March 22, 2010
Buy Foreign Exchange While Treking Globally
For those that are planning on visiting another country whether on business or for pleasure it is always a good idea to buy foreign exchange. There are many different payment methods accepted around the world and each of them require some type of small surcharge for the currency conversion.
Many times you will find a favorable exchange rate so the money you get for one dollar is much more. For instance and American traveling to Australia may find that for each $1USD they receive $1.20AUD. This means that your trip will cost less than you thought. However for some countries the exchange rate you get means that you will receive less money, one example being that $1GBP is approximately equivalent to $2USD. The exchange rate will fluctuate so when traveling you do need to know the approximate rate for that time.
The best exchange rates can be getting by using your ATM card or credit card. This is about 7% less than what you would get by exchanging travelers checks or cash. Almost all credit cards will have some kind of international fee, generally a percentage of your purchase.[dailymotion:xbfiw1;[link:Ad for travel money on TV];http://www.dailymotion.com/video/xbfiw1_travel-money-featured-on-television_travel]
However most banks are connected to other banks worldwide. If your bank has a sister bank in the country you are travelling to then with a debit card you can withdraw cash from your home account from the ATM for no extra charge. Make sure to check with you bank before travelling as you might have to activate an account to do this.
Before you leave make sure to ask your bank its partner banks in the country and ensure that your account is activated for this. Generally you can only do this with a debit card.
If you do not like using credit cards and still like to pay using cash or exchanging traveler’s checks then there are some things you can do to ensure you get low rates. Make sure you make the exchange in the foreign country and try to exchange your money or checks at an American Express office, bank or post office. The places with the highest rates include train stations, airports and other tourist hot spots.
However this is not always the case as most countries do not have a fixed exchange rate. Many times the vendor may add on an additional fee for paying in your home currency and not the local currency.
Left without a prepaid currency card, and regret it now you have read this? Get great value travel currency from this provider now, and you will be more than prepared for your next trip.
Filed under Finance by
