The Biggest Scam in Travel Today – That You’ve Probably Already Fallen For
And what to do about it, so you don't waste your hard-earned money
You may remember a credit card scanner abroad giving you the option to pay in USD or in the local currency. Maybe you didn’t know what to choose, so you picked USD. Your money is already in USD, so that should be better, right??
Or, you might remember an ATM using scary language to persuade you to accept a certain exchange rate, because who knows what rate you might get otherwise…
Do either of these sound familiar? I’m sorry to say that if you selected “USD” as an American abroad or if you accepted the ATM’s conversion rate, you probably fell for an exchange rate scam.
Unfortunately, not knowing what to do in these circumstances can cost you dearly. Let’s dig into some of the most common currency exchange rate scams out there today and what you can do instead.
Scam #1: ATM Exchange Rates
If you’re a foreigner using an ATM in a new country, you will likely be given the opportunity to accept the ATM’s exchange rate. In fact, the ATM may even use misleading language that makes it seem like you don’t have a choice except to accept the proposed rate.
Accepting that rate, however, allows the ATM provider to decide your exchange rate, and they have no reason to offer you a good one.
How much are you losing to this scam? It will vary based on the ATM, but in my own experience, it can be a lot. For example, when my husband and I were recently in Mexico, we withdrew cash from the airport ATM and accidentally accepted the ATM’s exchange rate. We checked the official exchange rate right after and realized we had lost $20 to the exchange rate mark-up on a $200 withdrawal. That’s a 10% markup. Imagine doing that for your entire vacation!
