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Buy Foreign Currency Online Instead of Using Your Credit Card
Mastercard and Visa are accepted worldwide these days. This still does not make it a good idea to use your credit card when travelling abroad. By the time that the fees are tacked on, these cards translate into a poor foreign currency exchange rate option, far worse than if you were to buy currency before you leave. You may find yourself paying huge fees if you opt to use your credit card rather than buy currency to take with you when you travel. Instead, you should buy foreign currency online from Xchange of America which offers you a competitive foreign currency exchange rate to save you money that you could end up paying in high credit card fees.
Why You Don’t Want to Take a Cash Advance on Your Credit Card
Many credit cards allow you to withdraw some cash in the form of a cash advance. This may seem like a quick and convenient way to acquire some cash in a foreign country, however, the fees associated with this type of transaction should make you warry of ever resorting to this method of acquiring cash. ATM machines in foreign countries may charge you a substantial fee in the form of a foreign-transaction charge. This is in addition to your withdrawal amount and the fees that may be charged for using an ATM that is not within your banking network. Furthermore, the interest that you are charged on a cash advance is often more than what is charged for general purchases on your credit card. These fees can add up to a large sum of money that you have to pay for using your credit card to get cash in a foreign country. Thus, it is often cheaper to buy currency before traveling to a foreign country.
Credit Card Purchases
Using your credit card to make purchases in a foreign country can cause you to get hit with a significant foreign transaction fee even if you do not get a cash advance. Some banks that issue credit card charge a foreign transaction fee of as much as three percent per purchase made with a credit card in a foreign country. These fees can add up to substantial amounts of money that you would not be spending if you bought foreign currency at a competitive foreign currency exchange rate before leaving home.
When to Use Your Credit Card
Although banks charge foreign transaction fees for purchases made on a credit card when in a foreign country, using a credit card is still suitable when paying for goods and services such as hotel rooms and other significant expenses which often require that a credit card be on file. It is important, however, to limit the use of your credit card to only these large purchases. You should buy currency utilizing a foreign currency exchange to make smaller purchases such as those for meals, tourist attractions, sightseeing, souvenirs and more.
Use XChange Of America to Buy Foreign Currency Online
Instead of paying high credit card fees for cash advances and foreign transaction fees, you can buy foreign currency online from Xchange of America for the latest foreign currency exchange rate before leaving country. This will allow you to take the cash you need without having to worry about what fees the bank that issues your credit card may charge you for using the card outside of the country.