Common Mistakes in Foreign Currency Exchange Travelers Make

themoneycloudAre you planning to travel abroad? You must start planning for the money that you will be spending in foreign places – and it starts by being aware of the common mistakes that many travelers make about foreign currency exchange.  You have to remember that banks and credit card companies are increasing their transaction fees for purchases and payments made in a foreign currency, not to mention that you can be ripped off when you pay in a foreign currency for products and services best paid with local money.

#1 Not Notifying Your Bank and Credit Card Issuer About Your Plans

Financial institutions, such as banks and credit card companies, are on alert about unusual activity made on their clients’ accounts, such as purchases and cash advances in a foreign currency. This is due to the increased cases of financial fraud using credit and debit cards, said vigilance from your bank working to your benefit as well.

When you notify your bank about your travel plans especially to overseas places, you can avoid hassles that can put a damper on your holiday. For example, your credit card may be blocked when purchasing from an overseas store, not to mention that you may be using your credit card without being informed about the high fees imposed on these overseas purchases.

#2 Not Checking the Foreign Exchange Rate Online

When you make international money transfers, you should first make comparisons between the foreign exchange rates of several companies with the goal of getting the best rates (i.e., your recipient will receive a higher amount of money after the currency conversion).  This should also be your approach when traveling abroad where your pocket money is concerned.

When you know the best exchange rate, you will know what to expect when exchanging currency.  As with all aspects of your foreign travel, you want to get the most value out of your money and it starts with getting the best rates for your dollars.

#3 Changing Your Money at the Airport

And the worst place to exchange and compare foreign currency exchange rates is at an airport kiosk! Your knowledge about the prevailing rates will be valuable in determining whether you are getting a fair deal here – and you are most likely not getting it. This is because airport-based foreign exchange desks are scams in the sense that their large incomes come from charging high fees, giving poor exchange rates, and imposing hidden fees, among other practices.

Your better choices are either to withdraw money from an ATM, use your credit card in establishments that accept it, and find a more favourable exchange rate in a global or local bank.

Other mistakes that you should avoid are using your credit card in getting a cash advance without checking its surcharge; buying traveler’s checks since these can be more of a nuisance than a help; and assuming that you must exchange currency at all especially in places where your money is already the local currency.

 

Contact:

The Money Cloud Ltd
1 St Andrews Hill
London
EC4V 5BY
London
+44 207 100 5455
general@themoneycloud.com

 

 

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