Before you leave for your next trip abroad, take a moment to think dollars and cents -- or should we say pounds and pesos? Get the most for your money when traveling internationally by doing a little homework first.

The most important step is to know your options. While traveler's checks were once the most popular way to carry money overseas, today's travelers are much more likely to rely on credit cards and ATM withdrawals, which usually offer better exchange rates and lower fees. But what's the best option for you? Are traveler's check cards worth a look? And is there any way to avoid those pesky currency conversion fees when using your credit card? Read on for answers to these questions and a comprehensive roundup of all your currency conversion options when you're traveling overseas.

The biggest advantage to using credit cards while traveling overseas is that credit card purchases are exchanged at the interbank exchange rate, usually the best rate you can get for currency exchange. While most credit card issuers charge currency conversion fees each time you make a purchase in a foreign currency (generally 1 percent from Visa or MasterCard plus an additional 1 - 2 percent for themselves), these fees are typically lower than those you'd pay to cash traveler's checks or convert U.S. dollars at a change bureau. And, if you have a Capital One card, you won't pay any fees at all -- Capital One is the only major U.S. issuer that doesn't charge its own currency conversion fee or pass the one from Visa and MasterCard on to the consumer.

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