The exchange of currency is something that is often viewed with a skeptical eye and for good reason. When you take a variety of factors into consideration, things such as:
It leaves most of us in a confused state here in our home country. When you attach the additional complication of being abroad in unfamiliar territory it’s like taking these complications and enhancing them.
Being abroad and looking for a “fair” exchange rate is something that sounds like a conspiracy, but it’s quite the opposite. It’s something that anyone traveling abroad should not only be fully aware of, but prepared for as well.
Keep the following in mind to make sure that you are getting your money’s worth:
You would think this is a common sense factor, but it’s something that is overlooked easily. When you think of money there is an assumption in place that someone will be able to give you the answers once you get there, the problem with this is that it can lead to problems.
Know the exchange rates for the location you are going to. In addition to this awareness, you should also know that the location that you exchange currency does in fact have an impact on the amount you will get.
Busy locations such as airports, train stations, and other areas potentially flooded with tourists will have higher exchange rates. The safer approach would be to head to the bank that is local to that particular area and make your exchange there.
When you see a booth that advertises that it’s commission free don’t assume that it’s going to be the best place exchange your money. Sometimes this is simply an advertising tactic to lure you in and simply take advantage when you wouldn’t know better and just go along with it.
Using a debit card abroad is a mistake in most occasions. If the card itself isn’t frozen in an effort to prevent fraud, due to it being used in unfamiliar territory, then it’s often overcharged for things that a tourist wouldn’t be aware of. Even in the event a refund can be acquired, it normally won’t be immediately.
Debit cards should be used for ATM’s to acquire cash for daily usage, or for larger cash withdrawal for the sake of using it later in your trip.
There is a set fee rate that ranges between 1%-3% when you use a credit card for a foreign transaction. This also helps you acquire the item at the listed price, which gives you the best rate, along with it being the safest way to purchase an item.
Currency exchange can be a scary process when it’s all unfamiliar knowledge. You are doing yourself a large favor by taking the time to inform yourself of potential problems you may run into, and with these tips in mind hopefully your trip can go as problem-free as possible. For additional resources, visit Interchange Financial.