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Step 1
Charge purchases using low- or no-fee credit cards. Some credit cards charge up to a 4 percent foreign transaction fee for cash advances and purchases, while others have no foreign-use fees. Or look for a credit card provider that charges just 1 percent (the amount that Visa or MasterCard assesses).
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Step 2
Join an alliance-forming bank. Bank of America has a partnership with Deutsche Bank, Barclays and BNP Paribas in Europe, meaning that it doesn't charge any fees if you withdraw your money from those banks' ATMs in Germany, Poland, Italy, Spain, Britain and France.
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Step 3
Make large withdrawals. If you use a debit card that charges fees, withdraw more cash--at least $200 a pop--less frequently and stash it in a money belt or hotel safe.
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Step 4
Negotiate with cash. Some European shop owners and hoteliers are willing to bargain. If you're staying at a small hotel or hostel, for instance, you may be able to negotiate a lower price for a multi-night stay if you pay in cash. Outdoor markets and shops may be willing to bargain, too.
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Step 5
Keep a currency converter handy. Print out a currency conversion chart to keep in your wallet (see Resources below). With it, you won't have to do complicated math calculations while bargaining or tipping.
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Step 6
Apply for a value-added tax refund. The government-imposed tax on merchandise varies by country, and foreign visitors are entitled to tax refunds on some purchases. There are minimum-purchase amounts, and the actual percentage of the tax varies from 7.6 percent to 25 percent. (Most are about 20 percent.) Many travelers don't bother to apply for the refund, thinking the process is too difficult, but it can be worth the hassle: Getting this money back can offset bank fees you might not be able to avoid.
