Foreign Currency-Do's and Don'ts (2024)

Foreign currency exchange can be a daunting task, especially if you are not familiar with the process. However, it is an essential part of international travel. To ensure that you get the best value for your money, here are some do's and don'ts of foreign currency exchange.

Do's

• Research: Before exchanging your currency, research the current exchange rates to ensure that you are getting a fair deal. You can use online tools or consult with your local AAA office.
• Exchange at a Financial Institution or AAA: Usually, banks and credit unions and your local AAA have more reasonable fees and exchange rates than companies that are solely dedicated to foreign currency exchange.
• Keep Cash with You: Depending on where you’re traveling, credit and debit cards might not be accepted everywhere you go. Keep a small amount of the local currency with you.
• Spend Your Foreign Currency Before Returning Home: By the end of your trip, figure out how much of the local currency you have left and try to spend it while you’re in the country.
• Familiarize Yourself with Local Currency: Keep the exchange rate in mind when paying with a local currency. Get familiar with the local currency before your trip so that you know how much it’s worth. Always keep receipts to track your expenses and for future reference.

Don'ts

• Exchange at Airports or Hotels: These places often have unfavorable exchange rates and high fees, so it's best to avoid them if possible.
• Get More Money than You Need: Depending on the exchange rate you get; you’ll likely lose some value if you max out the limit you can exchange. If you do have currency left over, contact your local AAA to exchange it at a location near you.
• Rely Solely on Your Credit Card: Some credit cards have foreign transaction fees, which are applied when you purchase something outside of your resident country. These fees can be high, so make sure to check what your credit card’s foreign transaction fees are before you travel.
• Use American Currency: Some businesses in tourist-heavy foreign countries will accept US dollars, but you should pay in the local currency anyway. Whether you’re using cash or card, the exchange rate at these businesses could be overpriced and unreasonable.
• Forget to Notify Your Bank Before You Go: If you do have to use your credit or debit card abroad, notifying your bank beforehand to avoid any issues with fraud protection measures will help make your travels smoother.

AAA Visa Signature® Credit Cards

Enjoy foreign transaction costs at no fees with the AAA Visa Signature® credit cards! Designed for AAA Members who want premium benefits without the premium fee. *Contact your local AAA, oraaa.com/creditcardto learn more.

Foreign currency exchange can be a tricky business, but by following these do's and don'ts, you can ensure that you get the best value for your money. Remember to research, shop around, and only exchange what you need. Avoid unnecessary fees and be wary of scams. By taking these precautions, you can make your international travel or business transactions a success.

This newsletter was written byBrittany Moye. If you would like to learn more from AAA, follow us onAAA LinkedIn. There’s something for everyone: educational tips, industry research, traffic safety – and much more!