How To Get The Best Exchange Rate?

Answer 1

When travelers leave their home country, they are usually force to make transactions in a foreign currency. In order to do this, they must change their home country’s currency for the one used in the nation that they are visiting. When exchanging currency, banks will make money by charging different rates for transactions in both directions, as well as an exchange commission. Fortunately, there are ways to minimize currency transaction costs.

The best exchange rates are the interbank rates offered when you use your ATM card to withdraw cash. The next best way to exchange money is to do so in the country you are visiting. The key is to make note of the exchange rates offered as well as any commission being charged on the transaction.

Using your credit card can offer an excellent exchange rate, but only if it is one that does not have foreign transaction fee. Unfortunately, most credit cards charge a 3% foreign transaction fee on all charges processed outside of the United States, but many have now done away with this charge.

The worst ways to obtain foreign currency is to make a cash withdrawal from your credit card. Doing so may incur a very high interest rate, a cash withdrawal fee, and a foreign transaction fee.

By taking the time to understand the best and worst ways to exchange currency, you can make the right decisions when you travel to a foreign country.