Cash
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Cash is the most versatile method there is. Aside from some car rentals, airlines (while onboard), and a few gas stations, virtually everybody takes cash. However, as cash is not easily traceable, buying very expensive goods or services (especially one way plane tickets) in cash might raise suspicions in some places, and thus expose you and your money to time consuming and unpleasant extended scrutiny, where cash-less transactions are the norm for certain purchases.
Cash is the most versatile method there is. Aside from some car rentals, airlines (while onboard), and a few gas stations, virtually everybody takes cash. However, as cash is not easily traceable, buying very expensive goods or services (especially one way plane tickets) in cash might raise suspicions in some places, and thus expose you and your money to time consuming and unpleasant extended scrutiny, where cash-less transactions are the norm for certain purchases.
−
In some countries, you may be able to get by entirely with U.S. dollars or another major currency such as Euros.
However, this will often be at an additional expense as the exchange rate offered by merchants and hotels can be unfavorable.
Merchants in border communities may accept currencies of neighboring countries. For example, northern border areas in the United States may accept Canadian coins on par with corresponding U.S. coins but not Canadian dollars, and, in the U.S. South, a Canadian quarter is usually worthless.
Macau practically accepts Hong Kong Dollars at a 1:1 basis with the Pataca and the difference is not noticeable for smaller transactions.
However exchanging Macau's money back into Hong Kong Dollars outside Macau is quite expensive if not impossible, even in Hong Kong.
Another example is Malaysia and Singapore where cross-border transportation-related charges on the Malaysian side are accepted in either currency at a 1:1 basis so it is greatly disadvantageous to use Singapore Dollars instead of Malaysian ringgit when for instance purchasing train tickets or paying for tolls.
+
In some countries, you may be able to get by entirely with U.S. dollars or another major currency such as Euros. However, this will often be at an additional expense as the exchange rate offered by merchants and hotels can be unfavorable. Merchants in border communities may accept currencies of neighboring countries. For example, northern border areas in the United States may accept Canadian coins on par with corresponding U.S. coins but not Canadian dollars, and, in the U.S. South, a Canadian quarter is usually worthless. Macau practically accepts Hong Kong Dollars at a 1:1 basis with the Pataca and the difference is not noticeable for smaller transactions. However exchanging Macau's money back into Hong Kong Dollars outside Macau is quite expensive if not impossible, even in Hong Kong. Another example is Malaysia and Singapore where cross-border transportation-related charges on the Malaysian side are accepted in either currency at a 1:1 basis so it is greatly disadvantageous to use Singapore Dollars instead of Malaysian ringgit when for instance purchasing train tickets or paying for tolls.
[[File:Istanbul (13271945715).jpg|thumbnail|When buying from street vendors, bring cash]]
[[File:Istanbul (13271945715).jpg|thumbnail|When buying from street vendors, bring cash]]
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For remote travel, be sure to bring notes from your own currency only in '''good condition''' and '''only the most recent redesign''' (unless it's ''really'' new). Banks at your destination cannot easily or cheaply exchange worn-out currency for replacement as they can with their country's own currency. Worn paper currency may be devalued--if it is accepted at all.
Even if in good condition, previous designs of your currency may not be accepted due to counterfeiting concerns. If possible, go to your bank early in the day, and well before the departure date, and ask for "like-new" currency. When making a bigger withdrawal advance notice is a good idea and sometimes required. Keep in mind that many countries have a threshold of how much money you can bring or take (undeclared) in the EU
everything
above 10 000€ has to be declared for example. In other places it may be much lower.
+
For remote travel, be sure to bring notes from your own currency only in '''good condition''' and '''only the most recent redesign''' (unless it's ''really'' new). Banks at your destination cannot easily or cheaply exchange worn-out currency for replacement as they can with their country's own currency. Worn paper currency may be devalued--if it is accepted at all. Even if in good condition, previous designs of your currency may not be accepted due to counterfeiting concerns. If possible, go to your bank early in the day, and well before the departure date, and ask for "like-new" currency. When making a bigger withdrawal advance notice is a good idea and sometimes required. Keep in mind that many countries have a threshold of how much money you can bring or take (undeclared) in the EU
.
Everything
above 10 000€ has to be declared
,
for example. In other places
,
it may be much lower.
