Money
My four options to obtain money when I am traveling (in order of preference)]
- Debit Card
- Credit Card (Master Card and Visa)
- Traveler’s Cheques
- Cash
ATM Machines (Debit Card) and Credit Card
Most countries have lots of ATM machines. Check to see if they support your card. I use a credit card for backup and put a credit balance on the card in order to avoid interest charges. I take both Master Card and Visa as some countries banks accept only one card. I have a second debit card secured with a friend or family member. If the card which I have is lost of stolen or demagnitized the card can be couriered to me as it is not possible to replace debit cards.
Also useful for the budget traveler are the tens of thousands of automatic teller machines which are linked around the world.
Check with your financial institution to determine fees, how much you can withdraw per day or week, and system compatibility. Credit cards may assess a ten percent service charge plus interest for cash advances, while bank account withdrawals typically cost $3- 5 or less per transaction. Some international ATMs won't accept personal identification numbers of more than four digits or one that begins with zero, so get an appropriate PIN from your bank, if necessary. Also note that some international keypads have numerals only--no letters. Therefore memorize your PIN by numerals.
Besides convenience, the advantage of plastic is your are funds converted at the wholesale exchange rate (what you see in the newspaper) rather than the retail rate (at banks or cambios de change), which is usually from two to ten percent not in your favor. Therefore you could save up to $10 on a $100 withdrawal as opposed to cashing a $100 travelers' check at a cambio with a bad rate. You will usually save $2 or $3.
I always puy my bank card and credit card inside a paper envelope designed for the card to minimize risk of demagnitization. Also, have a couple of backup cards at home which can be couried to you because the bank cards cannot be replaced when you are away from your bank.
Traveler's Cheques
Traveler’s cheques are a back up as they are often expensive and time consuming to change, especially away from mainstream destinations. Also, if they are stolen they can take a long time to replace. Many travelers have reported feeling of being accuses when they have asked for replacements. Also, check to see if each brand is accepted in the country you are traveling to. American Express, Visa and Thomas Cook are all accepted in mainstream destinations, however, in some countries one of the brands may be more accepted than the others. Your financial institution will not know this information. They will tell you the brand they sell is universally accepted.
Most countries have a "best" place to exchange travelers' checks. Check your guidebook. American Express offices usually offer a decent rate, and a slightly better one for their own checks.
In some developing economies the problem with travelers' checks is not so much getting a good rate, but getting them cashed at all. In such areas it's a good idea to carry the brand most familiar to the clerk or bank--which is usually American Express. Worldwide offices of AMEX are a plus, and may hasten check replacement. CitiBank and Visa traveler's checks are also good. Thomas Cook and Barclays' are popular British brands.
You should carry at least some travelers' checks in case of loss or mishap.The magnetic tape on the back of credit and debit cards may also wear out, rendering them unusable in ATM's. Your bank probably has a protective card-holder.
Cash
I also take between 100 – 200 USD in cash (depending on where I am going and how easy it is to get an easily convertible currency). Other options are the Euro or Sterling which are convertible in Europe and Asia. For Africa, South/Central America and the Middle East the USD seems to be the most popular convertible currency. Exceptions exist. In Vietnam and Cambodia, for example, most prices are quoted in USD. In other cases visas need to be purchased with USD. Your research will inform you. USD can be expensive and hard to get outside of your home country. Your currency needs to be converted to local currency and then to USD which involves three transactions and three commissions. In some countries such as Vietnam, Jordan, Israel, ATM’s will give you a choice of USD or local currency so it is a good time to top up your convertible currency.
Also, for the last days of a trip in a country having small USD currency affords you the option to change cash, as you need it, rather than using the ATM and being charged expensive withdrawal fees.Many travelers now use credit and debit cards to complement or replace the old standby of travelers' checks. Most upscale restaurants, hotels, and shops now accept credit cards, with Visa far more accepted than American Express. Note, however, that most of the hotels, hostels, and cafes frequented by budget backpackers are not upscale and do not accept credit cards.
How do I pay my credit card bill while traveling?
Black Market Exchanges
Some second and third world countries have their currencies pegged at artificially high exchange rates, or they prohibit their citizens from possessing over a certain amount of foreign currency. Thus there may be a legitimate reason for noninstitutional currency exchanges. Unfortunately, many black-marketers who are honest to the last penny with local customers may try to cheat you, the "rich tourist."
The lesson is if you must make a black market exchange, count your money and hang on to it. Make sure the notes are not counterfeit, or that they are not a less valuable currency from a nearby country.
Bribery
Since traveling necessarily brings you into contact with the ever-present bureaucracy of travel, you may now and then be extorted for a few dollars by petty officials, usually in developing countries where they may be so poorly paid as to make it almost a requirement of the job. On the other hand I have seen such officials make out like bandits--shaking down a boatload of twenty travelers for a two dollar "transportation tax," each. While the best policy is never to pay bribes, on principle, there may be times when you are tired, in a hurry, or desperate, and you need dispatch. Even in these cases do not offer money unless you are certain such is being hinted. Not only is the improper offer of a money a crime in every country, but it is a very great insult to anyone who takes pride in his work. If it appears an official is more-or-less requesting money, never use a word such as "bribe" or "mordida" to describe the transaction. You don't want to be clumsy in this delicate situation--you could end up paying more than necessary, waiting weeks for a visa. A few dollars should be enough to get the wheels turning. If asked for more than you are willing to pay, or you refuse to pay anything, it's best to remain polite, perhaps pretending you don't understand, and act like you are in no hurry and are happy to wait for as long as it takes.
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