Right now, international travel from the United States is as popular as ever. Flights across the Atlantic and Pacific are packed, and prices often still feel higher than they did before the pandemic. Between bucket-list trips, long-delayed vacations and people finally getting comfortable traveling far from home again, more Americans are heading overseas than we’ve seen in years.
That’s great news if you love to travel, but it also means brushing up on some basics that are easy to forget if you’ve mostly stayed within the U.S. One of the big ones? How to get cash once you land.
If you’re new to international travel, or just need a refresher course, here are several ways to get cash when traveling outside of your home country.
Do You Need To Carry Cash?
The first question you have to ask is if you even need to carry cash in a foreign country. When we spent 26 hours in Singapore, we never exchanged local currency. All of our transactions were paid for by a credit card and we didn’t need to get any Singapore dollars. For a more extreme example, we spent 2 full days in Tokyo and never had a single yen in our pockets.
These are unique cases, but if you’re only spending a short time in a country and are sticking to major tourist spots, you might not have any need for local currency. In addition, the exchange rate you get when paying with a credit card is the bank’s rate, which is usually better than what you’d get changing cash at a currency exchange booth.
But you won’t always be able to pay with a card. For example, several places we visited in Vietnam were clearly “Cash Only.” This meant we needed to have some local currency on hand.
Getting Currency Before The Trip
While not our primary bank, we keep a relationship with Wells Fargo because they have a local branch. I’ll occasionally stop by and ask for $50 in singles and fives to keep on hand for tip money. In addition, local bank branches can also change USD to international currency.
While they don’t usually keep foreign currency on hand anymore, you can order many currencies to be delivered to your local branch (or sometimes to your home), typically with about 2–7 business days’ lead time. There’s usually a minimum order amount and you may pay a shipping or handling fee, so it’s best to check your bank’s current terms before you order.
However, it’s hard for us to estimate how much cash we’ll need when visiting a country. We’ll try to use a credit card when possible to get the best exchange rate. That’s why we’ll wait until we’re in a country to get local currency.
Airport Currency Exchange
You’ll see currency exchange locations in the airport. They’ll be before you clear immigration or just after the checkpoint, depending on the country. Be aware that these are some of the worst places to exchange money, as they charge some of the most exorbitant rates and fees of any vendor. That’s why they pay to be the first place you’ll see when you get off the plane.
Do yourself a favor and skip these locations and wait until you reach the main airport terminal.
Local ATM
Depending on your situation, you may be able to find a bank ATM at the airport. By far, this is your best option.
For our travels, I have a Fidelity Cash Management account linked to an ATM card which I’ve been able to use around the world. In addition to not charging its own ATM fees, Fidelity automatically reimburses any ATM fees charged by other banks, including at many international ATMs, which has come in handy when traveling internationally and even when we’ve needed cash on a cruise ship.
In Vietnam, we had to walk from our hotel to find a nearby ATM in Ho Chi Minh City. This forced us to develop the courage to cross the street there. #IYKYK
Another problem with finding an ATM is not all of them are created equal. Some ATMs are programmed to try and force you to take out more money than you need and to convince you to accept their terrible currency exchange rate. Only withdraw money in local currency and let your bank do the conversion.
If the ATM or card terminal asks whether you want to be charged in U.S. dollars, always say no and choose the local currency instead. That avoids a “dynamic currency conversion” markup and lets your bank give you a much better exchange rate.
Finally, depending on your location, it may be difficult to find an ATM that takes your card. Not all machines are able to accept international cards.
However, if you know the traps to avoid, a local ATM is your best bet.
Exchange Money With A Local Merchant
Say that you haven’t exchanged money or visited an ATM, but you are at a store that will accept the currency of your home country. You can change a $100 bill this way but do so knowing that you’ll get a terrible conversion rate. Sure, your change will be in local currency and you’ll have money for the rest of your trip but it’s a horrible deal.
Exchange Money At Your Hotel
If you’re staying at an international hotel chain, they may be willing to change your money to local currency. But just like everything else at a major hotel, you’ll pay more than you would otherwise. You have confidence that you’re not going to be taken for a ride, but the exchange rate will be higher than you could find if you’ve shopped around.
Exchange Money At A Currency Exchange Office
In any tourist area, there will be places to exchange money. You’ll know them because they’ll have large signs showing the exchange rates. Use these places at your own risk. They are businesses and can charge whatever rate they want. Make sure to know the current rate of exchange and make sure you’re not getting ripped off. Also, check to see that they are not adding any extra fees.
A better bet would be to exchange money at a bank or post office if possible. The downside with that is those places have limited hours of operation.
Final Thought
If you’re traveling on a strict budget, getting cash before your trip might be a good option for you. You’ll know exactly what you’re spending and how much you have left.
However, it’s much easier to use a credit card instead of paying cash. As long as you use a card that doesn’t charge international transaction fees, you’ll get the best exchange rate from your bank.
To get cash when traveling, using a bank ATM is your best bet. Remember to avoid the scammy ones, which charge high fees and never allow the ATM to convert currency for you. Always take out money calculated in local currency.
If you need to exchange money while out of the country, try looking for government banks or post offices. After that, see if there are any international banks you recognize. Finally, using a currency exchange booth, your hotel or paying in dollars and getting change in local currency will all get the job done, but you’ll lose money in the process.
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