Paying Internationally

Sneakers? Check.

Camera? Check.

Passport? Check.

But wait, you’re not yet ready to travel! How are you going to pay for it all? When traveling abroad, it pays to plan ahead. Literally.



Euros are accepted most everywhere in Europe



CASH IS KING

…and I mean Euros, Yen, or whatever! No matter where you go people always prefer bills to cards.

Whatever you do, don’t go to one of those Currency Exchange kiosks to switch out your dollars. Sure they may be convenient, but you’ll pay for it. Most exchange counters charge 5-8% in fees.

Instead, call around to your local bank and find which bank offers the best rate. The Euro is bouncing back from its lows earlier this year, but you should be able to find a rate of around 1.438 meaning for every $1000 U.S. dollars, you’ll get 695 Euros. To get a big picture idea (a.k.a. - before the bank adds on its fees), try Yahoo's Currency Converter, to see how far your dollar will go.

If you have access to TD Bank in the Northeast, I highly recommend its services as they charge nominal rates. Credit unions and to a lesser extent AAA are two other great places to try and switch your dollars to the desired currency. Always call ahead and try several days in a row to try to gauge day-to-day exchange rate volatility.


USE YOUR DEBIT CARD SPARINGLY

You’re not protected. Should your wallet be stolen or you get double charged, you’ll have a more difficult time disputing incorrect charges.

To limit ATM fees while traveling, try to make one or two large withdrawals as opposed to five or six smaller ones. Also, most banks limit ATM withdrawals to $200 or $300 so check with your bank or ask your bank to raise this limit before you head abroad.



NOT JUST ANY CREDIT CARD WILL DO
Many banks charge at least a 2% fee on credit and debit card purchases made outside the United States on top of the minimum 1% currency-exchange fees levied by Visa and MasterCard. That can be brutal, especially when you factor in the U.S. dollar/Euro exchange rate!

Currency transaction fees won’t be listed anywhere on your credit card statement. You’re going to have pick up the phone, call, and ask your credit card company how much it charges. But allow me to help you…There’s only one, count ‘em, ONE credit card that doesn’t tack on a foreign currency conversion fee. It's Capital One. It just may be worth it to get a Capital One card before your trip if but for no other reason to save on those hefty fees!


TRAVELERS' CHEQUES
Who needs them?! The world of plastic has forever changed access to cash abroad. With ATMs popping up nearly everywhere it's as simple as inputting your pin and money spitting right out.

However, I would never say travelers cheques are a bad idea. You just run the risk of not being able to cash them in a small city or small business. The smart bet is using them as emergency back-up should something happen to your ATM and/or credit cards. Make sure you keep them separated from each other in case your purse/bag is stolen. Also, stick with Visa or American Express branded travelers cheques; they are known worldwide.


KEEP THINGS SECURE
And don’t forget to keep things secure! Forget the wallet or designer purses. I find it best to keep your debit card and the bulk of your bills in your money belt. Then carry enough cash for the day and your credit card in a secure bag like PacSafe sells.


THE BOTTOM LINE
Lots of cash - stored safely.
Capital One credit card for large purchases.
ATM once or twice during the trip, withdrawing larger sums each time.
Travelers cheques only as backup.