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Clockwise from top left: South Korean won, American Express traveler's check (US dollar), Indonesian rupiah, Brunei dollar, Zambian kwacha, Malaysian ringgit, Malawi kwacha, Chinese yuan, Cambodian riel

This article is a travel topic.

Information on using money is covered in the Buy section of destination guides. This article contains general information useful in many destinations.

There are a number of ways to obtain and exchange money while traveling. You are always trading off expense, risk and convenience.

[edit] Debit and Credit Cards

Debit cards are cards that ARE linked directly to a bank account and immediately deduct the amount of the purchase or withdrawal from the account.

Credit cards are cards that are NOT linked to a bank account, but that instead charge against a credit line.

You can use debit and credit cards to withdraw cash from automatic teller machines (ATMs). These are probably the most convenient way of obtaining cash worldwide. All you need do is memorize your Personal Identification Number (PIN) code and carry around your card.

You can also use credit cards and debit cards with the Visa or Mastercard logo to pay for purchases; however, the acceptance of these cards varies by country, with acceptance being more common in more developed countries. Acceptance of credit and debit cards may be close to non-existant in non-developed countries.

The most accepted cards worldwide are VISA and MasterCard. American Express is accepted in many places but is far less common than Visa and Mastercard. Other cards such as (Diners' Club, Discover, JCB, etc) are not widely accepted.

There are two major international ATM networks: Cirrus (operated by MasterCard) and Plus (operated by Visa). Nearly all international-enabled ATMs support both and nearly all bank cards can use both, although you may want to confirm with your bank — in particular, you may have to get international ATM support specifically activated for your bank account.

The biggest advantage of debit and credit cards is convenience. You do not need to know exactly how much money to bring with you. You also don't need to deal with the inconvenience of money exchange.

The next biggest advantage is the low risk. In most countries you are not responsible for any expenses made on your debit and credit card that occur after you report it lost or stolen. Credit card companies will also protect you if you are charged more than you agreed to pay, or if you pay for something and never receive it. However, be careful where you use your card in some countries, as your card can be cloned (duplicated) without your knowledge and then used for fraud without being physically stolen.

Many credit cards also include some forms of insurance protection for all expenses made with the card. This can include cancellation insurance for flights (usually only in the case of serious sickness), theft or loss insurance for goods, Collision insurance for rental cars and even travel health insurance when you are travelling. You should look over your credit cards insurance carefully before you start to travel to see what it provides. It may even be worth getting a travel credit card, if you don't have one, just for these coverages. Also note that you can often tie in a credit card to a frequent flyer program, so you get more miles and free trips faster.

The biggest disadvantage is cost. Transaction fees can be charged by the merchant, the ATM-owner, the bank that issued the card, and through an unfavorable exchange rate. In general, Visa/MC cards seem to get slightly better exchange rates than AmEx, although the difference is not material. See the chart below.

[edit] Considerations when traveling with debit & credit cards

• It is a good idea to carry multiple debit and credit cards from multiple banks and issuers just in case there is a problem with one. Some cards also may work at certain local banks' ATMs, but not at others. One should never rely on a single method of obtaining cash overseas. Also, it is a good idea to carry around only the card you will usually be using and keep others in a safe location. This way if your main card gets lost or stolen you will not be left without a card, or have to go through the hassle of replacing a card in a foreign country.

• Banks in some countries will stop your card if they notice unusual activity such as sudden transactions in a foreign country. It is best to notify the bank beforehand and get a note added to your account so it does not get passed through their fraud section.

• Be sure you know the PIN for each of your debit and credit cards, in case of an emergency. PIN code lengths vary from country to country, but up to six digits are usually accepted anywhere on the Plus/Cirrus networks. If you have a six-digit PIN and six digits don't seem to work, try entering just the first four numbers of your PIN, or find another ATM. If the ATM requires 6 digits and you have only 4 digits in your PIN, enter 00 as the last two digits. If your PIN is based "word based" know its numeric equivalent. Many ATMs outside the USA have no letters to correspond with the numbers. (example: "CASH" = 2274)

• Some developing countries either have no ATMs, very limited ATMs, or are not connected to the international networks. This includes Myanmar in South-East Asia, as well as parts of Africa. In Japan, most bank ATMs don't work with international cards (the cards are even an incompatible size), and you need to look for a post office, 7/11 or Citibank ATM. In certain countries, not every ATM accepts foreign credit or debit cards.

