Important Tips for Currency Exchange when Travelling Abroad

How to Carry Money Safely on an International Trip?

Many of us are often overwhelmed by transactions and currency-related issues that we may face abroad. Sometimes, we also don't consider it seriously until the time to leave is nearby and we are short on time. Thankfully, there are a number of ways to spend money while you are overseas.

Depending on your requirements and budget, you can easily use a debit or credit card to carry a large amount safely. Cash is equally important as many places may not accept these cards. From multicurrency travel cards to travellers' cheques, you can easily get your currency exchanged and use the desired medium. Just make sure to not rely on a single mode of payment so that you don't face any shortage in case of emergencies. Read on to learn more about currency exchange and how you can make it as easy as possible!

5 Important Tips for Currency Exchange for Your Trip Abroad

Thanks to so many technical advancements, tourists can easily visit any place in the world without worrying about carrying cash or ways to keep it safe. Whatever amount you choose to carry, there are some important things to remember. Here are some of the most useful tips before you head to exchange your currency:

Do Your Research

To avoid getting ripped off by frauds or local merchants, make sure to know about the ongoing exchange rates. If possible, don't exchange your money outside banks or a local branch of your preferred bank. No matter which bank you use, be sure to confirm the conversion charges and services they offer. If carrying credit cards, some cards may be more expensive than others. While credit cards offer the best exchange value, be aware that an international transaction fee is charged after exceeding the daily withdrawal limit.

Plan Well: Get your Currency Exchanged Before Your Travel Date

In most cases, people usually have all their bookings and tickets fixed well before their journey. While some people may not have the time, make sure to prepare your currency at least a few days before your departure.

It is ideal to exchange your currency at least a week before your scheduled departure. At the latest, ensure that you've exchanged the currency at least three days before your travel date. Especially in the case of stronger currencies, make sure to observe their rates for a few days to confirm if they're decreasing. The rates of strong currencies tend to fluctuate and you may find yourself in a loss abroad if they vary exceedingly.

Compare Exchange Rates Before Buying

Depending on the merchant, your exchange rates will vary. Make sure to compare different merchants before getting your currency exchanged. Try to compare the rates being offered by different merchants, at least three or four.

There are plenty of vendors to choose from and you can pick the one that suits you the best. Some of them also let you compare different quotes by other authorised money changers so that you can pick the best option.

Avoid Exchanging from Airport Outlets

In most international airports, you may be charged a commission rate anywhere between 10 and 15% which is a very costly option. Not just airports, most foreign exchange outlets abroad are a costly affair.

There is hardly any scope of bargaining and you may not have any other option. Thus, make sure to get sufficient currency exchange back at home so that you can save a considerable amount that would be otherwise spent on the commission. The same goes with hotels or train stations abroad; all of these places charge a very high commission often at a lower rate.

Carry Both Cash and Card

One of the best ways to avoid any loss while travelling abroad is to follow the 30/70 approach. This refers to the practice of carrying 30% of your overall currency as cash and the remaining 70% as your forex travel card.

You can use the cash component to pay wherever necessary and use the remaining during the other times. You can easily get a forex card which is commonly accepted worldwide and offer you a better rate as compared to cash. Since you can load the card with the desired value in advance, you can maintain the rate even if it fluctuates during your trip.

Opt for an Extra Forex Card

Getting stranded in an alien place is a nightmare, especially if you don't have access to your money. It is not uncommon to misplace your wallet or be a victim of theft. In such a case, even if you were carrying your money digitally, it is still a hassle to get more currency converted at a higher rate.

Many forex card providers also offer a spare forex card for such cases. These are usually offered for free or at a nominal price. In case you're in a situation requiring the spare one while you're travelling abroad then you can avoid the hassles of acquiring a new one or getting emergency cash. Better yet, make sure to have an international travel insurance plan which offers the benefit of emergency cash so that your trip isn't ruined.

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Wrapping it Up,

No matter what medium you choose to carry your currency abroad, don't forget to insure your trip with an overseas travel insurance plan.

Incidents like theft, mugging etc. can leave you penniless and clueless with not much to fall back on. If you're ever in need of financial help during such an emergency, your insurer will assist you immediately and ensure your safety.