When traveling outside the United States, having local currency is essential for tips, transportation needs, small meals and other casual purchases. Often, many travelers wait until they land in their destination to get local currency, but that could be costly and time-consuming. Instead, you can avoid paying high fees, get the best exchange rate and skip the long lines at the exchange counter by purchasing foreign currency before you leave for your trip.
Decide How Much Cash You Need
When purchasing foreign currency, you don’t want to go overboard and find yourself with a lot of extra cash from another country when you return home. Instead, try to estimate how much cash you will need beforehand. AAA traveler feedback suggests taking the equivalent of $50 to $100 U.S. dollars’ worth of foreign currency per person, per day, to meet incidental expenses. If you plan to visit places that may be cash-only, such as a local market or small village shop, you may consider a higher amount.
Get Your Cash in Advance
Getting foreign currency before you start your journey means you can hit the ground running when you arrive. While some banks and credit unions offer foreign currency exchange, not all do. However, AAA offers foreign currency cash for more than 100 countries in any amount, so you can get exactly how much you need. It typically takes two business days to obtain the foreign currency you need, so don’t wait until the last minute.Â
Don’t Forget Your Credit Card
For larger purchases such as your hotel bill or special souvenirs, it’s a good idea to bring a credit card. But don’t take just any credit card; ideally, you should take a card with no foreign transaction fee. Many credit card companies charge fees as high as 3% for purchases made abroad, so call your credit card company to check.
While talking with your credit card company, you should also notify them of your travel dates and what countries you plan to visit. This puts them on notice that you plan to use your card during your trip and could help prevent your card being declined.
Protect Your Money While Traveling
At your destination, don’t carry all your money while out and about. Take a credit card and some cash when you head out and lock the rest in your hotel room safe. It’s also smart to place your wallet in your front pocket or put your cash and card in a money belt to keep it away from pickpockets. Download a currency converter app on your smartphone, so you can check to see how much something costs in U.S. currency to ensure you’re paying a fair price.
Get Cash at a Local Bank or ATM
If you find you need more foreign currency during your trip, it might be tempting to get more from your hotel or at the ATM in the lobby. However, you’re likely to get a better exchange rate and pay lower fees by purchasing foreign currency at a local bank, either from a teller or using the bank’s ATM. Just make sure your ATM card will be accepted. Before leaving on your trip, call your bank and find out if your ATM card will work in the countries you will visit. Also ask about ATM fees, so you’re not hit with a hefty charge on your bank statement. And make sure you know your PIN!
Spend Your Cash Before Heading Home
If your trip is wrapping up, use the foreign currency you have before heading home. While you can sell it back to AAA or the financial institution where you purchased it, the exchange rate likely won’t be great. Some ways to spend that cash is applying it to your hotel bill, having a nice farewell dinner or picking up a memento of your journey.
A Word of Caution
You might be tempted to spend U.S. currency when traveling. After all, there will be vendors who will take it. But they likely won’t give you a fair exchange, meaning you could spend more on something than it’s worth. That’s a key reason why having local currency on hand is important.
To place an order for foreign currency, visit any AAA Northeast branch at least three business days in advance.
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