"3 Ways to Avoid Getting Burned by Exchange Rates and Fees When Traveling Overseas This Summer"

As foreign investors turn away from US assets amid President Trump’s trade war and a growing national debt, the value of the US dollar relative to other currencies is down by around 10% since Inauguration Day to its lowest level since early 2022.

But if you’re not careful, your effective exchange rates can spiral higher.

Chris Kawashima, the director of Charles Schwab’s Financial Planning division, recently shared three ways to save money on your next trip when it comes to foreign exchange rates and transactions.

First, be aware of foreign transaction fees associated with your credit or debit card, Kawashima said. Many credit card companies will charge up to a 3% fee. On top of that, the bank behind your credit card company may also charge a similar fee.

Some common credit cards with no foreign transaction fees include the Chase Sapphire Preferred Card, Citi Strata Premier Card, and Capital One Venture Rewards Credit Card.

Card readers will also sometimes offer you the option to pay in the local currency or in USD. In those cases, pay in the local currency, Kawashima said, because the exchange rates are usually poor and will leave you paying a higher price in the end.

“Many travelers are enticed by the convenience and familiarity of receiving bills—at restaurants, for instance—in U.S. dollars,” Kawashima said in the post earlier this month. “But this new trend, called dynamic currency conversion, can come with an unfavorable exchange rate, transaction fees, or both.”

A good way to avoid fees altogether is to pay in cash. But getting hold of foreign cash without paying a hefty price can also be challenging for two reasons: exchange fees and unfair exchange rates.

To avoid steep fees, perhaps minimize how many times you’re getting cash out. You may also want to get the cash before you leave at your bank or credit union, which usually offer some of the best exchange rates available, Kawashima said.

“It’s best to check ahead, however, to confirm that they have the foreign currency in hand as well as to check on the conversion rate,” Kawashima said. “Once you arrive at your destination, you might be able to get a decent exchange rate at your hotel as well.”