That much-awaited overseas tour can actually leave you poorer. Moving money around may surprise you with hidden costs unless you know the right place to do it. Banks at airports tend to charge high fees, and airport kiosks may not give you the best exchange rate.
But there is no need to panic. You can change your money more easily and cheaper without paying those high service fees. In this blog post, we explain the best methods to exchange currency in a proper currency exchanger to help you save on your trip.
Understanding Exchange Fees
To get the best exchange value for your money, you need to understand exchange fees. It is the amount or value you receive when exchanging your native country’s money. Using the right currency exchanger can result in no extra hidden fee rates higher than expected.
Several currency exchangers opt to charge a set fee, but some charge a small percentage of your total exchange. Take the time to review different rates to see the actual financial cost. Always compare the fair exchange rate with others. Knowing all this allows you to spend less and choose the currency exchanger that best suits your needs.
Exchanging Currency Home & Overseas
Whenever you are in another country, you should use the local currency to make purchases. You must use your money to obtain the local currency for spending. You could undertake these tasks both before your trip and after reaching your destination. Exchanging some cash in advance can be very helpful when you arrive. This process can be done at banks, exchange offices, or online networks. That way, you can use the money for taxis, food, or other small things right after arrival.
- Every currency exchanger offers different prices. Before exchanging your money, compare rates. Most banks give fair prices, but some do add service fees. Airport currency exchanges are easy to use, but you might pay more or get less money from your exchange.
- You can use an ATM in your host country to get local money. Often, this is not only secure but also straightforward. Make sure to ask your bank about charges related to using your card in another country. Some banks charge a fee for using an ATM in a foreign country. In April 2025, each dollar in the US was exchanged for 85.58 Indian rupees.
- Ensure you understand the fees and interest you will be charged. It is advisable to avoid receiving local currency from these vendors. After changing your money, hold onto your receipt. You may need it to convert unused foreign currency to your home currency. If you organize your exchange beforehand, you can save money and make your trip easier.
Credit vs. Cash for Foreign Transactions
When you travel to a different country, you are often asked if you want to pay with a credit card or with cash. If you understand the pros and cons, you can manage your money easily and avoid missing fees.
- Convenience and Safety
It is easier to protect your money with a credit card than carrying cash around. If they are lost, you can easily block them. It is also simpler to have your identification on a credit card than on something else. Cash, on the other hand, if lost, is gone forever. Therefore, many travelers choose credit cards for their safety.
- Currency Conversion Rates
You often get better exchange rates with credit cards. Banks will perform currency exchange at the prevailing market rate. Even so, certain credit cards will impose a fee when you use them abroad. Airports and exchangers offer different rates for exchanging cash. But, ensure you use a trusted currency exchanger to exchange money.
- Acceptance and Usage
Visiting hotels, shops, and restaurants in a foreign country usually means you can use your credit card. Sometimes, your only choice in remote regions will be cash for payments. You may not be able to use cards on street markets or local buses. So, it is a good idea to have some cash on hand.
- Transaction Records and Budgeting
Every swipe with a credit card makes your spending easy to track and manage. It allows you to monitor your finances as they change. But using cash can make it hard to realize how much you have actually spent. With cash expenses, the only way to record them accurately is by keeping receipts, which can be a stressful process.
- Fees and Charges
When you exchange cash, there are usually service fees. You might find that currency exchangers charge a high fee for their services. Using a credit card overseas may incur additional fees due to foreign transactions or ATM withdrawal charges. Be sure to understand the fees before selecting your payment method.
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Other Travel Tips
Before you go abroad, let your bank and credit card companies know where you are going and when. This prevents your cards from being blocked if they suspect fraud. Some banks are now skipping this step for customers. Stay away from using dollars when you are in a foreign country other than the US. When a merchant wants to exchange your dollars, they usually do it at a lower rate and charge additional fees.
Whether you pay with a card or cash, these tips are beneficial. Paying in the country’s currency tends to be more convenient and safer. Applying these tips will help you avoid unpleasant surprises and enable you to use your money without issues during your trip. Also, always take time to organize your finances so you don’t have to worry about them while traveling.
Worst Places to Exchange Currency
You must usually exchange money when traveling, and choosing the right place can save you money. If you choose the right currency exchanger, it can fetch you favorable rates. But the wrong ones can put you in danger.
- Train Station or Airport Kiosk
You can easily find these kiosks anywhere, but using them will cost you more. Banks are well known for imposing high fees and not offering excellent exchange rates. Because of competition and transactions, the rates are not as favorable for travelers.
- Tourist Center
Often, tourist centers focus on capturing tourists with no ready cash. Since they are located in areas where many people visit, they attempt to attract customers with low rates. Such centers are not always regulated, which can result in you receiving a bad deal.
- Street Vendors
The work of most street vendors is not regulated or officially licensed by the government. Doing currency exchange at such places often costs you more. An official currency exchanger protects you more than an independent one if something unexpected happens.
- Post Office
Sometimes, you can exchange foreign currency at a post office, but they do not have much expertise. Their prices are less competitive than the industry average, as they have fewer volumes and fewer resources.
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When to Exchange Currency?
Being aware of a good time to exchange currency is crucial. Ideally, you should change money well ahead of time to pay for taxis or small meals with cash. This way, you can save on the expensive fees usually seen at airport kiosks.
If you don’t have to exchange right away, keep an eye on the exchange rates of a trusted currency exchanger to do your exchange after the rate improves. You can get cash in your local currency at an ATM in another country. However, always check with your bank about potential charges.
The Bottom Line
To get the best deal on your money exchange, choose the right place to avoid paying more. A reliable currency exchanger offers you good exchange rates and keeps the charges low. Banks, currency exchange offices, and certain airports are popular, but make sure you compare the exchange rates.
FAQs
1. Where is the cheapest place to exchange currency?
If you have an account with a bank or credit union, it is usually the smartest spot to exchange currency for your trip. Banks often charge less for currency exchange than kiosks.
2. What is the best way to exchange money without fees?
Using peer-to-peer apps or websites is the best way to avoid paying fees when exchanging money.
3. How do you avoid fees when exchanging currency?
If you want to exchange currency without fees, use services or cards that don’t charge you extra. Learn how much currency exchanges offer before making your choice. Do not make use of airport kiosks. Go for banks that are reliable and online platforms you can trust.
