Currency exchange can be frustrating when you are abroad, especially if you did not plan on it from where to when to make your exchange. Besides, travelling abroad as a whole is very expensive, so why add up to the cost with bad currency exchange methods.
You should always do you research on exchanging currency abroad, before you leave your country. This way you get to know some tips and tricks for getting a better rate with low service fees. For instance, if you are in Winnipeg, Canada knowing more about the international currency exchange Winnipeg, can go a long way into helping you make an exchange money abroad in Winnipeg, for a better rate.
Here are some tips and tricks to use while exchanging currency abroad.
5 Tips to Exchange Money Abroad
1. Try to Avoid an International or Transaction ATM Fee
An international or transaction ATM fee is an extra fee you are charged for using foreign ATMs. It can be low or a bit high, depending on the bank. It also varies from paying a flat rate to a certain percentage of your withdrawals, in total.
However, even with these ATM fees, it is still one of the cheapest means of exchanging money abroad. You can even save on withdrawal fees if your bank has partner banks abroad or belongs to the global ATM Alliance.
2. Avoid Exchanging Currency at the Airport
Most airports have Bureau de Change booths that can change your home currency to the locally accepted one, but beware that they often charge higher fees for this service.
The best option would be to use an airport ATM, or just make a small exchange enough to sustain you until your find a worthy bank to do your transactions.
3. Use Your Credit Card For Large Purchases
Though you will be charged some foreign transaction fee if you opt to buy something abroad, using your credit card. It is still the cheapest and safest means of buying goods and services in large quantities abroad.
Nonetheless, you can invest in a credit card that does not charge any fees for any foreign transactions. This way you save a bit on your abroad purchases.
4. Do not take any cash advances on your credit card
Whenever you use your credit card abroad for cash advances, a fee will be paid. This is a percentage on top of your total withdrawal or cash advance. It is called a foreign transaction charge. You will also start paying high interest the moment you make the withdrawal.
This makes it a very bad deal, so plan your trip very well to avoid any cash advances while abroad. It is very costly.
5. There is no free or no commission currency exchange bureaus
Free or no commission currency exchange does not exist anywhere, you opt to travel to. So be very cautious of such adverts and places, even if they are on foreign ATMs.
These free services tend to give you a bad rate, a higher percentage for your total currency exchange. Making them very costly and fraudulent to deal with, so avoid them at all cost.
6. Beware of dynamic currency conversion
Most shops, resorts, restaurants and ATMs tend to offer a service known as dynamic currency conversion. This means that when you make payments or withdraw cash from an ATM, you are given the option to pay in the local currency of the country you are visiting or your home currency.
The best option is to always, choose to be charged in the currency of the country you are touring. It is much cheaper that way.
In addition, never let the bank, credit card Company or ATM of the country you are visiting do the currency conversion for you. They will do the conversion at a bad rate with high transaction fees. Give your home bank this responsibility.
7. Ask your bank to lift your daily withdrawal limit
Before you travel, notify your bank of your travel plans and ask them to, temporarily raise your daily withdrawal limits. This way you get to save on withdrawal fees, by withdrawing large sums of money few times thus making few trips to the ATMs abroad.
Conclusively, travelling abroad should not worry you, even if you are unfamiliar with the currency of your destination. The above tips can help you make better choices when it comes to exchange money abroad, so make use of them for your next abroad trip.
Author: Qaiser Soaz