The best exchange rate for Swiss Francs is obtained by always paying with a card since it is by far the most economical option. And to carry some cash, the best option is to withdraw money from an ATM.
In other words, the best strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024, Wise card offers the best exchange rates and the lowest costs in the market) and only withdraw the amount of cash we will need from an ATM.
Certainly, this technique to save the maximum amount of money on your vacation may surprise you because ultimately if you go to any currency exchange or bank, you will see how they advertise loudly that “there are no fees,” and therefore, one could simply think that the logical thing would be to exchange Francs at the exchange rate available at that time, right? Well, no! Everything has a cost, even paying with a card has a cost, even if they don’t tell you or you don’t see it at first glance.
I’m going to tell you a secret: we, a group of friends who have worked for several years in currency exchange offices, have created this website, and frankly, changing cash is the worst option by far. Moreover, to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or banking employees have discounts to exchange currencies compared to the exchange rates offered to customers. Well, not even with those discounts! We never exchange cash. At most, depending on the trip, only a small amount for certain payments or if it is necessary to enter the country.
So, it is clear: always pay with a card and only withdraw the necessary Swiss Francs in cash from an ATM. Now let’s see how to pay the lowest cost possible in both cases:
What is the best card for international payments?
Based on the study we have conducted on all the cards available in the market for this year 2024, for payments in any foreign country, travel cards have lower costs than bank cards, and among travel cards, the one with the lowest costs is the Wise card.
These results are valid not only regarding the costs of international payments in foreign currency at businesses (Wise would offer the best conditions, other travel cards would be on average 4 times more expensive, and bank cards on average 10 times more expensive), but also for the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again offer the lowest fees, other travel cards would be on average 4 times more expensive, and bank cards on average 20 times more expensive).
Likewise, if you want to know precisely the cost differences and functionalities among the different cards you can find in the market in 2024, do not miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Is it necessary to take cards from our country abroad?
As we mentioned, it is preferable to use the Wise card rather than a conventional bank card or other travel cards since you will save a significant amount of money when paying at foreign businesses and when withdrawing money from international ATMs by paying the lowest possible fees.
Thus, initially, it would not be necessary to carry any other card, but keep in mind that if you are going to make payments such as renting a car, you will need a credit card since most car rental companies will hold an amount as a deposit and only accept credit cards.
If, on the other hand, you are not going to carry out these types of transactions, it is recommended to leave your bank cards with higher balances at home and only for security reasons, it would be advisable to carry an extra debit card with a small balance in case of emergencies (imagine that your other card gets damaged or stolen, and you also lose your mobile phone, so you have nothing to pay with).
Keep in mind that in case of theft, there is a risk that fraudulent transactions may be made with your cards within their limits, while with the Wise card we recommend, your balance will never go negative, so only the deposited balance could be spent.
In addition, you can instantly block your Wise card from your mobile phone, while with your bank cards, you may have to call your bank to cancel them, running the risk that they may not provide service at that time due to being a holiday or outside customer service hours.
For all these reasons, when traveling, it is always much better to carry a debit card like the Wise card with the amount of money you will need. If you need more, you can always reload it instantly through the mobile application, and if you want to block it due to loss or theft, you can also do it instantly through the application. This way, you will have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card has numerous functionalities through the mobile phone, so it is important that you make sure to have your phone’s battery fully charged at all times. Remember that plugs may be different in many countries. Therefore, it would be a very good idea to acquire a universal plug adapter for traveling, as it can be useful for any future trips you plan to take. In this link, at a very affordable price, we show you a universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it is important to know that if you are going to bring your credit card from your bank to pay for deposits in operations such as car rental, it is recommended to inform your bank in advance that you will be traveling abroad and the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you will spend more than usual, so if you have relatively low limits without knowing it, you could reach your limit unknowingly and find yourself in serious trouble.
What to do if my card runs out of funds abroad?
If your debit card runs out of funds abroad, you can always obtain money in a straightforward way:
- If you have a bank card, you can contact a family member or friend who is a customer of the same bank to transfer money to your account. Transfers between accounts within the same bank are usually instant, so once the transfer is completed, your card will be able to use the new balance in your account. Another option would be to make an “immediate transfer” between accounts at different banks, as these transfers are also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone can do it for you) and receive the money instantly.
What should I do if all my cards are stolen abroad?
If all your cards are stolen abroad, these are your alternatives to get by:
- Use the cash you withdrew from the ATM: You can pay with the cash in foreign currency if you have made a withdrawal from an international ATM.
- Exchange your currency for cash: It is always advisable to carry some cash in your home currency in case of emergencies, as you can exchange it for Swiss Francs at currency exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment service, you can link your mobile phone with your card, and even if the card is canceled or blocked due to theft, you can continue to pay with your phone without any problem.
- Have someone in your country pay for what you need: If you simply need to purchase a plane, train, or boat ticket, anyone you know in your country can pay for it online and send you the mobile boarding pass (or you can download it from the airline’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous agencies that provide this service. In these agencies, anyone you know can make a transfer from your country for you to receive the money abroad.
- Sell your jewelry at a gold buying store: In most major cities around the world, there are numerous gold buying establishments that will easily buy any gold jewelry from you.
- Sell your high-value assets at a second-hand pawnshop: The most sought-after and easily sellable items would be technological products like mobile phones or laptops, as well as quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask is next to vending machines since everyone receives change from them, and when asking, people are likely to give you something.
- Go to your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where to find the best cash exchange for Swiss Francs?
As we mentioned earlier, the cheapest way to obtain cash in Swiss Francs is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash for Swiss Francs at a currency exchange office or bank, a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin of 5% to 10% would be an acceptable exchange rate, while a margin of 10% to 15% would be a poor exchange rate, and anything beyond 15% would be considered excessive.
You can easily find the official exchange rate for the Swiss Franc relative to your currency on Google. By subtracting the rate offered to you and dividing the difference by the official exchange rate, you will obtain the percentage margin that they would be applying.
Usually, heavily trafficked areas in tourist sites are the worst places to exchange currencies, as they apply higher margins on the exchange rates. Therefore, it is best to search online in advance for a reputable exchange office instead of going to the first one you see.
However, if it is a small amount of money that needs to be exchanged, it wouldn’t matter much where you exchange it in case of urgency since it would only entail a small additional cost in the worst-case scenario.
How much cash is sufficient for travel?
Exchanging cash serves two purposes:
- It serves as an emergency fund in case your cards and mobile phone are stolen, allowing you to at least get by, have something to eat, make calls, go to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves for making cash payments: at some street vendors, certain vending machines, and for paying for certain services such as laundromats, telephone booths, shopping carts that require coins, etc.
Depending on the number of days you will be traveling and the amount you plan to spend in cash, you can roughly estimate what you will need, which in any case should not be a large amount.
Is it possible to predict whether the Swiss Franc exchange rate will improve or worsen in the future?
Official exchange rates for all currencies function like any other financial market, such as the stock market. While there are analysts and financial experts who make predictions, just like with stock predictions, there is no conclusive evidence to prove that anyone can accurately predict future prices based on the available data.
In general, foreign exchange market rates tend to be fairly stable, and over the course of a month, they do not fluctuate much more than 5%, unless there is an unexpected economic or political event, such as the unexpected victory of an opposition party with a groundbreaking economic program.