Cash or credit card? Here's How To Get The Best Exchange Rates While Traveling

In the hustle and bustle of packing and preparing for the holidays, it's easy to forget considerations about the best way to pay for your trip abroad. However, questions about which cards to use, how much local cash to withdraw, and which currency conversion services to avoid are especially important during times of highinflation.

Here's what you need to know when looking for cost-effective ways to spend money abroad.

Reed economist Hailey Berg of Hopper, a Montreal-based travel data company, said using his credit card is the best scenario.

Although not accepted by all roadside stalls and outback bars, it is widely used in most countries, especially in cities and other popular tourist destinations.

Each credit card purchase generally includes a foreign transaction fee of approximately 2.5%. It will weigh on your wallet in the end, but Berg says it's cheaper than most ATM and debit card fees. If a €76 bistro bill translates to $100 for him (as it did on Thursday), the customer will be charged $102.50 for him.

Multiple Credit Cards His provider offers commission-free international transactions. These are offered through 'travel cards' such as the Scotiabank Passport Visa Infinite Card, HSBC World Elite Mastercard and Brim Mastercard.

“Most people take what they have. Richard Vanderlubbe, CEO of travel agency Tripcentral.ca, says business travelers

Credit cards also have a currency conversion rate for converting overseas purchases into your home currency, which is the official "interbank" rate. slightly higher than But credit card companies usually offer consumers the best rates compared to ATMs and money changers, he said.

Read more: Tips for surviving summer travel chaos at Canadian airports

More Customers will be given the option to pay in Canadian dollars or local currency at the point of sale.

"Always choose to be billed in the currency of your country of residence. When converted to Canadian currency, you will pay high conversion rates and transaction fees," states the federal government's travel website. said in

But cash also has a role to play.

"You'll need cash for taxis, tips and possibly a coffee and croissant cafe," he says in his online resource for Canadians spending the winter outside Canada. One he is the editor of Snowbird Advisor Jill He Wykes said. Country.

Just don't carry too much around. Cards are "more secure than walking around with a ton of cash in your pocket," she noted.

READ MORE: Fraud is on the rise in the travel industry. How to Protect Yourself Abroad

Before you leave, Berg suggests ordering a foreign bill through your bank that you can pick up at their branch within days.

"Many European destinations rely more on banknotes and coins than North America," she said.

You don't need three weeks' worth of pesos, pounds or greenbacks, but enough to last a few days and avoid "nickel and dime charges" from repeated ATM visits, she said. Vanderlubbe said. She also has trouble converting foreign coins into Canadian currency after returning to her home country.

ATMs usually offer the best rates next to credit cards. This is lower than a direct cash exchange. However, in addition to a conversion fee (often 1% to 3%), withdrawals may include an ATM fee of around $3 to $6 plus a fee from your bank for using an ATM outside their network. there is.

Scotiabank and Tangerine have exceptions. They are part of the Global ATM Alliance, a network of major banks, including his BNP Paribas in France and Deutsche Bank in Germany, with ATM withdrawals from each other's terminals in more than 30 countries and territories, from Australia to Spain. Fees are waived.

Avoid her ATMs and currency exchanges at airports and hotels at all costs, warns Vanderlubbe Did.

"When you're cruising or going to a casino, ATM charges suddenly go up," he said. "You pay for the convenience."

The big local banks likely have the lowest ATM fees, he added.

Before heading to the airport, travelers should check online to see if their bank or credit card company recommends notifying them that they are out of the country. Of Canada's Big 6 banks, only National Bank still recommends travel notifications. Travelers should also ensure that their personal information is up to date in case financial institutions attempt to contact them about suspicious transactions.

"The worst thing you can do is go somewhere and not use your card," said Vanderlubbe.

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