International travel can come with unexpected costs, and exchanging money is one place where fees can quietly add up. Planning ahead can help travelers keep more money available for the trip itself.
First Horizon recommends understanding how currency exchange works before leaving home. Exchange rates determine how much foreign currency travelers receive for their U.S. dollars, but the advertised rate doesn’t always tell the whole story. Fees and markups can increase the actual cost of exchanging money.
One option is to obtain some foreign currency before leaving the United States. Check with your bank about available currencies, exchange rates, fees and how much advance notice is required. Having some local cash upon arrival can be useful for transportation, tips and businesses that don’t accept cards.
Once overseas, ATMs can be a convenient way to obtain local currency. Before traveling, however, check whether your bank charges international or out-of-network ATM fees and whether the ATM operator may impose an additional charge.
Credit and debit cards offer another option, but travelers should know whether their cards charge foreign transaction fees. When a merchant or ATM offers the choice of paying in U.S. dollars or the country’s local currency, choosing local currency can help avoid the additional cost associated with dynamic currency conversion.
First Horizon also cautions travelers about exchanging money at airports, hotels and tourist-oriented currency exchanges, where convenience may come with less favorable rates or higher fees.
Other preparations can make international spending easier. Travelers should confirm that their cards will work at their destination, know their daily ATM withdrawal limits and have more than one payment option available in case a card is lost, declined or compromised.
The bottom line: Don’t wait until landing in another country to think about currency. Comparing rates and fees, understanding your cards and planning how you’ll access cash can reduce unnecessary exchange costs.
Information for this article is from First Horizon Bank’s Learning Center. Read the complete First Horizon article for additional information and considerations.
Read the complete First Horizon article
First Horizon Bank is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. It’s the powerful tools you need with the personal service you deserve. Contact First Horizon for all your banking needs.
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