Planning a trip to the Big Apple and wondering about the best way to handle your Euros and get US Dollars? It’s a common concern for European travelers, and after countless trips to New York City, I’ve learned the ins and outs of currency exchange and payment methods. Let me guide you on how to exchange your money, secure the best exchange rates, and avoid unnecessary fees, ensuring a smooth financial experience during your New York adventure.
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Paying by Card in New York: What You Need to Know
In New York City, 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 with my card. Upon returning home, I simply reconcile my card statements with my purchase receipts – a habit for peace of mind.
How Much Cash Should You Bring to New York?
As I mentioned, I carry very little cash. I’d suggest estimating around $30 per person per day (or even less) for situations where card payments aren’t possible or when you prefer to pay in cash.
For a 7-day trip, I usually bring about $100 in cash, but this is just my personal preference.
Credit Card vs. Debit Card: Which is Better for New York?
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 can vary. When you pay at a merchant, 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 works differently. It’s linked directly to your bank account, and your spending limit is determined by your account balance. However, when you’re abroad, authorizing debit card transactions can be more complex. Some establishments may not accept debit card payments, and you might only discover this when you try to pay.
CaixaBank, for example, advises:
“Please note that we cannot guarantee debit card functionality abroad, as you may encounter declined transactions due to lack of line. We recommend using credit cards whenever possible and carrying multiple cards to prevent issues such as loss or credit limit exhaustion.”
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Credit Card Limits for Unexpected Situations
When you check into your hotel, they typically require the credit card used for the booking. Hotels often pre-authorize your card upon arrival for the total cost of your stay plus an additional amount for incidentals. On your departure day, they finalize the charges, accounting for any extras like minibar use or laundry services.
They also hold a security deposit on your card for potential damages or unpaid charges, which varies by hotel and length of stay. During my last 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.
Therefore, if your hotel stay costs $2,000 and your credit card limit is $3,000, you only have a $1,000 margin for other expenses and unforeseen events.
You might think unexpected events are rare, but when traveling, things can happen:
- Pandemics can cause border closures, leaving you stranded and needing funds for extended stays, food, etc.
- Snowstorms or hurricanes in New York can ground flights, extending your trip unexpectedly.
- Cards can be lost or stolen.
- Card details can be compromised or hacked.
- Magnetic strips can demagnetize, rendering cards unusable.
- Medical emergencies can arise, requiring immediate assistance.
This is why 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.
How I Pay for Hotels, Transport, Restaurants, and Shopping in New York
As I mentioned, I rarely carry much cash when I travel to New York, keeping it only for emergencies or very specific situations.
Generally, I pay for absolutely everything with this card.
Before traveling, I estimate my expenses, considering that hotels are the biggest cost (and involve a security hold). I always add an extra buffer of about $500 for unexpected situations, as you never know what might occur.
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Commissions When Using Regular Credit and Debit Cards
You should check the terms and conditions of your regular credit and debit cards regarding foreign transaction fees. Contact your bank or card provider (VISA, Mastercard, etc.) directly, as fees vary.
For example, CaixaBank, for debit card transactions outside the Eurozone, applies a 3.95% fee. Keep in mind that the exchange rate used will be the rate on the day the transaction is settled between the financial institutions.
For ATM withdrawals with debit cards in EU countries, the fee 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 made in currencies other than the Euro! 😱
So, as I started, it’s best to check directly with your bank, as conditions can vary significantly.
When traveling, I always carry several cards, mostly credit cards. I’m aware that unexpected events can happen, and I don’t want to be stranded without funds in a foreign country.
Hotel bills, as you know, can be substantial. I used to pay with my regular credit card (the kind we all get from our banks) until I realized this…
Living in the Eurozone, using a Euro-based card for purchases in a foreign currency incurs a foreign exchange commission.
This charge is from my hotel bill in New York in November/December 2021: €25 in commissions, just for the hotel (using a Wizink card with a 2% commission).
Previously, this commission was less visible as it was often included in the total charge, making it hard to know the exact amount. However, I was always aware that I was being charged.
So, whether you’re paying for hotels, restaurants, shows, or anything else during your New York trip (or even before you travel for bookings), any transaction in a currency different from your home currency will likely incur a commission.
And remember, if you don’t see it itemized, it’s likely embedded in the total purchase amount.
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Avoiding Surprises with Your Regular Card: Recommendations
I usually use my prepaid travel card for daily expenses. Since I travel abroad frequently, I prefer not to carry too much cash for security reasons, but withdrawing cash from ATMs without fees is convenient if needed.
However, even though my regular payment cards have high commissions, I always carry them as backups, just in case. Why?
- Hotels in New York often place a security hold on your credit card at check-in (as mentioned earlier), which is refunded upon checkout.
- Some establishments, mainly hotels and car rentals, may not accept cards other than credit cards.
- My regular credit card has always been reliable.
- It provides a credit line that can be a lifesaver in emergencies, offering peace of mind.
I emphasize that I only use my regular credit cards for VERY specific situations and carry them primarily for peace of mind.
Card issues are more common than you might think. Cards can demagnetize, get stolen, or simply malfunction, regardless of whether they are credit or debit cards.
To avoid problems, I suggest carrying at least 2 cards, ideally one credit card and one debit card, and never relying solely on two debit cards.
Also, be aware that hotels will block a certain amount on your credit card as a security deposit, which you cannot refuse.
This amount varies by hotel and length of stay and is released when you check out, but it may take a few days for the funds to become available again.
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 spending during your trip.
