be aware of. Some establishments might not process debit card payments, and you might only discover this when you try to pay.
Financial institutions often recommend using credit cards for international travel for smoother transactions and added protection. Carrying both a credit and debit card is a good strategy in case of loss, limit issues, or varying acceptance.
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Credit Card Limits for Travel Emergencies
When you check into a hotel, they typically require a credit card 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. This hold is released upon checkout if there are no extra charges, but it can temporarily reduce your available credit.
Additionally, hotels often place a security deposit hold on your credit card as a guarantee against damages or unpaid expenses. During my last stay, I had a $200 hold. This is also released after your stay, usually within a few business days.
It’s crucial to have a sufficient credit limit on your card to cover your hotel stay, the security deposit, and have enough buffer for unexpected situations. Travel can be unpredictable.
Consider these potential travel hiccups:
- Unexpected Border Closures: Pandemics or other unforeseen events can lead to border closures, requiring extended stays and additional expenses.
- Travel Disruptions: Weather events like snowstorms or hurricanes can disrupt flights and prolong your trip.
- Lost or Stolen Cards: Theft or loss of your payment cards is a travel nightmare.
- Card Issues: Cards can be duplicated, hacked, or demagnetized, rendering them unusable.
- Medical Emergencies: Unexpected medical situations can arise, requiring immediate funds.
Having a credit card with a reasonable limit is a crucial safety net when traveling internationally. Being stranded far from home without access to funds is a highly stressful situation you want to avoid.
A close-up of a Visa credit card, commonly accepted for payments throughout the United States.
Paying in Dollars vs. Euros at Point of Sale
When paying with a card in New York, you might be given the option to pay in dollars (USD) or euros (EUR) at the point of sale terminal. Always choose to pay in the local currency – DOLLARS.
If you choose to pay in euros, the merchant or their bank will determine the exchange rate, which is almost always less favorable to you. You won’t know the exact exchange rate being applied, and it will likely include hidden fees.
By selecting to pay in dollars, your own bank or card issuer will handle the currency conversion. This is generally more transparent and results in a better exchange rate, closer to the interbank rate.
How I Handle Payments in New York: Hotels, Transport, Dining, and Shopping
I minimize cash usage when traveling to New York and rely almost entirely on card payments. For almost everything, I use a fee-free travel card.
Before each trip, I estimate my expenses, factoring in the hotel cost (the largest expense and potential security deposit hold) and add an extra buffer of around €500 for unexpected costs. It’s always better to be overprepared.
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An example of a Wizink bank statement highlighting commission fees for foreign currency transactions.
Foreign Transaction Fees with Regular Bank Cards
It’s crucial to understand the fees associated with using your regular bank cards abroad. Check with your bank or card issuer directly to understand their specific terms and conditions, as fees vary significantly.
For example, some banks may charge a foreign transaction fee, often a percentage of the transaction amount (e.g., 2-3%). Additionally, the exchange rate applied by your bank might not be the most favorable.
As an example, some cards charge a 2% commission on payments in currencies other than the euro. These fees can add up quickly over the course of your trip.
My own experience highlighted these hidden costs. Paying for a hotel in New York with a standard credit card resulted in €25 in commission fees just for the hotel bill. This was on a card with a seemingly low 2% commission. Often, these fees are embedded within the total charge, making them less visible.
So, be aware: if you use a standard bank card for purchases in a different currency, you will likely incur fees, whether you see them itemized or not.
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A typical ATM machine in New York City, where travelers can withdraw cash, but should be mindful of potential fees.
Avoiding Card Surprises: Recommendations for Using Cards in New York
I primarily use my prepaid travel card for daily expenses. I avoid carrying large amounts of cash for security reasons, but it’s reassuring to know I can withdraw cash from ATMs without fees if needed (depending on the card terms).
However, I always carry a standard credit card as a backup for specific situations:
- Hotel Security Deposits: As mentioned, hotels often require a credit card for security holds.
- Car Rentals and Some Hotels: Some establishments, especially car rental agencies and certain hotels, may only accept credit cards, not debit or prepaid cards.
- Reliability: My credit card has always been a reliable payment method worldwide.
- Emergency Funds: Having available credit provides peace of mind for unexpected emergencies.
I only use my standard credit card for these specific backup situations and carry it primarily for peace of mind.
