5 Ways to Exchange Money on Your Travels
Given the number of ways to exchange money travellers should know what method they’ll use prior to arriving at their destination. Failing to know the different options available for changing money can result in costly fees, additional expenses and disappointment if you’re unable to make a purchase or participate in activities. Rather than risk an unenjoyable time on your travels, the best methods for money exchange are explained in detail below.
1. ATM Machines
While abroad its recommended for travelers to use ATM machines as much as possible. Using a machine is recommended for travellers because they usually give the lowest interest rate on the money that’s pulled out from the account which will let travellers use the savings elsewhere.
In addition to the cheaper fees, these machines can be found in most locations and are easy to spot and use. This prevents the need to carry around large amounts of cash seeing because travellers can pull out smaller amounts at multiple points throughout the trip.
Although this method is typically seen as one of the most secure ways to exchange money, certain credit or debit cards may not be accepted at international machines. Plus, some home banks may charge additional fees for using an international one for money. To mitigate against these costs its best that travellers pull out slightly larger sums to avoid multiple transaction fees.
2. Credit Cards
Using a credit card while abroad can assist travellers when needing to make a larger than expected purchase or book reservations. Depending on the card provider travellers can typically expect an interest charge for making a foreign purchase which is why its best to confirm the fees with your branch prior to using the card. If the branch charges higher than expected international rates travellers may want to consider applying for an international card or travel reward program that won’t change additional fees.
3. Foreign Exchange Offices
Currency exchange offices can typically be found in popular tourist destinations and airports which make them convenient options for travellers without currency. In addition to being conveniently located most of the offices have competitive rates that may even be better than the bank. Given the difference of rates travellers should take the time to compare offices prior to changing their money to ensure they are receiving the lowest interest.
Although a home branch may be a convenient option for some they can be costly and charge higher than normal interest rates. These high interest rates can result in disappointment if the budget is impacted and you’re unable to afford certain activities through the trip. To avoid this premium consider exchanging a smaller amount at home to cover the first day of the excursion and then pull out more money once you arrive.
5. Travellers Cheques
Another option that travellers can use to exchange money while on vacation are cheques. These cheques are a convenient and safe way for individuals to spend while away because it eliminates the need to carry large sums of cash while abroad. Although this is typically viewed as a safe method, it’s important to note that travellers’ cheques aren’t widely accepted anymore and may result in disappointment if you’re unable to fund an excursion because of it.
Plus, some companies charge commission on top of the cashed amount which can result in higher than expected fees and costly bills from using this method. To avoid disappointment travellers wanting to use cheques should be prepared with another method of currency in case it isn’t accepted.