The '''biggest disadvantage''' to cash is the '''risk'''. If you lose it, you can't get it back, and if someone finds out you have a large wad of cash, you become a potential mark. Some defenses are discussed in the [[pickpockets]] article, but there is no complete defense — carrying cash always involves a risk. [[Travel insurance]] may cover a theft of cash to a certain value.
The '''biggest disadvantage''' to cash is the '''risk'''. If you lose it, you can't get it back, and if someone finds out you have a large wad of cash, you become a potential mark. Some defenses are discussed in the [[pickpockets]] article, but there is no complete defense — carrying cash always involves a risk. [[Travel insurance]] may cover a theft of cash to a certain value.
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When you use local money, familiarize yourself with the basic note designs and their security features (watermarks, holograms, etc), and watch out for counterfeits and obsolete currencies. Make sure to look up the exchange rate before starting your trip and if possible look it up from day to day to see whether it fluctuates a lot. If you have forgotten to do so and need a rough ballpark figure, airports and bank money exchanges usually have accurate (if sometimes bad) exchange rates. Remember: the difference between buying and selling rate is their profit, so the lower it is, the better the rate.
All
of this does
of course
not apply to countries with an "official" exchange rate, that has nothing to do with the actual value of their currency or countries with runaway inflation. (Venezuela and until quite recently Zimbabwe are examples of this). Banks and money changers (operating out of an office, not flashing wads of cash from a coat pocket) are nearly always safe, but taxi drivers and petty traders may be tempted to palm off useless notes. When in doubt, reject unfamiliar notes. Also, be particularly suspicious of large notes, as they are more commonly faked.
+
When you use local money, familiarize yourself with the basic note designs and their security features (watermarks, holograms, etc), and watch out for counterfeits and obsolete currencies. Make sure to look up the exchange rate before starting your trip and if possible look it up from day to day to see whether it fluctuates a lot. If you have forgotten to do so
,
and need a rough ballpark figure, airports and bank money exchanges usually have accurate (if sometimes bad) exchange rates. Remember: the difference between buying and selling rate is their profit, so the lower it is, the better the rate.
Of course all
of this does not apply to countries with an "official" exchange rate, that has nothing to do with the actual value of their currency
,
or countries with runaway inflation. (Venezuela and until quite recently Zimbabwe are examples of this). Banks and money changers (operating out of an office, not flashing wads of cash from a coat pocket) are nearly always safe, but taxi drivers and petty traders may be tempted to palm off useless notes. When in doubt, reject unfamiliar notes. Also, be particularly suspicious of large notes, as they are more commonly faked.
===Where to get or exchange cash===
===Where to get or exchange cash===
[[File:Exchange.JPG|thumbnail|Exchange booth, [[Tiraspol]]]]
[[File:Exchange.JPG|thumbnail|Exchange booth, [[Tiraspol]]]]
In many developed countries, the '''best option''' (given the convenience and typically good exchange rate) is to '''use an ATM in the destination country''' instead of bringing large amounts of cash to exchange. There are modest fees, some fixed per transaction, others as a percent of the amount withdrawn. The fixed fee(s) mean you should withdraw whatever substantial amount you may need for a few days in the area where that currency is used.
In many developed countries, the '''best option''' (given the convenience and typically good exchange rate) is to '''use an ATM in the destination country''' instead of bringing large amounts of cash to exchange. There are modest fees, some fixed per transaction, others as a percent of the amount withdrawn. The fixed fee(s) mean you should withdraw whatever substantial amount you may need for a few days in the area where that currency is used.
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* Occasionally, ATMs offer more than one currency, often driven by their location and customer base. ATMs in developed countries may also offer more than one language.
As noted elsewhere, make sure you choose a language in which you have good fluency as early as possible in the process of using the machine.
If you are not offered one, look for an ATM that does...may be quite close by in major travel facilities such as train stations or air terminals.
+
* Occasionally, ATMs offer more than one currency, often driven by their location and customer base. ATMs in developed countries may also offer more than one language. As noted elsewhere, make sure you choose a language in which you have good fluency as early as possible in the process of using the machine. If you are not offered one, look for an ATM that does...
it
may be quite close by in major travel facilities such as train stations or air terminals.
−
* You may be charged a fee to inquire about your balance from a foreign ATM (the charges for this are levied by the issuing bank). However, sometimes your balance will be printed out for free on a cash withdrawal receipt. With the various exchange rates and fees, the amount displayed on the screen may not be accurate. As such, the best way to check your balance will be to enable secure internet banking with your local bank before you travel, which is offered for free. When viewing your account activity online, your ATM withdrawals and purchases will be converted into your home currency.
