6 Tips To Exchange Currency Without Paying Huge Fees

1. Get Cash at Your Bank Before Leaving the U.S. · 2. Avoid Currency Exchange Kiosks at Airports · 3. Pay by Card, but Watch Out for Foreign ... SelectRegion UnitedStates UnitedKingdom Youmightbeusinganunsupportedoroutdatedbrowser.TogetthebestpossibleexperiencepleaseusethelatestversionofChrome,Firefox,Safari,orMicrosoftEdgetoviewthiswebsite. advisor Banking AdvertiserDisclosure 6TipsToExchangeCurrencyWithoutPayingHugeFees BenGran,  MitchStrohm Contributor,  Editor Updated:Nov15,2021,6:32pm EditorialNote:WeearnacommissionfrompartnerlinksonForbesAdvisor.Commissionsdonotaffectoureditors'opinionsorevaluations. Getty Americansaregettingreadytotravelagainaspartofthepent-upconsumerdemandfromthepandemic.Ifyournextvacationisgoingtotakeyoutoanothercountry,youmaywanttoknowhowtogetforeigncurrencywithoutpayingextrafees. Undeniably,whentravelinginternationally,it’simportanttowatchoutforcurrencyexchangeconversionfees,foreigntransactionfeesandothercosts.Currencyexchangeratesarecomplicatedandareconstantlyfluctuatingaspartoftheeverydayrushofglobalcommerce.Onebank,merchantorcurrencyexchangelocationcouldgiveyouaslightlybetterdealoncurrencyexchangerates,justbasedonthedailyupsanddownsofthemarkets. Ofcourse,itcanbeeasytooverspendinaforeigncountry.Atleastinpart,thisisbecausespendingmoneyinforeigncurrencymayfeeldifferent.ThepricesatstoresandrestaurantmenusmaynotfeelasrealastheydoinU.S.dollars.Itcanalsobeexcitingtoseeandusethecolorfulforeignbanknotesandinterestingcoinsthatyoumaynotexperienceinyoureverydaylife.But,ifyou’renotcareful,youcouldenduppayingmorethanyoubargainedfor. Ingeneral,somemethodsofgettingcashandmakingpurchaseswillgiveyouabetterdealthanotherswhenyou’rereadytotakeyournextinternationaltrip.Hereareafewtipsandinsightsonhowtoenjoyyourinternationaltravelswhileminimizingcurrencyfees. 1.GetCashatYourBankBeforeLeavingtheU.S. OneofthebestwaystominimizecurrencyexchangefeesistogetsomecashfromyourbankorcreditunionintheU.S.beforeyoudepartonyourtrip.Dependingonwhichcountry(orcountries)you’revisiting,mostmajorU.S.bankswillhaveforeigncurrencyavailabletoselltoyou.Forexample,WellsFargooffers70currenciesforuseinmorethan100countries,andBankofAmericaexchangescurrenciesformorethan100countries. Youmaybeabletogetcurrencyincashatyourlocalbankbranch,orordercurrencyonlineorbyphonetobedeliveredtoyourhome.Dependingonyourbank,whereyouliveandwhichcountry’scurrencyyouneed,somecurrenciesmaybeavailableforsame-dayexchange.Otherlessfrequentlyrequestedcurrenciescouldrequireafewdaysofadvancenoticeorlonger. Ifyoucanplanahead,there’sagoodchanceyoucangetcashatamorefavorableexchangeratebydealingdirectlywithyourbankintheU.S.beforeyoutravel. “Customerswhoordercurrencythroughtheirownbankcanensurethemoneytheyreceiveisauthenticandthattheyhavereceivedthebest,legalrate,”saysJohnSellers,rewardsexecutiveatBankofAmerica.“Astheseratesareconstantlychanging,BankofAmericausesavarietyoffactorstodetermineitsexchangerate—includingmarketconditionsandrateschargedbyotherfinancialinstitutions,”hesays. Dependingonwhereyoudoyourbankingandyouroverallrelationshipwiththem,youmayqualifyforspecialrewardsorperksonforeigncurrencyexchange. “Byorderingyourcurrencyinadvancethroughyourbank,youmayalsoqualifyforextraperksorbenefits,”saysSellers.