Taking large amounts of your own currency for changing when you arrive is probably one of the worst options . . . → Read More: Taking Cash]]>

Taking large amounts of your own currency for changing when you arrive is probably one of the worst options for carrying money.

Your exchange rate will be retail, which is always going to be more expensive that wholesale.

Also, in most places, the person doing the exchanging will always want their little “cut” from the transaction.

Banks and hotels are the best places to change money but you can still get ripped off by the unscrupulous. Keep an eye on the daily rates to avoid this.

Remember, there may also be a fee for currency conversion so always ask about this before handing over your money.

Also, cash is the least secure way of carrying money, once it is lost or stolen that is usually it.



If you do bring cash from home, make sure any bills you bring are clean and brand new (you will have less trouble changing them).

Similarly, don’t accept torn or worn money in developing countries because you will have trouble getting rid of it.

And never exchange money with anyone you don’t know (people off the street, for example), even if they appear to be giving you a great rate.

The black market for foreign currencies in some countries is driven by restrictions on foreign currency ownership and artificially high exchange rates.

As well as being illegal in most countries, changing money on the street puts you at risk of getting counterfeit notes, being short-changed, or even robbed (handing over cash to people you meet on the street is never a good idea).

All that said, some people advise changing and bringing a little local currency with you, if only to avoid the possible hassle of doing it when you arrive at the airport and you need some loose change for buses or snacks.

However, foreign currency can be expensive to buy at home, and for the small amounts involved it usually isn’t much of of a problem to buy it when you arrive.

If you do get it at home, though, try to find a commission-free provider. In the UK this would be someone like Marks & Spencer, Lloyds TSB, the Post Office or Thomas Cook. But check exchange rates before choosing as they can vary somewhat between each of them.

Ultimately, when choosing between the methods above of getting to your money, remember that there are usually only a few percentage points difference between each of them. But it is worth knowing about them, nevertheless, so you can make an informed choice at the appropriate time.

Once upon a time, everyone who travelled carried traveller’s cheques, but not anymore. Nowadays, credit cards are the norm.

Credit cards (and debit cards) are usually the preferred option for making purchases overseas because the currency conversion (the . . . → Read More: Using Credit Cards]]>

Credit cards (and debit cards) are usually the preferred option for making purchases overseas because the currency conversion (the actual exchange rate you see in the papers or on the news) is usually at the wholesale rate (or 1% over the commercial bank rate) and not at the retail rate you would pay for changing cash at the airport, hotel, or bank.

Not only this, using cards is just as secure abroad as when you are at home (for example, if used fraudulently). You also don’t have to carry cash around, taking it out and putting it back into your purse or bag each time, and you don’t have to worry about counting out or receiving the correct change.

Credit and debit cards are accepted almost everywhere in the developed world, and Visa tends to be accepted more than the others. Bear in mind, however, that the budget hotels, hostels and cafes used by budget travellers may not accept them.



If you do use them you can also postpone paying the bill (with a credit card) and take advantage of any differences in exchange rates between the purchase date and the money being converted (if you travel to countries with ever rising inflation).

Disadvantages of paying with a credit card include the fact that some card issuers (and this applies to debit cards too), will charge you a fee for foreign currency conversions, perhaps between 2 and 4%, usually 3% of the transaction amount.

Some debit card purchases attract an additional flat fee on top of this foreign exchange fee each time you use your debit card (check with the card issuer).

You can, however, find card issuers that charge very little or nothing at all. For example, check out Capital One in the US, or Nationwide, Lombard Direct and the Post Office in the UK.

You can compare UK card charges for overseas use here.

Remember to find out any daily /weekly/ monthly limits your bank imposes on transactions using your card.

Finally, don’t forget to inform your bank or other financial institution of your travel plans, where you are going and for how long, as automated fraud systems can sometimes block access to you funds at inopportune moments. If possible, give them a mobile phone number where they can contact you 24 hours a day and failing that, find out their customer service number (24 hour if possible), so you can call them if there are any problems.

There are a number of ways of carrying money, or at least getting access to it, as you travel.