Finding the Optimal Currency Exchange Locations

Best Ways to Exchange Currency for Your Overseas Trip

When preparing for a trip abroad, you have a lot on your plate - from passports to accommodation. But what about how you'll pay for things once you're there? Having some local currency on hand is essential for things like tips and taxi rides. However, exchanging U.S. dollars for foreign currency can be tricky. Here's how to exchange currency in a way that gives you the best rates and minimizes fees.

How Currency Exchange Works

Whether you visit a currency exchange kiosk overseas, your local bank branch, or do it online, the process is the same: you request a different currency than you have, the institution processes the exchange based on its rates and fees, and you pay in one currency to receive the other. Where you do the exchange can greatly impact how much cash you end up with. For example, exchanging $1,000 for euros at the airport with International Currency Exchange might get you €720, whereas doing it at Wells Fargo in advance could get you €800.

Where to Exchange Currency

When looking to exchange currency, you have options at home and abroad: your bank or credit union, exchange kiosks, foreign ATMs, and online services like Xoom and Western Union. In the U.S., buying from a bank or credit union may offer no fees but less favorable rates. Exchange shops in tourist areas usually have the worst rates. When abroad, using a Visa or Mastercard debit card at an ATM without foreign transaction fees may be one of the best options.

How to Reduce Currency Exchange Costs

To lower the cost of exchanging money, avoid cards with foreign transaction fees, opt to pay in the local currency when using your card overseas, and compare exchange rates to calculate total costs. Consider options like using a travel rewards card with no foreign transaction fees, or online transfer services. Be wary of airport exchange kiosks and cash advances from credit cards, as they tend to have higher rates and fees.