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International travel requires more than just packing your bag and getting your tickets. In order to purchase goods and services while on your trip you will need to convert your dollars to pounds using the foreign exchange. There are options to how to convert your cash, whether you want a money order, traveller’s cheques, or a cash passport (a prepaid card).

Credit cards are an option for carrying your converted cash overseas. Be careful to consider the interest charges associated with the different issuers. Also be on the look out for loading fees. Do take into consideration any limitations on where you can use a credit card.

Traveller’s Cheques will offer protection if lost or stolen if you make a copy of them before you go. Make sure to take advantage of getting them in larger denominations because there is usually a charge for cashing them in. It costs the same to cash a $100 cheque as it does for a $10 one. There are sometimes commissions charged, but even so they may offer competitive rates in comparison to other foreign exchange companies.

Cash Passports are prepaid credit cards and give you the most flexibility for converting your cash. They are protected if lost or stolen and are more secure since they require a PIN and a signature to use. These cards are relatively new and can have charges associated with them such as application fees, ATM fees or top up fees. Also consider the flexibility for top ups. Some only allow face to face top ups and others will allow face to face, on the phone or over the internet top ups. Only you can decide if this is the method of foreign exchange that is right for you.

Currency conversion can be in the form of cash, but remember that cash can be lost or stolen and you don’t have the protection in case that happens.  Be careful of different fees and charges that can be tacked on. Some companies will charge a commission fee for their services. Pay attention to how much each charges, however don’t count out a company due to these fees because some can still offer competitive rates even with the fees. Flat rates and minimum charges might be applied. The minimum charges could be a problem if you are dealing with small amounts of cash. However, the flat fees can be okay if you are exchanging larger sums. Handling fees are sometimes added and can be about 3 pounds or higher.