{"id":11546,"date":"2018-06-18T10:19:03","date_gmt":"2018-06-18T14:19:03","guid":{"rendered":"https:\/\/www.theprofessionalhobo.com\/?p=11546"},"modified":"2024-06-18T07:36:00","modified_gmt":"2024-06-18T11:36:00","slug":"travel-money-guide","status":"publish","type":"post","link":"https:\/\/www.theprofessionalhobo.com\/travel-money-guide\/","title":{"rendered":"The Ultimate Guide To Traveling with Money"},"content":{"rendered":"\n

There are lots of different ways to spend money these days, but international travel throws in a whole new level of complications.<\/span><\/p>\n\n\n\n

On top of managing your money, there\u2019s transaction fees to think about, currency exchange rates, and security too.<\/span><\/p>\n\n\n\n

In this guide, I\u2019m going to outline all the best ways to travel with money, securely and safely and without losing your shirt in fees. <\/span><\/p>\n\n\n

\n
\"Credit<\/figure>\n<\/div>\n\n\n

Table of Contents<\/strong><\/p>\n\n\n\n

Chapter 1: The Best Ways to Carry Cash Safely While Traveling<\/a><\/p>\n\n\n\n

Chapter 2: How To Use ATMs Abroad Safely To Access Your Cash<\/span><\/a><\/p>\n\n\n\n

Chapter 3: How to Use Your Debit Card Safely On The Road<\/span><\/a><\/p>\n\n\n\n

Chapter 4: How to Save Money By Traveling With Credit Cards<\/span><\/a><\/p>\n\n\n\n

Chapter 5: How Many Debit and Credit Cards To Carry While Traveling<\/span><\/a><\/p>\n\n\n\n

Chapter 6: How to Use Prepaid Travel Cards if You Don\u2019t Want a Credit Card<\/span><\/a><\/p>\n\n\n\n

Chapter 7: The Skinny on Travelers Cheques<\/span><\/a><\/p>\n\n\n

\n
\"Carrying<\/figure>\n<\/div>\n\n\n

Chapter 1: The Best Ways to Carry Cash Safely While Traveling<\/span><\/h2>\n\n\n\n

Cash can be quite useful \u2013 and in some cases downright necessary \u2013 while traveling. <\/span><\/p>\n\n\n\n

Despite my personal preference for using a credit card whenever I can, I\u2019ve been to places where cash is the only currency; be it a marketplace, restaurant, or entire city or country.<\/span><\/p>\n\n\n\n

But cash is also the easiest form of tender to lose or be bereft of, on levels ranging from petty to devastating.<\/span><\/p>\n\n\n\n

In this chapter, you\u2019ll learn my favorite ways to carry cash safely while you travel.<\/span><\/p>\n\n\n\n

Don\u2019t Access Your Wallet In Public<\/b><\/p>\n\n\n\n

If you\u2019re in a busy marketplace and enjoying some shopping and the art of haggling, constantly whipping out your wallet is asking for trouble. <\/span><\/p>\n\n\n\n

Instead, keep some spending cash loose and separate from your wallet. <\/span><\/p>\n\n\n\n

Not only is it a form of budgeting, allowing you to pre-determine how much you\u2019d like to spend and keeping only that amount easily accessible, but it also limits your liability for theft or loss.<\/span><\/p>\n\n\n\n

On a similar note, don\u2019t keep your wallet too easily accessible. The easier it is for you to access, the easier it is for a pickpocket to access.<\/span><\/p>\n\n\n\n

Diversify Your Cash<\/b><\/p>\n\n\n\n

Keep some in a wallet, some in a zippered pocket, some in a shoe, and some behind in your luggage (in an unlikely place like your toiletry kit or even in a dirty sock). <\/span><\/p>\n\n\n\n

That way if one stash goes missing, you haven\u2019t lost everything. <\/span><\/p>\n\n\n\n

Not only should you diversify where you carry your cash on your person, but if you\u2019re traveling with a partner, share the load and diversify your cash between you.<\/span><\/p>\n\n\n\n

