- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
Comments (1)
Print
Save/Share
For that matter, either option is better than using a currency conversion service at the airport or train station.
BT readers always want to get the most bang for the buck, so it's no surprise we always field questions regarding which currency exchange method yields the traveler the most local cash. Generally speaking, our advice has always been to use a credit card first, and withdraw cash at an overseas ATM second.
A new study from CardHub says that advice is right on the money, excuse the pun. The study compares the rates and fees assessed by credit card companies, the 15 largest banks in the U.S., and the world's largest currency exchange operator, Travelex. In order to compare apples to apples, all of the data was collected on the same day last month, and the currency exchange in question involved changing $300 into euros.
Visa edged MasterCard slightly for the best rates, and if the traveler was using a card that didn't tack on additional fees -- some Capital One, Citibank, and Chase cards are examples -- either Visa or MasterCard provide better exchange rates than any bank surveyed. Overall, banks' exchange rates were 7.9 percent poorer than no-fee credit cards. Among the banks, Northern Trust and Harris Bank offered the best rates, while U.S. Bank and Fifth Third Bank had the worst.
Worst of all, however, was Travelex. CardHub gathered rates from the service's John F. Kennedy International airport location, and they were 14.7 percent higher than a credit card with no international exchange fees.
But before you go paying for everything overseas with your credit card, assuming you're getting the best rates, take a close look at your card. Most cards, in fact, assess currency conversion fees of 1 to 3 percent -- and if your card does, you might be better off simply hitting an ATM in the country you're visiting.
MORE FROM BUDGET TRAVEL
What Your Bank Won't Tell You About Currency Conversion
4 Foreign Exchange Apps You Need
Citibank and Chase drop foreign exchange fees on some cards
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.
Good for its broad strokes, but lacking in useful detailed examples!
Posted By Glenna on July 18, 2011, 9:22 PM