Yes, I can believe that is what he is saying. Certain banks/credit cards have relationships with foreign institutions that can cause unexpectedly low fees, given the right circumstances. On top of which, I've found that both Western Union and bank-to-bank transfers, on the whole, are a huge ripoff on both rates and fees--especially for frequent, small volume scenarios.

When I worked in Canada, I used the no-ATM-fee agreement [1] between ScotiaBank and Bank of America to convert USD to CAD and transfer money between the accounts. This involved the rather odd procedure of going to a ScotiaBank ATM, withdrawing a lot of CAD off of the USD in the BofA account, and stuffing the cash right back into the ATM as a deposit on the ScotiaBank account. Any other procedure, including using a teller or trying an online wire transfer, would have been more expensive and inconvenient. The above had no per-transaction fees and only a 3% conversion fee added to the market rate, which is about average compared to credit cards. (Any of Western Union's "instant" options for this kind of transaction require about 9% in fees.)

There are some credit cards with no foreign transaction fees, which is what I would use today if I had to do it again. Using such a card to purchase items in the foreign country, and then paying off the balance with the home country bank, results in "free" currency conversion. That's what GP is referring to.

[1]: http://en.wikipedia.org/wiki/Global_ATM_Alliance