Card malfunctions are more common than you might think. Cards can demagnetize, be stolen, or simply stop working. This can happen to both credit and debit cards.
To avoid payment headaches, I recommend carrying at least two cards: ideally one credit card and one debit card. Relying solely on two debit cards is riskier.
Remember the hotel security deposit hold. This hold reduces your available credit limit. If your credit card has a €1,000 limit and the hotel holds €500, you only have €500 remaining for other expenses during your trip. Keep this in mind when planning your finances.
An N26 prepaid card, a popular option for travelers looking to avoid foreign transaction fees when paying in New York.
Prepaid Travel Cards: A Smart Alternative to Traditional Cards
Prepaid or “wallet” cards have become a popular and smart option for travelers. They function like credit cards but you load them with your own funds. Here’s how they work:
- Issued by Licensed Online Banks: These cards are often offered by online banks with European banking licenses, regulated by financial authorities.
- Available to European Residents: Anyone residing in Europe can apply for these cards.
- No Foreign Transaction Fees: Crucially, many of these cards, like this recommended one, do not charge foreign transaction fees for payments in other currencies. Always confirm the specific terms of any card you consider.
- Independent of Your Bank Account: You don’t need to link these cards to your main bank account or credit card. You simply transfer funds to them when needed.
- Rechargeable and Controllable Spending: You “recharge” or top up these cards with funds as needed, similar to a prepaid mobile phone card. This limits your risk in case of loss or fraud. You control how much money is on the card and can reload it easily.
- Low or No Fees: Account opening and maintenance are often free. You might pay a small fee for physical card delivery if you choose to have a physical card in addition to a virtual one.
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Like bank interest rates and many things in finance, card terms and conditions can change. It’s important to stay updated on the latest offerings and switch to more advantageous options when necessary.
How Much Should You Load onto a Prepaid Travel Card?
Estimate your travel expenses: hotel, meals, transportation, shopping, activities. Based on this, decide how much to load onto your prepaid card.
You’ll know your hotel costs in advance, making that part easy to calculate. Beyond your estimated spending, I recommend adding an extra €500 to €1000 as a buffer for unexpected situations.
An information icon, signaling important travel tips and advice for managing finances abroad.
I also always carry my traditional credit card as an emergency backup for unforeseen major expenses.
How to Recharge Your Prepaid Travel Card
Prepaid cards have a simple “add money” or “recharge” option. Depending on the card provider, you can typically reload via Apple Pay, credit or debit card, bank transfer, and other methods. It’s 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 on the Card?
These are payment cards that you can use anywhere cards are accepted, whether in New York, Paris, or your home country. If you have funds left over after your trip, simply continue using the card for everyday spending at home and enjoy any cashback or rewards programs offered.
When Should You Load Money onto the Card?
I always load funds onto my prepaid card before traveling. Why? Because my bank (like many) has strict security measures. Sometimes, I need to verify transactions via SMS. International roaming charges can apply to SMS messages received abroad.
Loading the card before you leave avoids potential issues with verification while you’re traveling. As I mentioned, I pre-calculate my estimated spending, add a buffer for emergencies, and load that amount onto the card before my trip. And I always carry a traditional credit card as a backup, just in case.
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Physical Card or Virtual Card?
I primarily pay with my mobile phone. I have an iPhone and have added my card to Apple Wallet. It works exactly the same way as paying in stores at home.
However, as I’ve stressed repeatedly, do NOT travel with only one card. Cards can malfunction, be blocked, or get lost, regardless of the bank.
Also, some merchants may not have contactless payment terminals. In these cases, you’ll need a physical card to swipe or insert. Having both a physical and virtual card provides maximum flexibility.
Paying with a mobile phone using contactless technology in New York, highlighting the convenience of digital wallets.
How to Pay with Contactless Mobile Payments
I carry both a physical card and have my card on my phone, but I almost always pay with my phone. It’s much more convenient than searching for my wallet and card.
Virtually all establishments in New York have contactless payment terminals. Just hold your phone near the terminal, and the payment goes through, even with airplane mode activated (as shown in the photo above).
An image representing currency exchange, symbolizing the process of converting euros to dollars for travel to New York.
Where to Exchange Euros to Dollars Before Your Trip to New York
To save time in New York and get organized with your currency, I recommend exchanging euros to dollars before you travel.
