Currency conversion fees
By Blake Eligh • Bankrate.com

Half the fun of travelling is browsing for mementos of your trip and sampling local restaurant fare, but you might be paying more than you bargained for those fabulous Italian shoes or a nice dinner out. Unexpected credit card and banking charges can boost that bill, adding as much as 10 percent to the purchase price of those travel tchotchkes.

Unless your card provider breaks the charges down on your statement, you'll never know about extra fees, which vary depending on the rate for your credit card, the banking package you use and the merchant's policies.

Bankrate.ca recently surveyed the top banks and credit card issuers to find out what they charge for these transactions. The survey included BMO, Caisse Desjardins, Capital One, Citibank, CIBC, HSBC, Laurentian Bank of Canada, MNBA, National Bank of Canada, President's Choice Financial, ScotiaBank, TD Canada Trust and Royal Bank.

The results may surprise you.

Credit check
If you'll be using your credit card for purchases and cash advances, be aware that you'll be paying more than the daily foreign exchange rate. Visa and MasterCard transactions carry a standard charge of 2 percent to 2.5 percent of the purchase price. Your card issuer may add a transaction fee, too -- either an additional percentage of the purchase price or a flat rate -- which can result in a higher price tag.

There are additional charges for credit card cash advances, which don't have the same grace period as credit card purchases -- you start paying interest on that money right away.

Debit dance
If you plan to rely on debit cards, it's important to know that some banks charge extra fees for foreign debit card purchases and cash withdrawals. Those fees vary depending on which package you have, so check with your bank. But if you're using the card to make purchases, you'll be paying the daily foreign currency exchange rate, a transaction charge from your own bank, plus additional surcharges from the foreign ATM operator or merchant.

That fee can be a flat rate, or percentage of your purchase or withdrawal. For instance, TD charges 2.5 percent in addition to the daily exchange rate. So, a purchase of $10US, at an exchange rate of 1.3, will amount to $13.25 (or $10 x 1.325), increasing your purchase price by 32.5 percent.

Planning for travel
If you're a frequent flier, ask if your bank has special packages for regular travellers. Some financial institutions offer unlimited foreign transactions for a flat monthly rate; others offer US or European currency accounts that can cut down on extra charges. HSBC even reimburses clients for transaction charges incurred in specific countries beyond its financial network.

Your bank may also have branches or agreements with banks in other countries, so it's also worth a visit to your bank's website to find fee-free ATM locations, which can save a fortune in unnecessary service charges.