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We live in a time of instant transactions. While paying with credit can seem like a convenient and reliable way to spend while travelling, many people forget about the importance of carrying cash. The benefits of carrying cash don’t only include saving on fees, but cash can also allow you to access all that your destination has to offer. <br>
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We live in a time of instant transactions. While paying with credit can seem like a convenient and reliable way to spend while travelling, many people forget about the importance of carrying cash. The benefits of carrying cash don’t only include saving on fees, but cash can also allow you to access all that your destination has to offer. Credit Pros and Cons Paying with credit can seem more convenient, but paying with card comes with two drawbacks- unexpected fees and limited use.
When you pay with credit in a foreign country, your bank automatically charges your card with an exchange rate (a rate that you don’t usually know ahead of time). This means the reality of what transactions cost you is hidden in your bank statement. These unexpected charges almost always cost you more than it would if you had transferred your money into cash beforehand. The other drawback to paying with card is that many small merchants just don’t want to pay the fees for credit card processing and managing the hardware to accept plastic payments. This means you won’t even have the option to pay in cash. Cash is king for small merchants
Some examples of situations where you would want cash may include; - Taxis - Tips- you will want smaller denominations instead of just larger bills - Small shops to buy souvenirs Obtaining Foreign Cash Travelling with foreign cash does take more forthough than credit, but it also saved you big on fees. Obtaining cash before leaving for your trip can save you the hefty exchange rate charged at Airports. In fact, the exchange rates offered at airports are usually the most expensive rates you can find.
Withdrawing cash from credit in a foreign country also comes with a price. Using an ATM for any cash withdrawal in foreign country will not only cost you anywhere from $1 to $5 a transaction, but it will also cost you an elevated exchange rate on the overall withdrawal. The best way to save on foreign cash is to purchase it beforehand. Your local bank offer foreign exchange services, but like the fees they charge on your credit and debit purchases outside of the country, they usually charge a currency exchange rate higher than their competitors.
Another option of where to acquire foreign cash is private exchange companies. One Canadian owned and operated company that offers foreign cash is Calforex Currency Exchange. This company offers overs 100 currencies at a rate lower than the bank, meaning you pay less for the same currencies. Calforex Currency Exchange also offers you the ability to order cash online and have it delivered to your home (time saver anyone?). So whether you’re spending a week in Europe, or snowbirding in Arizona all winter, knowing how to save on foreign exchange fees can save you big in the long run.
Calforex Foreign Exchange offers the best rates on currency exchange in Toronto and all other major cities in Canada. With over 120 currencies in stock and exchange rates way better than the banks, Calforex saves you money over the banks while providing great service. With locations across Canada, we have served Canadians for over 30 years and look forward to serving you. Visit our ottawa currency exchange or foreign exchange in montreal, Toronto, Calgary, Victoria or Edmonton.
