How to handle money when traveling abroad

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Answers to the most common financial questions of those traveling abroad.

Which is better: cash or bank card?

It is better to have a small amount of cash with you and a comfortable one - on a bank card. At the same time, take care of change bills and coins. They will be needed for tips or in the markets, because sellers there may try to sell the product at a higher price, citing the lack of change.

Particularly prudent can take with them and keep separately money for a return ticket. Useful in case of force majeure.

But cashless payments are not developed everywhere. Therefore, it is better to find out in advance how things are in a particular country with ATMs and terminals in stores. If, when crossing the border, the card just turns into a piece of plastic, take care of the cash.

Pay in cash to spend less →

What currency should I take with me?

There is no universal advice, follow the algorithm:

1. Find out what currency is circulating in the country.
2. Find out if you can buy it for rubles in Russian banks and at what rate.
3. If yes, look on the Internet at what rate dollars or euros are exchanged for the currency you need in the country where you are going. Consider which is more profitable: exchange rubles for the money you need in Russia or exchange rubles for dollars or euros (if you are traveling to the EU countries), and then turn them into a suitable currency on the spot.
4. If the second option is more profitable, take euros or dollars with you and change them upon arrival.

How is it profitable to pay with a card?

When a merchant swipes a card over a reader, a complex process takes place. The device sends a request to the bank of the shopping facility in local currency, the bank - to the card payment system, and the system transfers the required amount. Then your bank transfers the money to the payment system.

It is important to know what kind of currency your bank pays with the payment system.

If your bank pays with a payment system in rubles, it is advantageous to take a ruble card on a trip. When paying, the money will be converted once - from rubles to the local currency.

If another conversion is needed in the segment between your bank and the payment system - rubles into dollars or euros, then it is more profitable to have a card in those same dollars or euros, otherwise you will have to pay a commission twice.

And remember: in some establishments and institutions, for a fee by card, they can take a commission, so it will be more profitable to pay in cash.

What is a multicurrency card and why is it good →

How is it profitable to withdraw money?

Another important point is the commission of the bank that owns the ATM. You can find a profitable option without extortionate fees in two ways:

1. Advance on the internet.
2. By typing, that is, inserting a card into an ATM. As a rule, information about the amount of the commission appears on the screen before the money is issued, but there can be unpleasant surprises.

How to protect cash abroad?

The old and effective Captain-style rules apply here. Obvious:

1. Don't keep all your money in one place.
2. Keep an eye on your wallet.
3. Don't be too financially prosperous.
4. Use the in-room safe and take a small amount with you.
5. Hold your bag tightly.

8 well-known tricks of street fraud manipulators →

How to protect money on the card abroad?

Notify the bank about your trip

Inform the bank in advance when and where you are going, and inform that you plan to carry out transactions with a card or account. Otherwise, in case of a suspicious transaction, they can simply be blocked. The money will be safe until your return. But you are unlikely to enjoy living in another country without funds.

Write down the bank number

If the card is stolen, you should be able to quickly call the bank and block it. You shouldn't write the number on your phone or keep a piece of paper with numbers in your wallet. There is a great risk that they will end up in the hands of intruders along with the card.

Get a separate travel card

Your payroll card gives you access to your main account and possibly all of your savings. In order not to lose them in one fell swoop, get a separate card. Put money that you plan to spend on your trip on it. Better yet, gradually transfer small amounts to it from your main account through an online bank. Just watch out for the security of your network connection.

Check ATM

Fraudsters can be very cunning, and not all of their tricks can be noticed by a layman. But at least inspect the ATM for the presence of primitive devices that read the card number. And withdraw money at airports, large shopping centers or banks: they are more credible.

Set limits on card transactions

Thieves can try to buy something with your card before you have time to block it. It is more profitable for criminals to purchase one expensive product. So the limit on purchases will help you slow down the process of money flowing out of your account. The main thing is not to overdo it, otherwise you yourself will not be able to pay with a card anywhere.

How to protect a bank card from fraudsters →

What if you are left abroad without money?

Let's say the security measures don't work and you have to ask friends and family for financial help or use pre-prepared escape routes.

Use a spare card

If your foresight is pumped to level 80, you took another card with you. Empty. Then the question is solved simply: you either transfer money to it from your account, or ask someone.

Before you travel, negotiate with someone you trust about this service. Give him the money he will send you in case of force majeure. This will make it much easier to find help in a tense moment.

Receive money order

If you don't have a bank card, you will have to use the services of international transfer systems through which you will receive money by presenting your passport. The sender will have to provide the amount and number of the transfer.

Owners of electronic wallets can do without intermediaries and send themselves a transfer through one of the systems on their own.

Contact the bank

If your bank has a partner in the country of travel, you can use the emergency cash pick-up. True, the service is not provided everywhere and you will have to pay for the operation from $ 100.

What to do if cash or bank card is stolen abroad →

How to get back some of the money spent?

Value added tax is included in the price of each product. You, as a foreigner, are not obliged to pay the mandatory fees and can return part of the money under the Tax Free system.

Tax Free: how to get money back from purchases abroad →