Traveling to a foreign country can be an exciting and enriching experience, but it also requires careful planning and preparation, including the need to obtain foreign currency. Whether you’re traveling for business or pleasure, having the appropriate currency on hand is essential. However, with so many options available for obtaining foreign currency, it can be challenging to know where to start. In this article, we’ll explore some of the most common ways to get foreign currency when traveling abroad, and you’ll be one step closer to your next adventure.
Fortunately, most countries around the world accept credit and debit cards, which makes payment transactions easy and convenient. However, some small shops or local vendors may only accept cash, especially when buying small souvenirs and snacks. It’s important to note that this can vary depending on the region you’re visiting, with some countries like Vietnam having different payment preferences compared to others like France. In our experience with Europe, we have encountered this issue in only one city, Rome. Many modern countries have fully adopted credit cards and push “touch to pay” technology, making credit card transactions seamless and hassle-free.
Even with Visa and Mastercard being used everywhere, it’s really easy to get foreign currency!
So how do you get foreign currency?
When preparing for these types of trips, many websites recommend talking to your local bank to obtain what you need before leaving. While this is a convenient option for immediate cash needs upon arrival, it’s rarely the most cost-effective. For instance, our bank charges $20 per transaction. While other banks may offer better rates, for us, this is not the best route.
Another easy option is to use the exchange kiosks in the airport or throughout the city. Again, this is convenient but the rates are horrible and you’ll end up losing a lot of money in fees! The same goes for currency exchange kiosks throughout the city. They’re extremely convenient, but usually a rip-off.
In our opinion, the best way to obtain foreign currency while traveling abroad is to use an ATM. ATMs are widely available and usually offer the best exchange rates and fees. However, it’s important to do some research beforehand and check with your bank to see what fees and exchange rates apply to foreign transactions. Some banks may charge a flat fee per withdrawal, while others may charge a percentage of the amount withdrawn. If your bank charges a percentage fee, it’s important to be mindful of this as it can quickly add up and offset the benefits of using an ATM. Overall, using an ATM is a convenient and cost-effective option for obtaining foreign currency while traveling.
When using ATMs to obtain foreign currency, it’s important to avoid using “tourist” ATMs, particularly those located in transportation hubs, as they tend to have high fees. Instead, look for ATMs that are bank-specific, and are typically located near banks or financial institutions. These ATMs usually offer the best exchange rates and the lowest fees. By avoiding tourist traps and using bank-specific ATMs, you can save money and enjoy the convenience of easily obtaining foreign currency while traveling abroad.
How to get foreign currency with a travel card!
In our opinion, this is where travel cards can shine.
In general, it’s a good idea to have a travel-specific credit card when traveling abroad. These cards have insurance, travel perks, and no foreign transaction fees. Without this perk, you’ll be charged a fee every time you purchase something abroad. Keep this in mind as you are looking to open new cards or as you are planning a trip out of the country.
To make them even better, these travel cards paired with an ATM can often provide the best route for getting cash in a different country. Every bank has its own rates and fees but those with travel in mind often have additional perks like no foreign ATM fees.
No Foreign ATM Fees
If you’re really looking to save money, there are a couple of ways you can get around these fees.
If you’ve read our other posts, you’ll know we’re big fans of Capital One. Not only do our credit cards have no foreign transaction fees, but we also have a Capital One 360 checking account that allows for cash withdrawal anywhere in the world. They have thousands of ATMs around the globe making it super easy to get what we need. Even outside of their network, there are no Capital One fees charged when withdrawing cash. The only catch to this is there may be an issuing bank fee. These are sometimes waived as well.
We already had an account but for new customers, there’s no opening balance required and it’s a great easy option when planning a trip abroad.
There are a handful of other cards as well with these same perks so do some research and see what best suits your needs and preferences.
The only catch is again those tourist ATMs. They charge their own fees that aren’t waived. Just make sure, if possible, to use bank ATMs and you’ll be in great shape!
Example
Example: If you’re flying into CDG in Paris, a quick Google search will show you there are two different ATMs in the airport. Most ATMs at CDG are run by Travelex. If you want a bank ATM, go to the top level above the train station in Terminal 2, where there is an HSBC bank and ATM. Go to the HSBC bank ATM if you’re needing cash. With the Capital One 360 debit card, you won’t pay any additional fees to get the cash that you need. The Travelex ATM will guarantee a fee. This simple search is useful anywhere in the world.
Conclusion
In conclusion, there are several options for obtaining foreign currency when traveling abroad. While using exchange counters or currency kiosks may seem convenient, they often come with high fees and unfavorable exchange rates, resulting in a significant loss of money. ATMs and travel-specific credit cards, on the other hand, can offer a more cost-effective and convenient way to obtain foreign currency. When using ATMs, it’s important to avoid tourist traps and look for bank-specific ATMs to get the best rates and lowest fees. Similarly, using a travel-specific credit card can help you avoid foreign transaction fees and ATM fees when spending money abroad. By considering these options, you can save money and enjoy a more seamless travel experience when using foreign currency.
Have any questions? Let us know!
Additional Tips
Anytime you’re out of the country making purchases, merchants will offer to show prices in USD. Don’t fall for this. Often they have their own exchange rates and will get some extra money out of you. Keep all transactions in the local currency and let your home bank deal with the conversions.
There are a handful of checking accounts out there that allow you to withdraw with no bank fees. I won’t list them all, but check out this site if you’re looking for more info.
If required, make sure to let your bank know you’re traveling. It would be a really bad day if the bank locks your cards for security. Capital One doesn’t require letting them know making it an easy card to hop on an airplane with.
Want to fly for free with a great travel card? Check out the Venture and Venture X.