Credit Cards and Currency Exchange Fees
© 2007 Max Lent
Before you rush off to a foreign country,
call your credit card company and ask them how much they
will charge you for currency conversion. I called two
of the credit card companies that I deal with and one of
them said that they charge 3% on each purchase made outside
the U.S. The other charged 1%. According to a
newspaper article Capital One credit cards do not charge for
currency conversion, but be careful to analyze other fees
associated with the this card.
If you are traveling for an extended period
and plan to spend thousands of dollars in another currency,
call several credit card companies to ask about their
currency conversion and other charges.
In most situations, using your credit card
will result in your getting the best exchange rate.
Money changers usually give poor exchange rates and also
charge a fee for the exchange.
What I do is use a bank that has ATMs
everywhere I am traveling. When I arrive in the
destination country, I go to the ATM and withdraw as much
cash as I will need for my stay.
Also read Credit
Cards and International Travel.