Ways To Pay When Traveling Abroad
Traveling abroad can be a great experience but only if you plan a few things in advance especially when it comes to money. No matter if you plan a city break or a longer trip it is always a good idea to inform your bank in advance. This way they will know it’s you spending the money abroad and will not freeze your card based on fraud suspicions. This is an easy and simple way to avoid the frustrating situation of not being able to use your card when you are already in a foreign country.
Paying in local currency is usually a good idea since cash is accepted everywhere. You can exchange in various places such as banks or airports and never on the street. You should consider exchange fees and rates and decide which is the best option. On the other hand, if the trip is longer it is not recommended to take only cash because you can become an easy target for the pickpockets. You should know how much money do you feel comfortable carrying (usually enough for 1-2 days) and not ruin your trip with constant worries about whether the cash is still in your pocket.
Every smart traveler has at least two forms of payment. Credit or debit cards are a good alternative to cash. Nowadays banks offer so many different credit cards. You may save some money if you go to your bank before traveling and ask if they offer free withdrawals abroad.
Debit cards usually have fee for withdrawals or the exchange rate is not so great so it’s good to know what using them will cost you. These fees are the reason why you should probably avoid using credit and debit cards for small purchases. If we talk about sending or receiving larger amount of funds abroad the safest way is through international money transfer. Most of these transfers are executed through SWIFT (Society for Worldwide Interbank Financial Telecommunications). This is a co-operative and all the large banks belong to it. In order to do this international banking you have to check first with your bank if they do such transfers. When you are the recipient of the money you have to provide your Bank Identifier Code (BIC) and International Bank Account Number (IBAN) to the one who sends the funds. It is important to know that there is a fee for sending money that can cost anywhere from $20 to $50. When receiving the money usually you also have to pay to your bank for the transfer. It takes from a few hours to 5 business days to receive the money.
Travel checks used to be very popular. Now they are a good option in countries where credit cards are not widely used and ATMs are hard to find. Traveling with checks like that can be safer and cheaper. If the check is stolen or lost it will be replaced within 24 hours. You can purchase the checks before the trip at a good exchange rate. The inconvenience is that some merchants do not accept travel checks so in this case you have to go exchange them in a bank.
Another option which is a combination of the cards and the checks is the pre-paid card. It might be even cheaper way to pay abroad than the travelers check because usually you have to pay commission only when loading the card and not when withdrawing funds.
No matter which way you choose as a paying option when you travel you have to be well prepared. It is a bit time consuming to research everything but this will save you money, time and discomfort while you are in a foreign country. Travel usually brings excitement because of the unfamiliarity of the places we visit but when it comes to money we should not let the lack of knowledge put us at risk.