Use a Money Belt (Or Hidden Pouches<\/b>)<\/p>\n\n\n\n

I\u2019m not a huge fan of money belts, but I must say I\u2019ve had a few that work better than others. In general, having a hot sweaty pouch next to my skin on travel days is uncomfortable and annoyi<\/span>ng (which may at least partially explain why I vastly prefer not to use cash, ever). <\/p>\n\n\n\n

That said, there are many different kinds of hidden pouches that can be worn in various places around the body.<\/span><\/p>\n\n\n\n

Keep Some Cash In Sneaky Spots<\/b><\/p>\n\n\n\n

Most opportunistic thieves won\u2019t delve so far down as to sift through your dirty laundry to see if you have some cash stashed in there. Thus, it\u2019s a pretty good hiding place. <\/span><\/p>\n\n\n\n

Another popular hiding spot for women is an emptied out tampon tube. Keep it in your pack of tampons (back in its wrapper), and an opportunistic thief isn\u2019t likely to sift through each tampon.<\/span><\/p>\n\n\n\n

Carry A Decoy Wallet<\/b><\/p>\n\n\n\n

If you\u2019re particularly nervous for your safety or are in a location rife with pickpockets, you might want to use a decoy wallet, which has a bit of cash and a bunch of fake cards that you can afford to lose should you be required to part with your wallet.<\/span><\/p>\n\n\n\n

Warning: you may not want to use expired credit cards for your decoy wallet though, since it is still sensitive information you don\u2019t want to part with. <\/span><\/p>\n\n\n

\n
\"Using<\/figure>\n<\/div>\n\n\n

Chapter 2: How To Use ATMs Abroad Safely To Access Your Cash<\/span><\/h2>\n\n\n\n

There are a few tricks to using ATMs abroad; if you don\u2019t employ them, you might not be able to access your money while you travel.<\/span><\/p>\n\n\n\n

This came to my attention when a reader hadn\u2019t anticipated the limited access to accounts that foreign ATMs provide, and found herself without money when she needed it. It was a perfect storm of simple complications.<\/span><\/p>\n\n\n\n

Here are the lessons she learned (and a few more) about using ATMs abroad, which if you heed this advice, you won\u2019t have to learn the hard way.<\/span><\/p>\n\n\n\n

Don\u2019t Forget That Account Information And Transactions Aren\u2019t Available On Foreign ATMs<\/b><\/p>\n\n\n\n

At home, you can use the ATM to see your account information, transfer money from one account to another (such as from savings to chequing), and perform other account administration tasks. <\/span><\/p>\n\n\n\n

When using ATMs abroad, this isn\u2019t usually possible. At best you can view your balance (but not always), and make withdrawals.<\/span><\/p>\n\n\n\n

Know Which Accounts Are Which<\/b><\/p>\n\n\n\n

Before you go away, know which of your account numbers are linked to \u201cchequing\u201d, \u201csavings\u201d, and \u201cother\u201d on your ATM card. <\/span><\/p>\n\n\n\n

You can normally set this at your bank before you leave. (For example, I have my main account as \u201cchequing\u201d, and a line of credit as my \u201cother\u201d account).<\/span><\/p>\n\n\n\n

Sometimes in a foreign country, you can\u2019t see the labels on the accounts, or you might not understand the language. It\u2019s best to know your account numbers and which are which. <\/span><\/p>\n\n\n\n

Get Online Banking<\/b><\/p>\n\n\n\n

Access to online banking can get you out of many a pickle on the road. You can transfer money between accounts, pay bills, create travel alerts, and monitor transactions. It\u2019s also a security measure so you can keep an eye on your accounts to ensure there\u2019s no fraudulent activity. <\/span><\/p>\n\n\n\n

My reader who was stranded abroad hadn\u2019t set up online banking before traveling, and thus had no way of accessing the money in her savings account, which wasn\u2019t connected to her ATM card. She had to ask somebody at home to transfer the money from her savings to her chequing account so she could make a withdrawal. <\/span><\/p>\n\n\n\n

Make Sure It\u2019s A Chip Card<\/b><\/p>\n\n\n\n

It\u2019s now the norm for both debit and credit cards to have chips and PINs. Make sure your debit card is armed with a chip, otherwise you may not be able to use some ATMs abroad at all. <\/span><\/p>\n\n\n\n

