Stop Throwing Money Away When You Travel With These 4 Proven Payment Tips

If you’re travelling outside of the US for your next vacation, then you need to think about travel money. The old days of traveler’s checks are long past, and nowadays there’s plenty of flexible options to suit everyone. Do a little planning and you can get more in return for your hard-earned dollars.

Credit cards

These can be a surprisingly good choice. Check the fees for exchange and the interest rate (APR) if you don’t plan to pay off in full straight away. Usually there will be an exchange fee, but as long as its 1 or 2% it’s still likely to offer better value than an exchange bureau. Use your cards for bigger purchases like shopping or restaurants. Credit cards are also great for refundable hotel deposits, as the hotelier can hold the amount on your credit card - but you don’t physically part with the cash unless you choose to. Be aware that ‘chip and pin’ cards are popular in Europe. Most terminals are able to swipe the magnetic strip but there can sometimes be problems. Have some cash as back up.

Cash and debit cards

ATM withdrawals in your destination country usually offer better value than exchange bureaus. This is simply because the buying power of the banks on foreign currency means they can offer better rates. Make sure you can access your account abroad beforehand, and try to take out larger sums less often rather than lots of little ones, to reduce fees. Always use a debit card – a credit card will result in some major fees! And, avoid using a debit card in other situations – use your credit card instead. Don’t use the exchange counters at the airport unless you are absolutely desperate, as these generally give worse rates than you would find elsewhere.

Exchange bureaus

Good for peace of mind as you have the cash in advance of your vacation, but beware no-fee and buy back schemes. It’s likely you’ll be paying for it through a less competitive exchange rate. You’ll probably find your hotel and other shops will provide exchange services as well, but the rates will be the least favorable, so this should be your absolute last resort.

Prepaid cards

These are generally MasterCard, Visa or American Express-badged and can be used wherever you see those symbols. Fees can be higher, but they are convenient and aren’t linked to your credit cards (in case you’re worried about fraud). Many can also be replaced if lost.