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Money and Banking While Abroad

(Source: "Travel Smart", a brochure published by American Express and Lonely Planet)

Travelers Cheques

Probably the safest way to carry money; Travelers Cheques often enjoy better exchange rates than cash, are widely accepted from Amsterdam to Zanzibar, and can be replaced easily within 24 hours if lost or stolen, virtually anywhere in the world. You can purchase Travelers Cheques at leading banks, credit unions, participating American Express Travel Service Locations, and AAA offices (if you or your parents have an AAA membership, the cheques can be obtained commission free).

PROS:	CONS:
Fully refundable if lost or stolen, usually within 24 hours virtually anywhere in the world. Widely accepted at retail locations such as hotels, shops and restaurants. Often have better exchange rates than cash. Available in a variety of denominations and in 12 currencies. Never expire.	Possible commission at the time of purchase (usually 1%). May be subject to minimum charges and handling fees. Sometimes can incur service charges - though American Express Travelers Cheques can be cashed commission-free at American Express Travel Service Locations.

ATM/Credit Cards

For most of us, plastic is now part of our everyday lives. For the traveler, credit cards are widely accepted throughout the USA and much of Europe, and they are becoming increasingly popular throughout Asia, Africa and South America.

You may also be able to access your bank account back home via an ATM overseas - check with your bank or credit union before you leave. But do not rely on ATMs for all your foreign cash; if a broken ATM eats your card, it could put a big dent in your plans.

You must speak with your bank/credit union to inform them that you are going overseas so that they do not stop payment on your card in case they assume it was stolen. Also, make sure you check what your daily withdrawal limit is; you might want to have it increased.

PROS:	CONS:
Convenience and easy to use. Allow for a ready supply of money especially for unexpected purchases. Remove the need to carry large amounts of cash. You get the local currency from the ATM; therefore do not need to exchange money.	May have annual fees. Cash withdrawals and credit limits may apply.

Cash

It is convenient, but if you lose it, it's gone forever - very few travel insurers will come to your rescue.

PROS:	CONS:
Convenience and easy to use. No service charge.	Foreign exchange commission. Exchange rate is usually higher than on Travelers Cheques or ATM/Credit cards. Not replaceable if lost or stolen.

Currency Exchange

Usually, you can find the best exchange rates from withdrawing from an ATM overseas or from travelers’ cheques. These websites show the latest currency exchange rates:

http://www.oanda.com/convert/classic/

http://www.xe.com/ucc/

Currency Exchange

You should take a combination of Travelers Cheques, cards and cash to have both convenience and protection.

Take with you only the ATM/credit cards you really need.
Make sure you inform the financial institution which issued your ATM/Credit cards that you will be traveling abroad so that they do not stop payments on your card because they think it was stolen.
Before you leave, try using your cards to make sure the PIN works. You may need to request an international PIN. You do not want to find out that it does not work once you are overseas!

Get some cash in the currency of your first destination before you leave the U.S. if at all possible. It will give you the money for a taxi or bus ride to a hostel or hotel and save you from the often exorbitant rates of airport exchange services.

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