You have all heard the horror stories about someone having their money stolen while travelling! As a travel agent specializing in travel to various countries throughout the world, I have been asked about using credit cards, cash and other money matters when travelling internationally. When going to Mexico, Central America, the Caribbean, Australia, Tahiti, Fiji, and Europe, this is what I recommend:
Before you leave on your next trip do a little homework so you can get the most for your money. Know what some of the options you have in travelling to your destination. For example, the Dominican Republic has very high credit card fees, and many restaurants, stores, and hotels there will not accept credit cards. Traveler’s cheques used to be a popular way for providing money, but today most people rely on credit cards and ATM withdrawals, which usually offer a lower fee or better exchange rate. You need to know what works best for you and what currency conversion options you have when travelling internationally.
The best advice is to diversify and bring cash, debit and credit cards, and traveller’s cheques. Bring $200 to $300 cash, an ATM card, and two major credit cards. Use the safest the most frequently.
Using Cash
For the first 24 hours of your trip, cash is a good way to tide you over until you can find an ATM machine. Get some foreign currency before you leave so that you have some cash to pay for immediate expenses such as taking a cab to your hotel, buying lunch at the airport, or giving the bellhop a tip. If something happens to you ATM card or your credit cards, you will have some back up with having some cash. You can get foreign currency from your local bank. You may have to pay fees or commissions and you will not get a great conversion Many times you need to order it ahead of time so your bank can have the money transferred to their branch.
Be aware that the one of worst places to get cash is a currency exchange counter. They often charge very high fees and often have a dreadful exchange rate. Mexico has reported problems with tourists being robbed while exchanging money at airports. Also note that there has been a problem worldwide with counterfeit American one hundred dollar bills, so avoid these.
Using Credit Cards
When making large purchases such hotel bills, airline tickets, restaurant meals, tours, and car rentals credit cards are an advantage. Make sure that you pay off the balance each month so that you do not have to pay exorbitant credit card interest rates. Credit cards protect you from fraud after you have made a purchase.
What ever type of plastic you bring with you make sure that you tell the bank and the credit card company when and where you are travelling internationally. You do not sudden international activity on your account to cause the banks and credit card companies to deactivate your card to protect you. I recommend that you bring two credit cards on your trip just in case one card stops working. Also ask what fees the credit card company charges for your purchase, both in local currency and in dollars.
Some merchants especially in Europe offer a dynamic currency conversion – they’ll charge you in dollars rather than the local currency. This could save you some money since some card issuers will waive the currency conversion fee when you purchase are made in dollars overseas. Be aware that the merchant will almost always charge you a conversion fee up to five percent instead. Before deciding which currency to use, make sure that you know what fees apply to each option.
There are a number of other things to be aware of when using your credit cards. Many car rental companies and some hotels may put holds on your credit card for certain amounts of money. For example, in Costa Rica, most car rental companies will put a hold of $1000 on you card. This can use up the credit limit on your card so that you do not have the money you need for the rest of the trip, hinging on whether or not you damage the car. Also make sure that these holds have been removed when you have paid your bill in full.
Incidents are always being reported over inaccurate charges on credit cards. Always watch merchants imprinting your card and keep your receipts. If you are buying something expensive such as jewellery, or original art, use a credit card and ensure that the receipt states the specifics for the purchase. After you get home, check your credit card statements.
ATM Cards
ATM cards are best for getting cash in local currencies as they are generally the cheapest and most convenient. Each cash withdrawal you make will usually charge a currency conversion fee, foreign ATM fees and other charges from your bank. When using an ATM, make sure you read the fine print. I heard about someone in Mexico withdrawing a 100 USD worth of pesos from an ATM machine and the machine charged him an extra 30 USD.
Be aware that more ATMs have become the target of thieves. If possible, use an ATM inside a bank or in some other secure area. Make sure that you inspect an ATM carefully before you use it to dispense cash regardless of where it is located.
Traveller’s ChequesTraveller’s cheques are good for emergency backup to secure cash or can’t find a working ATM. Be aware that the exchange rate for traveller’s cheques is not as good at the rate you will receive when using a credit or a debit card. Also you have to pay commissions, shipping charges and/or conversion fees to purchase and cash the cheques. They are a bit of a hassle to get cashed. In addition, there are few merchants who accept traveller’s cheques for purchases these days. They provide more security than cash because they can be replaces usually within 24 hours if they are lost or stolen. You can often avoid fees by cashing your traveller’s cheques at the bank that issued them.
Here are a couple of more suggestions to keep your money safe. Use the secure places in your hotel, such as a room safe, to place your valuables. Do not leave wallets, purses, and credit cards, and cash laying around your room or in your suitcase. Use a money belt and keep you money and documents safe by hiding them well under your clothes. Never let others see you searching in your clothes and pulling out wads of cash or an array of credit cards. If carrying a wallet, keep it in a front pocket, preferably buttoned or zippered, and make sure that you keep limited amounts of money in it in case it gets stolen. Women need to ensure that their purses are kept in a safe place at all times. Do not put them on the floor in a public places or hook them over the back of your chair when dining.
Always make scans of your important documents and hid them in digital format in your e-mail account. Use this technique with your passport as well.
If you have other questions about international travel or you would like us to help you plan your next trip call the experts at Del Sol Travel. We specialize in the most popular destinations.
Chris MacRae is an experienced traveller and amateur photographer who has travelled extensively throughout North America and Europe. He has lived in Berlin, Germany for six months where he had the opportunity to visit many other countries in Europe. As a Canadian opera singer, he has performed in numerous cities throughout Canada, the United States, and Europe where he has gained a first hand knowledge of the different areas. He is presently attending the University of North Texas in Denton where he is taking his Docorate in Music and teaching voice.