Money Handling Tips for International Travelers
The following is a guest post by Veronica Ramirez of NerdWallet. Her bio follows.
Perhaps you’re daydreaming of an exotic beach vacation this summer or pondering which historic sights to visit overseas. Here are four more items to add to your checklist. Make sure you can pay for things safely and conveniently in foreign currency without getting socked with high exchange fees by using these tips.
Look to limit exchange fees.
Before you leave, research accepted forms of payment at your destination. Use cards as much as you can and cash only when you have to. Cards with no foreign transaction fees can be a great way to pay when you’re abroad, especially if you request that the transaction be made in the local currency, which means you won’t get charged for two currency conversions — by the merchant and by the card processor. Debit cards are good for withdrawing local currency from an ATM if your bank belongs to an overseas network, though you’re likely to pay a fee. Keep in mind that currency exchange outlets in airports and train stations are usually the most expensive way to get cash.
Don’t carry too much cash.
When you head out for the day at your destination, take only as much cash as you may need and leave the rest in a secure place, such as a hotel safe. Keep the cash you carry in hard-to-reach backpack pockets or a money belt.
Find the best way to transfer money.
Despite the best-laid plans, you may need to have money wired to you during your trip. If you’re already on the other side of the world, your bank is likely to charge you higher fees than a third-party service. Use this money transfer tool to find out which provider is right for your needs.
Prepare for emergencies.
Before leaving on your trip, inform your card issuers that you’ll be making transactions outside the U.S. so that your cards don’t get rejected. Also, note down the overseas contact numbers for their fraud departments in case your card gets stolen and you need to freeze your accounts. Keep these numbers on your person in case your phone goes missing along with your cards.
These tips involve some effort, but it’ll feel relaxing when you can pay for your admission to the Louvre in Paris without worry or can skip the scramble for cash when sampling adventurous street food. With the right tools, spending while abroad can feel as easy as a day at the beach.
Veronica Ramirez is a staff writer at NerdWallet, a personal finance website. Email: vramirez@nerdwallet.com. Twitter: @veraudrey.
