Do you have a big international trip planned? Before you go, consider exchanging some of your money into the local currency of your destination before you go. Exchange rates at airports are often unfavorable and you may need cash upon arrival to catch a taxi or grab a bite to eat.
Receiving foreign currency in advance can also help you avoid tourist scams. Regardless of the destination, carrying some of that country’s currency can help you be prepared and protect yourself from scams. Follow this step-by-step guide so you’re ready when the big day arrives.
It can be useful to purchase foreign currency before taking an international trip. Follow these steps to ensure you have cash in the correct currency before you start your trip:
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Identify your destination: While some countries have common currencies, such as the euro, many countries have their own unique currencies. Knowing your destination can help you identify the currency you need.
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Research exchange rates: Some currencies have values similar to the US dollar, but others can differ significantly. Once you know which currency you need, look at the exchange rate against the dollar.
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Compare rates on currency exchanges: Check the rates for your currency with your bank, local currency exchange offices and online currency exchange services. If you plan to convert a lot of cash, a seemingly small difference in costs can be significant.
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Place your order: Once you have determined who has the best exchange rate, place your order. You will need to share a few details such as the currency you want to purchase, the amount and the delivery method. For example, at physical locations you can choose personal pickup or home delivery.
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Confirm your order and pay: Before completing your order, double check the exchange rate and confirm that it is the rate you expect. If this is the case, confirm the order and make your payment.
If you are placing a currency order in person, please ask the representative if you will be charged a transaction fee or delivery fee. If possible, use a free payment method, such as bank transfer or debit card, when paying for your order. It is always preferable to keep costs low, so it is a good idea to check for additional costs every step of the way.
We’ve discussed in advance some of the reasons why you might want to buy foreign currency, but there can be pros and cons, as with all financial services.
Plus points
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Ease: Purchasing foreign currency in advance allows you to pay for transportation, meals, and tips once you arrive.
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Avoid high costs: Having foreign currency in advance can help you avoid paying high fees at your destination airport or ATM.
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Avoid scams: Buying foreign currency in advance can help you avoid scams. For example, you may unknowingly buy counterfeit money or pay terrible rates without realizing it.
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Be prepared: Some merchants may not accept card payments abroad. Having foreign currency ensures that you can always pay.
Disadvantages
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Rate fluctuations: If the foreign currency weakens against your currency between your trip and the time you purchase it, you could miss out on potential savings.
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Costs: Banks and exchange offices charge fees for currency conversions, which can sometimes be a significant expense. You may be able to save money by using a credit card with no foreign transaction fees and withdrawing cash from local ATMs.
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Time and planning: We are all busy and you should take the time to buy foreign currency. But more than that, processing a foreign currency order can sometimes take a few days, so last-minute options may not be a viable option.
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Carrying cash can be risky: Replacing lost or stolen cash is virtually impossible. So it can be dangerous to carry a lot of cash, especially if you travel to countries where pickpockets are common. However, you can reduce your risk by limiting the cash you carry and keeping it hidden when you are on the road.
There are certain steps you can take to get the most value from your conversion. One of the most important things you should do is research exchange rates.
Rates change regularly and you never know what the future will bring. However, keep an eye on rates in the weeks leading up to your trip and compare them to previous rates. If you notice that rates at some point are favorable compared to where they have been in the recent past, it may be a good time to move forward with your foreign currency purchase.
Once your trip starts, another trick is to always pay in the local currency when using a card. Some merchants may offer a dynamic currency conversion (DCC) at checkout, but this often comes with unfavorable exchange rates and additional fees. You can always do a quick calculation on your phone to see how much the total is in US dollars to avoid this expensive service.
You can also carry a travel credit card to supplement your cash. Not all foreign stores accept card payments, but many do. Carrying a card with no foreign transaction fees can help you reduce your reliance on cash and pay fewer currency exchange fees.
Read more: The best travel credit cards for 2025
While it’s a good idea to have at least some local currency in your pocket, there are some downsides to ordering foreign currency in advance.
A simple alternative is to withdraw local currency from an ATM in the destination country with your debit card. This means you’ll be out of cash at the start of your trip, but ATMs often have competitive exchange rates and are usually widely available. (You may want to avoid ATMs at the airport and other major tourist destinations, as they are likely to have higher fees.) If possible, use a debit card that doesn’t charge foreign transaction fees, which can save you about 3% on each transaction. intake.
You can also rely on a credit card for your expenses while traveling. This reduces the need to carry cash, and credit cards have strong protection against fraud. However, there may be situations where you cannot use a card, such as paying for a taxi or tipping a tour guide. Therefore, it is highly recommended that you always have at least some cash with you.
Another alternative that is becoming increasingly common is mobile payment apps. This includes digital wallets such as Apple Pay, Google Pay, as well as peer-to-peer payment apps such as Venmo, PayPal and Cash App. Other countries may have different apps, such as WeChat Pay and Paytm. These apps are generally safe, secure and convenient. However, they may not be accepted everywhere and may require an internet connection. That can cause a problem if you haven’t purchased a local SIM card or data plan.
Read more: Is it safe to store money in apps like Venmo, PayPal and Cash App?