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Carry as little currency as possible, and instead use
travelers checks, ATM cards, and credit cards for your spending needs.
Before you leave for your trip abroad, invest in a
money
belt that sits on your waist (under your clothes) or a money pouch that hangs around your neck. Don't
tempt purse snatchers or pickpockets--keep your cash concealed and close to your body at all times.
It's probably a good idea to carry only enough money for bus fare, food, and other incidentals. With
that in mind, the following suggestions should help you keep track of your remaining funds and enjoy a
safe trip.
Travelers
Checks: Available at your local bank and great for periodic
purchases, travelers checks are still wise alternatives to ATM and credit cards. If they're lost or
stolen, you can always phone a toll-free number to report the incident and get your money reimbursed,
usually within 24 hours. To make the replacement process easier, have the numbers of the checks you
purchased at your disposal (keep a copy with you--but apart from your checks--and one back home with a
relative or friend). It's also a good idea to go with a well-recognized company, as not all travelers
checks are universally accepted.
Though there's usually a small fee involved in obtaining
travelers checks, members of the American Automobile Association (AAA)
are entitled to fee-free American Express travelers checks in either American or foreign funds. By
having your checks issued in specific foreign funds, you'll receive a much better exchange rate than
what's available at banks abroad. Before converting any funds or making other foreign transactions, be
sure to verify the rate and any fees beforehand as they vary wildly between airports, banks, hotels,
and currency-exchange stores.
ATM
Cards: Fortunately for travelers, the number of ATM machines
abroad has grown by leaps and bounds in recent years. Providing excellent interbank exchange rates,
the machines dispense foreign money against American dollars. Most foreign machines are affiliated
with the MasterCard/Cirrus system or the Visa/Plus system. Check with your bank
to see what fees are charged for overseas transactions before leaving home.
One caveat to keep in mind: Most international ATM
machines only accept four-digit PINs (personal identification numbers). If yours is longer than that,
head to your local bank before leaving the country to have it changed.
Credit
Cards: Credit cards offer decent exchange rates, can be replaced
if stolen or lost, and are widely accepted throughout the world. In addition, many credit-card
companies offer special perks for customers traveling abroad.
American Express Gold cardholder can go into any foreign
American Express office and cash a personal check from her hometown bank for up to $5,000 at no
charge. Also, Visa offers pre-paid travel cards known as Visa Travel Money, which give you 24-hour
access to your funds in any local currency from more than 400,000 Visa/PLUS ATMs. Since it's a
disposable card, and not associated with any of your bank accounts, you can simply throw away the card
when your funds are depleted. What's more, your money is fully protected by your PIN.
A great number of travelers get cash advances on their
credit cards, which provides them with excellent exchange rates and low service fees (however beware
high interest rates). But before leaving home, don't forget to write down the toll-free emergency
number of your credit-card company--just in case your card is stolen or lost.
No matter how you choose to buy goods and services abroad,
remember one thing: Always cash or exchange your currency and travelers checks at major financial
institutions. Resist the temptation to exchange money at airports, train stations, hotels, and kiosks
of commercial money exchangers. The exchange rate is poor, the fees are high, and you'll likely lose
as much as 10 percent of your funds during the transaction. Instead, go downtown to an actual bank to
do any money-changing activities.
We're sure these tips will help you get the best bang for
your buck while traveling overseas. Happy spending!
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Handling Cash When Traveling Overseas
