Cash in!
How do you deal with foreign currency? Do you stock up on traveller’s checks before your departure and cash them in as needed during your trip? Do you hit the first exchange place you see and fork over your cash for some of the local’s? Do you use ATM’s? Put everything on the credit card?
Generally speaking, one of the worst places to get foreign currency is at a “no commission” exchange shop. Sure, they don’t charge commission, however their exchange rates are usually horrendous. The best is with the “right” debit or credit card. And in between are traveller’s checks, and don’t forget the pre-paid cash cards we’ve talked about.
For the most part, using your Visa or Mastercard while abroad is a good choice because the exchange rate will be quite close to the bank’s. What you need to be aware of is how much the bank will charge you for each overseas transaction. You need to find out your bank’s commission, which is what they will charge every time you withdraw money or pay for something. That fee applies to both credit and debit cards; as does the “cash withdrawal charge” which is obviously charged when you withdraw money or take a cash advance. With debit cards, you need to be aware of the so-called “privilege of using your card overseas” fee and watch out for higher interest rates on your credit card; some companies begin charging interest (often higher than your normal rate) when the charge is made; NOT at the end of the month like normal. As every bank has different policies and fees, you’ll need to make a call to find out exactly what unexpected charges may show up on your bill.
Cash is handy to have, especially when you first arrive. Exchanging at the airport should always be your last resort; however you can order money in the needed currency ahead of your trip and have it sent to your home. Leave plenty of time to do this. In the UK, the Post Office offers this service. Your bank may offer a similar service as well. Traveller’s checks offer a certain degree of security, and sometimes they will be accepted where credit cards are not. Be aware of the commission charged and the exchange rate offered before you hand them over.
Travelex is a good source for money info and I like their budget calculator. It has a list of countries with sample prices for things like snacks, sodas, hotel and meals. It also has a suggested currency “mix” for each country; giving advice on how much of your money should be cash, traveller’s checks, etc. I checked it out for the Czech Republic and it was maybe a little low, but for the most part fairly accurate.
Photo credit: Kiki99@Flickr
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