How to Exchange Currency with USAA: A Comprehensive Guide for Travelers
Planning an international trip can be exhilarating, but one crucial aspect often overlooked until the last minute is currency exchange. If you're a USAA member, understanding your options for exchanging currency is key to a smooth and cost-effective journey. This lengthy guide will walk you through the various methods, potential fees, and essential tips to ensure you have the right currency when and where you need it.
So, are you ready to simplify your international money matters? Let's dive in!
Step 1: Understanding USAA's Approach to Foreign Currency
Before you even think about exchanging money, it's vital to grasp USAA's general policies regarding foreign currency. Unlike some traditional banks with physical branches that might hold various foreign currencies, USAA primarily operates as an online and phone-based institution. This means your options for physically exchanging cash directly with USAA are limited.
- Key Takeaway: USAA does not typically offer direct foreign currency exchange at a physical branch or by mail for buying foreign cash before your trip.
Instead, USAA facilitates international transactions primarily through your debit card and credit cards, as well as wire transfers. This approach often proves to be more convenient and, in many cases, more cost-effective than traditional currency exchange bureaus.
Step 2: Utilizing Your USAA Debit Card for International Withdrawals
Your USAA debit card is arguably one of the most convenient ways to access foreign currency while abroad. It allows you to withdraw local currency directly from ATMs.
Sub-heading: Before You Go: Notifying USAA of Your Travel Plans
- It's crucial to inform USAA of your travel dates and destinations before you leave. This helps prevent your card from being flagged for suspicious activity and potentially blocked. You can typically do this through your online account or by calling customer service.
Sub-heading: Finding ATMs Abroad and Understanding Fees
- ATM Networks: Look for ATMs that display the Visa or Plus network logos, as USAA debit cards are part of these networks.
- USAA's ATM Fee Policy: USAA generally does not charge ATM service fees on their end. They will also typically refund up to $10 each monthly statement cycle for fees charged by non-USAA Bank ATMs.
- Foreign Transaction Fee: Be aware that USAA may charge a 1% foreign transaction fee on international ATM withdrawals. This fee is separate from any fees the ATM operator itself might charge.
- ATM Operator Fees: The foreign ATM operator might also charge their own fee for using their machine. These fees can vary significantly.
- Dynamic Currency Conversion (DCC): When withdrawing cash, you might be offered the choice to be charged in USD or the local currency. Always choose to be charged in the local currency. If you choose USD, the ATM operator will perform the currency conversion at their own, often less favorable, exchange rate, and may add an additional markup. This is known as Dynamic Currency Conversion (DCC), and it can lead to significantly higher costs.
Sub-heading: Daily Withdrawal Limits
- Be mindful of USAA's daily ATM withdrawal limits, which are typically up to $610, with a maximum of 20 withdrawals every 24 hours. If you need to withdraw a larger amount, you may request a temporary increase by contacting USAA.
Step 3: Leveraging Your USAA Credit Card for Purchases
For most international purchases, using a credit card is often the most advantageous option.
Sub-heading: Foreign Transaction Fees on Credit Cards
- Excellent News! Many USAA credit cards, such as the USAA Rewards Visa Signature® Credit Card and the USAA Rate Advantage Visa Platinum Credit Card, explicitly state "No Foreign Transaction Fees". This is a significant advantage as it means you won't incur an extra percentage charge on your international purchases.
- Always double-check your specific card's terms and conditions to confirm its foreign transaction fee policy.
Sub-heading: Best Practices for Credit Card Use Abroad
- Notify USAA: Just like with your debit card, inform USAA of your travel plans to avoid any fraud alerts.
- Local Currency vs. USD: When making a purchase with your credit card, merchants might offer to process the transaction in USD. Decline this offer and choose to be charged in the local currency. Similar to ATM withdrawals, if you opt for USD, the merchant will use their own, often unfavorable, exchange rate (DCC), costing you more.
- Credit Card Benefits: USAA credit cards often come with additional travel benefits, such as travel insurance or rental car insurance, which can be valuable when abroad.
- Cash Advances: While possible, using your credit card for a cash advance at an ATM should be a last resort. Cash advances typically incur immediate interest charges and higher fees than debit card withdrawals.
Step 4: Understanding International Wire Transfers with USAA
For larger transfers or sending money to individuals or businesses overseas, USAA offers international wire transfer services. This is not typically used for personal travel cash but is a method of sending money in foreign currency.
Sub-heading: Initiating an International Wire Transfer
- Online/Phone: You can initiate international wire transfers by calling USAA at 210-531-USAA (8722). For amounts over $10,000, you will definitely need to call.
- Required Information: To send an international wire, you'll need detailed information about the recipient's bank and account, including:
- Amount to send (in USD or foreign currency)
- Purpose of payment
- Recipient's bank SWIFT BIC code (8 or 11 digits) or other bank code
- Name and address of the receiving bank
- Recipient's bank account number or IBAN
- Full name and physical address of the recipient
- Cut-off Times: Outgoing international wire requests received Monday through Friday by 3:30 p.m. CT are generally processed the same day. Wires are not processed on weekends or federal holidays.
