How to Exchange Money at the Best Rates While Traveling

Handling foreign currency while traveling used to be a hassle. One had to deal with bulky traveler's checks, wait in line at banks or both. Currency exchange storefronts came with long lines and were notorious for charging fat fees to exchange your money. Nowadays, currency exchange is easy. Put your debit card in the machine and out comes local money. Still, some tips help travelers get the best rates.

• 1

  Use your ATM or debit card. Airport and train stations all have ATMs, so you can withdraw money in the currency of the country where you are before even hitting the street. Travel writers agree that you're likely to get a better rate with an ATM than by using traveler's checks or money changers.

• 2

  Get a travel-friendly credit card. Cards that advertise themselves as traveler cards often charge less for international purchases than those that don't. Many credit cards charge up to a 3 percent transaction fee for international purchases. A few cards, including Capital One, charge no fees. But credit card rules change frequently, so check before you apply.

• 3

  Check the exchange rate daily and act accordingly. Many hotels have Internet service for checking the exchange rate while you check your email or confirm future reservations. Many banks also post the day's exchange rate outside. Bit by bit you can save a nice chunk by being careful about the exchange rate.

• 4

  Avoid changing money before you leave the country. Besides being unnecessary, it often is more expensive. Also avoid currency exchange windows. They have a reputation for charging high fees.