When traveling abroad, the difference in currency from one country to another necessitates exchanging your home country currency to that of the country you are going to. You can lose some money in the process of converting from one currency to another, from CAD to USD, for example .The loss may be due to exchange rate differences or charges from the service provider that you will use.
While you may not have much control over the exchange rate, you can avoid hefty charges by using the option with lower fees. Also, different conversion options may have varying rates. Thus you should choose the one with the best rates.
Here are some of currency conversion options that you can use:
Private Money Exchanges and Banks
You will find private money exchange businesses, credit unions, and banks in most of the cities in your home country. These businesses are often in competition with each other, which is why they may offer better rates and varying charges depending on the provider.
The best idea is to compare different private exchanges, banks, and credit unions and go for the one with the best rates and lower fees. You can make the comparison by checking the rates on the websites of the different businesses.
While traveling abroad, find out if your card will work internationally, and what charges may apply when using it elsewhere. Among the fees that credit cards may attract are currency exchange fees, transaction fees, and service fees if you get cash advances. The beauty of credit cards is that they offer some of the best rates. They may be so close to the official rate. If you are a regular traveler, you should consider applying for a card without foreign transaction fees.
You can use your debit cards to withdraw cash from ATMs abroad. However, your card provider could charge you international ATM fees and foreign transaction fees. It would be best if you restricted yourself to only withdrawing money with the card.
In case of erroneous purchase transactions, your card will be debited instantly and could take from a few days to more than a week for the reversal to be done. That may inconvenience you.
Airport Foreign Exchange Shops or Desks
There are currency exchange desks or kiosks in airports where you can exchange your currency. However, it would help if you avoided this option unless for emergency cases. The reason for that is they have outrageously high fees and low rates.