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
There is one pre-travel activity that everyone should put on their checklist before heading on a fun vacation. However, with a little research on how to get a better foreign currency exchange rate can help you save a little that you can put toward some other fun aspect of your trip.
Cash is Needed
Most people will be in need of local cash currency as soon as the plane hits the ground for a number of different purposes. You may need to catch a cab, take a bus or perhaps have that first meal in the country where you are now vacationing. Fortunately, the presence of ATMs throughout the world, especially at airports, allows you to have access to local currency as soon as you land. This is especially true if you choose to fly into major international airports.
Less Modern Convenience
However, you may find yourself traveling to a third world country where there is no ATM machine available. Of course, doing a little research before setting out on your trip will help you avoid a situation where your standing at the curbside seeking the services of the taxi and all you have on you is your own country's currency. It is always highly recommended that you obtain the currency of the country where you are going to travel to before you leave your home. It's also very important that you get a better foreign currency exchange rate before traveling.
Where to Get Foreign Currency
Buying foreign currency from a local bank or exchange bureau in your hometown before you go traveling abroad may not be the best option available to you for exchanging money. There's going to be a commission fee involved and you will not experience the benefit of the interbank rate you would get if you use an ATM or credit card. That's why ATM machines are available at major airports throughout the world and this is your best bet to get some local currency cash as soon as you land. Unfortunately, there is no guarantee that these machines will be working or that your particular type of card is going to work in that system. Throughout the world many ATM machines only accept the Visa/Plus network denying use of the MasterCard/Cirrus network.
Consider Pre-Paid Currency Cards
Obtaining a prepaid currency card is the most recent trend when it comes to funding any travel overseas. These acts much in the same way as a mobile phone funding card which you can top up with the currency of the country to which you are traveling. They can be used much like a credit or debit card to purchase items as well as withdraw cash from ATM machines while traveling abroad. Although there is a service charge fee for using this type of plastic, with a little online research you can find the company offering the best exchange rate and thus place your traveling funds on the card before heading out on vacation. FairFX levy no hidden charges, and some of the best exchange rates around. Take a look for yourself.
Consider combining the practice of bringing about $100 worth of your own currency along with you on the trip as well as purchasing a prepaid currency cards taken down to the best foreign currency exchange rate possible that will make your vacation trip conveniently enjoyable.
Monday 01 March 2010, 09:23am
If you are planning to take a trip out of your resident country, then money is usually your first concern. Not just the cost of the trip, itself, but the expenses you will incur while you are there. This generally entails knowing the currency of the country you are going to as well the tourist exchange rates.
It is very important to know how your money compares to the local currency of the area. This is vital information for properly being able to plan for your trip. It could ruin everything if you arrive somewhere and realize you did not set aside enough money for necessities. You need to know if your dollar is worth more or less than theirs.
There are many different ways in which you can discover this information. Many local and cable news channels report it on a daily basis. It is usually carried in the morning news reports. This can be helpful, but only to a certain degree, since it is not updated in real time.
Many banks also provide this information freely to their customers. Finding out the current rate, at least as current as they list it, could be as easy as walking in or calling to ask. Some of them even offer exchange services, so you are ready, before you leave for your trip.
The drawback to both of these is the lack of real-time information. Currency rates can fluctuate on a daily basis and throughout any given day. It would be horrible to arrive at your destination and find out the information you had received is now no longer accurate.
Thankfully, you do have several options that you can use to avoid finding yourself in such a situation. There are many Internet sites that offer real-time currency exchange information. They use automated processes to make sure they offer the most up-to-date information possible.
This means that you get the latest exchange rates, right when you need them most. Regardless of where you are going, this makes it easy to find the information you need in seconds. All it requires is a little of your time using an online search engine.
To get as colse as possible to these interbank (spot) rates, try using the FairFX prepaid currency card. We are an online business with lower overheads, and we trade directly in the currency markets, so make great savings which we pass on our savings to the customer. Apply today before your next trip.
Friday 26 February 2010, 03:16pm
