Using Cash While Traveling
When making a purchase while traveling abroad, we always suggest using a credit card that does not charge foreign transaction fees. But sometimes, having to use cash is unavoidable, and a trip to the ATM will need to happen for that next meal or excursion. There are a few rules we stand by when these situations arise:
We never recommend exchanging cash in advance of your trip no matter where in the world you’re going. Most vendors and countries are happy to take dollars. But if you need/want local currency, just stick your ATM card in a machine and withdraw when you get to your destination. Your bank will give you the current exchange rate, which will be far better than whatever exchange rate the local currency conversion company will give you.
If you’re a traveler who likes to have cash on hand, then you want to avoid the small ATM fees. There are plenty of banks that will refund/waive those pesky fees which will allow you to visit (and revisit) the ATM as needed. Personally, we use a Schwab Checking Account for this, but there are many banks out there that now do this - just typically not the brick-and-mortar like Chase, Bank of America, Wells Fargo, etc.
One more tip: Always decline the Dynamic Currency Conversion if they offer it at the ATM. On the screen, it will give you an option to convert to a certain cost in USD right away. Don’t do it! It's always a bad conversion rate, so just decline and withdraw the cash in the local currency. Some ATMs make this tricky and the wording makes it feel like you need to agree, but just decline the offer, you'll still get your cash - you’ll come out ahead every time.
Related: Speaking of Dynamic Currency Conversion, this rule goes for swiping a credit card as well. Always choose to pay in local currency because the dynamic conversion option in USD is a ripoff.