If you’re about to head off for a long-awaited vacation or are simply going to travelling for business purposes, one thing that you absolutely must be doing is making sure that you take the time to get your travel funds in place properly.
Many people don’t realize the number of options that are currently available when it comes to getting their funding in place, so choose what they’ve always previously used.
But, by exploring alternatives, you can learn about what could possibly be a more convenient choice for you and what may help save you additional fees encountered along the way.
Let’s have a brief look at some of the important points that you need to know.
The first and possibly most frequently used method for taking money on your travels is cash. Like all things, it has its pros and cons. First, cash is highly convenient. Since you will have the cash you need on hand, there will be no need to seek out banks or ATM machine as you go about your travels.
If you’re going to a more remote location where you don’t think these will be in walking distance, this has clear advantages.
The drawback however with this is you will end up with loose change on you after your purchases, which can not only be annoying to lug around, but may also wind up lost along the way.
The next reason to choose cash is because it’s cheaper to convert to local currency than most other forms of payment. Of course this does mean you will have to find a place to do the conversion, so again, depending on where you travel, this could also present an issue.
There may also be a point on your holiday when you will be carrying large amounts of cash on you. If you are unfamiliar with a country or town you may not feel particularly safe and you must stay aware at all times.
Foreign cash is extremely easy to get hold of, and it’s always good to have a small amount on you. You can purchase your travel money online, visit your local travel agents or post office.
The next option is debit cards, which many people like due to the fact that you get some degree of protection with these. If cash is stolen, there’s nothing you can do – you’re out of that money. With debit cards however, there is a built-in element of fraud protection, so this puts many people’s minds at ease.
The drawback to using a debit card is that there will be fees when you withdraw money and go through the conversion, so this can’t be ignored. If you plan on making many withdrawals, it may add up.
Another drawback is that your debit card may not work in all the ATM machines available, so this could pose problems again depending on where you are.
Some stores, restaurants, and other businesses may also not accept debit cards, so in this case you would have to have a back-up method of payment.
Travellers Cheques are the next option and since they require a signature for use, are also somewhat secure. They can be replaced if lost and you can purchase the checks already in the foreign currency in many cases.
The downside is they are a little pricier to purchase, so you’ll experience increased costs in that regard. Additionally, they will take up room in your purse, bag, or wherever you choose to carry them, so some people gear away from them.
Pre-Paid Travel Cards
Finally, pre-paid travel cards or regular credit cards are the last option. Pre-paid is especially convenient as all you’ll need is your card and the pin number for security purposes. The drawback to these is the fees associated to activate and load your card, which can also add up.
In addition to this, you’ll pay a per transaction fee, so this adds to the cost of shopping.
Regular credit cards are accepted in many places around the world and will provide cash for you as well if you are at an ATM machine, so also offer that convenient option.
The drawback is that you’ll again suffer the service fees and in some cases, credit card fraud could be an issue.
So there you have the main types of travel money you may want to consider as you gear up for your holiday. Think about what your needs are, make the best choice for your own preferences and have a great holiday!