How do I do it? I shop around at different banks, whether I’m a customer or not. Here’s my strategy:
If I want to exchange €600, for example, I visit several banks and ask how many dollars they would give me for that amount and what fees 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 always best to inquire at multiple banks.
Be aware that sometimes banks won’t explicitly state the commission, as it’s already built into the exchange rate they quote.
Bring a pen and paper to each bank and note down the bank name, the exchange rate offered, and any stated fees. Then, compare the offers to find the best deal.
I always repeat this process before every trip to New York, as bank exchange rates and conditions fluctuate. Choose the bank offering the most favorable exchange.
Visual representation of travel budget and money planning, essential for a trip to New York.
How Much Money Should You Exchange?
This depends on your personal spending habits and your trip budget. My article on “How Much Does a Trip to New York Cost?” provides a detailed budget breakdown to help you estimate.
Keep in mind that you need to order foreign currency from your bank about a week in advance, as they need to order the dollars. You risk not getting the currency in time for your trip if you wait too long.
Another important tip: ask your bank for $100 in small bills, specifically $20 bills.
Why small bills? For purchasing a MetroCard at vending machines for the subway and buses. These machines often have issues with card acceptance (it happens to me frequently!). If you pay in cash, they often have limited change. For example, they might only give back a maximum of $9 in change, even if you are owed more. So, small bills are handy and ensure you don’t lose out on change.
Exchanging Euros to Dollars “Without Commission”: The Reality
Don’t be fooled by “zero commission” claims. All currency exchange involves a cost, whether it’s explicitly stated as a commission or hidden within the exchange rate.
Remember, banks and currency exchange services are businesses. They exist to make a profit, not as charities. They will always build in a margin to earn money on every transaction.
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Real-Time Euro to Dollar Exchange Rate
I always use XE.com as my reference for the current euro to dollar exchange rate. As shown in the image below, entering €1 lets me see the current mid-market exchange rate.
Clicking on “View Chart” on XE.com provides two useful graphs. The top graph indicates the best time of day to exchange currency (though real-time fluctuations mean this is only a guide). The bottom chart shows the exchange rate trend over the last year. Historically, exchange rates fluctuate, and you might get more or fewer dollars per euro depending on market conditions.
Screenshot of XE.com currency converter, demonstrating how to check the real-time euro to dollar exchange rate online.
Where to Exchange Money In New York?
Honestly, I advise against exchanging money in New York. It’s generally better to exchange currency in your home country at a bank that offers a good rate, as I explained earlier.
If you wait until you’re in New York, you’ll be at the mercy of the exchange rates offered by local bureaus de change. You’ll lose your reference point for what a fair rate should be, and you’ll likely spend valuable vacation time comparing rates at different exchange locations.
A currency exchange bureau in New York City, often found in tourist areas but potentially offering less favorable exchange rates.
Currency exchange bureaus in New York are not as common as you might expect. Most of the few that exist are located in tourist hotspots like Times Square. Be aware that even if they advertise “0% commission,” their profit comes from offering a less favorable exchange rate.
An ATM in New York, providing access to cash withdrawals but with potential fees for foreign card users.
Can You Withdraw Cash from ATMs in New York?
Yes, you can withdraw dollars from ATMs in New York using your European bank cards, but there are a few important points to consider:
- ATM Fees: Before you travel, call the customer service number on the back of your credit or debit card and ask about ATM withdrawal fees in the USA. Fees vary depending on the ATM network (e.g., Cirrus, Maestro, Visa/Plus). Fees can range from 2% to 5% of the withdrawal amount, so it’s important to know these fees in advance.
- Contactless ATMs and Foreign Cards: While many ATMs in New York have contactless readers, they often don’t work with foreign cards. You will likely need to insert your physical card (chip and PIN) to withdraw cash, whether it’s a credit or debit card.
Best Time to Travel to New York for Favorable Exchange Rates?
Many factors influence exchange rates, including global economic conditions. The days of getting $1.50 for €1 (like around 2002) are likely long gone.
The currency exchange strategies I’ve outlined apply not just to exchanging euros to dollars, but to exchanging currency for any international trip.
I hope this guide has been helpful and answered your questions about managing your money in New York.
First published in October 2012, updated in February 2025
