Visiting friends and family abroad — or back at home — requires a few necessary logistics. An airline ticket, a valid passport, and of course, money. But when it comes to converting US dollars into an international currency, is it best to do it before you leave? Or will you get a better rate if you exchange it when you reach your destination?
Here’s some things to keep in mind before you convert your currency.
Visit Your Local Bank
When it comes to getting the lowest exchange rate, your local bank is a great place to exchange money before a trip. You may have to plan ahead, as some local bank locations don’t necessarily have every global currency on hand. But you can usually order foreign money from them in advance of your trip, which gives you the most current rates and low (or no) conversion fees. Some financial institutions will even deliver foreign currency orders to customers up to a certain amount, taking another stop off of your pre-trip to-do list.
Visiting your local financial institution and meeting with someone also allows you to find out about additional travel perks that your bank or credit union offers, such as foreign ATM fee refunds. There’s even a bonus on the end of your trip, too, as your local financial outpost will often buy back any unused foreign bills from you.
Send with Pangea
If you have a US bank account, you can send money with Pangea wherever you are. That means you can easily send cash to a trusted pickup spot near you when you’re abroad. And with Pangea, you know that you are always getting leading rates and low — or no — transaction fees. Remember, you can make fee-free transfers when you send over $500 USD to Mexico or Colombia, or when you send to bank accounts and mobile wallets in the Philippines. If you send to a cash pickup location, you’ll be able to access your money within seconds and there are never any fees when picking up your money.
Visit the ATM
If possible, consider withdrawing cash abroad as needed from ATMs. Because they’re owned by banks, ATMs usually offer the most current exchange rate and feature fees that are lower than an airport or currency exchange.
Remember that withdrawing from an ATM can often come with the standard $2-$5 usage fee. But since many US-based banks are global — think Chase and Bank of America — those ATMs can be found around the world. If you’re a customer, finding one of their ATMs can ensure you avoid paying for out-of-network ATMs.
As an added bonus, the money-as-you-go method also helps avoid carrying around large amounts of cash at one time — and potentially losing it or having it stolen.
Use a Credit or Debit Card — When Possible
While not every country is as accustomed to cards as the US, when it comes to spending money abroad, you’ll usually get one of the best exchange rates when you pull out the plastic.
Additionally, many credit or debit cards offer the added perk of having no foreign transaction fees, as well as fraud protection and other safety protocols that ensure your money stays safe even if your card is lost or stolen.
Pro tip: When paying with a card, you’ll often have the option to pay in US dollars — but that will likely come with hidden fees to cover conversion rates. When using your card, paying in the local currency may help avoid any additional costs.
Avoid Airports and Currency Exchanges
From beverages to books and everything in between, things at the airport are more expensive — and exchanging money is no exception. Regardless of where you are, airports typically offer one of the worst exchange rates available, marking up the exchange rate to help make a profit.
Similarly, dedicated Currency Exchange outposts — often situated outside train or bus stations — know you need money to travel, and they’re ready to charge a premium for it. Not only will you pay up to 15 percent more than the standard rate, but you’ll likely have to pay a higher added transaction fee.
While it’s not always possible, thinking ahead before a trip and having a smart money-converting plan when you arrive can result in added savings — which can then go toward saving for that return trip.
DISCLAIMER – This content is for educational and informational purposes only, and is not intended as financial, investment, or legal advice.
