At the same time, it is never sensible to carry a large amount of cash around with you, though it’s essential you have some to pay for cabs, buses or trains plus incidental expenses, when you arrive at your destination. You are unlikely to find food retail outlets prepared to accept your plastic in exchange for a cup of coffee in many foreign countries.
It can be difficult finding a currency exchange bureau upon arrival at your destination. You don’t know the airport, you’re inevitably tired and all you really want to do is get to your hotel for a shower and some rest. The best solution is to change a small amount of money before you leave the US and then get the rest changed once you have settled in. This means you can relax once you arrive without the worry of finding an exchange bureau, and if you plan ahead, you will already know where you can get the exchange transaction completed with the minimum of fuss.
The best place to change your money before you leave the US is at a bank. They generally offer the best rates of exchange and charge less commission than exchange bureaus at airports. Don’t go for the guaranteed buy-back option unless it is free. While it’s a good idea if you’re expecting to bring home foreign currency to exchange for dollars, the small amount of currency you’re taking means you are paying a higher rate for a guarantee you probably won’t use.
Once you are settled at the destination, change your dollars into foreign currency. The dollar has worldwide acceptance and you can usually find a good rate of exchange, often better than in the US, because many countries want US dollars. Don’t change your money at your hotel: rates are poor and commission fees high. Go to a bank in preference to exchange bureaus. Most banks overseas, even the small ones, have exchange facilities and you’ll get a better rate with lower commissions. Change a sensible amount of money, enough to keep you going for several days: you don’t want to keep returning to a bank to exchange money as you get charged each time. Once you’ve got your cash, go back to the hotel and put the excess amount in the safe until you need it.
Don’t use credit cards to withdraw cash overseas. You get charged for the withdrawal as well as commission, and interest is charged from the first day until you repay your card issuer. In addition, if you carry outstanding balances on your credit card, the card provider may require you to pay the rest of the outstanding balance off in priority to the amount you used for the exchange transaction (this means you get charged higher rates of interest on that part of your outstanding balance for longer). Using a debit card in an ATM also attracts a withdrawal fee, although not usually as high as a credit card, but just be careful and make sure you understand what you are being charged when you do this.
A cheap, convenient and relatively safe method of exchanging currency is using traveler’s checks. They’re accepted in most places, and can often be written out directly to the company that you’re getting your goods or services from. You may also be interested in taking a travel money card with you before you leave for the same benefits as a traveler’s check, but with the ability to pay for goods or services anywhere that a credit or debit card is accepted.
Ensure you don’t go back to your departure airport with a pocket full of coins and lots of foreign currency. Keep enough back to pay for a drink and snack at the airport, but exchange your currency before you leave the country. You get a better rate of exchange most of the time and, in many countries, they accept your coins if they are in the domestic currency. In the US, you can’t exchange foreign coins at your bank so you’re stuck with them.
If you do get back to the US with foreign currency, don’t be tempted to exchange it at the airport, again go to your own bank. You’ll get a better exchange rate and you won’t need to pay a non-client fee.
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