• Confirm that your ATM card has a Visa, MasterCard, Cirrus, or Plus logo on it. Most other ATM networks (NYCE, Star, MAC, Shazam, etc.) are regional, not global, and will not work outside the US. Prior to travel, verify that your financial institution participates in all the networks listed on the back of the card as sometimes relationships are terminated without notice.

• Accessing a savings account or second account linked to a card may not be possible overseas. If your account is a savings or investment account, check first if it can be accessed outside your home country. Generally speaking, U.S. savings accounts cannot be accessed by ATMs in Europe, so you must have a checking account.

• For longer trips or stays in any country, it's worth considering opening a local bank account and obtaining a local ATM card. Procedures vary widely though, you will usually need at least a local mailing address and many countries will also insist on a valid residence permit. Compare the fees involved in opening the account and transferring money to just using your home ATM card.

• It is much more expensive to withdraw cash from an ATM using a credit card than a debit card. If you withdraw from an ATM using a credit card (i.e., a card NOT linked to a bank account), you will typically be hit with a cash advance fee of at least 3% on top of foreign exchange fees. In addition, most card issuers will start charging interest on your cash advance the day you pull money from an ATM (i.e., they won't give you a grace period) unless you have a credit balance on your account.

• Notwithstanding the fees, it is usually better to use a credit card, since if your card is stolen you can easily dispute the charges on a credit card, while a stolen debit card may lead to an overdrawn bank account requiring many additional hassles.

• When making point-of-sale purchases, most US-issued Visa/MC debit cards can only be used in "credit" mode (i.e., swipe-and-sign, as opposed to PIN-based "debit" mode). In addition, if you are faced with a situation where a PIN is required (such as certain unmanned train ticket kiosks in Europe), it is certainly better to use a debit card than a credit card, as PIN-based transactions with a credit card usually incur hefty cash advance fees (in addition to any foreign exchange fees).

• The exchange rate applied may be the rate on the date the expense was posted to the account, not the date the charge was made. Therefore if you are dealing with a fluctuating currency it is impossible to know exactly what exchange rate will be applied for an expense until a few days after you make the expense.

[edit] Dynamic Currency Conversion

When you are paying by Visa or Mastercard, some merchants will offer to convert your transaction into your home currency ("'Dynamic Currency Conversion'"). If this offered, you should decline it, as an exorbitant exchange rate of 7% may be charged [1]. Always check your receipt, and if you see anything involving your home currency in a country that doesn't use that currency, ask the merchant to re-do the transaction in the local currency. If the merchant insists that the conversion is automatic, it is worth arguing or reporting the incident to your credit card company. Visa "requires the merchant to disclose the fee and must provide the consumer with a choice" of getting the bill in the customer's home currency or the local currency. [2]

[edit] Schedule of Foreign Fees By Bank for Debit and Credit Cards Issued in the U.S.

The information below is intended for people based in the US who have US$ accounts and are traveling to other countries.

[edit] Travellers' cheques

Travellers' cheques are not accepted as widely as credit cards and they are usually not as convenient to use. In general, only the largest stores and hotels will accept travelers cheques for payment. In addition, travelers cheques can be exchanged for cash at most banks.

Travellers' cheques are issued in a specific currency. The American Dollar is the most common currency, but many different currencies are available. American Express credit card holders can get emergency cash in the form of its travellers' cheques at foreign American Express offices, and designated affiliates (often a travel agency or bank). If the location is not a bank, you will have to go to one or a foreign money exchange to cash the cheques. Be sure to bring a blank cheque from your checking account back home or at least know the routing and account number (the digits printed at the bottom of each check). There is a one percent fee for issuing the travellers' cheques, and the total sum is NOT a cash advance on your American Express card. (They will cash advance your credit card without further permission from you if there's a delay in cashing the check, though. Keep tabs on your checking account, and make sure it clears in a few days.) Also, there's no requirement that you're destitute, as the service is available for whatever reason.

The main advantage of travellers' cheques is complete protection against loss or theft. Once you report them as missing, the issuing company will replace them. However, you must also keep a record of your used cheque numbers, and the replacement process can take time and be inconvenient. If you are unsure which cheques you have already cashed and which are missing, your refund may be greatly delayed.

With travellers' cheques, you will typically have to pay fees both to buy them and to cash or use them. This may be a straight fee, or it may be hidden in the exchange rate if you are buying them in a foreign currency. If you are buying them in a foreign currency, it may be worth it to find out if you can buy them with cash in that foreign currency (assuming you have some already).