Switch To A 4-Digit PIN<\/b><\/p>\n\n\n\n

Many ATMs and debit machines abroad only accept 4 digit PIN numbers, so if your bank uses 5 digit PINs, make sure you switch before you depart. You can do this at your home branch, and often at home ATMs too. <\/span><\/p>\n\n\n\n

If All Else Fails, Pay Your Credit Card Off<\/b><\/p>\n\n\n\n

I highly discourage readers from making cash advances with their credit cards, since interest is charged on the total balance from the date of withdrawal (whereas normal credit card charges have a grace period of about a month). <\/span><\/p>\n\n\n\n

But sometimes, bank cards just won\u2019t work, and you\u2019ll have to use your credit card to get cash. <\/span><\/p>\n\n\n\n

If this happens to you, you\u2019d do well to pay off your entire credit card balance<\/em> <\/span>plus the amount you wish to withdraw before you visit the ATM<\/span><\/i>. This will save you from being charged hefty interest. If you can\u2019t do this, then as soon as you can after making the ATM withdrawal, go online and pay off your entire credit card balance. <\/span><\/p>\n\n\n\n

Know Your Bank\u2019s Phone Number<\/b><\/p>\n\n\n\n

If you run into problems with your bank card abroad, have your bank\u2019s phone number handy, and register for telephone banking before you leave. It\u2019s an alternate way to sort out account issues if you don\u2019t have online access for whatever reason.<\/span><\/p>\n\n\n\n

Registering for telephone banking is easy; simply call the banking line with your ATM card handy, and follow the prompts to set up your account and special telephone banking PIN. Telephone banking is not just for automated banking either; depending on your bank, you may need to go through this system to get to an operator who can help you.  <\/span><\/p>\n\n\n\n

When I was in Bali, I tried to make an ATM withdrawal at multiple ATMs without success. Luckily I had my bank\u2019s phone number (and telephone banking PIN) on hand; when I called in, I learned that the system had flagged the ATM withdrawal as potentially fraudulent and had frozen my account. Once I confirmed that indeed it was me, they opened my account again and I could make a withdrawal right away.  <\/span><\/p>\n\n\n\n

Check The ATM Network Logos On Your Card<\/b><\/p>\n\n\n\n

On the back of your bank card is likely a series of logos, including (hopefully) at least one of Plus, Interac, Maestro, or Cirrus, which are the most common networks around the world.<\/span><\/p>\n\n\n\n

You will only be able to use ATMs abroad that display one of these logos that matches your card.<\/span><\/p>\n\n\n\n

Back Up Your Information<\/b><\/p>\n\n\n\n

On my trusty <\/span>USB stick<\/span><\/a>, I have encrypted pictures of my bank card, records of the account number on the front of my card, and my bank\u2019s phone number in case I lose the card or need assistance.<\/span><\/p>\n\n\n\n

In the spirit of redundancy (which, when you travel, isn’t really something you can overdo), I also have encrypted copies of ID and bank cards etc in my 1Password<\/a> account. I can seamlessly sync all this across devices – as well as to maintain super duper secure passwords! <\/p>\n\n\n\n

When<\/span> my purse was stolen<\/span><\/a> in Peru, I was grateful for having my ATM card number written down elsewhere, because I needed it when I called my bank to report the theft. <\/span><\/p>\n\n\n\n

Know Your Withdrawal Limits<\/b><\/p>\n\n\n\n

Before you leave, know the daily and weekly withdrawal limits for your account (and set your preference accordingly). <\/span><\/p>\n\n\n\n

When I was in <\/span>Panama<\/span><\/a>, I couldn\u2019t understand why my ATM withdrawal requests were being declined; until I remembered that I had set a low withdrawal limit before I left to prevent undue thefts if my card got into the wrong hands.<\/span><\/p>\n\n\n\n

Choose An Account With Low\/No Withdrawal Fees<\/b><\/p>\n\n\n\n

In <\/span>Peru<\/span><\/a> I was getting charged $5 for every cash withdrawal at a foreign ATM, and since credit cards aren\u2019t widely accepted in Peru and cash is king, I was losing my shirt. <\/span><\/p>\n\n\n\n

