When traveling, dealing with money overseas can be one of the most challenging things. If you walk around with large amounts of foreign currency, you can make yourself a target for being robbed. You can also run the risk of simply losing it yourself. However, using your credit card or EFTPOS card from home can be really expensive, with bank fees adding up quickly. Finding a method of overseas payment that works best for you can be a hassle, but there are lots of options available to you. Here are the most popular ways of dealing with money overseas.
Getting a Travel Money Card:
Travel Money Cards have popped up in recent years, becoming the electronic version of traveler’s checks. There are a number of banks and companies that offer them, with a variety of great rates and deals making this an appealing option for those who travel regularly. You can choose to exchange foreign currency in advance and preload it onto your card, which allows you to get a better exchange rate. Often Travel Money Cards do not have large fees for international withdrawals, meaning that you can take smaller amounts of money at a time, which is safer.
Using your Credit Card:
Depending on your relationship with your bank, you can sometimes find good value credit cards that are great for using overseas. This depends heavily on the company and some credit cards might not be accepted overseas, so it pays to book in a meeting with your bank to check. Also, often credit cards do not have as good exchange rates as Travel Money Cards, so this is something you should compare to ensure you are getting a good deal. While might seem like a marginal difference in currency conversion rates can make a considerable difference over the course of your trip, so do your research.
Taking Cash:
Some people like to withdraw all the money for the trip in the foreign currency and take it along with them. Sometimes, banks at home can give you a pretty good rate, especially if you order in advance, which will save you money down the line. Personally, I don’t trust myself with large amounts of cash. I think this option would suit someone who was just going away for a short trip or had exceptional money handling skills.
Withdrawing from International ATMS:
This is the method I’ve used along my travels, just because I haven’t taken the time to look into a Travel Money Card. Over the past two years of travel I probably could have saved a few hundred dollars in ATM fees if I’d opted for a Travel Money Card instead. I love the convenience of using my bank card and I’m lucky enough to have two linked to the same account, so if I was to lose one overseas then I have an easy backup.
How do you deal with money when you are overseas? Do you carry cash, use your bank card or have a specialised Travel Money Card? Let me know in the comments below.
