Between automated teller machine fees, credit card surcharge fees, commissions and other fees, you might have to pay an extra charge for exchange of currency but credit cards with no exchange rate fees are available to frequent travelers. The privilege of exchange currency while in another country calls a certain charge especially when you will be using a credit care.
There are various ways that you can minimize these fees and get an impressive exchange rate in you travels whether for leisure or business. To reduce the fees charged on exchange rates, one can do a few things in a bid to save on funds.
Know the Currency Exchange Rate
It is important to research on the rates of exchange. The only way that you can know if you are being charged the best of exchange rates is to at least know what the rate is currently being charged. Before leaving for your trip, visit a currency conversion website and you will get a general idea of the rate. Two of the most accurate websites are xe.com and Oanda.com.If traveling aboard for a while, regularly update yourself on the change in currency rate so that you stay abreast of any drastic or significant change.
Read Between the Lines
When purchasing a credit card, be sure to read the details that relate to travel or foreign currency usage. Most credit cards will not be as forthcoming as they would with other conventional charges like monthly interest rates or late pay fees. However, for a frequent traveler, this is an important issue.
Basically, travel experts have always observed and voiced that when you use a credit or debit cards on an overseas expense, you stand to use the card at one of the best rate of exchange as opposed to travelers cheque or cash. Therefore, try to utilize credit cards more when you travel. As you may already know, expenses that you can settle using a credit card are hotel bills, large or small purchases from stores that accept your credit card type, car rentals and tickets. It is important to note however, that many credit card vendors will add a minimal fee for financial transactions that are carried out using foreign exchange.
When it is Not a Good Idea to Use Credit Card for Foreign Exchange
United Statesdollars, the legal tender that is used in the United States and generally accepted in many countries, may be acceptable as a local currency in some of these countries. For example, countries in the Caribbean are fixated on using the US dollar as a fixed rate which makes it very easy to pay for good and services whether in dollars of the local currency of that country. This therefore presents a perfect opportunity for you not to use your credit card and hence incur a charge upon its use.
MasterCard and Visa will usually charge a one percent processing fee on all foreign transactions. This coupled with the charge that the issuing bank or financial institution will charge increases the fee that you will eventually have to pay. Credit cards however are better than travelers cheque. Credit cards with no exchange fees do not come easy but if you have an opportunity of getting gone, utilize it well.