So far, I’ve been to 21 countries in my life. It’s not a big number compared to the other seasoned travelers, but I’ve had my fair share of experiences dealing with money in different countries. So I wanted to share with you guys on how to best prepare yourself with handling money when traveling abroad.
1. Have the Right Credit Card:
First and foremost, I never leave my house without my Gold Delta American Express credit card. It’s not widely accepted at a lot of places in the US (just because it charges vendors higher transaction fee than Mastercard and Visa), but it’s such a travel essential for me because 1. I stack up on my Delta points and 2. there’s no international transaction fee.
*Be careful though, if you’re getting an American Express card, to make sure it can be used abroad without international transaction fee. I originally had two American Express cards while traveling—the regular Gold American Express and the Gold Delta American Express. I used to use my regular Gold American Express a whole lot more because I got more points through it, until I found out that this card actually charges for international transaction fee. I didn’t know that and I called them, but couldn’t get the fees reversed. So now, I just strictly use my Gold Delta American Express card, which doesn’t charge international transaction fee.
I also recently got the Chase Sapphire credit card, which also does not charge for international transaction fee. This was recommended to me by my boyfriend who’s been using their (and also the American Express) credit card for years. He says Chase is great for refuting travel complaints and travel emergencies. I haven’t actively used this card yet, but I’m excited about all the travel benefits I’ll be getting from it.
2. Always Carry Cash, Especially for Shoppers:
When I’m in the US, I NEVER carry cash—it’s annoying. I just carry my Delta Gold American Express and driver’s license inside my iPhone case. No wallet, no problem. When I travel abroad though, I always carry cash no matter what. It’s not just for emergency, but also just very convenient.
Having cash with you, especially when traveling to developing countries, is a must! A lot of taxis and vendors strictly do not take cards, not even debit cards. Don’t get stuck in a situation where you can’t pay for your things and services just because you only have cards on you.
Paying with cash is also a great bargaining tool. Almost all vendors prefer that you pay them in cash, rather than credit or debit card because they don’t want to pay for the transaction fee. Ask the vendors for a little bit more discount because you’re going to pay them with cash. It always works!
3. Get a Multi-Currency Prepaid Travel Credit Card:
Before I started my world travels, I was too naive to know that there were credit cards that don’t charge international transaction fee (like the ones I have now). So as a result, I cancelled all my MasterCard and Visas and got one of those pre-paid credit cards from MasterCard before I went to Europe. It’s called the Multi-Currency Cash Passport and it’s fucking awesome.
You can put in up to $8500 per month of six different currencies in one card: US Dollars, British Pounds Sterling, Euros, Canadian Dollars, Australian Dollars and Japanese Yen. It works like a Debit/Credit hybrid and it’s got a chip and PIN with no link to your bank account for extra security. I used this all over Europe and it’s fantastic.
4. Avoid Using ATMs Except for Emergencies:
I got taught such a lesson from the international ATM withdrawal fees after I got back from my Europe trip because I never really checked my online account. I figured that as long as I use a Bank of America partnered bank ATM machine, then I won’t be charged the international withdrawal feed. Man, that was dumb. I think I stacked up well over $200 just from international ATM withdrawal fee just from 4 months of being in Europe.
I visited ATM as frequently as I pleased and didn’t take out enough money in one transaction. Huge mistake. So my advice would be to use ATMs only when needed and take as much money out in one transaction.
5. Carry a Digital Wallet:
In today’s world, everything is going digital. Ever heard of Bitcoin? Easy mobile payment apps such as PayPal, Venmo and Xapo make it easy for you to send and receive money with friends and travel companions. I’ve traveled with friends who counted every dime of what he/she owed me and vice versa and the easiest way to vouch each other was through mobile payments.
The best thing about companies like PayPal and Xapo is that they also have their own debit cards without the hassle of opening up a checking/savings account with a bank. It only takes a couple seconds to download them on your app, it’s free and it weighs absolutely nothing, so I don’t see any point of not getting one or all three (of the apps–PayPal, Venmo and Xapo bitcoin wallet).
So there you have it—best ways to carry money when traveling abroad. I hope you guys can learn from my mistakes and be a more savvy traveler!
xoxo from Los Angeles,
Jinny~