Credit Cards and Currency Exchange Fees

� 2007 Max Lent

Before you rush off to a foreign country, call your credit card company and ask them how much they will charge you for currency conversion.  I called two of the credit card companies that I deal with and one of them said that they charge 3% on each purchase made outside the U.S.  The other charged 1%.  According to a newspaper article Capital One credit cards do not charge for currency conversion, but be careful to analyze other fees associated with the this card.

If you are traveling for an extended period and plan to spend thousands of dollars in another currency, call several credit card companies to ask about their currency conversion and other charges.

In most situations, using your credit card will result in your getting the best exchange rate.  Money changers usually give poor exchange rates and also charge a fee for the exchange.

What I do is use a bank that has ATMs everywhere I am traveling.  When I arrive in the destination country, I go to the ATM and withdraw as much cash as I will need for my stay.

Also read Credit Cards and International Travel.