Your bank may also offer their own apps for your smartphone to access your accounts on the go so check with them as well. Limit smart phone use for this carefully...the security it offers is poor compared to your properly protected computer.
+
* You may be charged a fee to inquire about your balance from a foreign ATM (the charges for this are levied by the issuing bank). However, sometimes your balance will be printed out for free on a cash withdrawal receipt. With the various exchange rates and fees, the amount displayed on the screen may not be accurate. As such, the best way to check your balance will be to enable secure internet banking with your local bank before you travel, which is offered for free. When viewing your account activity online, your ATM withdrawals and purchases will be converted into your home currency. Your bank may also offer their own apps for your smartphone to access your accounts on the go so check with them as well. Limit smart phone use for this carefully...the security it offers is poor compared to your properly protected computer.
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If you travel very frequently, consider opening bank accounts with banks that have a worldwide presence such as HSBC and Citibank.
They offer accounts denominated in major currencies.
If you have a foreign currency account with such banks and withdraw from their cash machine abroad, you may face either no or reduced withdrawal/inquiry fees.
Moreover, if you deposit a large amount of money with them, you can receive premium personalized assistance abroad
with them
by walking into their branches just as you would in a branch in your home country.
+
If you travel very frequently, consider opening bank accounts with banks that have a worldwide presence such as HSBC and Citibank. They offer accounts denominated in major currencies. If you have a foreign currency account with such banks and withdraw from their cash machine abroad, you may face either no or reduced withdrawal/inquiry fees. Moreover, if you deposit a large amount of money with them, you can receive premium personalized assistance abroad by walking into their branches
,
just as you would in a branch in your home country.
−
In contrast, there are typically larger fees and
or poorer currency rates (noted below) associated with currency exchange. You should not exchange more than you need.
Money exchanges work on the basis of selling a foreign currency at one rate and buying at another. Make sure that you know the [http://www.xe.com/ucc/ current interbank exchange rate] before you leave home. Where there is more competition, the rates are likely to be better.
+
In contrast, there are typically larger fees and
/
or poorer currency rates (noted below) associated with currency exchange. You should not exchange more than you need. Money exchanges work on the basis of selling a foreign currency at one rate and buying at another. Make sure that you know the [http://www.xe.com/ucc/ current interbank exchange rate] before you leave home. Where there is more competition, the rates are likely to be better.
−
The most convenient exchange locations (such as at airports, malls or major hotels) have poor rates. If possible, check the difference (or spread) between "we sell" and "we buy". When this is more than 10%, you're definitely being ripped off. The best exchanges can go as low as 2%. Also, check if there is an additional commission for each transaction and its amount. Exchange counters such as those associated with jewelry stores or pawn shops may have fairly reasonable rates, but be skeptical of sub-prime "cheque cashing" or "payday loan" storefronts as even the most common currencies are often offered at relatively unfavorable rates.
Exchanging foreign currency directly with banks is usually possible but some banks will only entertain you if you have large amounts. In addition, some banks will require you to fill-out some paperwork and/or show a valid ID. Another disadvantage is that they mostly have limited operating hours so during weekends and holidays, you're out of luck.
+
The most convenient exchange locations (such as at airports, malls or major hotels) have poor rates. If possible, check the difference (or spread) between "we sell" and "we buy". When this is more than 10%, you're definitely being ripped off. The best exchanges can go as low as 2%. Also, check if there is an additional commission for each transaction and its amount. Exchange counters such as those associated with jewelry stores or pawn shops may have fairly reasonable rates, but be skeptical of sub-prime "cheque cashing" or "payday loan" storefronts as even the most common currencies are often offered at relatively unfavorable rates. Exchanging foreign currency directly with banks is usually possible but some banks will only entertain you if you have large amounts. In addition, some banks will require you to fill-out some paperwork and/or show a valid ID. Another disadvantage is that they mostly have limited operating hours so during weekends and holidays, you're out of luck.
−
In some cases it may be better to exchange your money before you leave, in others it may be better to do it in your destination.
As a general rule, the lesser-known currencies in the world have less favorable exchange rates abroad.
