It should be no secret to anyone that when traveling overseas in a foreign country, the money you have on you is likely to not be accepted there. This is why you need to convert your money to whatever currency they use in the country you are visiting. There are a number of different ways of doing this, and each one has its own positive and negative aspects. There are also fees and other charges involved that will affect how much your money ultimately ends up being worth once it is converted. Here we will look at which options give you best travel currency rate.
Cash is unsecure and often poor value
The first and oldest option is cash. Now, most everyone knows that it is highly recommended that they don’t carry cash on them when traveling. The main reason for this is security. If you lose it or it gets stolen, there is no way you are getting it replaced. If you do decide to use cash, you will have to take the time to find a bank that will exchange it out for whatever the local currency is. This will usually involve a bank fee to do this as well. While not recommended, the travel currency rate you get with cash depends on whatever the exchange rate is for that day.
Travellers cheques are a traditional method, but are starting to fall off the map
Next are traveller’s cheques, which have been around and used for some time now. They offer greater security than cash, for if they happen to get stolen or you lose them, you simply call a number and get them replaced. The travel currency rate for these will also depend on what the exchange rate is at the time you get the checks. There are also service charges involved, plus you have to pay shipping charges to have them sent out to you. And just like regular checks, traveler’s checks are quickly being pushed aside for plastic cards.
Debit card are convenient for overseas spending, but not ideal
You can use your regular credit or debit card, but nowadays, people much rather use a prepaid travel card. Your credit card will likely have a huge credit limit and there is nothing there to control your spending. With a prepaid card, you can only spend whatever amount you put on the card to start with, which will be based on the current travel currency rate. Debit cards will limit your spending to whatever you have in the bank. But a debit card, if stolen, gives the thief access to your entire bank account, whereas with a prepaid card, they can only access the amount you put on the card.
Prepaid currency cards: the best way to spend while you travel
Our prepaid MasterCards© have no top up fees, transaction charges and a great exchange rate, which is better value than most rates on credit and debit cards. Apply now to save cash on your next trip.
Monday 01 March 2010, 01:40pm
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