Planning on going abroad soon? Then you should look into the best ways to exchange currency rather than spending more money on a foreign transaction fee. When you exchange currencies, this will mean you’ll mostly be using cash rather than putting charges onto your card.
 |
 |
How to Exchange Currencies
Before you leave on your trip, make sure you visit a local bank that sells foreign currencies. Most banks and credit unions will allow you to order the currency you want and have it delivered right to your door. However, this process does come with a large fee. So if you want a cheaper way to exchange money, then you should go to a bank in person and place your order. By doing this, there will either be no fee or a small fee attached. Here are some banks provided below that exchanges currencies for their clients:
You’ll also be able to place an order from an online currency converter that will deliver your money to you. But, by doing this, it will cost a good amount of money. If you still want to use a credit card for your transactions, I’d suggest that you use a no foreign transaction fee credit card. Visa and Mastercard are accepted almost anywhere, American Express is also a good card to have too, but isn’t accepted at all merchants.
A great credit card option to use is the Chase Southwest Rapids Rewards Card. With this card, you’ll be able to put all of your transactions on here with no foreign transaction fess. Not to mention, you’ll be earning rewards points in that process as well.
However, if you don’t do any of this before you leave for your trip, there’s always the airport kiosk option. When you land in the airport of your destination, head to an airport kiosk and ask them to exchange your money to their currency. But, their exchange rates are low and the fees are high. So I would only recommend doing this if you forgot to exchange your money before your flight.
Go to a Local ATM
If you don’t have any time to visit a bank before they close to make a currency exchange, there’s always an ATM option. As long as you go to an ATM that’s partnered with a bank or credit union that allows you to exchange currencies. With this option you’ll be able to exchange your money with little to no fees attached. If your bank does charge an ATM fee, it would be a better option to order in larger amounts.
When you go to an ATM to exchange your money, it’ll come with competitive rates and lower fees. However, you should try to stay away from out-of-network ATMs. They can charge you a foreign transaction fee, surcharges to the bank and the ATM owner.
Before you travel, you should check to see who your bank has partnered up with in the location you’re going to. For example, Bank of America has partnered up with lots of different banks worldwide that you’ll be able to use to exchange your money without the ATM fees included.
There are some ATMs that will charge an international ATM fee reimbursement, so keep an eye out for that.
Think About Ordering Traveler’s Checks
Getting a traveler’s check is another way to use currency. Majority of these traveler’s checks you’ll be able to get from American Express, but there are other banks and credit unions that offer traveler’s checks as well. Just go to your local bank and possibly pay a small fee for these checks. However, if your bank doesn’t sell these checks, you can visit another bank that does offer them.
If you visit American Express’ website, you’ll be able to see which banks you’re in close proximity with that will offer you traveler’s checks after you put your address in. But, the fees for purchasing these checks can be higher if you don’t already bank with American Express.
With the traveler’s checks, you’ll be the only person that will be able to trade them in for foreign currencies. If you loose them, or if someone steals them, you can always order more checks. However, not every retailer will accept them for your transactions, so be sure to check out where it’s accepted.
A substitute for a traveler’s check is to get a prepaid travel credit card. With these options, you’ll receive some good perks that’s offered with the traveler’s checks you can benefit from. American Express and Mastercard will also have a prepaid travel credit card offer as well.
Conclusion
All in all, when you travel overseas, you should have your currencies prepared before you leave. Visiting your bank in person to place an order for a currency exchange is always the best idea. It will come with little to no fees attached, and you can save more money this way. There are other options for foreign money exchanges that will work as well, but some of them will charge you a larger fee for it.
Another great option is to get a credit card that comes with no foreign transaction fees, or a traveler’s check. These choices will save you more money rather than going to an airport kiosk or a foreign ATM to withdraw money. There are some small retailers won’t take traveler’s checks or certain credit cards. So be sure to check out where it’s accepted beforehand.
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!
