I am extremely fortunate in that I have had the chance to travel overseas numerous times already in my life. One of the biggest dilemmas in traveling overseas is exchanging currency, particularly if I am planning to visit several different countries with different currencies. Instead of going through the trouble of exchanging cash every time I get to a new country, I usually just pay with my credit or debit card the whole time. According to USA Today, however, my credit card company could be charging me extra for my international credit card charges. Many banks charge travelers what is called a currency transaction fee which is usually about 3 percent of the purchase. 3 percent might not sound like a lot, but when you consider how much a traveler spends on eating out, transportation around a city, sightseeing attractions, and gifts for friends and family back home, that little 3 percent adds up very quickly. By the end of your trip, you could end up with hundreds of dollars wasted in currency transaction fees.
Of course, the alternative of cash-only isn't much better. Traveling with large amounts of cash makes you more vulnerable to pick-pockets. Credit cards can be canceled, but if your wallet is lost or stolen with cash in it, the cash is gone. Besides that, currency exchange places usually charge fees of their own, so you will lose some value exchanging your money.
What options are available to the money-savvy traveler? Well, there are some credit card companies and banks that are ending their currency transaction fees. Capital One has not charged currency transaction fees in years, and American Express recently announced that they would be doing away with currency transaction fees for U.S. customers. Before traveling overseas, I would recommend checking with your credit card company and find out if they have a currency transaction fee. If they do not, I recommend using your card rather than bothering with cash. Also, check with your bank and find out what sort of ATM fees they charge for customers withdrawing money overseas. You will probably need or want cash at some point during the trip, and you don't want to be surprised by the high ATM transaction fees.
To learn more about responsible credit card use, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.
