“People are often made to believe that their cards and banks offer no foreign transaction fees,” Raisor said. “In reality, they’re frequently charged hidden markups in the exchange rate. In fact, a study found that vacationers spend over $3.3 billion on transaction and exchange rate markups.”
These fees can easily add up and take a bite out of a retiree’s travel budget. To avoid fees, exchange currency ahead of time to secure the best rates and use a credit card with no foreign transaction fees while traveling.
“Retirees should also consider a universal account,” Raisor said. “With a universal account, they can hold and pay in local currencies, save money by getting the same exchange rates the banks pay, and better track their purchases made abroad to get a clear idea of how they’re spending against their total budget.”