In fact, they may first be converted to a well-known currency like the USD before being converted back into the host currency also at unfavorable rates.
If this is the case, convert your home currency into a major currency (usually the USD) before leaving then exchange that major currency into the host currency when you arrive.
+
In some cases it may be better to exchange your money before you leave, in others it may be better to do it in your destination. As a general rule, the lesser-known currencies in the world have less favorable exchange rates abroad. In fact, they may first be converted to a well-known currency like the USD before being converted back into the host currency also at unfavorable rates. If this is the case, convert your home currency into a major currency (usually the USD) before leaving
,
then exchange that major currency into the host currency when you arrive.
−
Most major currencies are subject to counterfeiting these days.
Study the notes of the currency of the foreign country to become familiar with how it is supposed to look and feel.
Almost all currencies employ anti-counterfeiting technologies, including color shifting ink, watermarks, special threads, iridescent inks, raised printing, holograms and other features.
Be familiar with them so that you can quickly check them when you get a new note whether it is
as
change or from a money exchange.
If you are unsure, don't be afraid to say that you would rather get a different note or say you would rather get two smaller notes for change. (For example, if you get a
10
in change that you don't like the
look
of, ask for two 5s instead).
If you end up with a counterfeit, you won't get compensated after you leave by whoever gave it to you, and you may end up having to explain it to the police.
+
Most major currencies are subject to counterfeiting these days. Study the notes of the currency of the foreign country to become familiar with how it is supposed to look and feel. Almost all currencies employ anti-counterfeiting technologies, including color shifting ink, watermarks, special threads, iridescent inks, raised printing, holograms and other features. Be familiar with them so that you can quickly check them when you get a new note
,
whether it is
from
change
from a larger note,
or from a money exchange. If you are unsure, don't be afraid to say that you would rather get a different note
,
or say you would rather get two smaller notes for change. (For example, if you get a
ten
in change that you don't like the
looks
of, ask for two 5s instead). If you end up with a counterfeit, you won't get compensated after you leave by whoever gave it to you, and you may end up having to explain it to the police.
===Convertible currency===
===Convertible currency===
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In some locales, you may be able to easily obtain local currency but not convert what you've not used back to your home currency as you leave; you'll pay dearly for trying to convert it at home if it's even possible. Do some research and ask where you're staying.
In some locales, you may be able to easily obtain local currency but not convert what you've not used back to your home currency as you leave; you'll pay dearly for trying to convert it at home if it's even possible. Do some research and ask where you're staying.
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==Carrying money across national borders==
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==Carrying
or sending
money across national borders==
Countries track large movements of money across national borders. Governments claim this is mainly to help prevent money laundering and cash transfers to criminal syndicates, although a more likely motive is control of tax evasion. If you transfer money between international bank accounts, or use your credit card in a foreign country, this is done automatically, but if you carry large amounts of money (typically more than $10,000 US, Euro, or similar hard currency) you will need to declare it. Don't forget monetary instruments such as traveller's checks count as well, and paying your taxes isn't exempt from these laws.
Countries track large movements of money across national borders. Governments claim this is mainly to help prevent money laundering and cash transfers to criminal syndicates, although a more likely motive is control of tax evasion. If you transfer money between international bank accounts, or use your credit card in a foreign country, this is done automatically, but if you carry large amounts of money (typically more than $10,000 US, Euro, or similar hard currency) you will need to declare it. Don't forget monetary instruments such as traveller's checks count as well, and paying your taxes isn't exempt from these laws.
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Some countries, such as [[India]] and [[North Korea]], do not allow the country's home currency to be imported or exported at all. This means that you will have to bring all the money you need in US dollars (or Euros) and change it to the local currency when you arrive. Likewise, you must change all the local currency back to hard currency before you leave.
Some countries, such as [[India]] and [[North Korea]], do not allow the country's home currency to be imported or exported at all. This means that you will have to bring all the money you need in US dollars (or Euros) and change it to the local currency when you arrive. Likewise, you must change all the local currency back to hard currency before you leave.
+
+
If you need to use your pre-existing online bill payment from your bank or PayPal while abroad to pay bills back home, '''let them know a week in advance which countries you will be visiting'''. They are aware of your access from a foreign country, because they can track the origin of your Internet IP address. You will likely be blocked from your account to prevent fraud, unless prior arraignments were made.
== Getting money in an emergency ==
== Getting money in an emergency ==