When you go on vacation, especially if you’re traveling overseas, it is never a good idea to carry cash with you, as it is not very safe. Should you happen to drop it or if someone were to rob you, you are just out of luck, as there is no way to get it replaced.
Traveller's cheques: how long will they last?
This is why things like traveller’s cheques became the chosen way most people would pay for things when they traveled. But traveller’s cheques have been replaced by the use of plastic cards, which are not only easier to carry, but also quicker to use and are more convenient, as well. Rather than use a credit or debit card you already have, you might think about using a prepaid travel money card.
Using credit cards abroad could clear out your cash
A prepaid travel money card is like a credit or debit card but it offers some advantages. For one thing, credit cards are going to pack on additional interest for anything you buy. Unless you are planning to pay your travel expenses in the full that same month, those interest charges are going to pile on really fast. With a prepaid card, there is no interest. The companies that offer these types of cards make their money from fees that are charged when you add money to it and when it’s activated. But there are going to fees with whatever method you choose, even if you exchange cash for a foreign currency, there are likely fees involved there as well.
Prepaid cards are the best way to spend money abroad
Also, with a credit card, the amount you can spend is only limited by your total credit limit on the card. This will usually allow people to spend way more than they intended to spend. With a prepaid travel money card, you are limited to the amount you put on the card to begin with. Only want to spend $1,000? Then just put $1,000 on the card and you can’t go over that unless you add more to it later.
With a debit card, you are also limited to just the money you have in the bank and cannot overspend, using money you don’t have, like you can with a credit card. The reason using a prepaid travel money card is better than a debit card is because if your debit card is stolen, a thief can easily clean out your entire bank account, rather than just the amount you put on the prepaid card. While you can report the theft and will eventually get that money back, you will likely rack up a ton of late fees on bills you can’t pay yet.
The FairFX card also has amazing exchange rates, and no hidden fees. Apply today, ready for your next trip.
Friday 26 February 2010, 12:19pm
If you are going to be traveling abroad in the near future, you are going to want to find the best tourist exchange rates that you can possibly find. Obviously, you will have to convert your currency to something that will be accepted by the local businesses. There are different options of conversion available and each one will give you a different exchange rate. This is why you need take the time to research each one so that you get the best rate possible.
Make sure you check rates before your trip
No matter which option you choose, in order to get the best tourist exchange rates possible, you need to look and see what the current currency exchange rates are. These can change slightly on a daily basis, and if you are going to be in a foreign country for a longer amount of time, you should check these rates more than once, just to keep yourself current on what is going on. There are a number of online tools that are designed especially for the purpose of converting currency, like xe.com, and they are regularly updated so you can be assured that you are getting the most up-to-date exchange rates.
Traveller's cheques: not quite dead yet
Another you can do to ensure that you are getting the best tourist exchange rates possible, is to research the various options of paying for things while travelling overseas. You can carry cash, which can then be converted to the local currency, but if it gets stolen, good luck getting it replaced. You can go the safer route and use traveler’s cheques, which are safer than cash because if these get stolen, it just takes a little time and effort to get replacement checks. Traveller’s cheques can be expensive, however, with service charges and other fees, like paying to have them shipped out to you.
Bank cards often carry hidden charges
Using credit cards or ATM cards seem to give you the best tourist exchange rates, especially when you compare them to cash and traveller’s cheques. These cards are easy to carry and are very convenient. The downside to using them, however, are the hidden charges, which add up over the course of your travels, and ATM machines may be hard to come by on foreign soil.
Get much better value rates on prepaid cards
The best alternative is to use a prepaid travel card, where you put money on the card and use it like a credit card. This gives you the best exchage rates, and is more seucre than having all your funds avaiable, should you card be compromised. Have a look at FairFX's holiday money cards and see how much you could save.
Friday 26 February 2010, 09:53am
If you are going to be taking a trip and traveling abroad, then it should be no secret to you that there are various ways of having access to money when you are in a different country. Luckily, you have the option of choosing between everything from cash and credit cards to traveler’s checks and prepaid travel cards. You should expect transactions fees and other various fees when converting your currency into a foreign one. Even when converting cash to a local currency, it won’t be an even 1:1 exchange ratio. Here are some ways to get the best rates of exchange when traveling overseas.
In order to get the best rates of exchange, you should start out by looking at what the current rates are for currency conversion. There are lots of tools online for doing this. You can see exactly how much of your own money equals 1 unit of currency for the country you are traveling to. One word of advice, since the exchange rates change so frequently, if you are going to be staying longer than the typical vacation period, it would wise to check the rates every so often to keep yourself updated.
Of all the money options available to you, using a credit or ATM card will usually give you the best rates of exchange possible. Even converting cash to the local currency may have fees involved and obviously traveler’s checks do as well. Credit cards and ATM cards usually offer rates that are anywhere from 2 to 8 percent lower than what you get converting cash or traveler’s checks. The downsides with using these two options are ATM machine may not be easy to find in the country are traveling to and using your credit card is going to accumulate a great deal of interest.
If you don’t want to carry cash on you, or you even just want better savings on your travel cash, then the only option left is to get a prepaid travel card. Using this type of card is quickly catching on with travellers who want added security for their money and the best rates of exchange, and FairFX has some of the best on the whole market. Prepaid travel cards require a PIN number in order to be used, giving you much greater security than cash or even credit cards. Most providers charge a fee when topping up a card, but here at FairFX we keep this completely free, and easy to do online. Apply for your card before your trip and start saving.
Thursday 25 February 2010, 04:27pm
