Money is often a major concern for people planning trips overseas. How much should you take? What form of payment should you use? How do you get cash overseas? The questions go on. Fortunately, as technology improves, managing your finances overseas becomes simpler, safer and more efficient. Here are a few money tips for you as you embark on the trip of a lifetime.
Exchange Rates
When changing dollars into another currency, you can find the exchange rates in a number of ways. Yesterday's rate for the major world currencies is listed in the business section of most metropolitan newspapers. Any bank, either in the U.S. or overseas, will be able to change your money while providing you with up-to-the-minute exchange rates. Some banks even display the rates for their customers.
American Express Travel offices and independent exchange offices will also change your money at competitive rates. Wherever you change your money, you will be charged a small commission, usually around 1% of the amount you're exchanging. There are also several online currency conversion websites to help you determine exchange rates.
When to Exchange?
Generally, the exchange rate for U.S. dollars is better once you are overseas. Although it's wise to exchange some currency before you leave, change no more than a few hundred dollars, then visit a bank once you arrive at your destination to make further exchanges. There will be a currency exchange offices at the airport when you land, but their rates are usually not too good. Furthermore, handling your money in a busy airport can attract the wrong kind of attention. It's safer to exchange at a bank. Ask the concierge at your hotel front desk to direct you to the best place to exchange money nearby.
Use the ATM
The great step forward in handling your finances overseas, is the proliferation of automatic teller machines (ATMs) at banks worldwide. Whether you're in Bangkok or Bologna, more and more banks provide ATMs that are linked to global networks such as Plus, Star or NYSE. These network logos will be displayed on the ATM. Find out which networks apply to your account before you leave home, so you can spot an ATM that will work for you. These machines will allow you to use your card to withdraw Baht, Francs, Lire, Yen or Pounds at the exchange rate offered by the bank. This is becoming by far the most convenient way to handle your money needs while on a trip. You can withdraw and handle money in smaller amounts, as you would at home.
Bring Bucks
Naturally, you should bring some good old green-back dollars with you, though carrying around huge amounts of cash is never advisable, either at home or abroad. Though you can't count on it everywhere, in many countries, merchants will be happy to accept your dollars since the currency is such a stable one. Perhaps the wisest idea is to bring some cash with you, but plan to share your expenses among several payment options, i.e., foreign currency changed at home, U.S. dollars brought with you to change, ATM withdrawals, and of course, credit cards.
Credit Cards
Visa, MasterCard, American Express and Diners Club are accepted widely overseas. Though the Discover card is gaining ground, it is not accepted in the majority of places. You may also be able to obtain a pin number to use your credit cards in ATM machines while on your trip. Before you leave home, double check your credit card limits. After all the wedding expenses it's easy to approach your available spending limits. You may also want to go over your credit card policy. If you plan to use the card for big purchases during your trip, check to see that any card guarantee policies regarding loss, theft or damage of purchased items are still valid overseas.
If you buy something with the card and ship it home, check the contents as soon as the package arrives, in case the contents are damaged or you were shipped the wrong item. Contact the credit card company immediately and then put your information in a follow-up letter to them. If you are contesting a charge, do so in a timely matter since some companies have time limits for filing claims. Above all, keep your receipts and documentation for credit card purchases, at least until they appear on your bill and are cleared.
Traveler's Checks
The jury is still out on using traveler's checks. So often they are more trouble than they're worth since you have to carry your passport as ID when you use them, and proprietors will often refuse to accept them. You may end up bringing the checks home and using them at the grocery store. You can purchase traveler's checks at your bank or any American Express office.
The upside to using traveler's checks is that they are usually affiliated with a credit card company and can be replaced quickly and easily if lost or stolen. There's no way you'll be left stranded in a foreign country if you have traveler's checks. Receipts are issued as a record with the checks when you buy them. Be sure to keep the checks in one place and the receipts in another: you'll need the receipts if you have to replace the checks.
One sure Thing
You will spend more money than you planned to on your trip overseas. It's virtually a guarantee. So if you were padding your budget, this would be a good place. You'll find wonderful things to bring home for family and friends, you'll choke on a couple of giant restaurant bills, or who knows, you may fall in love with a place and have to stay another few days. Whatever the unforeseen reason, you'll be happy you brought a little extra. Have a wonderful trip.
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