Travel money essentials

 It’s the ultimate travel nightmare. You use an ATM in a remote part of  the world and it eats your card. What do you do? You’re booked to leave  on the 8am train and the bank opens at nine. Yesterday was a general  strike and tomorrow is a national holiday. All you have left in your  pocket is a few notes and there’s still the hotel bill to pay. Eek. You  could always throw yourself on the mercy of strangers (on one occasion  in Nepal, we were able to call the bank manager at home and persuade him  to get out of bed and retrieve our card), but it’s best to have a plan  B, particularly when it comes to your hard-earned travel cash. It’s  crucial to take the time to prepare for worst-case scenarios before you  leave home – which is much less stressful than trying to troubleshoot  in a foreign country. Here’s how to keep your money flowing – and safe  ­– on the road.

Carrying cash

The golden rule for travel  money is never keep all your eggs (money) in one basket (your bag or  wallet). If you get robbed or misplace your stuff, you lose everything.  Carry a useful amount of cash for a day hidden somewhere discreet, and  leave the rest in a secure spot, like your hotel safe, even if you plan  to primarily use a bankcard while abroad. Everyone has his or her own  trick for hiding emergency stash. Money belts, secret pockets, a Ziploc  bag tucked into the lining of your suitcase, an old film canister in  your washbag – after all, when was the last time you heard of somebody  stealing a washbag? Here are some more handy tips for how to handle cash  when you're on the road: 

• US dollars, British pounds and Euros are the easiest currencies to  change, particularly in the developing world. Keep enough aside to  support yourself for several days. Use smaller-denomination bills, so  you don’t have change everything at a disadvantageous rate.
• Changing money on the street is a great way to get ripped off –  especially if you’re unfamiliar with the local currency. Always be sure  to exchange foreign currency with a recognised trader, such as a bank or  exchange bureau.
• You will always find better rates on exchanging foreign currency if  you plan in advance, rather than changing it at the airport or abroad.  There are many ways to buy foreign currency (online, offline, from banks  or from private retailers), so find out your options beforehand.
• Ignore boasts of ‘no commission’ as this won’t always mean you get  more bang for your buck. Do your research and find out exactly how much  money you’ll get from the exchange – the more you get, the better the  deal.
• There are some destinations where cash is the only game in town.  Parts of Africa and Asia have yet to plug into the global ATM network,  so the only money available is what you bring in. Most countries have  limits on the amount of foreign currency you can import or export, but  this is typically in excess of US$10,000 – the challenge is keeping your  money safe while you travel.


Cards

Using cards on the road can have loads  of payoffs, and it’s smart to use a mix of these so that you have  backup if your primary money goes missing. Credit cards come in handy  for making reservations, larger purchases and are excellent in case of  emergencies. Debit cards allow you to access your money the same way as  you do at home immediately, without the looming credit card bill to come  home to after holiday. If your ATM debit card is linked to a major  global credit card company, you’ll have no problem making withdrawals in  hundreds of countries worldwide. Many card programs also include  emergency cash or replacement card services, which can get you out of a  tight spot, so it’s important to know how to contact your issuer if the  need arises. Many banks and credit card companies now offer prepaid  cards, which can be charged as much as you like and used like a debit  card. They’re great for sticking to your travel budget, are available in  single or multiple currencies and often have the same benefits as debit  cards, such as emergency cash and card replacement services. Just be  sure to check how easy it is to get any remaining balance back from your  card when you return. As an added bonus, most cards offer favourable  exchange rates you can lock in before you travel, and you can recharge  the card online, by phone or SMS.


 If you’re using plastic, here are a few simple rules that every traveller should follow: 

• Make sure your credit, debit or prepaid card is accepted in the country you plan to visit.
• Call your bank and tell them where you are going and when, so they  don’t block your card the first time you use it on your travels. Many  banks allow you to do this online.
• Never let your card out of your sight. Most credit card scams  require time alone with your card – if you don’t see an  electronic-point-of-sale machine, play it safe and pay with cash from an  ATM.
• Keep essential emergency phone numbers handy – that means the local  police and the international number to cancel your cards if need be.
• Check the layout of the keypad on the ATM. Loads of travellers lose  their cards by entering the right pattern but the wrong numbers on a  foreign ATM keypad.
• Always carry back-up cash or travellers cheques. ATMs rely on  electricity supply and a phone signal, two things that are notoriously  unreliable in the developing world.
• Bring multiple cards and store your extra card locked away in your  room’s safe with your other valuables, in case of emergencies.
• Be aware of bank charges – banks charge a fee for every withdrawal,  and most offer poor exchange rates for credit and debit cards.
• If you have the option, pay in the local currency on your debit or  credit card when abroad, as your bank’s rates will be better than the  retailer’s.

Travellers cheques

The  global proliferation of ATMs (they even have them high in  the Himalayas) has made travellers cheques a less-popular option. They  are no longer as widely accepted as they used to be, and changing  cheques can involve drawn-out bureaucracy and yards of red tape.  However, they do have their advantages: they are accepted by banks and  moneychangers all over the world and are easy to replace if lost or  stolen. So long as you have the receipts and the emergency phone number,  you can get new cheques in a matter of days, though you may have to  travel to a local agency to pick them up. Thomas Cook and American  Express are the most widely accepted brands, but before you buy cheques,  contact the issuer to find out just how widely they are accepted in  your chosen destination, and which currency the cheques should be drawn  in. When in doubt, carry cheques in US dollars, the unofficial second  currency in most of the world. Bring a mix of denominations, keep the  receipts separate from the cheques, and save the emergency phone number  somewhere safe.

Wiring money

If  all other options fail, you could always ask someone to wire you money.  Western Union and Moneygram have agents all over the world where you  can receive a wire transfer from home, but you pay a premium for the  service – sometimes as much as 30% of the transfer amount. Just pray you  have an understanding relative!