Money

For decades Paris was known as one of the most expensive cities on earth. It still is a pricey destination, but London has not only caught up with Paris in prices but surpassed it. Because of the lower dollar value, New York appears to be a bargain to some visiting Parisians. Paris is not as expensive as Tokyo or Oslo, but even an average hotel can cost 140€ ($200) or more -- in many cases, much, much more.

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

Not just Paris, but all of France is a very expensive destination. To compensate, you can often find top-value food and lodging. Part of the cost is the value-added tax (VAT in English, TVA in French), which adds between 6% and 33% to everything.

Rental cars (and fuel) are expensive, and flying within France costs more than within the U.S. Train travel is relatively inexpensive, especially with a rail pass. Prices in Paris are higher than in the provinces.

Currency -- The euro, the single European currency, became the official currency of France and 11 other participating countries on January 1, 1999. The euro didn't go into general circulation until January 1, 2002. The old currency, the French franc, disappeared into history on March 1, 2002, replaced by the euro, which is officially abbreviated "EUR" or €. Exchange rates of participating countries are locked into a common currency fluctuating against the dollar, and the difference could affect the relative costs of your trip. For up-to-the-minute currency conversions, go to www.xe.com/ucc.

Most banks in Paris are open Monday to Friday from 9am to 4:30pm, and a few are open Saturday; ask at your hotel for the location of the one nearest you. Most post offices will convert currency, and exchanges are also available at Paris airports and train stations and along most of the major boulevards. They charge a small commission. Some exchange places charge favorable rates to lure you into their stores. For example, Paris Vision, 214 rue de Rivoli, 1er (tel. 01-42-60-31-25; Métro: Tuileries), maintains a minibank in the back of a travel agency, open daily from 7am to 9pm. Its rates are only a fraction less favorable than those offered for large blocks of money as listed by the Paris stock exchange.

ATMs -- The easiest and best way to get cash away from home is from an ATM, sometimes referred to as a "cash machine," or a "cashpoint." The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart.

ATMs are widely available in France, certainly in all cities and bigger towns, and even at a bank or two in smaller places. But don't always count on it. If you're venturing into rural France, it's always good to have pounds in your pocket.

There are problems involved in the use of ATMs. For example, if you make a mistake and punch your secret code wrong into the machine three times, that machine will swallow your card on the assumption that it is being fraudulently used.

Users with alphabetical rather than numerical PINS may be thrown off by the lack of letters on French cash machines. If your PIN number is longer than four digits, check with your bank to see if you can use the first four digits or will have to get a new number for use in France.

To get a cash advance by using a credit card at an ATM machine, ask for a PIN from your credit card company such as Visa before leaving your home country.

Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Credit Cards -- Credit cards are another safe way to carry money, but their use has become more difficult, especially in France . They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can usually withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).

There is almost no difference in the acceptance of a debit or a standard credit card.

Chip and PIN represent a change in the way that credit and debit cards are used. The program is designed to cut down on the fraudulent use of credit cards. More and more banks are issuing customers Chip and PIN versions of their debit or credit cards. In the future, more and more vendors will be asking for a four-digit personal identification or PIN number, which will be entered into a keypad near the cash register. In some cases, a waiter will bring a hand-held model to your table to verify your credit card.

Warning: Some establishments in France might not accept your credit card unless you have a computer chip imbedded in it. The reason? To cut down on credit card fraud. More and more places in France are moving from the magnetic strip credit card to the new system of "Chip and PIN." In the changeover in technology, some retailers have falsely concluded that they can no longer take swipe cards or signature cards that don't have PINs. For the time being, both the new and old cards are used in shops, hotels, and restaurants, regardless of whether they have the old credit and debit cards machines or the new Chip and PIN machines installed. Expect a lot of confusion.

In the interim between traditional swipe credit cards and those with an embedded computer chip, here's what you can do to protect yourself:

• Get a 4-digit PIN number from your credit card's issuing bank before leaving home.
• Call the number on the back of each card and ask for a 4-digit PIN number.
• Keep an eye out for the right logo displayed in a retailer's window. You want Visa or MasterCard, not Maestro, Visa Electron, or Carte Bleue.
• Know that your Amex card will work where an Amex logo is displayed (but the card is not as widely accepted as Visa and MasterCard).
• As a last resort, make sure you have enough cash to cover your purchase.

Traveler's Checks -- You can buy traveler's checks at most banks, and they are widely accepted in France, although frankly, merchants prefer cash. Because of difficulties with credit cards or ATM machines that can reject your card for no apparent reason, travelers are once again buying traveler's checks for security in case something goes wrong with their plastic. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/528-4800, or 800/221-7282; www.americanexpress.com for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322; www.visa.com) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920; www.mastercard.com).

American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, which are useful if you're traveling to one country, or to the euro zone; they're accepted at locations where dollar checks may not be.

If you carry traveler's checks, keep a record of their serial numbers separate from your checks in the event that they are stolen or lost -- you'll get your refund faster.