Currency 101
For my planners out there, one thing you will need to tackle before jetting off is currency. Below, you’ll find an all-you-need-to-know guide, "Currency 101."
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If you are still packing your bags, you may have time to get the best currency exchange rates before you leave. That is because banks and credit unions are overall the best places to exchange currency since they offer reasonable exchange rates and the lowest fees. Many banks offer currency exchange to their customers, but there may be a small fee. Depending on the bank, you can order currency at a branch location, by phone, or online then pick it up at your branch. You can also order through an online currency converter, which will deliver the cash to your home. With these, exchange rates are less favorable, and the delivery charges will eat into your funds.
Pro Tip: Request several small bills for the mom-and-pop shops, tipping, and local transportation.
Note: Airport kiosks should be your last resort. I do recommend avoiding them at all costs since they offer poor exchange rates and higher fees.
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Your bank’s ATM network is still likely the best option. You’ll want to avoid airport kiosks and other exchange houses. You may be able to withdraw cash in the local currency with competitive exchange rates and low fees (1% to 3%). Try to withdraw larger amounts if your bank charges ATM fees. Use your institution’s app to find an ATM near you.
Help! There are known around: what do I do?
Out-of-network ATMs are still okay to use! They might have a foreign transaction fee, however, the conversion rates will be nicer than the airport. Just remember to limit withdrawals and take out larger amounts to pay less in fees. When doing this, try visiting the biggest bank you can find to ensure the safety of your accounts and privacy.
Note: Europe and major tourist attractions have been known for their pickpocketers. Make sure to make smart, safe decisions when it comes to handling your cash!
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Again, your bank is probably the best place to exchange currency, but it may not buy back all types. If not, you can exchange your money at a currency exchange store or kiosk in the airport abroad or in the U.S., even though you likely won’t get the best rate. Lastly, you can always save it for when you return! You never know!
General Tips:
Call your bank before leaving to ensure they don’t stop any transactions from going through as “fraudulent.” I’ve had customers blocked for daily limits, fraudulent charges, and out-of-the-ordinary transitions. It is best to let them know your dates ahead of time!
Make sure you check credit cards to see if any have “free foreign transaction fees” and be sure to use that one while away.
Always pay in the local currency to avoid currency conversion fees- you’ll be charged an extra fee and likely get a poor exchange rate.
Use an app like “Currency” that will keep you up-to-date on the current rates, ensuring that you are getting the best deal.
Visa and Mastercard are your best bet when it comes to credit cards. Discover and American Express will give you trouble in most places.
Many European countries are ahead of the game with Apple & Google Pay, so setting that up ahead of time can save you time.
Before setting off on your next international trip, It is important to consider how you want to pay for everyday purchases. Understanding currency exchange fees, foreign transaction fees, ATM withdrawal limits, and other aspects of paying in foreign currencies can help you save money, time, and stress! This, in turn, allows you to enjoy your travels to the fullest.
If you are ready, head to the Book Now section for a 1:1 consultation about your next trip!
Happy Travels, Hannah
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