Currency, Credit Cards & Money Tips

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Euros, yen, pesos, pounds…

Using unfamiliar money can be one of the more confusing parts of international travel. How much cash should you bring? Should you exchange money before you leave? Is it better to use a credit card? And what exactly are you supposed to do when a machine asks whether you want to pay in dollars or the local currency?

Fortunately, you don't need to become a foreign-exchange expert before your vacation.

A little preparation goes a long way.

💳 Check Your Credit Cards Before You Go

Before leaving the country, find out whether your credit card charges a foreign transaction fee.

These are additional charges that some card issuers impose on purchases made internationally or involving foreign merchants. Depending on your card, you could pay a fee every time you use it.

If you have more than one card, check the terms of each one and decide which makes the most sense to use overseas.

Also check:

• Expiration date
• Available credit
• International usage
• Foreign transaction fees
• Your PIN, if applicable
• Contact information your card issuer has for you

And make sure you know how to reach your card company from outside the United States if your card is lost, stolen or declined.

🌐 Should I Tell My Bank I'm Traveling?

Maybe—but don't assume it's necessary.

Some banks and card issuers no longer require travel notifications because their fraud-detection systems automatically evaluate transactions. Others may still provide a way to enter your travel plans.

Check with your particular financial institution before you leave.

More importantly, make sure your bank has your current phone number and email address so it can reach you if it needs to verify a transaction.

💶 Do I Need Foreign Currency Before I Leave Home?

Not necessarily.

Having a small amount of local currency when you arrive can be convenient for tips, transportation or small purchases.

But you generally don't need to arrive carrying a vacation's worth of cash.

ATMs are widely available in many destinations and can be a convenient way to obtain local currency once you arrive.

However, fees vary. Your own bank may charge a fee, the ATM operator may charge another fee, and currency-conversion charges can sometimes apply.

Check your bank's policies before your trip so you know what to expect.

🏟 Using an ATM Overseas

If you use an ATM internationally:

• Use ATMs in secure, reputable locations
• Know your daily withdrawal limit
• Know your PIN
• Check your bank's international ATM fees
• Watch for fees charged by the ATM operator
• Pay attention to any currency-conversion option on the screen

If possible, avoid making lots of tiny withdrawals if your bank charges a fee each time.

And don't use a credit card for an ATM withdrawal without understanding the consequences. Your card issuer may treat it as a cash advance, which can involve additional fees and interest.

💵 Cash or Credit Card?

For many international trips, a combination works well.

Payment habits vary considerably from one country to another, so it's worth checking what is customary at your particular destination.

⚠️ "Would You Like to Pay in U.S. Dollars?"

You're standing in a shop in Europe. You insert your card and the screen asks:

Seeing the price in dollars may seem easier.

But stop before pressing that button!

The option to pay in your home currency is called Dynamic Currency Conversion (DCC). The conversion offered by the merchant or ATM can include an additional markup.

In many situations, choosing the local currency allows your card network and issuer to handle the conversion instead.

💳 Bring a Backup Card

Even if you plan to use one particular card throughout your vacation, having a backup is a good idea.

Cards can be declined, damaged, lost or compromised.

And don't keep both cards in the same place.

If your wallet disappears and every payment method you brought is inside it, your backup isn't much of a backup.

Consider keeping one card securely separate from your everyday wallet.

💰 Don't Carry Too Much Cash

There's usually no reason to walk around with all of your vacation money in your purse or wallet.

Carry what you reasonably expect to need and keep additional money somewhere secure.

If your hotel or cruise cabin provides a safe, it can be useful for passports, extra cash and cards you aren't carrying that day.

📱 Keep an Eye on Your Accounts

Your bank's mobile app can be helpful while you're traveling.

Depending on your financial institution, you may be able to:

• Check transactions
• Receive purchase alerts
• Lock or freeze a misplaced card
• Report suspicious activity
• Contact your bank

Set up whatever alerts you want before leaving home and make sure you know your passwords.

🧮 How Do I Know What Something Really Costs?

Foreign prices take a little getting used to.

If something costs ¥5,000, is that a bargain or did you just spend a small fortune?

Use a reputable currency converter on your phone to get a quick estimate. Exchange rates fluctuate, so don't expect the amount on your credit-card statement to match an earlier calculation down to the penny.

After a few days, you'll probably start doing rough conversions in your head.

🛍️ One More Thing About Foreign Transaction Fees

Don't assume that choosing U.S. dollars at a foreign merchant prevents a foreign transaction fee.

A card issuer may still consider a purchase a foreign transaction because it occurred outside the United States or involved a foreign merchant—even if the transaction itself was processed in dollars.

That's another reason to understand your particular card's fee policy before you travel.

❤️ My Simple International Money Strategy

You don't need to make this complicated.

Before leaving home:

• Know your cards.
• Know your fees.
• Have more than one way to pay.
• Carry some cash, but not too much.
• Keep a backup card separate.
• And when you're offered a choice of currencies, pay attention before pressing the button.

Then go enjoy your trip.

You didn't travel halfway around the world to spend your vacation worrying about exchange rates!