Dealing with money issues while traveling in other countries not as complicated as you think
As a travel agent at Monroe Travel Service, one of the inevitable questions I am asked when planning a trip overseas is about the foreign currency. Right after, we discuss the weather, phones, adapters and converters, dealing with the money situation is always a challenge for most travelers. In today's travel article, I hope to help you make "cents" of the process.
The good ole days of traveler checks are gone, and even though we may live in the fast moving digital e-world (electronic), cash is still golden. It speaks a universal language so having it on hand or quickly accessible makes us comfortable no matter where we are on the highways of the world. How much you should carry with you depends not only on your spending habits but your risk assessment, because having access to your funds is rarely a problem, thanks to ATM's and credit cards.
Using a debit card to withdraw cash from an ATM or getting cash from your credit card is by far the easiest way to deal with the local currency challenge. No matter which method you choose to use, the important thing to remember is there may be daily cash limits on both. Clarify and maybe increase them before you leave the USA, because I doubt very seriously if finding an ATM will be a problem. Even small towns in Africa have them, so, if the risk of losing a lump sum of cash is problematic, plan on using ATMs. The ATM withdrawal fees certainly might outweigh the risk of carrying cash.
Once the decision has been made to use ATMs as an easy source of cash if needed, and, after finalizing your trip with a trusted travel agent (like me, of course), I would definitely advise my bank and credit card company of my travel plans, perhaps even increase daily spending limits, set up alerts, and ask their fee for foreign currency transactions. This fee usually varies from 1% to 3% of the item purchased or ATM withdrawal.
It is always nice to know before you go if there will be a foreign transaction fee, and, because most credit cards do not charge, I would suggest they are the safest and easiest source of financial exchanges when traveling. Probably Visa, American Express and Master Card are the most widely accepted by far; the Discover Card, UATP, and Diners Club would be "iffy" at best in shops and restaurants. Another advantage to using credit cards is if they are lost or stolen, they can be easily replaced even when overseas, and, don't forget, as you keep on spending you are accumulating more reward points or increasing your cash back incentive! How is that not a win-win?
One other reason to rely on credit cards when traveling is the purchase protection they provide. Remember, when you use a debit card, you are essentially writing a check or paying in cash electronically, and the money comes directly from your account. However, when you use a credit card , it is like you are taking a loan, which means the card's bank must prove that you indeed authorized the purchase. This becomes your ace in the hole in case of theft or fraud, because, if you notice a charge on your credit card that is not yours, you can dispute the charge. It is then up to credit card company to prove the charge on your acccount and, if it is an unauthorized charge, to refund you. If you have ever had an issue with your debit card, you know there is not a quick fix for getting the disputed money back into your bank account.
Considering crooks work at their tasks as earnestly as we work at ours, making your online banking sessions as fool proof as possible is probably a good idea. This definitely means never "search" for a WiFi signal in public places. Cyber thieves have been known to set up WiFi hubs in parks and tourist attractions where travelers hang out. So, for example, if you search for a signal and are delighted to find a strong, free connection, don't use it just because it is there! You could very easily be handing over your data--and all your phone's information--to crooks. Go into a restaurant, a hotel, or other establishment and ask to use their WiFi and always, always make your passwords as complicated as possible.
Currency Exchange Booths should be avoided also. You will find these exchange booths all over airports, city centers, and train stations, and they notoriously offer terrible exchange rates. Yes! There will probably be a “no commission” sign posted, but, don't be misled, they make up for that with their horrendous exchange rates. They bank on travelers' ignorance and desperation for cash, but, before you use one, check the currency exchange on your smart phone to compare if it is in your best interest to do so. Since Rob and I have been "taken" by these Exchange Booths, we now rely on the " XE Currency app." If math is not your forte, then download a currency app before you go!
Because it’s still the one thing universally accepted and some developing countries still operate on cash payments only, carrying some cash--whether in USD or local currency--is always a good idea, but it also makes us a target for clever thieves. A number of products in the marketplace are designed to hide money, such as money belts, bra inserts, and money necklaces, but using just plain old common sense is best.
For example, Rob always keeps a travel wallet in his front pocket. We often hide money in our shoes. Instead of a purse, I prefer a backpack filled with water, walking maps, ponchos, etc. A small purse with my passport, credit cards, and cash is firmly attached to the inside of my backpack with huge safety pins. No matter where or how much you travel, be aware.
Some of our agency's most experienced travelers were recent victims of the infamous fake bird dropping scam which seems to be quite prevalent in Europe right now. Basically, this scam happens in a busy area and involves someone being squirted with a solution that resembles bird poop. A friendly, do-gooder draws it to your attention, maybe even helps tend to the nasty spot, and, while you and your new friend inspect the spot, an accomplice very deftly pickpockets you and maybe others watching you as you deal with the delimma.
Other distract-the-tourist ploys include an elderly person falling, a woman tossing a baby or cat at you, or someone dropping a wallet and accusing you of pocketing the contents after you pick it up. Giving your phone to someone volunteering to-take-your-picture unless you know them is a another bad idea. Do not allow someone to place a bracelet on your wrist or give you a sprig of rosemary for good luck, because, once you have it, they will want money and to avoid a scene, you pay. By using Uber or Lyft, you can easily avoid the my-meter-is-broken taxi scam.
Money truly is the root of all evil. The simple truth is that no matter how prepared you think you are, or what you know about how to avoid travel scams, it is easy to fall for them simply because most of us are so very trusting. Only last weekend when in New Orleans, I donated to a veteran who was asking for money. When my nephew, a retired marine, asked the gentleman where he had served, he failed to answer the most basic of questions. Sure, it was disheartening to be scammed, but never in a million years would I let it let it keep me from enjoying New Orleans again and again.
Things happen when traveling the world. Avoid them as best as you can. Inform your bank and credit cards of your travel plans. Create alerts. Maybe even set daily limits on your account. Use only secure WiFi connections. Hide your cash. Be aware of your surroundings. Trust your instincts.
In all of our travels, we have never been victims of fraud, pickpockets or robbery. I do admit we have been “taken” by taxi drivers and scammed at currency exchange booths, but that was our own stupidity. We have never felt threatened or afraid, and, always, always, always when traveling the world, we might have spent more than we planned. Yet, we have always thought we returned home much richer.
Dianne Newcomer is a travel advisor at Monroe Travel Service, located at 1908 Glenmar Avenue between N. 19th and Tower Drive. For your next tour, cruise or fly drive vacation, please call 318 323 3465 or email info@monroetravel.com.