Again always check against the mid-market exchange rate. Don’t be fooled by no-commission promotions often seen in the UK. Here’s why:īanks’ exchange rates are terrible on top of their hefty fees. The advice is: better safe than sorry, and have (some) cash at hand when you arrive. □ Option 2: Exchange Your Currency And Buy Euro Before You LeaveĮspecially popular with British and Americans is exchanging currency at home from a local bank, post office, or airport. Option five is better: a specific travel-optimized debit card with super low fees for foreign purchases and for withdrawing cash. Also, small old fashion stores might still be cash-only □. Albert Heijn Supermarkets (the largest chain in the country) does not accept them. Many stores won’t accept credit cards at all. Also, you need the contactless option on your card and a pin code for every transaction above a certain amount. Relying on your credit card only will become quite inconvenient quite quickly. □ Also essential to realize: Credit cards are NOT as well accepted as debit cards and cash in Amsterdam and beyond. If not clear, ask the card issuer about their foreign exchange fees AND if they use the mid-market rate, and if not, how much (%) they add to it. It looks free, but you pay pretty significantly for the privilege.īefore you’re sure you have a card with a good deal, check the fine print and look for fees AND markup. Those costs add up, entirely out of sight to you. the official (mid-market) rate you see on Google or Yahoo. Now this is on top of fees the ATM itself charges.Ī markup is usually the commercial (inflated) exchange rate vs. What does this mean: a fee is usually a fixed amount for every charge or ATM withdrawal in a currency other than your own. Rarely both are waived, this is how they make money, and you lose quite a bit, even with the nice ad saying there are no fees when you travel. So no fees translate to a (high) markup or no markup, which means a fee is added. Great marketing, often not so great for your wallet. “With our card, you pay no fees for foreign transactions,” or “With us, you pay no markup on foreign currency.” They often throw in extra perks, like extra points, to sweeten the deal. I understand it is the most simple solution. When I talk to my readers, I always ask if they thought about the currency before their trip, and still, I’m surprised when I hear: “Oh, I’ll just use my credit cards while I’m there.” □ Option 1: Use Your Credit Card From Home
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