Travelers are mostly prepared for high airline ticket costs, peak-season priced hotel accommodations and long lines in famous vacation spots or nightlife entrances but not all travelers are prepared for the forex trap. Not all foreign exchange centers are made equal -- some charge travelers more than they should. Travelers wondering how they lost so much during travels forget about the exorbitant foreign exchange rates and fees some centers apply.
According to News.com.au contributor Dana McCauley, the forex trap lesson came as a complete surprise. She said her 384 Chinese Yuan -- supposedly equivalent to Aus$100.34 -- had returned amounting only to Aus$56 after the transaction fee processing of Sydney airport's money changing center.
Travelers expect foreign exchange centers to use the world-standard foreign exchange rates news and business channels report. Most travelers forget that forex centers can charge exorbitant transaction fees. For McCauley, Sydney Airport's forex center charged Aus$9.99 for its transaction fee and applied a 22% increase in Australian dollar value affecting her Chinese Yuan's ability to buy the currency.
According to Nerdwallet, travelers can bypass forex traps by using credit and debit cards. Banking and Banking Basics Contributor Melissa Lambarena advises using a no foreign transaction fee credit card or placing an order of the local currency through your own bank. Lambarena said bank foreign exchange rates and transactions fees are better compared to money changing centers in airports and vacation spots.
Lessons to learn from the two travelers are never to exchange your cash in airports or hotels. They are easy for travelers to spot for a reason; they are convenient but costly. Another is to ask about the transaction fees and exchange rates of forex centers before willingly exchanging money. The last lesson is to use special international credit cards or order currency from one's bank before leaving for one's vacation overseas.
Below is a video about how travelers commonly lose control of their budgets. Food, late ticket reservations and accommodations are just some of the other ways travelers end up short during vacations.
This article is copyrighted by Travelers Today, the travel news leader