- Processing Time: While generally processed on the same day, international wire transfers can take up to 15 calendar days for the recipient to receive the funds, depending on various factors like foreign bank holidays or intermediary banks.
Sub-heading: Fees for International Wire Transfers
- Outgoing Wire Fee: USAA charges a fee for outgoing international wire transfers, typically $20 from USAA and potentially an additional $25 correspondent bank fee.
- Receiving Bank Fees: The receiving financial institution or any intermediary banks may also charge a fee to receive the wire transfer.
- Currency Conversion for Incoming Wires: If an incoming wire is sent in a foreign currency, USAA's correspondent bank (The Bank of New York Mellon) or another financial institution will convert the currency into U.S. Dollars prior to sending to USAA. USAA does not provide an incoming wire transfer rate of exchange.
Step 5: Strategies for Obtaining Foreign Cash Before Your Trip
While USAA doesn't directly exchange cash, there are still ways to get foreign currency before you travel.
- Order from a Major Bank (if you have an account): Many large banks (like Bank of America or U.S. Bank) allow their account holders to order foreign currency online or in person. This is often a better option than airport exchanges. You'll generally pick it up at a local branch. Be aware that most banks have a minimum and maximum order amount (e.g., $100-$10,000 within 30 days).
- Traveler's Checks (less common now): While less prevalent than in the past, traveler's checks still exist, though their acceptance has dwindled. They offer security but can be challenging to cash in some locations.
- Airport Exchange Bureaus (use with caution): Airport currency exchange services are generally known for offering very unfavorable exchange rates and high fees. Use them only as a last resort for small amounts if absolutely necessary.
Step 6: Managing Your Money While Abroad
- Monitor Your Accounts: Regularly check your USAA accounts online or via the mobile app to track your spending and identify any suspicious activity.
- Emergency Contact: Keep USAA's international contact number handy in case of emergencies, such as a lost or stolen card.
- Carry Multiple Payment Methods: Don't rely solely on one card. Carry a combination of debit and credit cards, and a small amount of local cash for immediate needs or places that don't accept cards.
- Security: Be vigilant about ATM skimmers and protect your PIN. Avoid displaying large amounts of cash.
Step 7: Exchanging Leftover Foreign Currency (Selling Back)
If you return with leftover foreign currency, you'll need to exchange it back into USD.
- Major Banks: Banks that offer foreign currency ordering services will often buy back foreign currency (typically banknotes, not coins) from their account holders. They will apply their current buy-back exchange rate, which may include fees.
- Airport Exchange Bureaus: Again, these are generally the least favorable option due to poor rates and high fees.
- Save for Future Travel: If you frequently travel to the same region, holding onto a small amount of leftover currency can be convenient for your next trip.
Frequently Asked Questions (FAQs)
How to order foreign currency through USAA?
USAA generally does not offer direct foreign currency ordering. Your best bet is to use your USAA debit card for ATM withdrawals abroad or a no-foreign-transaction-fee USAA credit card for purchases. If you need cash before you go, consider ordering from a major bank where you hold an account.
How to avoid foreign transaction fees with USAA?
Use a USAA credit card that specifically advertises "No Foreign Transaction Fees" for all your purchases. For ATM withdrawals, be aware that a 1% foreign transaction fee may apply to your debit card, but USAA will refund up to $10 in ATM operator fees per month.
How to get the best exchange rate when using USAA cards internationally?
When prompted at an ATM or point-of-sale, always choose to be charged in the local currency. This avoids Dynamic Currency Conversion (DCC), where the merchant or ATM operator applies their own, often inflated, exchange rate.
How to notify USAA of international travel?
You can typically notify USAA of your travel plans through your online banking portal or by calling their customer service line. This helps prevent your cards from being flagged for suspicious activity.
How to find USAA-preferred ATMs overseas?
USAA doesn't have its own international ATM network in the same way it does domestically. Instead, your USAA debit card works with major international networks like Visa or Plus. Look for ATMs displaying these logos.
How to deal with lost or stolen USAA cards abroad?
Immediately contact USAA using their international toll-free numbers or through the USAA mobile app. They can block your card and help arrange for a replacement or emergency cash.
How to send an international wire transfer with USAA?
Call USAA at 210-531-USAA (8722). Be prepared to provide comprehensive details about the recipient's bank and account, including their SWIFT BIC code, account number, and address.
How to receive an international wire transfer with USAA?
Provide the sender with USAA's international wire instructions, which include USAA Federal Savings Bank as the final credit account and The Bank of New York Mellon as the correspondent bank. Note that foreign currency will be converted to USD by the correspondent bank before reaching your USAA account.
How to check USAA's current exchange rates?
USAA generally applies the Visa or Mastercard exchange rate for debit and credit card transactions, which are typically very competitive. For wire transfers, the exchange rate for foreign currency is determined by the correspondent bank. You won't find a direct "USAA exchange rate table" for cash.
How to determine if a USAA credit card has foreign transaction fees?
Review your specific USAA credit card's terms and conditions, or check the benefits listed on USAA's website for that particular card. Many of their popular cards proudly state "No Foreign Transaction Fees."
