The best exchange rate for converting euros 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 choice is to withdraw money from an ATM.
In other words, the best strategy to maximize savings 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 for saving the maximum amount of money on your vacations may surprise you, because ultimately if you go to any exchange house or bank, you will see how they advertise loudly that “there are no commissions,” and therefore one might simply think that the logical thing would be to exchange euros at the exchange rate of the moment and that’s it, 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: this website has been 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. In fact, 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. But 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’s necessary to enter a country.
So, it is clear: always pay with a card and only withdraw the cash euros that we are going to need from an ATM. Now let’s see how to minimize costs in both cases:
Which is the best card for international payments?
Based on the study we have conducted of all the cards available in the market for this year 2024, for making payments in any foreign country, travel cards have lower costs than regular bank cards, and among travel cards, the one with the lowest costs is the Wise card.
These results are valid not only in terms of costs for international payments in foreign currency at stores (Wise would offer the best conditions, other travel cards would be on average 4 times more expensive, and regular bank cards on average 10 times more expensive), but also in the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again have the lowest fees, other travel cards would be on average 4 times more expensive, and regular bank cards on average 20 times more expensive).
Likewise, if you want to know the exact differences in costs and functionalities among the different cards available in the market in 2024, don’t 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 bring cards from our home country when traveling abroad?
As we mentioned before, it is preferable to use the Wise card instead of a regular bank card or other travel cards, as 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.
Therefore, in principle, 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, as most car rental companies will hold 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 transaction, it is advisable to leave your high-balance bank cards at home and only for security purposes, it would be advisable to carry an additional 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, leaving you with no means of payment).
Consider that in case of theft, there is a risk that fraudulent operations may be carried out with your cards within their limits, while with the Wise card we recommend, your balance will never go negative, so only the deposited balance can be spent.
Additionally, you can instantly block your Wise card from your mobile phone, whereas 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 moment due to being a holiday or outside of 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 to make sure that your phone’s battery is always well charged. For this, remember that in many countries, the plugs are different. Therefore, it would be a very good idea to purchase a universal plug adapter for traveling, as it can be useful for any trip you plan to take in the future. In this link, for 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 to pay deposits in operations such as car rentals, it is advisable to notify your bank before traveling abroad and inform them of 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 a serious predicament.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance while you’re abroad, there are simple ways to obtain money:
- If you have a bank card, you can contact a family member or friend who is a customer of the same bank and ask them to transfer money to your account. Within the same bank, the money will be transferred 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 in different banks, as this type of transfer is also processed instantly.
- If you have a prepaid card like Wise, you can reload 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 while you’re abroad, here are some alternatives to manage the situation:
- 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 into cash: It is always advisable to carry some cash in your home country’s currency in case of emergencies, as you can exchange it for euros at currency exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, you can link your mobile phone to your card. Even if your card is canceled or blocked due to theft, you can continue making payments with your phone without any issues.
- Have someone pay for your needs from your home country: If you only need to purchase a plane, train, or boat ticket, anyone you know in your home country can pay for it online and send you the mobile boarding pass (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous agencies that offer money transfer services. Anyone you know can make a transfer from your home country so that you can 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 buy any gold jewelry from you without any problems.
- Sell your valuable assets at a second-hand store: The most sought-after and easily sellable items would be technological products such as 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, a perfect place to ask would be near vending machines, as everyone receives change from them, and when you ask, people are likely to give you something.
- Visit your Embassy or Consulate: As a last resort, the representatives of your country can provide assistance.
Where to find the best cash exchange for euros?
As mentioned before, the cheapest way to obtain cash euros is by withdrawing money from ATMs.
However, if you wanted to exchange cash euros at a currency exchange office or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin between 5% and 10% would be an acceptable exchange rate, between 10% and 15% would be a poor exchange rate, and beyond 15% would be usury.
The official exchange rate between the euro and your currency can be easily found on Google. By subtracting the offered rate and dividing the difference by the official rate, you will obtain the percentage margin being applied.
Usually, highly trafficked areas in tourist sites are the worst places to exchange currencies, as they apply higher margins on exchange rates. Therefore, it is best to search in advance on the internet for a reputable exchange establishment rather than going to the first one you see.
In any case, if you are only changing a small amount of money, it would not matter much where you exchange it in case of urgency or necessity, as it would involve accepting a small additional cost in the worst-case scenario.
What amount of cash is sufficient for traveling?
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 manage immediate needs such as eating, making phone calls, traveling to the embassy if you need to request a duplicate passport, and getting to the airport to leave the country.
- It serves for cash payments: in some street vendors, vending machines, and for paying for certain services such as laundromats, phone booths, shopping carts that require coins, etc.
Depending on the number of days you will be traveling and your estimated cash expenses, you can roughly calculate the amount you will need, which should not be a large sum in any case.
Is it possible to know if the euro exchange rate will be better or worse in the future?
Official currency exchange rates operate like any other financial market, such as the stock market. While there are analysts and financial gurus who make predictions, similar to stock market predictions, there is no evidence to suggest that anyone can accurately predict future prices based on available data.
Generally, exchange rates in the foreign exchange market tend to be fairly stable, and within 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 disruptive economic program.