How To Avoid High Foreign Currency Exchange Fees
Changing money is not difficult but finding the best deal on travel money can be a daunting task when it comes to travelling overseas. Through a bank to buying online and using debit and postpaid cards, there are several ways to buy holiday money while travelling. But all they charge some fee when you exchange money.
Using ATMs is considered as the easiest and convenient way to buy the foreign currency or travel money but it is potentially costly because banks charge fees which are hidden. That fee adds up in the total amount and it is difficult to find how much they charge on exchanging every dollar. That’s why it is significant to check things properly before buying foreign currency or otherwise you may lose a large amount on currency exchange. This article highlights the pros and cons of currency exchange methods and tips to avoid high foreign currency exchange fees.
Using Credit Card And Atms
Credit and debit cards are widely used by the travellers to make purchase. The company or bank associated with the credit card charge 2% to 3% conversion fees. The biggest advantage is that these cards are safe and easy to use for international transactions. But keep in mind that they charge high fees (up to 20% along with the ATM fee) when using for withdrawing cash from ATM.
Withdrawing cash from ATM is very common and many credit cards are used by the travellers to withdraw local currency from international ATMs. But exchange fee varies from bank to bank and that’s why it is important to check the bank’s policies and investigate about the foreign transaction fee they charge. Try to use the credit card of a bank having international branches in order to get the best exchange rate. Because such banks allow using ATM fee-free in many cases.
Exchanging Cash At Bank
Almost every bank has a license of selling foreign currency that’s why most of the people just thought it is the only place to buy travel money. But now there are multiple options or methods available. Usually, banks have a fixed exchange fee and you can exchange your money either by visiting your local bank or order cash online and collect it from the branch of the bank. But remember most banks charge high delivery fees. So, check out the delivery charges before ordering you cash. However, some banks also waive delivery fee for their best customers in some cases.
Buying Cash Online
Ordering cash online is the best method as it is preferred by the travelers. It is popular because it is easy to compare and order cash online and receive cash at home. Most of large and trusted companies ship the money with a secure delivery system. Additionally, they have several picks up locations even in the foreign countries so travelers can easily collect their cash from their points or even at the airport. For example, if you’re travelling to Australia, you can order cash online after choosing the company offering the best currency exchange rates in Melbourne and you’ll get your cash within 2 to 3 days at your doorstep. You may also collect it when arriving at the airport.