6 things to know about currency conversion before you travel
If you’re planning to travel abroad, you’re probably looking into foreign currency conversion. Converting your money into local currency is a crucial part of pre-trip prep.
However, travel exchange rates can be a little confusing. Why are rates constantly changing? Why do different providers offer different rates? Where is the best place to order foreign currency?
Let’s tackle some of these common questions to help you get prepared for your trip. Here are six top tips on currency conversion to know before you travel.
6 tips on foreign currency conversion for international travel
1. Find out the exchange rate
First things first, you need to find out the exchange rate. The exchange rate is the ratio between currencies from two different countries, like your home currency and the local currency of the place you’re travelling to.
If you were travelling from the UK to France, for example, the exchange rate might look like:
GBP £1: EUR €1.15
This means that for every British pound you exchange, you’d receive €1.15 in euros.
Exchange rates fluctuate constantly. This is due to a variety of global factors like inflation, interest rates, political stability, and supply and demand. It’s important to keep an eye on how the exchange rate is moving so you can buy foreign currency at the right time to get the best travel exchange rate.
If you’re in no rush to buy travel money, you can set up exchange rate alerts with Western Union. You can choose to receive a daily alert with the latest exchange rate, or even enter a desired rate you want to be notified of. This way, you can order foreign currency when the exchange rate is the most favourable.
2. Factor in currency conversion fees
When you exchange one currency for another, there are costs involved. These are known as currency conversion fees, and they can vary considerably from one travel money exchange provider to another.
Before you buy foreign currency, you should check the fees of different providers to make sure you’re getting the best deal. Don’t skip travel money exchange comparison or you can end up getting less foreign currency for your money.
3. Buy foreign currency before you travel
Every seasoned traveller knows it’s best to buy travel money before you travel.
Firstly, it gives you time to shop around for the best travel exchange rate. Secondly, when you arrive, you won’t need to worry about finding a bank or a tourist money exchange vendor right away.
4. Send money ahead to your destination
If you want to make travel money exchange really easy, you can send money to your destination ahead of time. Western Union have more than 500,000 agent locations around the world, so you can send money to the most convenient one for you, like the airport or near to your accommodation.
When you arrive, you can pick up the money at any Western Union location. This saves you carrying money whilst you travel, so you won’t need to worry if your luggage is lost.
You can use the online Western Union currency converter to get an estimate of how much local currency you might receive based on the exchange rate, your preferred payment method, and any other fees.
If you want to order foreign currency on the go from your phone, download the Western Union money transfer app for free.
5. Bring British cash or a prepaid currency card
Even if you think you won’t need much cash, it may be worth having some British pounds with you just in case. This can be helpful if you run into trouble with your bank account, debit card or credit card when you arrive at your destination.
An alternative is a prepaid currency card which you can load up with local currency and use like a debit card. If you top up before you travel, you’ll lock in the exchange rate, which can help if you need certainty over your budget.
You can also store money in GBP on the card and then when you spend, the provider will convert the money at the exchange rate of the day. The advantage of a prepaid currency card over cash is that you can get your money back or freeze your account if the card is lost or stolen by informing your provider as soon as possible.
6. Be careful buying foreign currency when you’re there
If you do need to access local currency when you’re there, be careful where you go. It’s best not to use airport tourist money exchange kiosks as these tend to have higher currency conversion fees and less favourable exchange rates.
You can use your debit card at an ATM to withdraw cash but be careful that your bank doesn’t charge excessive fees for use abroad. Check the fees charged by your debit card provider before you travel and if these are high, consider getting a card that doesn’t charge any currency conversion fees.
If you plan to use your credit card during your trip, find out what fees your provider charges and compare them with alternate methods of foreign currency conversion. This includes cash advance fees—credit card companies will often allow you to get a currency cash advance, but fees can be high.
Send money with the Western Union mobile app
Use our money transfer app to send money internationally for pick up in cash or to a bank account anytime, from anywhere.
