Maybe it has to do with one’s “style” of using an ATM. I use the ATM near my home or near my work to stock up on my needs. I would feel as though I was disorganized if I was traveling even in the US and had to find an ATM. It would feel as though I’d failed in planning. I prefer to be prepared.
True. However, some countries have minimal exchange requirements which have to be exercised at “licensed” currency exchanges upon arrival to the country concerned and/or during one’s stay so the government concerned can fleece foreign travelers with high exchange rates/fees and/or to try discouraging exchanges on the currency black market where the exchange rate is far more favorable to the foreign traveler and often more in line with the actual market value of the currency*.
East Germany for instance, had a requirement one had to exchange a set minimum amount of foreign hard currency into OSTmarks for each day one is in that territory. The study abroad classmates and I had to exchange a set minimum amount into RMB upon arrival in Mainland China at the licensed airport currency exchange back in the late '90s.
- For instance, Cuba sets the official rate of the Cuban Peso/CUC** to the US dollar at par or worse for US tourists. A HS teacher who visited Cuba in the early '90s found the black market exchange rate was more like nearly 70-100 CUC to 1 dollar. Of course, one runs the risk of getting arrested, imprisoned, and deported or ripped off by being given non-CUC Pesos which could only be used by Cuban citizens. Keep in mind this was before the implementation of "hard currency stores" where US dollars are welcomed.
** Cuban Convertible Pesos which are meant to be issued and used by tourists and for transactions where a convertible currency is required. This was done away with not too long afterwards when the dollar was allowed to be used which prompted the rise of hard currency stores sometime in the mid-late '90s.
Additionally, sometimes you can’t help but use airport exchanges. Got to love when the banks in your state are out of the country’s currency! You can only get so much at a time. :-w
And some countries have laws prohibiting taking out or exchanging their currency outside their borders.
When my HS teacher brought back some Cuban Pesos and CUC to show students, he could have faced arrest and possibly jail if he had been caught by local Cuban authorities leaving the country with their currency back then. Heard Cuba’s much less restrictive about such things now.
Thanks for all of the replies. Definitely we will use our Capitol One credit card when we can, but lots of travel things seem to require cash. I can appreciate those who said that the ATM fees are just annoying – and it’s not just one fee but two fees: the fee just to use the ATM (which is a set amount per transaction, so you can minimize this fee by making fewer withdrawals) but I can find no way around the foreign exchange fee – which at both Chase and Capitol One is 3%. I guess I should look into credit unions.
I also should look in to ordering currency online – how exactly do you do that?
Do look into Schwab or Fidelity for your banking needs. They offer accounts with credit/debit/atm cards with no or very low foreign transaction fees, as well as reimbursing your ATM fees.
Pen fed has a credit card with no foreign transaction fee. It also has a chip card which works well overseas. You pay a one time fee of $15 or something like that.
As a frequent traveler who travels strictly on leisure, I always get my petty cash at the ATM machine at the airport. However I seek out a bank affiliated ATM mostly where you will get your best rate as the banks give the official interbank rate.
I was traveling in the Balkan last year and I went through 9 countries where each country has its own currency. They are in the EU but these countries such have as Serbia, Bosnia - Herzegovina, Romania, Albania, Bulgaria,Hungary etc.but they are not using the euros. How am I supposed to get their currencies ahead of time and not worry about not having enough or having excess. I don’t plan on going back anytime soon. I just went to the ATM in each country and get an amount as needed. I obviously do not look like a Balkan native and I absolutely did not feel unsafe.
I use a CC that doesn’t charge any foreign transaction fees and the best debit card is Charles Schwab as it reimburses all transactions costs. I charge all my bigger purchases in that country’s currency. Do not allow the merchants to charge you in US dollars as they will give you an unfavorable rate.
I am in Peru as I am typing this and I have used ATMs multiple times and no one has robbed me and I assure you I don’t look remotely like a S American. Ordering money ahead from a bank is like buying traveler’s checks eons ago. Don’t be afraid to embrace the not so new technology.
Just checked my Schwab statement from a few weeks ago (Germany and Czech Republic) no transaction fees or foreign exchange fees whatsoever. Ask your bank about buying some currency before you leave (Czech Crowns took three days and my bank always has Euros) BUT they had, like all American banks, an abysmal exchange rate. (like a 5% difference)
You’re fortunate there was an ATM nearby! 
I am in GMT camp. Use the ATM abroad AFTER checking your regular sources for withdrawing cash. For some debit cards might be free or with little cost.
