Credit card to save on exchange fees
Credit cards usually offer the smartest way to spend abroad, Barry Choi said, and he runs the money we have on our personal finance and travel websites.
They usually charge about 2.5% of foreign transaction fees on each purchase, which is a cheaper option than what you do with a debit card or an ATM.
“A lot of people don’t know about the fee because it’s directly integrated into the exchange. So when you get the statement, you only see the exchange rate, you don’t realize the fee is included,” Choi said.
However, multiple credit card providers offer free transactions. These come through “travel cards” including the Scotiabank Passport Visa Infinite card, the Brim MasterCard and the Home Trust Visa card.
“Sometimes people think, ‘I just get a U.S. credit card from my bank, which is a good value.” But the problem is that you have to pay in dollars (balance). ”
Save foreign transaction fees with these credit cards
Should you convert to local currency abroad?
Credit cards also have a currency conversion rate (converting foreign purchases back to your current currency into home currency) with a quota slightly higher than the official “interbank” interest rate. But credit card companies usually offer the best consumer interest rates compared to ATMs or cash exchanges, experts say.
Usually, when payments are paid in Canadian dollars or US dollars at the point of sale, customers have the option.
“Always choose to charge in the currency of the country you are in. If they convert to Canadian currency, you will pay high conversion rates and transaction fees.” The federal government said on its travel website.
