By | April 30, 2025
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How To Avoid Currency Conversion Fees

Avoiding currency conversion fees can save you a surprising amount when traveling or shopping internationally. These fees are usually charged by banks, credit card issuers, or ATMs when converting one currency to another.

Here’s how to minimize or eliminate currency conversion fees:

💳 1. Use a No-Foreign-Transaction-Fee Credit Card

  • Choose a credit card that doesn’t charge foreign transaction fees (typically 1–3%).
  • Examples (varies by country):
    • U.S.: Chase Sapphire Preferred, Capital One Venture, Amex Gold
    • U.K.: Halifax Clarity, Monzo
    • Canada: Scotiabank Passport Visa Infinite
  • Pay in the local currency when using the card abroad to avoid dynamic currency conversion (DCC) fees.

🏦 2. Use a Multi-Currency Bank Account or App

  • Use services like Wise (formerly TransferWise), Revolut, or N26 that let you hold multiple currencies and offer real exchange rates with minimal fees.
  • You can exchange currency in advance and spend directly from your account abroad.

🏧 3. Use Local Bank ATMs Strategically

  • Withdraw local cash from bank-affiliated ATMs, which usually offer better rates than currency exchange booths.
  • Avoid currency conversion when prompted at the ATM—always choose to be charged in local currency.
  • Limit the number of withdrawals to reduce flat ATM fees.

💱 4. Avoid Airport and Tourist Currency Exchanges

  • They often have high markups and poor exchange rates.
  • If you must use one, exchange only a small amount and use better methods later.

🧾 5. Decline “Dynamic Currency Conversion” (DCC)

  • When paying by card abroad, merchants may ask if you want to be charged in your home currency instead of local currency.
  • Always decline this—it usually includes worse exchange rates and hidden fees.

🧮 6. Compare Exchange Rates Before You Convert

  • Use apps like XE, Google, or Wise to check real-time rates.
  • Be wary of hidden markups in “zero-fee” exchanges.

🛍️ 7. Shop on Sites That Let You Pay in Local Currency

  • When shopping internationally online, select local currency at checkout to avoid extra conversion charges by your bank.

🧳 8. Preload a Travel Money Card

  • Cards like Revolut, Wise, Travelex, or Caxton let you load currencies ahead of time at favorable rates.