While traveling with only a credit card and little or no cash may work fine in the United States that is not the case when traveling abroad, especially in developing countries. In many of these nations credit cards are not widely accepted and may be more susceptible to fraud. Regardless of where you travel, you will want to carry at least some national currency with you.
Wells Fargo bank advises its customers to carry many different forms of payment when traveling internationally, including currency, travelers checks, credit cards and ATM cards. We concur—except for travelers checks, which are accepted at fewer and fewer places around the world.
There are basically eight sources that you can use to exchange currencies. These include your local bank, online services, ATM cards, pre-paid currency cards, airport exchange desks, in-country banks, retail exchange centers and some international hotels. Â
Many banks in the U.S., especially the large national ones, and online services such as Travelex.com can exchange money for you if you are headed to one of the more frequently traveled nations. If you are headed to a nation that is more off the beaten path, then most likely you will have to wait until you arrive in the country to make your exchange.
Many ATM cards can be used abroad to get cash in the local currency. Just be sure to check with your bank about fees and availability of machines that will accept your particular debit card. Travelex offers pre-paid currency debit cards, in addition to cash exchanges, but only for Euros and British Pounds.
Once you arrive in country, the airport there should have a currency exchange desk but know that these rates are typically not as good as what you might get at a bank. In tourist areas you often will see numerous retail exchange outlets. Be sure to shop around as rates can vary greatly between outlets. Some larger hotels also offer exchange services, but may include a higher service fee, so be sure to check.
Regardless of where you exchange your money, you should know what the current exchange rates are so that you know if you are getting a rate close to market value. One site to check current exchange rates is http://www.oanda.com/. There also are mobile phone apps such as GlobeMaster for the iPhone that includes currency conversion.
Another tip is to not exchange more than you are sure you will use as it will cost you to sell the currency back. Also, if you are in one of those less-traveled nations, be sure to sell back all of your currency before leaving the country. You may find it difficult or even impossible to exchange once you get home.