Minimizing currency exchange fees for a deposit on a rental
I'm travelling to Marrakesh next week for a motorcycle trip. The rental does not accept credit card and ask me for a deposit of a 1000 Euros. Since I'm Canadian, withdrawing 1000 Euros temporarily and depositing it back 1 week later will cost me a lot in currency exchange fees. Any advise on how to avoid paying these unnecessary fees?
Best Answer
At the current market rate, €1000 is worth CAD 1434. I would ask the rental company whether they would consider accepting a deposit of CAD 1500 or 1600. Whatever amount you choose, it should be at least high enough that they will end up with more than €1000 after they change it. Their side of the agreement is that they won't actually change the money unless the need arises for them to retain part of the deposit. If you return the vehicle undamaged, they return your deposit to you in the original currency, in full. If they need to keep some of the deposit, they change the necessary portion only and return the balance to you in CAD.
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How can I avoid paying an exchange fee?
How to avoid foreign transaction feesWhat is a normal currency exchange fee?
A typical credit card currency conversion fee is 1% of the purchase price, DCC fees range from 1% to 3% (or more), and a typical foreign transaction fee is 2% to 3%.How can I avoid currency conversion fees UK?
To avoid currency conversion fees abroad, always choose 'local currency' whether you're withdrawing cash from an international ATM or spending on your Travel Money Card.Do currency exchanges charge fees?
Many banks offer currency exchange to their customers. Though there may be a small fee, your bank or credit union will almost always be the best place to exchange currency (and the cheapest).Currency Exchange and Reducing Risk: How can I reduce currency exchange fees?
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Answer 2
You can ask whether you can leave another form of deposit, you could leave a document, credit/debit card with little/no money on it or something else valuable.
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