“Forexample,BankofAmericaPreferredRewardsmembersreceive adiscountofupto2% ononlineandmobileforeigncurrencyorders,plusfreestandardshipping,”hesays. 2.AvoidCurrencyExchangeKiosksatAirports Ifyoudon’thavetimetogetcashatthebankbeforeyourtrip,itcanbetemptingtogetforeigncurrencyatanairportkioskorcurrencyexchangecounter.Theseplacesofferconvenience,buttheirexchangeratesaretypicallymuchlessfavorablethanyourbankathome. Forexample,ifyouaretravelingtotheUnitedKingdomandyourbankwouldhavegivenyouanexchangerateof£72per$100,theairportkioskmaygiveyouonly£67per$100,costingyouextramoneyintheformoffewerpoundsforyourdollar.Ifyouhadmadethatexchangebackatyourhomebank,you’dhaveanadditional£5inyourpocket. Airportkiosksmayalsochargehigherfees,whichsometimesarehiddenwithinthepoorerexchangeratestheyofferforconvertingyourdollarstoeuros,pounds,pesosoranothercurrency.Ifyouaretravelingonshortnoticeandneedsomeforeigncurrencyincashattheairport,thenitcouldbeworthpayingtheextracostsforthesakeofconvenience.Ifyoucanplanahead,trytoavoidairportkiosksandotherexchangecountersinheavilytouristedareas—theirbusinessisbasedonchargingextraforbeingaconvenient,last-minuteoption. 3.PaybyCard,butWatchOutforForeignTransactionFees Onceyouarriveatyourdestinationcountry,youmaychoosetoconserveyourforeigncurrencycashandtrytomakepaymentswithyourcreditordebitcardasmuchaspossible. Butthiscanposeanotherproblem:foreigntransactionfees.Dependingonyourbankandwhatcardyouhaveinyourwallet,yourcreditcardordebitcardmightchargeaforeigntransactionfeeofupto3%oneverypurchaseinothercountries. ThismeansthatifyougooutfordinnerinLondon,ParisorTokyoandspendtheequivalentof$100attherestaurant,yourbankorcardissuerwilladdanextra$3feetothecostofyourmeal.Ifyouspendatotalof$5,000onatrip,andgetchargedaforeigntransactionfeeof3%oneverypurchase,itwouldamountto$150ofextracharges. Howcanyouavoidforeigntransactionfees?Doyourresearchandreadthefineprintofyourbankandcreditcardaccountsbeforeyoutravel.Callyourbankandaskiftheychargeforeigntransactionfees. Ifyouhavetimebeforeyourtrip,youmaywanttoopenanewaccountwithacreditcardthatdoesn’tchargeforeigntransactionfees,especiallyifit’sagoodtravelrewardscreditcard. 4.PayintheLocalCurrencytoAvoidCurrencyConversionFees SomemerchantswillletyouchoosewhetheryouwanttopayforyourpurchaseinthelocalcurrencyorU.S.dollars. Thisdoesn’thappenwitheverypurchase.Butsometimes,afterswipingyourcard,themerchantwillpresentyouwithascreenofferingyouanoption:YoucaneitherpaytheamountintheequivalentofU.S.dollarsorpayinthelocalcurrencyamount. Ifyoueverfindyourselfinthissituation,youshouldalwayschoosetopayinthelocalcurrency.Ifyouchoosetopayindollars,you’llbechargedanextracurrencyconversionfee.You’llalsolikelygetapoorexchangerate.Themerchant’spointofsalesystemmaymakeitseemlikeit’saconvenientchoicetopayindollarsinsteadofthelocalcurrency,butitwillultimatelycostyoumore.Justpayinlocalcurrencywhenusingyourcard. 