Cheapest way to work with currency exchange?

[lbeck]

In a couple of weeks we'll be going to Australia/NZ/Fiji. I’ve traveled abroad several times before and have just used a credit card or ATM card for my purchases to avoid having to “buy” money at banks or exchange counters. We’ll be traveling with friends and in our discussions I’ve been told that credit cards now tack on a few percentage points for purchases. One of the fellow travelers has used a service offered by his credit union where he purchased some sort of “cash card” where no extra percentages are added. I don’t have access to that option. What’s the best way to buy stuff that is priced in AUD or FJD? I have a Wachovia Visa Debit (check) card and a Capital One Visa. I read an old post (circa 2006) that said that Capital One doesn’t charge add-on fees. Is that still true?

 

If I withdraw $100 from an ATM and the exchange rate is 100 USD = 150 foreign dollars, how much will I be charged on my account (e.g., $107). If I purchase a 150 foreign dollar item for 100 USD with my Wachovia Visa Debit (check) card, what charge will I see on my statement? Same as the ATM exchange rate?

 

I prefer to use plastic but we may spend $1000 or more abroad and I don’t want any big surprises when I get my credit card bills. Especially I don’t want to pay $50 or so in fees and find out that if I had been smarter I could have avoided them.

[Philob]

When outside of the US I always use credit cards, never my debit card, you have better security with credit cards.

 

Capital One still advertises they are fee free for foreign transactions, but it doesn't mean the bank that you drew cash from will not charge you. Some banks here, First Republic, will reimburse you for the other banks charges for ATM withdrawals, but it may be limited to US only withdrawals. You should just call Capital One once or twice just to confirm.

 

I just returned from China and the Foreign transaction fee on my credit card statement showed up as a seperate line item for each purchase.

 

Enjoy your trip to Oz.:cool:

[eandj]

We use our Capital One account whenever we travel and have never paid a fee for international purchases. We get a darn good exchange rate. I wouldn't use anything else. Many times a "check card" is turned away. Just saw it happen in Miami in Januare, of all places.

[Ephraim]

If you want cash, generally your best choice is to use an ATM. Banks charge a lot of fees if you want cash that they don't normally store because they (just like you) have to order it and pay for shipping it.

 

Capital One apparently does have the best exchange rate, but since I can't have one, I don't know that much about it (Capital One is not available to Quebec Residents).

 

For the ATM card, ensure that your money is in your chequing account as ATMs is some countries will only withdraw from your primary chequing account. Also ensure that you have a four digit pin as most foreign ATMs will only process four digit pins.

 

For your credit cards, ask for PINs as well. In some countries they now require a PIN when you use certain credit cards. There have been reports of people being asked for PIN numbers on Credit Cards in the UK.

 

Finally, if you have an American Express Card, carry some cheques with you. If there is a problem with your ATM card there is NO WAY to replace it when you are out of the country. In fact, it's the single largest problem with ATM cards... no emergency cash! American Express will cash a cheque for you at their offices in many countries. I'm not sure if you need to have a gold card of higher, but if your ATM card is demagnetized you are essentially up a creek without a paddle and your bank can't send you a replacement card. I know... I had the problem.

[Weathe51]

I would reccommend that you withdraw from ATMs and pay cash whenever possible (i.e. except for very large transactions), as this is the only way you'll be sure to get the best exchange rate and not be charged fees (except perhaps the dollar or two withdrawl fee that seems to be standard on ATMs these days).

 

I spent two months in England a few years back and lived off the ATM (only withdrawing a hundred or so pounds at a time). I only charged things when it was required (booking a hotel room or reserving tickets to a show over the phone or internet).

 

Another thing to consider - be sure to contact your bank/credit card companies prior to leaving. Let them know where you're going and when you'll be gone, as they do watch accounts for suspicous charges (after all, if your card got stolen, why wouldn't the theif head to a foreign country with it!?). On my first overseas vacation, I made this mistake and after the first day, the bank suspended my account. I had to make a very expensive long-distance call to the bank to get my account reinstated, which could have been avoided by a free local call from home before leaving. :)