Use a card with no foreign transaction fees. These sneaky little fees can really add up when swiping as much as I do on a trip. Fortunately, many of the best rewards-earning credit cards charge no fees for purchases in other currencies.
If your card does charge these fees, I’d only recommend using it if the rewards you’re earning are more valuable than the fee (typically 3%) you’re paying on each transaction. You can check our monthly valuations to know how much your rewards are worth and crunch the numbers. If you want to be sure you have a card that doesn’t charge these fees, this list has all of the best options.
Keep your options open. Acceptance of credit cards and contactless payments has become far more prevalent among merchants worldwide. (I’ve even seen retailers in Scandinavia proudly displaying signs that cash is not accepted.) Still, you may find places that don’t accept cards, or at least not all of them.
So while your American Express might be your go-to at restaurants, I’d bring a Visa or Mastercard that earns 3 points per dollar spent on dining as well, since those remain the most widely accepted card networks.
Withdraw or exchange money at your destination. I always like to have some cash on hand for emergencies, gratuities or small purchases. While it may be temptingly convenient to exchange money for a new currency at your home airport, the exchange rate will likely be poor. Instead, I always exchange money or withdraw cash from an ATM at my destination.
Always choose to pay in the local currency. When swiping your card, you may be asked if you want to pay in the local currency or your home currency. Always choose the local currency for a much better exchange rate. You’ll also want to decline the currency conversion when withdrawing money from an ATM, as the conversion rate is usually bad.
Here are some more resources to help you weigh your options:
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