Planning a trip abroad involves more than booking flights and hotels. How you access and exchange money can have a meaningful impact on your travel budget. Poor exchange rates, unnecessary conversions, and last-minute decisions often cost travellers more than they expect.

Foreign transaction fees when using credit cards overseas are one consideration, but cash handling and currency exchange decisions around where to exchange money, how much cash to carry, and when to rely on cards or ATMs can significantly affect total travel costs.

Where To Exchange Currency In Malaysia

Licensed Money Changers

Licensed money changers typically offer the most competitive exchange rates in Malaysia, especially for popular currencies such as USD, EUR, SGD, JPY, and THB. They are commonly found in shopping malls and commercial areas like Mid Valley, KLCC, and Bukit Bintang, where rates can be compared before exchanging.

Always ensure the money changer displays a valid Bank Negara Malaysia licence.

Banks

Banks are a secure option and are useful for less commonly traded currencies. However, exchange rates are usually less favourable than money changers because they include extra costs and protect against currency fluctuations. This means you get less foreign currency for the same amount of ringgit. Banks are best suited for travellers who prioritise convenience or currency availability over pricing.

Airport Exchange Counters

Airport money changers are convenient but offer less competitive exchange rates. If money must be exchanged at the airport, do so only for immediate expenses such as transport or food.

Online Currency Exchange Platforms

Some platforms allow travellers to lock in exchange rates online and collect cash later at selected locations. This can be useful for those who prefer certainty before travelling, although availability depends on the currency.

How Much Cash Should You Carry When Travelling?

The right amount of cash depends on the destination and spending habits.

A practical guideline is to carry enough cash for two to three days of basic expenses, including transport, meals, and small purchases. This provides a buffer if card payments are unavailable or if cash-only vendors are encountered.

In card-friendly destinations such as Japan, Singapore, South Korea, or most of Europe, cards can cover most expenses. In destinations where cash remains dominant, including Vietnam, Indonesia, or rural parts of Thailand, carrying more physical currency is often necessary.

Beyond a certain amount, cards are safer than cash. Lost cash cannot be recovered, while cards can be blocked and replaced.

Using Malaysian Cards Abroad

Most Malaysian debit and credit cards work internationally, but acceptance and reliability vary.

Debit cards are mainly used for ATM withdrawals and may require overseas usage to be enabled in advance. Credit cards are more widely accepted at hotels, airlines, and larger merchants, and they provide stronger fraud protection.

Visa and Mastercard apply network conversion rates, but most Malaysian cards add foreign transaction fees that can total 2% to 2.5% per purchase. For travellers who rely heavily on cards, understanding how these charges work can make a meaningful difference over time.

Dynamic Currency Conversion

Dynamic Currency Conversion, or DCC, happens when a merchant or ATM offers to charge your card in Malaysian ringgit instead of the local currency.

With DCC, the exchange rate is set by the merchant or ATM operator rather than the card network, and extra conversion costs can sometimes be included. Choosing to pay in the local currency usually results in a lower overall cost.

Should You Use ATMs Abroad?

Withdrawing cash overseas is convenient, but fees can accumulate quickly.

Malaysian banks typically charge an overseas withdrawal fee, apply a currency conversion markup, and the foreign ATM operator may impose an additional charge.

Costs can be reduced by withdrawing larger amounts less frequently and using ATMs operated by major banks. Standalone machines in tourist areas often charge higher fees and are best avoided.

Comparing Exchange Rates

Before exchanging money, checking the interbank or mid-market rate using tools such as Google Finance or XE.com provides a useful reference point. This makes it easier to assess how much margin a bank or money changer is applying.

When converting ringgit into foreign currency, the selling rate is what matters. The buying rate only becomes relevant when exchanging leftover currency back into MYR.

Travel Cards And Prepaid Currency Cards

Travel cards allow multiple currencies to be loaded and exchange rates to be fixed in advance. They can be useful for multi-country trips or for travellers who prefer predictable spending.

However, travel cards may include loading fees, withdrawal charges, maintenance fees, or inactivity fees. Compare total costs before assuming a travel card is cheaper than using a debit or credit card.

What To Do With Leftover Foreign Currency

Small amounts can be kept for future trips to the same destination. Larger balances can be exchanged back to ringgit at money changers offering competitive buy-back rates.

Coins are generally not exchangeable. They can be spent before departure, donated at airports, or kept as souvenirs.

Emergency Access To Cash Abroad

If access to money is lost while abroad, international money transfer services such as Western Union allow cash to be collected quickly.  Some banks also provide emergency cash advances linked to credit cards, though these come with cash advance fees and immediate interest charges. These options can be helpful in a pinch, but most travellers can avoid needing them by thinking ahead.

Before you travel, having the right mix of cash and cards can help reduce both cost and stress. A little preparation makes currency exchange a practical decision instead of a last-minute scramble.

Want more practical personal finance tips for Malaysians? Join our WhatsApp Channel.