Currency Exchange Rates

 A topic that I get asked a lot about is

foreign currency

Specifically should it be purchased in advance, once you arrive or should everything just go on a credit card?

My answer is always the same...it depends!

In order to try and help get at the right answer for the right traveler, I will ask a traveler about their spending habits in general.  Do they usually carry cash, or do they use their credit or debit card?  Have they aready checked on their cards to see what they will be charged if they used them internationally? 

Personally, I like having some pocket money when I first arrive in-country.  I use this to buy a coffee at the airport, tip a cab driver or bell hop, or maybe to get a quick bite if I have to wait for my ride. Some establishments and businesses will have a minimum purchase requirement to use a card, while some might not accept a card at all.

Credit and debit cards are pretty convenient, but it may not be the best way for YOU...you need to check with your issuing card company or bank to find out what fees are involved with a foreign transaction.  Most have a fee and I've seen them be as high as 10% although most are in the 3-5% range.  That can really add up!

You can get your currency in advance at some banks and some travel agencies.  You can find out what exchange rate they can purchase the currency for you...make sure that you ask about any extra fees such as shipping that will be added on to your transaction.  You can also purchase your currency at international airports.  AMTs are widely  available and might be another good option for you to take advantage of.

One thing I tell travelers that if they use a credit card to purchase currency, some credit card companies will treat it as a cash advance and charge the higher cash advance interest...NOT COOL!

In my book there are 2 big No-Nos...the first it NO TRAVELER'S CHECKS...NEVER!  This advice it the exact opposite of what I used to give back in the early and mid '90s...but things change and you will thank me for this heads-up.  Traveler's checks, especially Euro Traveler's Checks aren't accepted at most establishments due to fraud.  If you can find someone to take them, there is a stiff fee for the exchange...Remember...JUST SAY NO TO TRAVELER'S CHECKS!

The 2nd No-No is don't change money at your hotel or on the ship if at all possible.  If you must, you will pay a BIG convenience fee.  Try to plan in advance and change your money at a local bank in town. 

There are several other questions that you might need to answer before you find the best solution for you.  The key is to educate yourself about your options and then make the best decision for your situation.

~Trish