Go to Google and put through a search for travel money and you will be hit with thousands of websites promising commission free travel money. While it sounds like a great deal to order your money online and avoid the costly commissions, the idea of commission free travel money is a myth that has fooled far too many people.
Commission Free Money: The Truth
When you see someone promising commission free travel money, understand that they are not offering to convert your money into the currency you need for your next vacation completely fee-free. They may want you to believe that you are getting an excellent deal, but it is guaranteed that you are paying more than you should have to.
In most cases, they are not giving you a fair exchange rate. While the competition used to be who could give the most competitive exchange rates while offering reasonable commission fees, the game has changed today. Companies are now trying to fool the consumer into believing there is no commission, while they offer a less competitive exchange rate. The extra money collected through the higher exchange rate is the same thing as a commission.
This is why it is so important to compare exchange rates well in advance of your trip abroad. You don't want to just use your credit and debit cards overseas because you will incur lots of fees that will rob you blind, but you also don't want to just quickly exchange your money at the last minute because you will end up with a much higher exchange rate.
Money Exchange Options
There are quite a few options for exchanging your money prior to a trip:
If you're exchanging money at the airport you waited too long to take care of business! You are already on your way or have arrived in another country and need money on the spot to make purchases. You don't have a lot of options as far as comparing exchange rates at this point.
Comparing Exchange Rates in Advance
The best option is to go online in advance of a trip and start comparing exchange rates. You can go to your bank or credit card company's website and see if they do money exchanges. Many banks now have this service online and some credit card companies such as American Express do as well. Get their rates, but don't commit just yet.
If you have a membership to AAA or other travel related organizations, check their exchange rates as well. You may want to check into a couple money exchange websites, but be careful because many are scams just waiting to collect your bank information and run. If you know of a completely legitimate site, check their exchange rates as well.
Finally, look into prepaid currency cards which can be used just like a credit card around the world. You will be able to load these cards with the currency of your choice prior to a trip and save tons of money on fees! While there is no such thing as commission free travel money, there are ways to know upfront what your fees are going to be so you can better plan your expenses. Prepaid cards are the cheapest and most effective way to spend travel money. Find out more.
Friday 26 March 2010, 09:32am
