People are expected to resume travelling abroad for a well-deserved vacation now that travel bans have been lifted due to the recent pandemic. Of course, you will require access to cash while travelling. So, what are the most cost-effective, convenient, and secure ways to manage your money while travelling?
1. Local Currency
Bring enough local currency with you for a few days or the entire duration of your vacation. You will need it to arrange transportation from the airport to the hotel, purchase a local SIM card or pay a deposit for your hotel. Using the local currency is the most convenient way to pay these initial expenses. We are all aware that airport exchange rates are high when compared to the local exchange currency in your home country. So, before you leave, exchange your cash in your home country.
The disadvantage of carrying currency is that it cannot be replaced if it is stolen or lost. It will be beneficial to purchase travel insurance to cover these losses.
2. Extra Cash
It is a good idea to bring some extra cash with you if the local currency (the country you are visiting) is stolen or lost. At the very least, you have some spare. Some countries may have strict restrictions on bringing money into their country. So make sure to research this beforehand.
3. Credit Cards
Credit cards are accepted almost everywhere and may appear to be a convenient way to pay for things while travelling abroad. You can use it for nearly anything, including shopping, paying restaurant bills, and even withdrawing cash from ATMs.
However, you must notify your banks that you will be travelling abroad and request that your credit card be accepted in that country. It is also good to check with your bank about foreign transaction fees and ATM withdrawal fees in other countries. Some card companies no longer require cardholders to notify them of upcoming travel. Simply swipe your card anywhere.
Debit cards are widely accepted worldwide, mainly if linked to a Visa or Mastercard. This is an excellent way to fund your travel expenses, especially if you don’t have a credit card, because you can withdraw cash from an ATM while keeping the rest of your money safe in your bank.
The disadvantage of using a debit card abroad is that it can be costly due to foreign transaction fees when withdrawing cash from ATMs. You must also notify your bank to activate the overseas usage function before you can use your debit card abroad.
5. Prepaid Credit/Debit Cards
A prepaid card is a pre-loaded electronic card that can be reloaded and used in the same ways as a regular credit card or debit card as long as funds are continuously loaded into the account.
Prepaid cards are a safe way to carry money because they can be replaced if lost and can only be used in conjunction with a PIN number. It is also a good idea to check with card issuers about any charges or transaction fees that may apply when using the card overseas. For fellow Malaysian, you might want to check Bigpay prepaid card out.
While all the options listed above are helpful, not all are appropriate for use worldwide. Do not rely on a single type of travel money; try mixing them so you can always get local currency when needed. So what is your thought? leave comment below.