Puzzled about how to pay once you have hit the road? Is cash better that using a credit card? Some travel and money experts give us some recommendations regarding the best deals when it comes to financial issues abroad.
Credit card are more secure when it comes for paying. If you are robbed, you can easily get a new one, without paying any extra fees. Besides, the wide acceptance makes cards more accessible than ever – hotels, small shops or even restaurants. You may also find a good exchange rate because money is converted at more favorable rates. But, on the other hand, foreign transaction fees are up to 3%. Still, the are companies, like Capital One, that don’t charge any.Take into account the limited use is less-traveled destinations. Take the Third World countries – you are very likely not to find any ATMs there. So, before setting off, find out where your credit card is accepted and call your credit card company to prevent to have your card stolen. You’ll be immediately registered in their data base. Be sure you have enough money for your whole trip.
As cash is regarded, for more convenience, you should have some for drinks, life a coffee or for bus tickets. However, you can lose it or be stolen from you. So, carry with you as much as you afford to lose or put them in a money belt. Conversion fees may be higher if you chose to exchange money at the hotel or in airports. For instance, you could change $150-$200 immediately as you reach your destination because you may be very confused just as you have got there.
Debit is convenient – it is an easy way to get local currency. Moreover, it is cheaper, some international banks charge no fees for their ATMs abroad. But, you can also encounter big fees as well. Withdraw the maximum amount of money you can from the ATM, otherwise you have to pay even $7 fees for each withdrawal.
Traveler’s checks are on one hand, much more secure because they are refundable if lost or stolen, but on the other hand they aren’t universally accepted. In Third World countries or less developed nations you should go to a bank to get your check cashed, because the hotel may charge you a fee for that. Opt for travel debit cards because stored value cards are similar to travelers’ checks.
In conclusion, a budget travel has to take all the above mentioned issues into consideration.