Cold Hard Cash, Baby

Money talks, and in Europe Euros, Pounds, and Swiss Francs speak the local lingo a lot better than do dollars, credit cards, or traveler's checks.

First of all, transactions in

local currency

are quicker, and they will certainly endear you to the merchant you're dealing with, since he knows he won’t have to kick a big chunk of his profits back to the folks at Visa or American Express.

Don't think that doesn't count for something. Though

cash vs. credit prices

at U.S. gas pumps may be a relic of the past, you can bet your last Euro-cent that you will often find a surprise

discount if you pay in cash

(like 5%) on such big ticket items as hotel rooms.

In fact, whenever you're discussing price on something sizeable—like your hotel room or that leather jacket and purse at the market stall—and he names his price, ask "And if I pay cash?" You'll be surprised how often the number comes down a bit, especially for longer stays or larger purchases. (Note: don't try this for a single orange from the fruit vendor, or the three-pack of undies at a department store.)

Heck, sometimes even the waiter at dinner will come to your table at the end of the meal, tot up the bill in his head, and then ask "cash or Visa?" The correct answer to that is always "Cash" because it means you get a discount.

Why is this? Well, like I said, they don't have to factor into the final price that kickback to the credit card company. Plus—though you didn't hear it from me and of course I’d in no way encourage European merchants to break the law or imply that any do so—when you pay cash, they are free to enter any old amount they want on the ledger books.

That way, when Oncle Samuel comes looking for the government's cut at tax time, your hotelier's books can show that the inn took a loss on the room that night—and the owner gets to pocket the difference.

Getting Your Hands on Some Euro

By the way, when I said that money talks and euros speak louder than dollars, that doesn't mean you shouldn't be bilingual. It’s always wise to carry some emergency dollars--a couple of $50s and maybe a $100 or two.

On my first trip to Poland I discovered that banks wouldn't change traveler's checks (this was back in 1994; much has changed), and Krakow's American Express office was way the heck on the outskirts of town and rarely open.

Luckily, my companion had $50 stashed away. We found an exchange booth in the train station that gladly gave us the worst exchange rate on the planet—along with a six-inch stack of colorful Polish zloty, enough to pay for our hotel room and tide us over until the American Express office opened the next day.

So how do you get your Euro on? If possible,

always get cash from an ATM

—though you can also cash traveler's checks and get credit card cash advances, both end up costing more.

Some folks also

buy some local currency from their bank before leaving home

. I used to try this tactic, but found that there's almost always an ATM or two at any airport or train station when I arrive and it is unnecessary.

(Caveat: on my last trip to Ireland—in spring 2003—all of the bank machines at Shannon's arrivals terminal were out of order; since I was picking up a pre-paid car rental, I just drove along until I spotted a bank.)

The reason I stopped getting starter cash in local currencies is that (a) you get a truly crappy exchange rate, paying way to much on the dollar plus a sizeable bank fee just to get $30 worth of European currency, and (b) with the introduction of the Euro, I usually have some cash left over from last trip anyway. I realize (b) only works for frequent travelers, but there you go.

If you do decide to carry along some primer cash, know that you can usually get it only from major, downtown banks, though your local branch might be able to order it from a larger branch (give them plenty of notice). It doesn’t have to be your regular bank, either. Any old financial institution will sell you Euros, British Pounds, or Swiss Francs (Eastern European currencies are harder to come by), though some will waive certain fees only for their own customers.