Money and Shopping

Cash - ATM machines are prevalent all over Europe and they'll give you the best exchange rate. There are even some at the Frankfurt airport, so you can get cash as soon as you land. The good news is you won't find those annoying $1 to $3 charges for using the machine. The bad news is your bank will charge you a fee for the exchange, usually %1 to %1.5. It may not show up as a separate line item, so you won't really know it's happening. Regardless of what fees your bank charges, any exchange bureau will likely charge at least that and probably more, but check with your bank before you leave to avoid unpleasant surprises. For instance, if your bank charges a flat fee instead of (or in addition to) a percentage, it will make sense to take a few large withdrawals, as opposed to many small ones. One important thing to note, many ATMs here don't support PIN numbers longer than 6 digits (some are even limited to 4). So if you have a long pin, you may need to shop around a bit to find an ATM that will work for you. Also, be aware that the ATM's in Europe generally only let you access the primary account on your ATM card. So transfer any money you want to withdraw into the primary account before you leave.

To reassure yourself of ATM availability, you can go here, click on the symbol that matches your card, and enter Heidelberg, Germany, or any other destination: http://www.atmlocator.info/

Checks - Europeans don't use personal checks and will not know what to do with yours. Traveler's checks are not really necessary with the prevalence of ATMs, and I really know nothing about how to use them, so I have no advice for you with that. I'd just stick with cash. It's easy to get more any time, and it's accepted everywhere. ;-)

Credit Cards - It is a shock for most Americans, but many establishments in Germany do not accept credit cards. Many stores and restaurants, regardless of their size or type, do not take credit cards as a form of payment. The good news is that you're far more likely to find credit cards welcome in downtown Heidelberg than elsewhere in Germany, but even there, it's not safe to assume. Make a habit of looking for the little Visa or Mastercard logo posted on the glass by the door when you walk in. If you don't see it, just ask a clerk or waiter if they take Visa or Mastercard. If they say they take "EC cards" that won't work for you;it's a German ATM card. Hotels and rental car agencies will accept credit cards, but anywhere else you need to check.

Free - When is something free not free? When you're in Germany. If you've done some preparation for this trip, you might have learned to equate the German word "frei" to the English word "free", but don't be misled. Often Germans use this word to mean that the thing in question is "available", rather than to mean that is is "no cost". For instance, you will find a green lighted sign outside most parking garages stating "Frei", but that means only that there are spots available, not that you won't pay to park there. In German, they'll normally use "kostenlos" to indicate that something is cost-free, but don't expect to see that much. In Germany, you often pay for all the extras that Americans take for granted, such as ketchup with your fries, or dipping sauce with your chicken nuggets, plastic bags for your groceries, etc.

VAT (taxes) - German sales tax is %19. Ouch! But, it's a federal tax, so it's standard across all of Germany and consequently built into the price where you don't really notice it. So, if something says 5 euro, you'll pay exactly 5 euro at the register. As a tourist, you are exempted from this tax on items you are bringing back to the US with you. However, getting the refund is a bit of an ordeal, so most people don't bother. If you're not buying much it probably isn't worth the effort, but if you buy several hundred dollars worth of merchandise, or you just can't stand the idea of not getting a refund you are due, here are the details. Note, however, it is up to the store to offer this benefit. Nearly all stores on the Hauptstrasse do, because it's a major tourist shopping area, but you might find one that doesn't and then it's up to you whether you still want to purchase from them. Your purchase must be at least 25 euro, and you're technically not supposed to use the item until you get back to the US. The basic process involves 3 steps (though there are often shortcuts that let you skip the 3rd and get your money at the airport):

1. You must get a tax receipt from the store when you purchase the item
2. you must take the (unused) items and the tax receipt to a customs office at the airport to get the receipt stamped as you depart, and
3. you mail the stamped receipt back to the store once you get home (though there is normally a clerk at the customs office who can give you your refund on the spot, taking some percentage as as service charge for their fee.

You can find details at http://www.ricksteves.com/plan/tips/vat.htm and http://www.germany.info/relaunch/info/consular_services/otherconsularservices/taxeng.html.