A friend and client posed a question that I regularly get about overseas travel: what should I do about money on my trip? That big question raises lots of little ones, like should I: take a bunch of $$$? Try to get some €, £, or ¥ before I go? Change money overseas? Use ATMs? Use a credit card or Apple/Android pay everywhere?
You’ve got questions. I’ve got answers.
Cash: first, I always keep a couple hundred dollars in US cash on hand when I travel, just in case. If I’m in a bind and have to get money changed over there, then I’ve got something to use.
Foreign currency: it’s preferable to have some of the local currency on hand before you go. Not crucial, but definitely preferable. Most decent-sized banks either have on hand or can get within a few days the currency you’d need. They’ll typically charge you a fee, and you may not get the best exchange rate.
When I’m returning from a trip to the US, I always check my foreign cash-stash the day before I leave, and hit the ATM to draw some more (usually Euros) out. I keep a small stash of various currencies and pack what I’ll need for the countries I’ll visit in my carry-with-me bag.
Speaking of ATMs: you’ll typically get the best exchange rate at one, vs. using an exchange bureau.
Debit cards, credit cards: Make sure all of yours are ‘switched on’ to work in your destination before you go. Many credit card companies make it easy to do this (usually called ‘setting a travel notification’) online. A few don’t require it at all. My local bank requires a quick phone call, and then I’m good to go.
I generally use credit card or Apple Pay, which is more and more widely available, for most purchases, saving my foreign cash for occasions when cards aren’t accepted.
Make sure you’re using a credit card that doesn’t charge foreign transaction fees, which can really add up. [Many cards offer this; I’ve had really good experiences with CapitalOne’s customer service and carry their Venture card. Decent rewards program, low (or no) annual fee, and no foreign transaction fees.] Also, when presented with the option to pay in local currency or US dollars, select local currency.
One of the best tips I can give on this subject: get a Schwab checking account and debit card, and use that for withdrawing cash overseas. Several years ago, I had a problem in Czech Republic with my debit card from my hometown bank —wouldn’t work _anywhere_. Hotel expected cash payment. Real fun.
When I got back, I opened a checking account with Schwab, and that’s what I’ve used everywhere I’ve traveled since. Their checking account is free (they open a brokerage account at the same time, but there’s no minimum balance in either)—and the best part: they don’t charge ATM fees anywhere. Any fees charged by ATMs get rebated to your account. I keep $$ in that account solely for travel and get cash out (for free) as I go. No better deal out there.
One last tip: download a currency converter app to your phone. I use XE Currency, and typically check prices several times a day.
With a little bit of planning ahead, the foreign cash thing is no big deal—and there are some easy things you can do now to save yourself money, time, and hassle.
If fear of ‘planning ahead’ is keeping you from taking the dream trip to Europe, give me a shout. I’m a travel advisor specializing in Europe and European river cruises. Shoot me an e-mail, and I’ll help you make it happen.
