One of my favorite things about traveling is using different currencies and seeing what people in other countries pay for things {groceries especially!}. How to get the best exchange rate and avoid fees is always at the top of my preparations list.
I don’t know about you, but it seems like I’m ALWAYS in vacation planning mode. 😉 This year is no different and I’m already hatching plans and researching for my next big adventure.
Besides the language barrier, the whole foreign money thing is probably on the top of the list for anxiety when traveling abroad. Once you get the hang of it, though, you can kind of relax and enjoy the ride. Planning ahead of time really cuts down on how much of an idiot you feel like when it is time to actually fork over the dough.
Getting the most for your U.S. buck is really just a matter of a bit of research.
First things first, check with your bank. Most of the time, using your credit or debit card, or pulling money from an ATM will yield you the day’s best possible exchange rate.
Though, in fair warning, if you use an ATM other than your own bank’s, you will probably get hit with a fee {it’s minimal, usually around $3-$5 USD}. If your bank charges for foreign transactions, you may want to call around to other banks/financial institutions and see about opening a different credit card, etc.
Next, know the exchange rate.
It will fluctuate a bit–sometimes daily, but usually, you will have general idea. I like to use the site xe.com when I am planning my vacation so I can see up to the minute exchange rates. It helps me plan my vacation better. I like to know how strong my money is when I am budgeting. If you watch it long enough, you will know when the rates are favorable.
While I usually carry some cash in the currency of the country I am travelling, I try not to over do it. Every time you exchange dollars to euros, for example, there is a transaction fee. Exchanging leftover foreign currency will get you yet another fee.
Try to avoid exchange companies in the airports {and train stations}.
They charge a much, much higher fee than ATM’s. It’s the price of convenience, I guess. If you need cash on hand BEFORE you get to the country to tide you over until you can find an ATM, go to your local bank. They can “order” the currency you need for a small fee. Also, if you can’t find an ATM once you arrive, look for a post office–they will usually be able to convert money–again, at a higher fee than an ATM.
Do you have any experience with exchange rates? What are your tips?
~Mavis
Anne in VA says
I traveled abroad a few times during college- 25 years ago (before cell phones and apps). I was advised to carry a small pocket calculator and tape a cheat sheet to the back of it. I researched the exchange rate prior to departure and made the cheat sheet of basically what equaled a dollar, five dollars, etc. As long as I had a general idea of the price range I was paying, I was comfortable.
Cindy R says
When you use your credit in a foreign country they will usually ask if you want the charge in US dollars or the local currency. Never ask for US dollars, it will cost you more.
Sluggy says
We use credit cards without foreign currency exchange fees mostly. Why carry heaps of cash around when many credit cards don’t charge exchange rate fees? Make sure your c/c doesn’t charge extra before you go and use it. Also, ALWAYS when using credit have the charge processed in the LOCAL currency, not converted to US $s.
Your local bank is a good option for obtaining foreign currency but some banks(ours in particular)won’t accept anything but the paper money(no coins)back to turn in for US cash. That’s a headache if you don’t plan on returning to said country with that foreign currency. In that case, make a point of using up your coinage before you leave for home.
Erin says
Airports have the worst conversion rates. When I traveled to Eastern Europe, we skipped the airport and bought our local money in a back alley exchange booth. Also, make sure your us dollars are in perfect condition before leaving. I had a $100 bill that was rejected because it had a small crease on a corner.
Randini says
We’ve had good luck ordering foreign currency ahead of the trip. Our bank (Bank of America) offers a service where you can order currency online and it is shipped to your home address in an unmarked envelope. The exchange rate is fair and the service is easy. It’s one less thing to think about when preparing to travel.
Linda Sand says
When coming back and asking your bank to exchange what you have leftover, be aware they will only exchange paper money, not coins. Try to spend all your coins before coming home.
Public restrooms abroad often charge a fee for use. That’s a good place to have coins on hand. But, be sure you are using the right ones. I once tried to give an attendant a British coin when I was not in Great Britain. Oops!
Kippy says
Years ago my father would get what the bank referred to as a “tip packet” of foreign currency before he left. He some times had to preorder a week in advance because smaller banks do not always have €,£ on hand.
SueD says
I always like to have some of the local currency on me when traveling. You can order it at your local bank. The best way is to order the amount you want in the currency of the country you’re going to, example ‘I want to buy £150.’ If you say you want to buy $150 worth in £, you will get the notes, but no small coins.
Vy says
I am going overseas later this year and I have a credit card with no overseas transaction fees, and I plan on paying it off in full. However, I might still get this Wise card, a lot of people I know swear by it, you frontload it with money then have no fees to use it (unless you take out straight cash, then there are some after the first $100). https://wise.com/us/card/
Andrea L Johnson says
Don’t assume that all airports or cities have ATMs that are open and will work with your cards. Even if it seems like overkill, it’s better to have a little local currency on hand just in case…(or I found it helpful in Poland, Italy, Germany, Sweden, Japan and Thailand…) in the last 5 years.
JulieP says
A lot of travellers from the U.K. use a preloaded debit card you get good rates and it’s easy to transfer money to and from. You can have it for use in any currency. Our bank has a no charge credit card and we use this for diesel and tolls for the RV, for the campsites and food purchases, going out etc etc we’ve never had it refused we get the best rate on the day we use it. We take some pre ordered cash for small items.