The best exchange rate for changing Brazilian Reals is always obtained by paying with a card, as it is by far the most cost-effective option. And for carrying 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 are going to need from the ATM.
Certainly, this technique to save the most money possible on your vacation may surprise you because, after all, if you go to any currency exchange or bank, you will see how they advertise loudly that “there are no commissions,” and therefore, one might simply think that it would be logical to exchange Reals at the current exchange rate and that’s it, right? Well, no! Everything has a cost, even paying with a card has a cost, although they don’t tell you or you don’t see it at first glance.
I’m going to tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and frankly, changing cash is the worst option by far. Furthermore, to give you an idea of the extent of this bad alternative, you should know that most currency exchange operators or banking employees have discounts for currency exchanges compared to the exchange rates offered to customers. But not even with those discounts! We never exchange cash. At most, depending on the trip, only a small amount for certain payments or in case it is necessary to enter the country.
So, it is clear: always pay with a card and only withdraw the necessary amount of cash from an ATM. Now let’s see how to pay the lowest possible cost in both cases:
What is the best card for paying abroad?
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, Wise card provides the lowest costs.
These results are valid not only in terms of costs for payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be, on average, 4 times more expensive, and bank cards would be, on average, 10 times more expensive) but also in costs when 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 would be, on average, 20 times more expensive).
Likewise, if you want to know the exact cost differences and functionalities among the different cards available in the market in 2024, do not miss our comparative study at this link. As you will see, this extensive 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 instead of a conventional bank card or other travel cards since you will save a significant amount of money when paying at foreign stores and when withdrawing money from international ATMs by paying the lowest possible fees.
In this way, 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 retain an amount as a deposit and will only accept credit cards.
If, on the other hand, you are not going to carry out this type of operation, 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 phone, so you wouldn’t have anything to pay with).
Keep in mind that in case of theft, you run the risk of fraudulent transactions being 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.
Additionally, 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 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 immediately 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 to make sure your phone’s battery is always fully charged. To do this, remember that plugs are different in many countries. Therefore, it would be a 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 take your credit card from your bank to be able to pay deposits in operations such as renting vehicles, before traveling, it is advisable to notify your bank 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 somewhat low limits without knowing it, you could reach your limit 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 very simple way:
- If you have a bank card, you should contact a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts within the same bank are processed instantly, 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 from different banks, as this type of transfer is also processed instantly.
- If you have a prepaid card like Wise, you can recharge it through the app (or someone else 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 cash you have withdrawn from an 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 Reals 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 to your card, and even if the card is canceled or blocked due to theft, you can continue to make payments with your phone without any problem.
- Have someone pay for what you need from your country: If you only 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 through the airline’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many of these agencies. 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 where they will buy any gold jewelry from you without any problem.
- Sell your high-value assets at a second-hand shop: The most sought-after and easily sellable items would be technological products like mobile phones or laptops, as well as high-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 spot to ask would be next to vending machines, as everyone gets change from them, and when you ask, it’s very easy for people to give you something.
- Visit your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where can I find the best cash exchange rate for Brazilian reals?
As mentioned earlier, the cheapest way to obtain cash in Brazilian Reals is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash for Reals at a currency exchange or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good rate. An exchange rate with a margin of 5%-10% would be acceptable, 10%-15% would be a poor rate, and anything beyond 15% would be excessive.
You can easily find the official exchange rate for the Brazilian Real against your currency on Google. By subtracting the rate offered to you and dividing the difference by the official rate, you can calculate the percentage margin being applied.
Usually, highly trafficked areas in tourist destinations are the worst places to exchange currencies, as they apply higher margins on the exchange rates. Therefore, it is best to search online for a reputable exchange establishment rather than going to the first one you see.
However, if you need to exchange a small amount of money, it wouldn’t matter much where you exchange it in case of necessity and urgency, as it would entail a small additional cost at worst.
How much cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as an emergency fund in case your card and phone are stolen, allowing you to at least get by: have something to eat, make calls, travel to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves in case you need to make cash payments: at some street vendors, certain vending machines, and for paying for certain services such as laundromats, phone booths, shopping carts that require coins, etc.
Therefore, depending on the number of days you will be traveling and how much you plan to spend in cash, you can roughly estimate what you will need, which should not be a large amount in any case.
Is it possible to know if the exchange rate for reals will improve or worsen in the future?
Official currency exchange rates function like any other financial market, such as the stock market. While there are analysts and financial gurus who make predictions, just like with stock predictions, there is no concrete evidence to prove that anyone is capable of accurately predicting future prices.
Generally, currency exchange rates tend to be fairly stable, and over the course of a month, they do not vary much more than 5%, unless there is an unexpected economic or political event, such as the unforeseen victory of an opposition party with a disruptive economic program.