When cashing your travelers cheques, pay close attention to commissions and fees: if the fee is per cheque, cashing many small checks can be very uneconomic. Be suspicious of claims of "no fees", as this usually means that the exchange rate is terrible.

[edit] Cash

Cash is the most versatile method there is. Aside from some car rentals and a few gas stations, virtually everywhere takes cash.

In some countries you may be able to get by entirely with US Dollars or another currency. However, this will often be at a huge expense as the exchange rate offered by merchants and hotels is usually not very good. Merchants in border communities may be more accepting of neighboring currencies. 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 worthless. Note that pennies are likely to go unnoticed.

For distant foreign travel, be sure to bring only paper notes 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.

This 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.

When using local money, familiarize yourself with the basic note designs and their security features (watermarks, holograms etc), and watch out for counterfeits and obsolete currencies. 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, petty traders and such, may be tempted to palm off useless bills. When in doubt, reject unfamiliar bills, and be particularly suspicious of large notes.

[edit] Where to exchange cash

All money exchanges work on the basis of selling a foreign currency at one rate and buying at another. Make sure you know the current interbank exchange rate before you leave home [43]. Where there is more competition, the rates are likely to be better. 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. Rarely is the most convenient location (such as at airports, or major hotels) the best rate available. In some cases it can be significantly higher. As there are fees associated with currency exchange you should not exchange more than you need. Most major currencies are subject to counterfeiting these days. Study the bills 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 colour shifting ink, watermarks, special threads, iridescent inks, raised printing, holograms and other features. Become familiar with them so that you can quickly check them when you get a new bill whether it is as change or from a money exchange. If you are unsure, don't be afraid to say you would rather get a different bill, or just say you would rather get 2 smaller bills for change (As an example if you get a ten in change that you don't like the look of, ask for two fives instead). If you end up with a counterfeit you won't get compensated, and you may end up having to explain it to the police.

[edit] Convertible currency

A convertible currency is a currency that can be easily converted into another country's currency; conversely, an inconvertible currency is theoretically worthless outside its country of origin. A few countries, like Cuba, still issue one convertible currency for tourists and one inconvertible currency for locals. In some countries like Tunisia and India, importing or exporting (inconvertible) dinars and rupees is technically a crime, although such regulations are rarely enforced for small amounts.

Convertibility is set by law and not always entirely reflected in reality: some currencies like the Indian rupee are inconvertible in theory but fairly easy to trade in practice, while others like the Swazi lilangeni are fully convertible in theory but next to impossible to sell or buy in most of the world.

Despite the name, inconvertible currencies can often be purchased at a discount outside the country of origin, as people holding onto them want to get rid of them. Finding somebody to buy them is more difficult. Also note that state-run shops in some countries will also insist that tourists produce certificates of exchange to prove that their money was obtained from a legitimate source like a local bank at the official (usually poor) exchange rate, and such certificates are also often required if you want to change back any unneeded money within the country.

If travelling to a country with an inconvertible currency or one that you can't, in practice, buy or sell in your home country, you should convert all your money to a major international currency (US dollars, Euro or the British pound, whichever you can) before leaving the country. In general, these currencies can be exchanged at banks anywhere in the world: US dollar, Euro, British pound, Japanese yen, Swiss franc, Australian dollar and Canadian dollar.

[edit] Hard currency

In many poorer countries with inflationary, unstable, and/or inconvertible currencies, a foreign hard currency may prove more useful than the local currency. Although its value fluctuates, the "gold standard" for currencies remains the U.S. dollar. It may be accepted as payment directly by locals, though not necessarily at a great exchange rate. In fact several countries in the Caribbean, the Americas and South-East Asia use it as their de facto – or even official – currency. The euro is also increasingly well accepted, at least in regions with many European visitors, and small countries with economically powerful neighbours may also accept regional hard currencies (e.g. the Thai baht in Laos and Cambodia, the Australian dollar, or sometimes the New Zealand dollar in much of Oceania).

You can use hard currency when haggling with locals by offering hard instead of local currency. Use the conversion rate to your advantage and make an offer in hard currency. Showing a few US dollar bills in the process might help but be sure to show only what you are willing to pay. Also, if you plan on haggling sure to have small bills available so you don't need much change back, especially if you just haggled a price much lower. You don't want to be giving a vendor $50 for a $5 item; you'll only be inviting the vendor to try to sell you more things or even worse, let nearby pickpockets know how much you have.

