Currency for Travelers

Let’s look at each choice:

CASH: You need to think about security when carrying large sums of money. You can’t replace it if lost or stolen. If you do use cash, be sure to use a money belt for extra security. In countries that don’t accept your country's money, you’ll have to exchange it at a bank. Of course you’ll need small sums of cash just to get to your destination and back.

CREDIT CARDS: Easy to carry and accepted widely. For a fee, you can also get cash advances from ATM machines. The downside is your credit card number can be stolen and used later. You would also need to supplement your card with cash for places that don’t accept cards. Also be aware that banks will add service fees for the use of your card abroad. Check with your bank before you leave to see what those fees are. Also advise your bank that you will be traveling and where you are going so your card won’t be declined. Check around to see if certain cards waive fees for international use.

DEBIT CARDS: These can also be used widely as long as they are with a major international network. They can be used at the ATM with your PIN to get local money. The bank and conversion fees will appear on your statement. They are relatively safe and may even help you budget your trip since you will be more conscious of the money you are pulling from your account.

PREPAID TRAVEL CARDS: These cards look like credit cards but function more like traveler’s checks. You “load” the card with money and can use it like a debit card at ATMs using your PIN, or as a credit card for purchases. You can replace it if lost or stolen. A good prepaid travel card can be found at Visa Travel Cards. These are great alternatives for anyone without a bank account or credit card. The downside to these cards are the high fees to load and activate them. The fees for foreign currency conversion can reach as high as 7%. You need to be careful though, these cards can be difficult to use abroad at some bank ATMs.

TRAVELER’S CHECKS: These are very secure since they can be replaced if lost or stolen. They can also be purchased in some foreign currencies, such as the Euro, British pound, Japanese yen and Canadian dollar. The downside is the cost of purchase. They can also be less comfortable to carry. Some locations will charge a fee to convert to cash. Always leave your traveler's checks in the hotel safe until you need them.

FOREIGN CURRENCY: This is tricky one. You can go ahead and purchase the currency of the country you are visiting, but then you still have all that bulky money to carry around and there is still a security risk. Airports buy and sell foreign currency, or it can be bought online.

To see current exchange rates go to currency converter at XE.com.

To sum up, you are probably better off carrying 2 or 3 types of money on your trip. Check with your bank for all conversion rates and other fees before making your decision.

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