Amid the flurry of pre-vacation packing and prep, it's easy to forget considerations about the best way to pay for things abroad. But at a time of high inflation, questions about what cards to use, how much local cash to withdraw and which currency conversion services to avoid are particularly valuable.The best-case scenario is using a credit card, said Hayley Berg, lead economist at Montreal-based travel data firm Hopper.
Multiple credit card providers offer fee-free overseas transactions. These come via “travel cards,” including the Scotiabank Passport Visa Infinite Card, HSBC World Elite Mastercard and Brim Mastercard. Often customers are given a choice at the point of sale to pay in Canadian dollars or the local currency.
Before departure, Berg suggests ordering foreign bills through your bank that you can pick up at the branch within a few days. After credit cards, ATMs usually offer the best rate, which in turn is lower than a straight exchange of cash. However, on top of the conversion fee — often between one per cent and three per cent — withdrawals will likely include an ATM fee of around $3 to $6 as well as a fee from your bank for using an ATM outside its network.