It is wise to carry an emergency stash of hard currency separated from all your other belongings and valuables. Some businesses who deal with a large number of foreign tourists may also accept foreign money, but often at an inferior exchange rate to allow for the inconvenience.

[edit] Black market exchange

In some countries the official exchange rate is fixed at a completely unreasonable or unrealistic rate. In these countries the black market will provide much more realistic evaluation of the currency's worth, and is practically unavoidable. For example, in 2007 the official exchange rate was 250 Zimbabwe dollars to the US dollar, while the black market rate reached 600,000 Z$ to the dollar.

That said, the risks of black market exchange are legion. First and foremost, black market exchange is illegal and both buyer and seller may face severe sanctions if caught: the seller may even be (or work with, or tip off) a police officer out to trap tourists. Second, the risk of fraud is high: you may get obsolete banknotes, fake banknotes, less than the promised amount or nothing at all. Consider carefully whether you need to exchange in the first place, as businesses in countries with basketcase currencies will often be more than happy to accept hard currency directly instead (although this, too, will often be illegal), and you may get all the local currency you need back as change.

The key guideline to successful black market transactions is to receive the money before you hand yours over. Count the bills, inspect the bills carefully, compare them to any you already have, and only then surrender your own money to the vendor. Do not allow them to take back the money they gave you, as this is where various sleight-of-hand tricks can be pulled to replace the legitimate bundle with something entirely different.

In countries where foreign exchange rates are reasonable, it is best to avoid the black market entirely: you risk losing all your money for gain of a few percent at most.

An exception may apply in countries such as Nepal and India where doing a legal exchange at a bank can involve wasting an hour or more but most hotels will change money for you instantly and fairly safely. The rate may not be much better, but the convenience is.

[edit] Getting Money Fast In Emergencies

If you have someone willing to send you money, there are several options for getting money fast in an emergency. These include:

• Wire transfer services like Western Union
• Having someone back home directly depositing money into your bank account. You then use an ATM to make withdrawls.
• Sending a few banknotes via an overnight courier service (this is reliable, but is sometimes not allowed in the courier company's terms of service.)
• You could sell personal possesions, such as a camera or sport watch.
• If you know your credit card numbers, you can use western union to wire yourself some money

[edit] Coins

Currency exchanges and banks generally only exchange notes and do not exchange coins. If you don't want to keep the leftover coins for souvenirs, drop them in a local tip jar before leaving. At some major airports there are drop-boxes where foreign travelers can donate extra coins to charity just before they get on their departing flight.

If you have coins from your home country or elsewhere upon arrival abroad, remove them from your pockets to avoid confusion and having to sort them out each time. Zip-lock bags work well for this, and you can mark the bag with the issuing country's name. Memorize the name of the coins and fractional currency unit for your destination country. It's important to not carry coins from other countries with you to avoid the embarrassment of handing over the wrong ones by mistake!

[edit] Legal Limitations to Carrying Cash

Often you have to declare if taking more than 10,000 dollars, euros, or similar amounts into or out of the county. Failure to do so may result in having the entire amount (not just the excess) seized by custom officials. This is no joking matter!! [44] Don't forget monetary instruments such as travelers checks count as well. The rules about personal and business checks can be confusing. If the check is "cashable" and payable to yourself (or traveling party, etc.) that counts against the total. But when abroad, you can mail a check to someone in your home country (or do it online) provided the bank in which the check is drawn is located in the same country as the payee. (If not, you must report.) In other words, the funds never accompanied you, and you're just giving permission to your home bank to pay someone domestically. Having to pay taxes is not an excuse for non-reporting; but again, the funds to pay them would have to be located in another country for these rules to apply.

Some nations (mostly third world) have such a low import/export limit in the country's home currency (not US$, euro, etc.), that these limits may practically represent pocket change. Often, this is due to local laws not having been updated for hyperinflation. However, in such cases, the currencies are generally not convertible abroad, and/or the rules not always strictly enforced.

[edit] A Note on Travel Costs

Costs depend on a number of factors, including affluence, accessibility, taxes, rent etc. It is a good idea to estimate your costs before you travel. In general, richer countries like the United States, Canada, Japan and Australia are more expensive than poorer countries like let's say Somalia, Ethiopia or East Timor. Even within countries, costs can vary. In China, rural areas tend to be cheaper than urban ones due to the relative affluence of urban people. However, in Australia, rural areas are usually more expensive as people are generally affluent nationwide and rural areas are much less accessible, making transportation, supplies, utilities, etc. expensive.