Then I went online and switched from a \u201cvalue\u201d (ie: no frills) account to a higher-echelon account that allowed unlimited free foreign ATM withdrawals. I need to maintain a certain balance to avoid the monthly charge, but it\u2019s worthwhile.<\/span><\/p>\n\n\n\n

Ask your bank about any special account-types they have that limit how much you\u2019ll be paying abroad at ATMs.<\/span><\/p>\n\n\n\n

Use Bank-Affiliated ATMs<\/b><\/p>\n\n\n\n

Private ATMs in convenience stores or on street corners tend to charge extra commissions and service fees, and security can also be an issue. Instead, make sure you use ATMs that are affiliated with a bank, even if it\u2019s not your bank. <\/span><\/p>\n\n\n\n

Use ATMs During Banking Hours<\/b><\/p>\n\n\n\n

If the ATM eats your card, it will be considerably easier to rectify if you can walk into the associated bank right away. Because of this, it\u2019s ideal to not only use bank-affiliated ATMs, but ATMs that are actually inside or beside the bank itself. <\/span><\/p>\n\n\n\n

Check For Skimmers<\/b><\/p>\n\n\n\n

After watching <\/span>this terrifying video<\/span><\/a> of an ATM skimmer in Vienna, I\u2019m vigilant not only about using ATMs that are affiliated with and ideally inside major banks with security personnel on site, but I also check the ATM itself for a skimmer machine. You can do this by jiggling the device that you insert your card into (if it falls off, it\u2019s a fake), and make sure you cover your hand completely when you enter your PIN (some machines have cameras set up to record your ATM card number and catch you entering in your PIN).  <\/span><\/p>\n\n\n

\n
\"traveling<\/figure>\n<\/div>\n\n\n

Chapter 3: Using Your Debit Card on the Road<\/span><\/h2>\n\n\n\n

Having a debit card means you can not only withdraw cash from ATMs around the world, but you can also pay directly for items with some vendors using direct debit. <\/span><\/p>\n\n\n\n

But you\u2019ve also got to navigate of ATM withdrawal fees (levied by both your bank and the ATM), hidden currency conversion charges, ATM accessibility options, and a myriad of security issues from having your card stolen and PIN swiped, to electronic and identity theft, to simply carrying too much cash and getting mugged.<\/span><\/p>\n\n\n\n

In addition to all the ATM tips above, this chapter gives you some more info about using your debit card on the road – safely and without incurring undue fees. <\/span><\/p>\n\n\n\n

Strategies to Use Your Debit Card Safely While Traveling<\/span><\/h3>\n\n\n\n

Limit Your Bank Account Balance<\/b><\/p>\n\n\n\n

By limiting the amount of money you keep in your checking\/savings account, there won\u2019t be as much (or all) of your money there if someone steals your debit card and PIN number. <\/span><\/p>\n\n\n\n

Only keep enough there to cover automatic payments (like bills or loan instalments) plus what you\u2019d need to withdraw at an ATM one time. Keep the rest in a separate savings account not accessible through your ATM card, and do an online transfer when you need more.<\/span><\/p>\n\n\n\n

Protect Your PIN Number<\/b><\/p>\n\n\n\n

Stealing someone\u2019s information isn\u2019t always high tech. <\/span><\/p>\n\n\n\n

Always be careful when entering your PIN number, whether at an ATM or at a store while making a direct debit payment. You never know when the person behind you in line – or even the cashier! – might be looking over your shoulder for your PIN. <\/span><\/p>\n\n\n\n

All it takes is covering the entry pad with one hand while your other hand punches in your PIN. Easy!<\/span><\/p>\n\n\n\n

Keep An Eye On Your Account<\/b><\/p>\n\n\n\n

This is another reason why online banking is super handy for travelers. <\/span><\/p>\n\n\n\n

If you keep an eye on your account, you\u2019ll be able to catch fraudulent transactions sooner rather than later and alert your bank. <\/span>
<\/p>\n\n\n\n

