We are frequently asked for information on the best ways of planning for spending while on international trips. Here are the options and some tips from the travel experts at AAA:
Credit cards and prepaid travel cards. Credit cards and prepaid cards are widely accepted in financially developed countries. Charges are converted from the local currency at an exchange rate dependent upon the financial institution from which you were issued your card. Some companies give better conversion rates than others, and almost all add an additional service fee for overseas card purchases. These international transaction fees vary widely among card issuers so you will need to review your card’s terms and conditions for a full disclosure of possible charges.
If you have a prepaid card it is wise to test the card before leaving the U.S. to ensure your PIN is valid. In some stores, you may be asked to enter your PIN (Personal Identification Number) into a keypad for security purposes.
If you lose your credit card while traveling you will most likely have to wait until you return home to receive a replacement card, unlike most prepaid travel cards which can usually be replaced during your trip within a few days.
If you are not a regular international traveler, you should inform your credit card company of your travel itinerary so that transactions are not declined, leaving you possibly without any means of payment.
Traveler's Checks. Traveler's checks are a safe option because you sign them when receiving them and sign a second time when changing them into cash, and if you lose your travelers checks they can usually be replaced within a day or two. Most merchants do not accept traveler's checks so you should be prepared to cash the amount you need for your immediate expenses at your destination at a traveler's check office, hotel, or bank. Most banks charge a small fee to cash traveler’s checks and keep in mind that you would only be able to cash them during normal banking hours. Additionally you should call your bank to find out about the fees involved to cash your traveler’s checks after your trip.
Foreign Currency. The U.S. Department of State advises you not to carry large sums of money. However, it is always a good idea to take a small amount of cash to cover for transportation, refreshments, or small purchase during your travel. To receive the best exchange rate and service charge, you should purchase and exchange your currency at a bank rather than an exchange counter at the airport or a tourist exchange bureau on the street. Before traveling allow at least a week to order and receive your foreign currency as most banks do not carry foreign currency in their branches.
