How can I avoid unfavorable currency exchange rates when paying with my card abroad?
I have an ordinary credit card. Whenever I pay with this card in foreign currency (other than PLN, Polish złoty) I loose a lot of money due to unfavorable rates specified by my bank.
I need to buy GBP in London.
Is it possible for the currency exchange to charge my card in PLN, so I am not affected by unfavorable rates specified by my bank? How do I do this?
Note: I do not pay anything "extra" for paying in foreign currency, the only downside are the unfavorable rates.
Best Answer
Is it possible for the currency exchange to charge my card in PLN, so I am not affected by unfavorable rates specified by my bank?
Yes, certain shops and ATMs (but not currency exchange booths) can indeed charge your card in your home currency, however that exchange rate is usually worse than what you would've paid at your bank for a transaction in foreign currency.
However there is a solution to your needs and that is to open a virtual bank account at Revolut. Once you receive the card you can top it up in PLN (or EUR, USD, CHF GBP, etc) and then spend the money from the card (or withdraw it at ATMs) at interbank exchange rates. The account is completely free apart from a small delivery fee, although there is a 200 GBP/month limit on free ATM withdrawals, after which they will charge you 0.5%. Revolut works for almost every currency pair worldwide and I highly recommend it to anyone traveling outside their country's currency zone. This is a more convenient solution than bothering with Walutomat as suggested by @Edmund since you can do everything with one click rather than involving a third-party service.
Disclaimer: I don't work for Revolut and in no way associated with their company.
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How can I avoid foreign currency conversion fees?
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Typically you are better off opting to pay in the local currency, rather than converting to Sterling as you make the purchase. If you pay using the local currency, the transaction will then be converted into Sterling at the Mastercard, Visa or Amex own rate.How do I avoid non Sterling transaction fees?
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