Best Way to Buy Travel Money
It’s that time of year when some lucky people are jetting off somewhere fun (or ferrying off to France in my case, doesn’t quite have the same ring). If you are not headed out to foreign lands over the Easter break then you may well be planning your summer trip instead. How you buy your travel money can often make a big difference in terms of how far your spending budget stretches. Our April tip of the month is our 5 top tips on the best way to buy travel money and make sure you do not get any nasty surprises when you open your credit card bill.
1) Using your credit or debit card
In most countries, cash machines (ATMs) are plentiful and UK credit and debit cards are widely accepted. However, this can be an expensive way to pay for things. Check the terms and conditions of your card issuer to see what their charges are, they soon add up. Look for commission fees, the exchange rate and any other transaction fees for using your card abroad. If the fees are high and / or they offer a poor exchange rate you should look for an alternate way of paying for things
As an aside, if you are going to use your plastic, you may also need to advise your card issuer that you will be using your card abroad to prevent it being blocked as part of anti-fraud measures.
2) Pre-paid currency cards
It can be easier and much more cost effective to buy a pre-paid currency card from a provider such as my Travel Cash or Travelex . Both these companies offer home delivery for all cards. You can either buy a single currency (e.g. US $) or a multi currency card if you are going to take several trips. Cards can be topped up online.
We have found these cards particularly useful if we are trying to stick to a budget, as it is easy to track all your spending on the one card. You can check the balance online and you can set up SMS alerts if you wish. These cards also lock in an exchange rate. If the rate gets worse between buying the card and travelling this can save a lot of money, but conversely, if it improves you won’t see the upside. It does however make for easy budgeting.
- 1% cashback on all purchases
- No ATM fees from the card issuer abroad (some ATMs have their own charges)
- 24/7 Customer Services
- Chip & PIN protection
- Express delivery in 1-3 working days or 5-10 day standard delivery
- Chip and PIN protected
- 24/7 Global Emergency Assistance service
- No risk of identity theft and fraud to your personal bank account
- Free ATM withdrawals from the card issuer (some ATMs have their own charges
3) Obtaining foreign currency before you travel
The most expensive way to get foreign currency is to head for the foreign exchange bureaux at the airport or on the ferry.
my Travel Cash have a great service where you can pre-order your currency online and have it delivered to your house.
Travelex also offer a great order online with a home delivery service, but you can opt to collect your currency from their in airport shop. This can be very handy if you don’t want to wait in for a delivery, but make sure you don’t forget to collect your currency before you get on your flight.
If you are travelling to the US is that it is useful to keep a good stock of small denomination notes handy – $1 and $5 for tips for valet parking, bell hops, housekeeping and all manner of other service providers. It is useful to order some with your currency delivery. Quarters are also good to keep a stock of for feeding parking meters and vending machines.
4) Optimise what you pay for in your home currency
When you are booking your trip it is a good idea to have a view on the exchange rate, especially if you are booking some time in advance. If the rate is poor, it is often worth paying for as much as possible in advance in your home currency. Expedia often require you to pay for hotels and other services at the time of booking so you can do this in your home currency. If the rate is in your favour (or you are hoping it will move that way), it may make more sense to pay during your trip in the local currency. Booking.com oftem allows you to pay when you check into a hotel.
5) Travellers cheques
If you are considering travellers cheques, our advice is don’t bother. We find the currency cards are easier to use than travellers cheques which in our view are somewhat redundant.
