1. While you’re still planning for the trip, check how the dollar is doing against the local currency. As budget savvy travelers you obviously, wan to hold off on countries, where the dollar is very weak. Compared to this time last year, the dollar has risen* up quite a bit against the Euro, which gives you more spending power. *Currency market changes, has been volatile like any other markets, but the general trend for the dollar against the Euro has been up for the past year.

2. Check with your credit card / debit card to see how much usage fee and / or foreign transaction fee they charge. Visa and MasterCard charge 1%, plus your issuing bank can charge between 0 to 3%, of the total purchase amount, every time you use the card. American Express charges 2%.

3. Capital one has one of the best deals for this. They don’t charge any fee, and they take care of the 1% Visa or MasterCard charges.

4. Many countries outside of North America may not accept cards other than Visa or MasterCard. They will of course accept cards that are issued in that region, other than Visa or MasterCard.

5. Prior to traveling, call and check which credit cards gives you the best exchange rate. To check, just compare on any one day rates.
6. Check with your Bank to see where the ATM’s are at your destination which is affiliated with Global ATM alliance. Generally when you use these ATM’s the regular ATM fee and currency conversion fees are waived.

7. Keeping the above point in mind, withdrawing money at your destination from an ATM will usually give you a better exchange rate.

8. Even if your bank does not have affiliations with other bank ATM’s, find and use any other local bank ATM, rather than a privately owned one. In case there were any problems, it’s easier to resolve it with a bank, rather than a private ATM owner in a foreign country.

9. Right before you leave for the trip, inform your credit / debit card banks of your travel plans. If you don’t notify them, some banks will freeze the account, upon seeing any foreign transaction; may see it as a suspicious activity. Some banks may not even allow any overseas usage.

10. A good number of credit card or debit card to carry is 2. Typically just use one, it’s easier to keep track of, and keep another one for back up.

11. Check with your bank to see if they offer free or discounted fee on purchasing travelers checks, before you buy it at places like American Express Travel.

12. Some larger banks also offer foreign exchange on some major currencies. They might have it in stock or may have to order which takes around 1 to 2 business day.

13. Always make copies of the traveler’s checks and leave it with friends or family, and keep the other copy separate from the checks. In case you lose the travelers checks, given you have the copies, it’s usually replaced within 24 hours.

14. Carry a thin cotton money belt that you wear underneath your shirt. It’s not bulky, and no one can even tell you’re wearing one. Keep most of your cash or travelers check here.

15. Most international flights arrive to the destination country, real early in the morning or late at night, so you definitely want to have about $100 to $150 of local currency in hand.

16. At your destination when making payments with your credit card make sure they are charging you in the local currency rather than US dollar. There is a practice, where sometimes the merchants will charge you in dollars, which may make you feel more comfortable. However this is not good for you, because they are allowed to let that transaction float for a few days, and exchange it to local currency when the rate is best for them.

17. If they insist in charging you in US dollars, ask for a receipt with the local currency payment amount as well.

18. Many of the countries in the world, including places in Western Europe, even at popular tourist destinations, only accept cash. The sooner you get used to this idea, the smoother your trip will go. The no credit card policy is even used by big American chains like McDonald’s or Burger King, in Europe, and elsewhere.

Do you have any tips for currency exchange or use of credit / debit card for international travel?

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