[macintologist]

This summer I will visit a friend in Canada for 4 days. I've heard all sorts of horror stories about how travelers get ripped off with bad exchange rates or transaction fees on their credit cards.

Based on your experience traveling and spending your own money (US Dollars), what's the best way to travel to another country and spend money there while avoiding as many transaction fees and bad exchange rates as possible?

[peeb]

Credit cards are usually a pretty good way to do it to be honest. Of course, you need some cash too, but getting everything you think you will need from a cash point is not a bad option these days, as long as you do it all in one transaction.

[turtle777]

Research how much the transaction fees on your credit cards are. There can be big differences.

If you get cash out of an ATM, the fees are basically fixed, and you're getting the best possible rate.
Make sure to make one large withdrawal, rather than many small ones.

-t

[Oisín]

If you get cash out of an ATM, the fees are basically fixed, and you're getting the best possible rate.

But fees for using foreign ATMs can vary wildly. I pay about $6 per withdrawal on my card, which is pretty good; when we were in China last year, though, my ex realised that he paid over $20 per withdrawal using his card in a Chinese ATM.

Paying for things in stores directly with the cards did not incur any fees on either of our cards.

[Cold Warrior]

Abroad, I always use my debit card to withdraw local currency from a trusted ATM. Specifically Russia (Moscow and Petersburg). It works great, I get local currency, and the exchange rate is very fair.

[turtle777]

My bank gives me FREE ATM withdrawal worldwide. So I don't really care about the fees, I get reimbursed for them

-t

[Person Man]

Originally Posted by turtle777 

Research how much the transaction fees on your credit cards are. There can be big differences.

Indeed. Visa charges 1% of the amount, and then most banks tack on an additional 2% of the amount as well, so you get the best exchange rate, but you pay 3% more. Capital One has no additional fees for international transactions and they absorb the 1% fee charged by Visa, so you get no transaction fees.

If you get cash out of an ATM, the fees are basically fixed, and you're getting the best possible rate.
Make sure to make one large withdrawal, rather than many small ones.

Some banks still charge a percentage of what you withdraw from an ATM. Then there are the fees charged by the foreign bank for not using one of their ATM cards. Those are fixed, yes, so making one large withdrawal is a good idea.

I use a combination of ATM and my Capital One credit card overseas. When in Greece, for example, I usually withdraw about € 200 a week (some smaller shops don't take credit cards so I get more cash than I usually carry with me at home) for cash from an ATM that only charges € 1 for using a card that's not theirs. My bank charges a 2% currency conversion fee for that.

Any time I go to a store that takes credit cards I use mine to pay for my purchases because I don't get charged a conversion fee. It usually works out that I have a small amount (about € 40-50) left over, which I save to use at the airport for the next time I go. If, for whatever reason, I get to Europe and have no euros, then I exchange only enough money (usually about € 50) to buy a lunch and a taxi (or bus or subway ticket) and a phone card (though I now have a Greek SIM card for my cell phone so I don't need phone cards there). The exchange booths in the airport have the worst exchange rates.

[Heavy Fluid]

XE.com - The World's Favorite Currency and Foreign Exchange Site for the most current exchange rates.

[Atomic Rooster]

Jeez man, you're just going to Canada not Timbuktu. Dollar is about on par. Just use your Dead Presidents with no problem. You'll get Canadian change back tho. Just change that at the border when you come back.

[Eug]

Originally Posted by Atomic Rooster 

Jeez man, you're just going to Canada not Timbuktu. Dollar is about on par. Just use your Dead Presidents with no problem. You'll get Canadian change back tho. Just change that at the border when you come back.

Some stores won't take US bux, cuz it's a hassle for them. Depends where you are though.

Anyways, the cheapest place to change money is usually at the bank. Credit cards are usually pretty reasonable too. You'll lose a couple percent or three but that's not too bad. Some of the currency exchange places are OK, but many others charge way too much for the exchange rate. The absolute worst is at the airport.

Where are you going by the way?

[philm]

For four days, why worry about the odd 1% between credit cards. You can't spend much in that time if you are just holidaying. So, credit card in the shops and a debit card if you need some cash from an ATM.

[Andy8]

Originally Posted by Eug 

Anyways, the cheapest place to change money is usually at the bank.

Exactly.

The absolute worst is at the airport.

Ditto.

[Eug]

Originally Posted by Eug 

Some stores won't take US bux, cuz it's a hassle for them. Depends where you are though.

Furthermore, with the current exchange rate, even if the store does take US bux, don't expect them to take it at par. Many stores have terrible "exchange" rates, which essentially mean you lose 5-10%.

Canadian dollar falls with oil prices

The Canadian dollar closed at US$1.0043, valuing a U.S. dollar at 99.57 cents, down from $1.0028 to the U.S. dollar, or US99.72 cents, at Tuesday's close.

"It's still very much in this range, and not a lot has changed, even though we did try to break through parity," said Camilla Sutton, currency strategist at Scotia Capital.

The currency muscled its way above parity early in the session, hitting a high of US$1.0036, valuing a U.S. dollar at 99.64 cents.

Also, with these rates, even though the US dollar still is worth slightly more than the Canadian dollar, when you go exchange the money, you'll get less Canadian bux back, because of the commissions they charge.

[freudling]

The best way to exchange money is at a currency exchange kiosk in the destination country. You need cash to exchange for cash, so you need to take cash on the your trip to exchange in your destination.

Get a money belt and put your cash in there. You will save money everytime.

[Mastrap]

Originally Posted by freudling 

The best way to exchange money is at a currency exchange kiosk in the destination country.

That I have always thought to be one of the most expensive ways to exchange money. Your ATM card and a credit card will do the job just fine. As long as you're not constantly withdrawing small amounts the money you're losing is really quite negligible.