What You Should Know About Currency Exchange

When traveling abroad, there are many ways to exchange currency, but deciding the best method can be tricky. For starters, exchange rates can change on a daily basis, making an exchange smart one day and a rip off another.

The safest way to travel is with credit cards. Most of us have them already and they are easier than keeping track of cash. The important thing to remember is most credit card companies charge an exchange rate based on your location, so just keep that in mind when using your cards. Check beforehand with the credit card company to tell them about the upcoming trip and ask advice on the best way to avoid being overcharged.

Without a major credit card, vacationers can still get far with just a debit card. There are ATM machines almost everywhere now and with a debit they charge 3 to 8 percent as an exchange rate, which is still less than banks and exchange offices at the airport. A lot of banks now, like Citi, have international branches allowing travelers to get their cash free out of ATM machines, which would be the best option.

Credit cards and ATM machines aside, if it makes the traveler more comfortable to travel with cash, getting it from their bank beforehand is best.

Another thing to remember is never buy currency online or traveler’s checks. Online exchange can be shady and a rip-off, while traveler’s checks will rarely be accepted anymore.

It is best to keep a close eye on all forms of payment throughout the trip. It can be stressful carrying too much cash around, so try credit cards and ATM machines for more convenient cash exchange.