Getting cash from your bank might work but you have the risk of carrying it and getting hosed on the rate which IS higher than the international rate. Converting dollars at the airport is a ripoff and only Western Union is a worst bunch of thieves. Their rates are abysmal.
Converting dollars into Euros is not a sinecure with the exception of houses next to the stock markets. I spent months in Europe and the hardest part was to exchange REAL dollars at a decent rate. Carrying dollars abroad is not a great solution.
All in all, check your debit cards for ATM uses and use a no fee credit card for purchases. Nothing beats it! ATM are everywhere and convenient. Few places do not accept credit cards. The need for a bit of cash does not justify the brain damage. One could spend a week in Europe and go by with a few coins for tips and incidentals. All the rest can be charged. Well, as long as you carry more than a couple of CC as they WILL be blocked for verification by the Mumbai nazis.
The simplest solution is to use the technology available in 2015. Going through your bank for cash is so 20th century! 
Brain damage? Honestly I don’t use my ATM that frequently even in the US. I pay cash for most things. I rather lose a bit on exchange rate.
Ordering online through your bank to get currency before you leave is very convenient. However please be aware that you are getting a horrible exchange rate. They hide fees inside their poor exchange rate.
In my recent experience, I wouldn’t expect that everyone will take credit cards as easily as in the US.
May 2015 - Singapore - cab drivers are likely to refuse your VISA card. Something to do with fees they are charged, bottom line, ask before assuming or be ready to pay cash. Several smaller shops - cash only.
April 2015 - Berlin - credit cards are often not accepted for small amounts and smaller restaurants and shops expect cash. By the way, current strike (May 2015) by ATM cash transport company has many travelers worrying about the availability of cash in any given machine.
Sept 2014 - Paris - chip card not accepted at machine or live employee at train station. Fortunately, had other card that was accepted
May 2014 - Madrid - card declined at major museum. No apparent reason, no problems elsewhere. Had cash in hand.
I may lose on the exchange rate - and I know I do - but I always get foreign currency from my Citibank before taking off. Landing in the middle of the night due to delays, I’ve more than once been too dazed, confused, tired, you name it to want to search out ATMs before leaving the airport. And - I’ve not always found airport ATMs to be obvious, perhaps I’m just not observant. One less worry when I know I can grab a taxi and use local currency.
I think it all comes down to personal comfort level. I don’t have a problem overpaying on exchange rate and carrying cash. Having had ATM cards “eaten” and not wanting to deal with that in a foreign language (even though I do carry 2 ATM cards), I like the comfort of literally having cash in hand for unexpected circumstances. I’, willing to pay for that personal comfort. For my son, mid-20’s, ATM withdrawals are fine - he thinks I’m crazy and perhaps he’s right!
Post #33, I did have my ATM card eaten, I didn’t know why but it was strange.
I never encountered a problem with a CC or an ATM in Europe or Asia, but there are remote places around the world. I also have Euros left over from previous trips. I do not remember an arrival hall without an ATM either, except in Costa Rica.
For the CC chip with PIN debates, this might help.
http://travelsort.com/blog/best-emv-chip-travel-credit-cards-in-the-us
I already charge everything I can on credit cards with no transaction fees! But it’s good to have cash to make small purchases.
Post #35, never say never. It happened to my family in the most remote place, downtown London.
Xiggi, may I travel with you next time? I think I have a black cloud over my head. If anyone is pulled out of a line in the airport for an additional “random” check or given the twice over at customs, it is me. Apparently the same luck with credit cards.
I was absolutely stunned last fall when my card was refused at Gare du Nord - must have looked it, the very appropriate English speaking employee assured me “This doesn’t mean you don’t have any money. Our system just isn’t taking it. Do you have another card?” It was accepted everywhere else that trip. However, in 2011, same card, it wasn’t accepted for the hotel bill. As I was trying to get my cab to catch an early AM flght to ORD, I was very worried, but the hotel clerk said he would reprocess it later and to continue on out to my waiting taxi I definitely got charged for that hotel stay, so I guess the French system is off and on.
Just saying, with my history and luck, I do like some actual cash on hand.
^^ I misspoke as I have had CC turned down by the moronic verification process. I made it sound too simple. My issue, albeit annoying, was not with the technology or the merchant but with the fraud monitors who have been out of control when one uses the same card too often abroad. I meant no problems to make an ATM withdrawal.
Fwiw, another source for small amounts of cash is the hotel itself for a cash advance to add to the bill.