Although holiday travel general means driving over the river and through the woods to see family, each year more and more people are opting to take a vacation to celebrate the holidays.
In the excitement of exploring a new country, it’s all too easy to rack up extra expenses paying in a foreign currency. Exchange rates fluctuate and it’s not always clear what commissions and fees you’re being charged.
But just a bit of advance prep can turn you into a savvy consumer overseas. To start, check the exchange rate and familiarize yourself with the price of common items as a benchmark. Then use this list of smart money moves for travelers.
Think about where to get foreign currency before you go
One option is to order foreign currency before leaving. This prevents having to change money at airport kiosks, train stations or tourist attractions, which tend to have the worst rates. Another option is to check with us about which country you are traveling to–many times you can use your debit card to purchase things or to withdraw at ATMs there.
Alert your financial institutions
Along with that, it’s a great idea to contact us about setting a travel notice on your accounts. That way they won’t take unusual spending—lunch in a Paris cafe—as a reason to deny your card or freeze your account. While you’re at it, make sure your online accounts are set up so you can easily transfer funds.
Prepare your credit cards
Credit cards are also a possibility for purchasing items. However, make sure to use a no-fee card. Many major cards charge a 1% fee for foreign transactions and some issuers add a 1% to 3% currency-conversion fee. Bring a card that charges no fees and perhaps offers special travel perks like insurance or bonus reward points. Check with your issuer in advance to avoid surprises on your statement.
If you have a newer EMV chip card, you may need a PIN to use it abroad. In some countries you’ll be asked to provide a PIN rather than a signature when making purchases with a card. If you’ve forgotten your PIN or never set one up, get it in order before your trip to avoid any hassle.
While you’re traveling, make sure credit card purchases are rung up in the local currency. Some shopkeepers may offer a “service” of converting to U.S dollars before ringing up your purchase. Always decline that option; it may come with a less advantageous exchange rate.
Check your health insurance
Protect your health to protect your money. Getting sick or hurt overseas can mean big bills, as well as difficulty getting care if you don’t have the proper insurance. The U.S. State Department advises travelers to find out what services their policy will cover. If your policy falls short, consider buying a travel medical insurance policy.
By prepping ahead and learning to cleverly deploy cash or cards as the situation demands you can prevent costly extras and ensure your trip turns out just as planned.
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