5.KnowYourATMFeesandLimits IfyouwanttogetcashfromanATMinanothercountry,checktoseeifyourbankhasATMsinyourdestinationcity—youmaybeabletoavoidcostlyATMfees.Keepinmindthatyourbankmaychargeyouafeeforusinganout-of-networkATM.That’sontopofanylocalfeebeingchargedbytheforeignATM.TheexchangeratethatyougetfromaforeignATMislikelytobeabetterdealoverallthanwhatyouwouldgetfromanairportkiosk,butATMfeescanaddup,somakesureyou’retakingoutenoughcashtobeworththefee. CheckwithyourbankbeforeyourtriptoaskaboutthedailyATMwithdrawallimitsonyouraccount.Ifyourdailywithdrawallimitiscurrentlysettoolow,consideraskingyourbanktoraisethatlimitsoyoucanwithdrawwhatyouneedwhiletraveling. KeepinmindthatsomeinternationalATMslimityoutoaloweramountofcashwithdrawalsthanyourbankallows.Evenifyourdailywithdrawallimitis$500,theforeignATMnetworkorbankmayonlypermityoutowithdraw$300or$400.Planaheadtomakesureyouhaveenoughcashduringyourtrip. “DoalittleresearchbeforeyoutravelandseeifyourU.S.bankoffersfreeordiscountedinternationalATMwithdrawals,”saysSellers.“Thisway,you’reminimizingyourATMfeeswhilemaximizingyourcashout.Thisisalsowhereorderingyourforeigncurrencyaheadoftimecanbebeneficial,becauseitmeanscuttingbackonATMvisits,whichcouldalsoreduceyourincurredfees,”hesays. 6.UseInternationalBankingApps Ifyou’reafrequentinternationaltraveler,considerusinganinternationalbankingapptomanageyourmoney,suchasTransferWise(nowknownasWise),Revolutorothers.Theseappsmakeiteasiertotransfermoneybetweencountriesandholdaccountswithmultiplecurrencies. Forexample,withamultiplecurrencyaccount,youcankeepsomemoneyinvariouscurrencies.It’shelpfulif,forinstance,youfrequentlytraveltoCanadaorMexico,orifyoulovetogoonvacationinSpaineverysummer.Thishelpsyouavoidthevolatilityofcurrencyexchangerates,sinceyou’llalwayshavesomemoneyreadyforyournexttrip. PartnerOffer:TransferWise–Multi-CurrencyAccount LearnMore ViaTransferWise'SecureWebsite PartnerOffer:TransferWise–Multi-CurrencyAccount Convertandhold 55currencies Monthlyfees $0 Paymentoptions Directdebit,wiretransfer,debitcard,creditcard&ApplePay BottomLine Beforeyouplanyournextexcitinginternationaltrip,givesomethoughttohowyou’regoingtogetcashandhowyouwanttopayforeverydaypurchases.Understandingcurrencyexchangefees,foreigntransactionfees,ATMwithdrawallimitsandotheraspectsofmakingpaymentsinforeigncurrenciescanhelpyousavemoney,savetimeandenjoyyourtravelstothefullest. Wasthisarticlehelpful? Shareyourfeedback Sendfeedbacktotheeditorialteam RatethisArticle ★ ★ ★ ★ ★ Pleaseratethearticle Email Pleaseentervalidemailaddress Comments We'dlovetohearfromyou,pleaseenteryourcomments. Invalidemailaddress Submit ThankYouforyourfeedback! Somethingwentwrong.Pleasetryagainlater. BestOfs BestOnlineBanks BestCheckingAccounts BestOnlineSavingsAccounts BestCDRates BestMoneyMarketAccounts BestStudentCheckingAccounts BestBudgetingApps Reviews ChimeReview VaroBankReview AllyBankReview MarcusByGoldmanSachsReview AxosBankReview DiscoverBankReview BestSavingsAccount BestSavingsAccountsForAutomatedSaving BestSavingsAccountsForDigitalBanking BestHigh-YieldSavingsAccounts