Credit Cards & Currency

Cash or credit? Currency exchange or ATM? Have questions about how to pay for your trip or your excursions and souvenirs? Hopefully this will help you spend your money effectively and wisely.

Do I need cash?

Cash is king. Always has been, and continues to be. No longer is it necessary, but it still rules in most destinations. You should always carry some local currency wherever you travel for shops that only accept cash, or for small purchases and tips. Cash is the only payment accepted in some far reaching destinations and even suburbs or tourist locations. Several countries also charge a small fee to use the restrooms. It’s wise to carry small cash and coins for these instances.

Currency exchange

Using a local or airport currency exchange should always be your last resort. The fees and rates are astronomical compared to using an ATM or your local bank before traveling. Also, some hotels will offer free currency exchange if you are staying in their hotel. Your best option is a no-fee ATM. You may also buy currency from your local bank before departure. Make sure to order the currency at least 10 days before your trip, although most banks will have it ready within a day or two. If choosing the ATM option, always select the exchange rate in the country currency you are in, not in your home currency. This will save you a few dollars on the exchange rate.

Credit cards

Visa and MasterCard are accepted in nearly every establishment that takes credit cards. American Express is accepted in over 130 countries, but not in every establishment in those countries. Discover is accepted in over 200 countries and is popular do to the fact that there are no foreign transaction fees. You need a specific Visa/MasterCard to avoid paying those dreaded fees. As with taking out cash from the local ATM, always choose local currency and not your home currency to avoid the lower exchange rate.

Nowadays, credit card companies do not require you to call them when you are traveling abroad, but it maybe wise to give them notice just incase. If you find your card is declined for a purchase within a country, immediately check your email, text or log into your bank account. Most institutions will send an email or text that you may reply to immediately and then try your purchase again. Otherwise, you’ll have to call the fraud department and notify them that you did attempt a purchase, and they will release your account to continue the transaction.

Travel Tip: If able, sign-up for a credit card that gives you bonus miles, rewards or points when opening an account and reaching a spending plateau within the first 90 days to 6 months. That way, when you pay for your flights, hotels, rental cars, etc during your trip, you rack up a huge reward and can use those points towards your next trip! For instance, the Capital One Venture Card offers 75,000 reward points when spending $4,000 in the first 3 months, good for $750 in travel rewards. You’ll also receive 5x points on hotels, vacation rentals and car rentals booked through Capital One Travel, up to $120 towards Global Entry or TSA PreCheck enrollment or renewal, plus other travel benefits.