International travel is roaring back to life. After years of restrictions, revenge travel is now going overseas. This is the last leg of a journey, when everyone is making up on trips they had to postpone. If you’re looking for a TATL or TPAC flight, you already know that flights are full and prices are higher than they were before the pandemic.
If you’re new to international travel, or just need a refresher course, here are several ways to get cash when traveling outside of your home country.
Do You Need To Carry Cash?
The first question you have to ask is if you even need to carry cash in a foreign country. When spending 26 hours in Singapore, we never exchanged local currency. All of our transactions were paid for by a credit card and we didn’t need to get any Singapore dollars. For a more extreme example, we spent 2 full days in Tokyo and never had a single yen in our pockets.
These are unique cases but if you’re only spending a small time in a country and are sticking to major tourist spots, you might not have any need for local currency. In addition, the exchange rate you get when paying with a credit card is the bank’s rate, which is better than what you’ll get as a customer.
But you won’tt always be able to pay with a card. For example, there were several places we visited in Vietnam that were clearly “Cash Only.” This meant we needed to have some local currency on hand.
Getting Currency Before The Trip
While not our primary bank, we keep a relationship with Wells Fargo because they have a local branch. I’ll occasionally stop by and ask for $50 in singles and fives to keep on hand for tip money. In addition, local bank branches also have the ability to change USD to international currency.
While they don’t carry international currency on hand, you can order many currencies to be delivered to your local branch, with 2-7 days lead time. We used this service to get Euros before our trip to Cuba in 2016. That’s because even then, you’d get a better exchange rate with any currency besides USD.
However, it’s hard for us to estimate how much cash we’ll need when visiting a country. We’ll try to use a credit card when possible to get the best exchange rate. That’s why we’ll wait until we’re in a country to get local currency.
Airport Currency Exchange
You’ll see currency exchange locations in the airport. They’ll be before you clear immigration or just after the checkpoint, depending on the country. Be aware that these are some of the worst places to exchange money, as they charge some of the most exorbitant rates and fees of any vendor. That’s why they pay to be the first place you’ll see when you get off the plane.
Do yourself a favor and skip these locations and wait until you reach the main airport terminal.
Local ATM
Depending on your situation, you may be able to find a bank ATM at the airport. By far, this is your best option.
For our travels, I have a Fidelity Cash Management account linked to an ATM card which I’ve been able to use around the world. In addition to having no fees for withdrawing cash, it also refunds any ATM fees. This had come in handy when traveling internationally, in addition to coming in clutch when needing cash on a cruise ship.
In Vietnam, we had to walk from our hotel to find a nearby ATM in Ho Chi Mihn City. This is what forced us to build the courage to cross the street.
Another problem with finding an ATM is not all of them are created equal. Some ATMs are programmed to try and force you to take out more money than you need and to convince you to accept their terrible currency exchange rate. Only withdraw money in local currency and let your bank do the conversion.
Finally, depending on your location, it may be difficult to find an ATM that takes your card. Not all machines are able to accept international currency.
However, if you know the traps to avoid, a local ATM is your best bet.
Exchange Money With A Local Merchant
Say that you haven’t exchanged money or visited an ATM, but you are at a store that will accept the currency of your home country. You can change a $100 bill this way but do so knowing that you’ll get a terrible conversion rate. Sure, your change will be in local currency and you’ll have money for the rest of your trip but it’s a horrible deal.
Exchange Money At Your Hotel
If you’re staying at an international hotel chain, they may be willing to change your money to local currency. But just like everything else at a major hotel, you’ll pay more than you would otherwise. You have confidence that you’re not going to be taken for a ride but the exchange rate will be higher than you could find if you’ve shopped around.
Exchange Money At A Currency Exchange Office
In any tourist area, there will be places to exchange money. You’ll know them because they’ll have large signs showing the exchange rates. Use these places at your own risk. They are businesses and can charge whatever rate they want. Make sure to know the current rate of exchange and make sure you’re not getting ripped off. Also, check to see that they are not adding any extra fees.
A better bet would be to exchange money at a bank or post office if possible. The downside with that is those places have limited hours of operation.
Final Thought
If you’re traveling on a strict budget, getting cash before your trip might be a good option for you. You’ll know exactly what you’re spending and how much you have left.
However, it’s much easier to use a credit card instead of paying cash. You’re sure to get the best exchange rate from your bank as long as you use a card that doesn’t charge any international transaction fees.
To get cash when traveling, using a bank ATM is your best bet, Remember to avoid the scammy ones which charge high fees and never allow the ATM to do the currency conversion for you. Always take out money calculated in local currency.
If you do need to exchange money while out of the country, try looking for government banks or post offices. After that, see if there are any international banks you recognize. Finally, using a currency exchange booth, your hotel or paying in dollars and getting change in local currency will all get the job done but you’re going to lose money in the process.
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1 comment
Some countries are more cash based than others. The U.S. is very much a credit card society though sometimes I like to give tips in cash. Having a non-Indian credit card is sometimes problematic. Besides, India is very much a cash based society. Singapore is mostly credit card based but it still pays to use cash to buy a transit card as using a foreign credit card for the bus or MRT carries a foreign card surcharge. France is a bit less credit card friendly, in my opinion, compared to the US or Singapore. Cash is still used in Taiwan.
As far as getting cash, I found that foreign currency shops are occasionally good. In the UK, they seem to provide better rates than banks. In Singapore, they provide better rates for $100 bills but not smaller bills, which sometimes have a different exchange rate.