• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

Choosing the Best Travel Money – How you want to Pay for Foreign Expenses?

January 30, 2015 2 Comments

Share this:

  • Tweet
  • Email

We are from India and we do regularly visit our friends and family there. I have a bank account in India where I remit money to before going there. This money usually covers all expenses in incur during our India trips. But it may require us to travel to another company for work. We may even plan a Europe trip in coming years. One of the questions that I’d need answer on is how to pay for expenses overseas?

Travel Money

When going abroad, whether for business or pleasure, one thing you need to consider is exchanging currency and how you are going to carry your money whilst overseas. This is not a decision that should be taken lightly. You could end up getting a lot less for your cash if you do not assess your options. After all, let’s say you leave exchanging your money until you get to the airport.

You will definitely suffer at the hands of a poor exchange rate. The exchange store in question knows it is your last resort and you can’t exactly go anywhere else, so they can get away with charging more.

Keeping that in mind, in this post we are going to take a look at all of the different options you have at your disposal when it comes to travel money

(Related – The best travel advice, Walk)

Carrying Cash

First and foremost, let’s begin with the option of carrying cash around with you. Of course, with this option there is always the risk of the money being stolen or lost. You have no form of protection if that occurs.

Nevertheless, a lot of people like carrying cash with them, as they feel it is more convenient and of course it is accepted everywhere. The best method is usually toPick pocket carry some cash and then go for one of the other options mentioned in this post.

When it comes to exchanging your currency you have a whole host of options at your disposal. As mentioned in the introduction, you don’t want to leave it until the last minute.

You should monitor the exchange rates to determine when it is going to be the best time to buy the currency you need. You can easily do this online and buying off the Internet comes recommended as well, especially as a lot of companies will deliver the money directly to your front door.

This is especially beneficial for those that do not have a nearby branch. Some online companies will allow you to set an alert and thus, they will inform you when the exchange rate hits a rate you’ve already pre-selected.

Traveller’s Checks

Traveller’s checks have long been a popular form of carrying money, as they are one of the safest options. You can easily replace your traveller’s cheques if they have been lost or stolen. Of course, this is something you cannot do with cash.

Traveller’s checks are also widely accepted at banks and other places throughout the world. However, it’s highly unlikely that you will be able to pay with them, as most businesses will not accept this as a form of payment. Instead you will need to cash them in.

The convenience of traveller’s checks is another plus point, especially as they can be ordered online nowadays. However, you do need to be mindful regarding where you purchase your traveller’s checks.

This is because you are likely to be subject to higher exchange rates and other fees as well, with commissions and cashing in fees being quite common. Make sure you assess the full picture to be sure that you are getting the best deal.

Prepaid Cards

Prepaid cards are a popular option. The way these cards work is simple – you upload funds onto the card and then you can spend the money in stores or you can withdraw cash from ATMs.

Bank ATMYou will essentially use it in the same manner as you would use your credit card, with the distinct difference being that you upload funds prior to spending with a prepaid card. This allows for much better money management, meaning you can’t get into any debt. You can also take advantage of good exchange rates by uploading cash at a time when the rate is favorable.

Other advantages of using a prepaid travel card include the fact that they are widely accepted and you won’t suffer any foreign-exchange fees, as you will with a debit or credit card. You are also protected from card fraud and identity theft.

This is because your card is PIN protected and not linked to your bank account. If you lose your card or it is stolen, your money will be safe and you can replace the card. Most prepaid card providers will have a 24/7 emergency line for instances like this.

Apart from this, it is also worth taking into account the fact that a lot of prepaid cards give you the chance to upload multiple currencies, meaning you can use the card again and again.

Credit Cards

This is undoubtedly the most convenient option of them all. You don’t need to exchange any currency, you don’t need to order traveller’s checks or upload funds to a prepaid card. All you need to do is make sure you take your credit card with you.

It’s as simple as that! Moreover, if you have one of the major credit cards you should have no trouble using it abroad, no matter where you are.

Credit Cards, Debit CardsNonetheless, credit cards are certainly not without their disadvantages. One of the main cons is the fact that you will be charged for every transaction you make. Moreover, if you opt to pay in your home currency you will suffer at the hands of high exchange rates and there may be even more charges on top of this!

Therefore, if you use your credit card overseas you will definitely end up spending a lot more money than necessary.

On the other hand, there are few credit cards that do not charge foreign transaction fee. Here’s one such list for your use. These days all frequent travelers have a no-foreign-fee credit card.

Personally, I’d prefer this type of credit card for my travels. I don’t have to carry cash or checks and their will not be a fee to worry about.

Conclusion

Hopefully, you now have a better understanding of the different options that are at your disposal when it comes to travel money. Of course, there is no right or wrong answer when selecting the appropriate option.

It all depends on what is going to work for you. Some options are more secure than others; some are more convenient, some present better value for money. As stated earlier, it is probably a good idea to consider taking advantage of two of the options instead of merely one. A lot of people like to carry a certain amount of cash and then use a prepaid card as well for example.

Another aspect is the place you’re going to. A detailed research on internet is required on the availability of check encasing centers, ATM location and type of ATMs, etc.  There’s not many merchant establishments in African or Asian rural areas that accept a credit card. Depending on where you’re going to you may need to carry cash and in a large amount.

And when you’re carrying a large amount of cash, check the destination country’s regulation. We can’t carry more than $10,000 in to USA from outside, else you’ll have to report in customs form.

When you decide to exchange currency, make sure you research and get the best possible rate. Exchanging money at airport is probably the costliest of methods available. 

On the other hand there are places where they accept US Dollars in addition to their local currency. In that case you don’t have to exchange to local currency, thus saving money.

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« 10 Tax Code Changes for the Common Man in 2015 That We Should Keep in Mind
How to Reduce Your Debt from Being Financially Indebted »

Comments

  1. Cindy Brick says

    February 1, 2015 at 1:04 AM

    Great article!
    I disagree with you on a few points, though. In our trips in recent years (Ireland, the Caribbean, Mexico), we found few merchants who were willing to accept travelers checks. (They were terrified of fakes.) You almost had to go to a specific exchange to get these cashed — and those businesses were hard to find, too. We used to carry American Express travelers checks — no more.
    We did far better these past few years, using cash (with a backup of US currency, which are interchangeable with a lot of the local currency — people like dollar bills in these countries) and credit cards. We would have done better with a chipped ‘smart card’ in Ireland (see this post for more: http://midlifefinance.com/2014/06/credit-cards-dollar-bills-and-other-travel-bugaboos/ ). But we have done just fine a MasterCard that actually gives us better rates overseas. (Less transaction fees.)

    We have never gone to India, so couldn’t respond to that area…but these strategies have worked very well for us in our current travels.

    Reply
    • SB says

      February 5, 2015 at 11:29 PM

      I did also say Travelers checks are very notorious and we did face difficulties encaching them. I traveled to Dubai, a part of Europe where US dollars are accepted by most shop owners. In India they won’t accept USD.

      When you go for exchange you always lose 2 -5% depending on where you exchange.

      We remit money to India and then pay from that money while we are there, usually.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media