LPT: whenever you buy online or offline in a different currency than your standard one, make sure you don't allow the website or POS machine to charge you in your "home" currency. You want to be charged in the foreign currency. Same with ATMs abroad.

Submitted by my_n3w_account t3_10j946l in LifeProTips

Next level LPT: get a debit/credit card that doesn't charge more than the actual forex rate and you will never pay any hidden tax when paying in a different currency.

Websites, POS and ATMs that offer to charge you in your "home" local currency often charge around 5% for this "great service".

Your bank is not doing you any favours either, but they tend to apply a lower fee of 1-2%.

This is why a "no-borders" card is the real LPT.

(2nd post cause I can't spell apparently)

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g33k_girl t1_j5lgv00 wrote

The exception to this is when the fees to use the card are more than accepting the crap rates to use home currency.

An example my card used to charge A$5 + 5% currency conversion fees where the ripoff machine only charged about 3-4% and no fee on top.

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theultimateusername t1_j5mj83o wrote

What card is this that charges $5 + 5% in foreign currencies. I would change my bank ASAP

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g33k_girl t1_j5nhgn8 wrote

Only the savings account did that and was only for foreign ATM withdrawals, we almost never used it. The credit card is excellent and has no forex charges and uses the Mastercard spot rate.

Then about three months ago they removed the charges on the savings account and now only charge the spot rate.

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theultimateusername t1_j5mj3mp wrote

This is accurate. The fee your bank charges you at home is always less than the exchange fee by the POS.

Even if your bank charges a 2-3% on foreign currency, I've found this is still higher.

They're not giving you the option to make it easier for you, they're just doing it to make a profit on the fx exchange as well as your initial payment.

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keepthetips t1_j5j15jq wrote

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diTaddeo t1_j5j1iry wrote

LPT: There's 194 countries outside of USA. For instance none of the banks I use in NZ charges 5% fee

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leona1990_000 t1_j5jk7q9 wrote

I think OP is talking about DCC. The 5% fee is levied by the merchant, not your bank.

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Shnoochieboochies t1_j5j2lp7 wrote

It is lovely for banks to make it as easy as possible to spend my own money, that i earned, giving exact, easy to read instructions on how much I will be charged (charged to spend my own money), in a foreign country /s.

FUCK BANKS!!

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