If you're traveling out of the country for the holidays, here's a quick tip to help make the most of every dollar you spend abroad. No matter where you're traveling, always pay in the local currency when using your credit cards.
Foreign merchants like to take advantage of the fact that tourists have a difficult time deciphering exchange rates when shopping. To make it easier on you at the checkout counter, what they'll often do is quote the price in both U.S. dollars and the local currency. If you choose to charge in U.S. dollars, then you can count on getting a very uncompetitive exchange rate. The merchant then happily pockets the difference and most tourists never even give it a second thought.
To make sure you're getting the most out of your dollar, always choose the price in local currency and then charge it on a credit card that doesn't have a foreign exchange fee. The combination of the two could save you hundreds of dollars while traveling this holiday season.