Fees to Be Aware of When Using Your Debit Card at an ATM<\/span><\/h3>\n\n\n\n

Your Home Bank\u2019s Fees At The ATM<\/b><\/p>\n\n\n\n

Your bank will probably charge you a fee each time you use a foreign ATM (unless you\u2019re visiting a branch of your home bank). <\/span><\/p>\n\n\n\n

As discussed earlier, you can often limit these fees by structuring your account to include free foreign ATM withdrawals. This may necessitate maintaining a minimum balance to eliminate monthly account fees. <\/span><\/p>\n\n\n\n

Foreign ATM Fees<\/b><\/p>\n\n\n\n

Many foreign ATMs charge an additional commission to use their machine. In most cases the ATM states the fee before you confirm the withdrawal. <\/span><\/p>\n\n\n\n

You\u2019ll stand the best chance of avoiding these fees by using major bank-affiliated ATMs. <\/span><\/p>\n\n\n\n

Currency Conversion Fees At The ATM<\/b><\/p>\n\n\n\n

Whenever you change money over from one currency to another, you\u2019ll be incurring currency conversion fees, which are almost always hidden, and come off the top. <\/span><\/p>\n\n\n\n

At an ATM, these are coming from your bank. You can find out what these fees are by reading the fine print in the terms and conditions of your bank account. <\/span><\/p>\n\n\n\n

The good news is the bank is probably giving you a better deal than you can get at other places, but it\u2019s still an additional fee to be aware of. <\/span>
<\/p>\n\n\n\n

Fees When Paying For Purchases With Your Debit Card Directly<\/span><\/h3>\n\n\n\n

Instead of using an ATM, you could just pay with your debit card itself, but this might incur some of its own fees as well.<\/span><\/p>\n\n\n\n

Withdrawal Fees<\/b><\/p>\n\n\n\n

Depending on your bank and the type of account you have with them, they may or may not charge an additional fee when making purchases with your debit card while abroad. <\/span><\/p>\n\n\n\n

This means you might be able to ask the vendor you\u2019re purchasing from for additional cash back, and not have to pay the ATM withdrawal fees at all! Make sure you ask the vendor if <\/span>they<\/span><\/i> charge a fee though. <\/span><\/p>\n\n\n\n

Currency Conversion Fees When Using Your Debit Card<\/b><\/p>\n\n\n\n

Unfortunately there\u2019s no avoiding this one. No matter what, when you change one currency into another, you\u2019ll always have to pay someone something. Again, this fee will be charged by your bank, and will come off the top (and invisibly). <\/span><\/p>\n\n\n

\n
\"using<\/figure>\n<\/div>\n\n\n

Chapter 4: How to Save Money By Traveling With Credit Cards<\/span><\/h2>\n\n\n\n

Personally, I prefer to charge everything I can to my credit card, since it provides me with records of my purchases, I get a decent conversion rate, there is a degree of theft protection, and (quite importantly) it\u2019s a great tool for accumulating <\/span>frequent flyer miles<\/span><\/a>. <\/span><\/p>\n\n\n\n

But credit cards are not always accepted, nor ideal, and there are a few pitfalls to beware of. <\/span><\/p>\n\n\n\n

For example, cash advances should be avoided whenever possible, since interest is charged on your entire credit card balance from the day you withdraw the money (as opposed to regular charges, which afford you a grace period).<\/span><\/p>\n\n\n\n

It\u2019s also important to have the discipline and wherewithal to spend within your means, and pay off your credit card in full each month (something I manage online). <\/span><\/p>\n\n\n\n

This is important, because if you don\u2019t pay off your balance in full and on time you\u2019ll be charged interest (not good), and ultimately it\u2019s possible to work yourself into a financial pickle while traveling that could get ugly \u2013 especially if your credit card is your last resort. <\/span><\/p>\n\n\n\n

As with so many financial matters, knowing the best option is mostly about knowing yourself.<\/span><\/p>\n\n\n\n

Here\u2019s a list of the pros and cons of using your credit card on the road.<\/span><\/p>\n\n\n\n

Pros To Using Your Credit Card While Traveling<\/span><\/h3>\n\n\n\n