Carrying cash poses a huge security risk when traveling because if you happen to drop it or if it gets stolen, there is no way to get it replaced. Should you decide to carry cash with you anyways, the country you are visiting may not use that currency, which means you will have to exchange your money for whatever is accepted there.
This will depend on whatever the travel currency exchange rate for that day, as the rate fluctuates slightly from day to day, depending on the global economy. There are also likely to be fees from the bank that switches your money out.
If you want a more secure option than cash, then you can use traveller’s checks. These have been around for quite some time and have been the preferred travel money option until recently. Unlike cash, if your traveller’s checks happen to get lost or stolen, all you have to do is simply call a number to have them cancelled and get more sent out to you. The amount your checks are worth depends on how much you want to put on them and what the travel currency exchange rate is the day you do the transaction. There are going to be service charges involved with traveler’s checks, as well as shipping charges to have them sent out to you.
Traveller’s checks were widely used at one point in time, but just like regular checks, they have been replaced by plastic cards. Things like credit, debit and ATM cards are things almost everyone has on them already these days, so they can just use them while they are on vacation. But even they are subject to have their value change based on the travel currency exchange rate on the day they are used.
Another option that is quickly replacing all other payment options is the prepaid travel card. These also offer a much better travel currency exchange rate. This card offers even greater security than the credit and debit cards, as you have to have a PIN number to use it. In addition, it can also help control your spending better than a credit card will. With a credit card, you are only limited by your overall credit limit, which is likely thousands of dollars for most people. With a prepaid card, you can only spend the amount that you put onto the card. A debit card can limit your spending to only money you have in the bank, but could cause some temporary should a thief steal it and wipe out your bank account.
Thursday 04 March 2010, 09:16am
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