BestNo-FeeSavingsAccounts BestSavingsAccountsForCustomerExperience BestCDRatesbyTerm Best3-MonthCDRates Best6-MonthCDRates Best1-YearCDRates Best3-YearCDRates Best5-YearCDRates FintechAndOnlineBanking WhatIsFintech? FintechTrendsLikelyToStickAroundAfterThePandemic HowToProtectYourOnlineBankingInformation ThingsToLookForFromYourOnlineBank FintechToolsToHelpYouMasterMoneyMindfulness Morefrom CurrentReview:MobileBanking ByKevinPayneContributor HowToOpenABankAccount ByRebeccaLakeContributor ZelleVs.Venmo:WhichToUseAndWhen ByJohnEganContributor WhatIsVenmoAndHowDoesItWork? ByJohnEganContributor BestCashManagementAccountsOfDecember2021 ByEmilyGuyBirkenContributor BestFreeCheckingAccountsOfDecember2021 ByBrettHolzhauerForbesAdvisorStaff InformationprovidedonForbesAdvisorisforeducationalpurposesonly.Yourfinancialsituationisuniqueandtheproductsandserviceswereviewmaynotberightforyourcircumstances.Wedonotofferfinancialadvice,advisoryorbrokerageservices,nordowerecommendoradviseindividualsortobuyorsellparticularstocksorsecurities.Performanceinformationmayhavechangedsincethetimeofpublication.Pastperformanceisnotindicativeoffutureresults.ForbesAdvisoradherestostricteditorialintegritystandards.Tothebestofourknowledge,allcontentisaccurateasofthedateposted,thoughofferscontainedhereinmaynolongerbeavailable.Theopinionsexpressedaretheauthor’saloneandhavenotbeenprovided,approved,orotherwiseendorsedbyourpartners. BenGran Contributor BenGranisafreelancewriterwhocoverspersonalfinanceandfinancialservices.AgraduateofRiceUniversity,hehaswrittenforseveralFortune500financialservicescompanies.BenisbasedinDesMoines,Iowa. MitchStrohm Editor MitchStrohmistheAssistantAssigningEditorforBankingandPersonalFinance.Hehasmorethanadecadeofexperienceaspersonalfinanceeditor,writerandcontentstrategist.BeforejoiningForbesAdvisor,Mitchworkedforseveralsites,includingBankrate,Investopedia,Interest,PrimeRatesandFlexJobs. TheForbesAdvisoreditorialteamisindependentandobjective.Tohelpsupportourreportingwork,andtocontinueourabilitytoprovidethiscontentforfreetoourreaders,wereceivecompensationfromthecompaniesthatadvertiseontheForbesAdvisorsite.Thiscompensationcomesfromtwomainsources.First,weprovidepaidplacementstoadvertiserstopresenttheiroffers.Thecompensationwereceiveforthoseplacementsaffectshowandwhereadvertisers’offersappearonthesite.Thissitedoesnotincludeallcompaniesorproductsavailablewithinthemarket.Second,wealsoincludelinkstoadvertisers’offersinsomeofourarticles;these“affiliatelinks”maygenerateincomeforoursitewhenyouclickonthem.ThecompensationwereceivefromadvertisersdoesnotinfluencetherecommendationsoradviceoureditorialteamprovidesinourarticlesorotherwiseimpactanyoftheeditorialcontentonForbesAdvisor.Whileweworkhardtoprovideaccurateanduptodateinformationthatwethinkyouwillfindrelevant,ForbesAdvisordoesnotandcannotguaranteethatanyinformationprovidediscompleteandmakesnorepresentationsorwarrantiesinconnectionthereto,nortotheaccuracyorapplicabilitythereof.Hereisalistofourpartnerswhoofferproductsthatwehaveaffiliatelinksfor. lorem Areyousureyouwanttorestyourchoices? cancel ok