In the rush to pack your bags and prepare for your vacation, it's easy to forget the best way to pay abroad. But in times of high inflation, questions about which cards to use, how much local cash to withdraw, and which currency conversion services to avoid are especially important.

    If you're looking for a cheap way to spend money abroad, here's what you need to know.

    Is It Cheaper To Use Credit Card Or Cash Abroad ?

    Hailey Berg, chief economist at Hopper, a Montreal-based travel data company, said using a credit card was the best scenario.

    Not all roadside stalls and outback pubs accept it, but it is widely available in most countries, especially cities and other popular tourist destinations. All credit card purchases are subject to a foreign transaction fee of approximately 2.5%. Ultimately, it can weigh heavily on your wallet, but Berg says it's cheaper than most ATM and debit card fees. If a $76 Bistro bill he translates to $100 (Thursday's case), the customer will be charged $102.50.

    Some credit card providers offer fee-free international transactions. These are offered through 'travel cards' such as the Scotiabank Passport Visa Infinite Card, HSBC World Elite Mastercard and Brim Mastercard. “Usually people only take what they have, and only if they travel a lot it adds up,” said Richard Vanderlubbe, CEO of travel agency Tripcentral.ca.

    Credit cards also have a currency conversion rate for converting overseas purchases back into your home currency, which is slightly higher than the official "interbank" rate. But credit card companies usually offer consumers the best rates compared to ATMs and money changers, he said.

    At the point of sale, customers often have the option to pay in Canadian dollars or their local currency. "Always choose to be billed in your local currency. Converting to Canadian currency pays a higher conversion rate and transaction fees," the federal government explains on its travel website.

    But cash also plays a role.

    "They need cash for taxi fares, tips, maybe coffee and croissant cafes," said Jill Wykes, editor of Snowbird Advisor, an online resource for Canadians wintering abroad.

    Don't carry too much. Cards are "more secure than walking around with lots of cash in your pockets," she pointed out.

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    Berg suggests ordering a foreign bill from your bank before you leave. You can pick it up at your branch within a few days.

    "Many European destinations rely more on paper and coins than North America," she said.

    You don't need three weeks worth of pesos, pounds or greenbacks, just enough to last a few days and avoid "all the nickel and dime charges" from repeated ATM visits. Exchanging coins for Canadian currency is also a hassle. After credit cards, ATMs usually offer the best rates, but they are also lower than direct cash exchanges. However, in addition to a conversion fee (often 1-3%), withdrawals may include an ATM fee of around $3-6 plus a fee from your bank for using an ATM outside of their network .

    How Do You Get The Best Exchange Rate When Traveling ?

    There is no one answer to this question as the best way to get the best exchange rate when traveling will vary depending on the country you are visiting, the currency you are using, and the current economic conditions. However, some tips to get the best exchange rate when traveling include shopping around for the best rate, using a credit card that doesn't charge foreign transaction fees, and avoiding currency exchange kiosks.

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    How To Avoid Foreign Exchange Fees ?

    There are a few things you can do to avoid foreign exchange fees. 

    First, you can use a credit card that doesn't charge foreign transaction fees. There are a few of these cards available, so be sure to shop around for the best option for you. 

    Second, you can use a currency exchange service. There are a few reputable companies that can help you exchange your currency without charging any fees. 

    Finally, you can use a bank that doesn't charge foreign transaction fees. Many banks now offer this type of account, so be sure to ask your bank about their options. 

    By following these tips, you can avoid foreign exchange fees and save money on your travels.

    Is It Better To Exchange Money At Home Or At Your Destination ?

    Assuming you are asking if it is better to get foreign currency at home or at your destination: 

    It is typically better to exchange money at your destination, as you will get a better exchange rate. However, it is important to research the situation at your destination before you travel, as exchange rates can vary.