International travel and cross-border shopping bring exciting opportunities, but they also come with unexpected costs—particularly international transaction fees. These charges, often buried in the fine print, can quickly add up, turning a good deal into an expensive surprise. By understanding how foreign exchange rates and fees work, you can make informed choices and save money on your transactions.

In this article, we’ll dive into what international transaction fees are, share practical tips on how to avoid them, and explore the best place to exchange foreign currency in Miami for competitive rates without hidden charges. 

What is a foreign transaction fee?

Foreign transaction fees are the fees charged, typically by banks or credit card companies, when you make purchases or withdraw cash in a foreign currency. This fee is generally 1% to 3% of the exchange total, and is charged on top of the price you see on the conversion desk.

While these fees are common, they can be avoided with a bit of planning. By choosing the right currency exchange services or using credit cards that don’t charge foreign transaction fees, you can keep your costs down when making purchases abroad or online from international merchants.

How do I avoid international transaction fees?

Avoiding international transaction fees is easier than you might think. The key is to plan ahead and make smart choices when handling currency exchange and making payments abroad. Here are some tips to help you:

1. Use a no-foreign-transaction-fee credit card

One of the easiest ways to avoid extra charges is by using a credit card that doesn’t impose foreign transaction fees. Many modern credit cards offer this benefit, which means you won’t be hit with the typical 1-3% fee when making purchases internationally. 

2. Choose the right currency exchange provider

Not all currency exchange services are created equal. Traditional banks and airport kiosks tend to offer less favorable rates and often include hidden fees. To avoid these, consider using specialized services like Euromoney Exchange, which offer foreign exchange without any extra charges.

You can also read: Where to Exchange Currency without Paying Huge Fees?

3. Withdraw cash from ATMs in local currency

When you’re traveling internationally, it’s often cheaper to withdraw cash from local ATMs rather than converting money at kiosks or banks. Many ATMs abroad offer competitive exchange rates, and you can use an ATM card that doesn’t charge foreign transaction fees. However, make sure to check for any withdrawal fees charged by the ATM provider to ensure you’re getting the best deal.

4. Avoid dynamic currency conversion

Dynamic Currency Conversion (DCC) is a service that allows merchants to convert your payment into your home currency while you’re abroad. While it may sound convenient, DCC often comes with higher exchange rates and hidden fees. To avoid this, always choose to pay in the local currency rather than opting for a conversion to your home currency when making purchases abroad.

5. Make purchases in your home currency

If you’re making purchases online from international retailers, check if the option is available to pay in your home currency. Some websites allow you to choose your preferred currency during checkout, which can help you avoid additional conversion fees.

What fees can you be charged when traveling internationally?

Here are some common charges that travelers face, particularly related to currency exchange:

1. ATM withdrawal fees

Withdrawing cash from ATMs abroad can also come with fees. Many international ATMs charge a fixed fee per withdrawal, and your bank may impose additional charges for using an out-of-network ATM. To minimize these costs, look for ATMs that belong to your bank’s global network or consider using a debit card that offers fee-free international withdrawals.

2. Currency exchange service fees

Whether you’re exchanging cash at the airport, at a kiosk, or through a bank, currency exchange services often charge a fee or offer less favorable exchange rates. These fees are typically rolled into the exchange rate itself, so it’s essential to compare rates and fees before exchanging large sums of money.

3. Dynamic currency conversion fees

As previously discussed, dynamic currency conversion (DCC) allows merchants to convert your payment into your home currency. While convenient, DCC usually comes with a poor exchange rate and an additional fee. It’s best to decline DCC and pay in the local currency to avoid these extra charges.

4. Credit card cash advance fees

If you use your credit card to withdraw cash from an ATM while traveling, you may be charged a cash advance fee, which can be quite high. In addition to the fee, interest charges on the cash advance typically start accruing immediately, unlike regular credit card purchases.

Best place to exchange foreign currency in miami

EuroMoney Exchange is your ideal choice. With multiple convenient locations throughout Miami, we offer competitive rates with no additional fees, ensuring you get the best value for your money. Our fast and efficient service, along with a wide range of currency options, makes the exchange process seamless and hassle-free.