Alternatives to Traditional Cards (and 1% Commission Cards)
In recent years, prepaid “money cards” have become popular. They function like credit cards, but you load them with your own 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; they are essentially empty cards until you load them.
- They often offer zero or very low commissions on foreign currency payments (check the specific terms, as conditions vary).
- 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 or card when needed.
- You can “recharge” the card as needed, like a prepaid phone card, limiting potential losses in case of loss or fraud. You can load $10, $50, $1,000 – you decide the amount and frequency.
- Sign-up and maintenance are often free; you might only pay for physical card delivery if you choose to have a physical card.
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Like bank interest rates, card conditions can change. I constantly monitor these changes and seek the most advantageous alternatives.
How Much Money Should You Load onto a Prepaid Card?
Estimate your travel expenses: hotel costs, meals, transportation, shopping, etc., to determine the amount you’ll need.
Hotel costs are usually known in advance, making that part easy to calculate.
In addition to my estimated expenses, I usually load an extra $500 to $1,000 for unexpected situations… and trust me, they can happen.
I always carry my regular credit card as a backup for emergencies and unexpected payments.
How to Recharge Your Prepaid Card
Prepaid cards usually have an “add money” or “recharge” option. Depending on the card, you might have several options: Apple Pay, credit or debit card, manual bank transfer – it’s usually very straightforward.
If you have any questions, contact the card’s customer service for assistance. They are best equipped to help.
What Happens to Leftover Money?
These cards are payment cards that can be used in New York, Paris, Dubai, or back home. If you have leftover money, you can continue using the card for everyday purchases and potentially benefit from cashback rewards, depending on the card’s features.
When Should You Load Money?
I always load money onto my prepaid card before starting my trip. Why?
Because my bank (like many) has strict security measures, and I sometimes need to verify transactions via SMS. Roaming charges abroad can be expensive, so pre-loading avoids potential issues with verification while traveling.
As mentioned, I estimate my expenses, add extra for contingencies, and carry a traditional credit card as a backup.
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Physical or Virtual Card?
I pay for almost everything with my phone. I have an iPhone and have added my card to Apple Wallet. It’s the same payment system I use at home.
However, I cannot stress enough the importance of not traveling with just one card. Cards can malfunction, get blocked, or be compromised, regardless of the bank.
Also, some merchants might not have contactless payment terminals. In such cases, having a physical card is essential.
How to Pay with a Prepaid Card
Personally, I have both a physical and virtual card, but I pay with my phone for convenience. It’s much easier than searching for a wallet and card.
Most establishments have contactless payment terminals. I simply hold my phone near the terminal, and the payment goes through, even with airplane mode activated (see photo above).
Where to Exchange Euros to Dollars Before Traveling to New York
To save time in New York, I always exchange currency before leaving home.
How do I do it? I simply visit 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 commission they charge.
Theoretically, your own bank should offer a better rate if you have direct deposit or a mortgage with them, but this isn’t always the case. So, it’s best to ask around.
Be aware that sometimes commissions aren’t stated separately but are included in the exchange rate.
Bring a pen and paper, and note down each bank, the exchange rate, and any stated commissions. Then, compare to find the best offer.
I always choose the best offer. Every time I travel to New York, I repeat this process, as bank conditions can change.
How Much Money Should You Exchange?
This depends on your budget and spending habits. My article on how much a trip to New York costs provides a detailed budget breakdown to help you estimate.
Remember to order your dollars from the bank about a week in advance, as they need to order the currency and may not have it available immediately.
Another important tip: ask your bank for $100 in small bills, preferably $20s.
Why? If you’re buying a MetroCard from vending machines for the subway and bus, 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 often give a maximum of $9 in change, even if you are owed more. So, small bills are essential for these situations.
Exchanging Euros to Dollars Without Commission
Don’t be misled: all currency exchange involves a commission, either explicitly stated or included in the exchange rate.
Banks are businesses aiming to make a profit, not non-profits. They need to earn money on every transaction.
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Euro to Dollar Exchange Rate in New York
I always use XE.com as a reference. As shown in the image below, by entering €1, I can see the current exchange rate.
Clicking “View Chart” on the left shows two graphs. The top graph indicates the best time of day for exchange rates. However, rates fluctuate constantly.
The bottom graph shows the exchange rate trend over the past year. The highest peak indicates the most favorable exchange rate period in the last year.
Where to Exchange Money in New York City?
Honestly, I recommend exchanging money in your home country at a bank offering a good rate. I always exchange currency in Spain using the method described earlier.
If you choose to exchange money in New York, you’ll be subject to the offered rates and might lose track of the real exchange value and commission, not to mention the time wasted comparing exchange bureaus.
The exchange bureau in the photo above is near Times Square, easy to find. Even if it advertises “0% commission,” their profit comes from offering a less favorable exchange rate.
Currency exchange bureaus aren’t common in New York, and most are in tourist areas like Times Square. Be aware of this.
Can You Withdraw Money from ATMs in New York?
Yes, but with a few points to consider:
- Before traveling, call the phone number on the back of your credit or debit card and ask about foreign 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.
- Most ATMs have contactless readers, but they often don’t work with foreign cards. You will likely need to use a physical card (credit or debit) to withdraw cash.
Best Time to Travel to New York for the Best Exchange Rate
Many factors influence exchange rates, and considering the current economic climate, it’s unlikely we’ll see the rates of 2002 again, when €1 equaled $1.50.
The method 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 about converting Euros to Dollars for your New York trip.
Originally published in October 2012 and updated in February 2025.
