The Conversion of Your Travel Money

In general terms, the use of cards has become far more popular than currency as far as taking care of your money goes. If you are in possession of the right card, there is no doubt about it, you are going to save money when compared to swapping your Sterling for the currency you need. Nonetheless, many people are wary of using any kind of plastic, credit or prepaid, and they worry further that choosing the wrong card could face them with additional risks. Carrying cash around with you to pay for things is easy, but if you are unfortunate enough to lose it or be the victim of theft crime the insurance you have taken out needs to be sufficient to replace it.

When it comes down to it, the bottom line about getting the most from spending your money abroad is making sure you have the best deals open to you.

Let’s take a look at those ‘commission free’ signs we so regularly see. More often than not, this will not mean you are going to get a super rate of exchange as the commission is hidden within the deal. This is the way the currency exchange companies make their money. Forget about the no commission sign and simply ask them how many dollars or euros they will give you for your pound.

There are some companies who genuinely don’t charge commission so providing their rate of exchange is in line with what you can get elsewhere, they are worth taking a look at. It’s still worth bearing in mind, however, that those charging commission to change your money may be offering you a much better rate of exchange currency for currency so they should not be ruled out of the equation just because a commission is added on.

Minimum charges and flat fees should be looked at more carefully. This means that however small the amount of money you are changing you will be charged a flat fee on each transaction. Conversely, flat fees can work out well though, if you are changing a large amount of money. Keep an eye on handling fees which are usually around the £3 mark but can be higher. It’s also worth taking a look at what your bank or building society are prepared to offer you by way of preferential rates as one of their valued customers. Watch out for handling fees too, which are normally about £3 but can be higher. As rates change from day to day you really need to do your homework and be ahead of the game.

Travellers Cheques

By far one of the more safer ways of carrying money abroad, travelers cheques are automatically replaced should they be lost or stolen, as long as you have a photocopy of them or a written note of the cheque numbers. For this reason it’s a good idea to keep details of your cheque numbers separate from the cheques themselves.

As you would expect this peace of mind comes at a cost and in this case the price you pay is the fact that travelers’ cheques are not the cheapest way to take your money to foreign lands. Two fees are often charged – commission when you buy them as Sterling cheques and then a further fee when you change them into the currency you need.

You can, however purchase foreign currency travelers cheques which affords you the luxury of buying at the right time by keeping an eye on the exchange rate before you travel. Make your move when the rate is good and take advantage of any special rates on offer and you will get the very best for your money.

As with cash, you may come across no commission deals from companies but check out their exchange rate to make sure they are competitive before using them to change your travelers cheques. Cashing cheques abroad may also incur small additional costs of a couple of pounds for each transaction so try to get your cheques in higher denominations to avoid having to pay more fees than necessary

Credit Card Use Abroad

Many credit card providers offer incentives such as frequent flyer points giving the user great benefits. However, the price the provider charges you in fees and interest rates should be your first consideration if you are planning to use your card for borrowing money abroad. In fact, it sometimes pays to have a credit card for overseas use only, one that you will pay off in full each month and not accrue any extra charges

Cash withdrawals using a credit card usually attract interest from the day you take the money so every care should be taken to pay the loan back in full when your statement comes in when you have used your card to borrow money abroad. Even though there are additional charges to changing your money in this way, there are also some great cards on the market for using abroad and some of these offer low hole in the wall fees too.

Another great benefit of using credit cards is that as far as purchases go, there are many cards offering 0% interest on spends for as much as the first twelve months This means you can happily spend your money using your card and not incur any interest for the agreed period. However, loading fees and restrictions on overseas buys should be checked into prior to your trip so you know exactly what you are letting yourself in for. The majority of card providers will give you a replacement card free of charge if you lose your original card which gives you a higher level of security than carrying cash around with you all the time.

The Post Office Classic, a leading credit card for use abroad as well as at home has a typical rate of 14.9%APR and boasts a commission free use outside of the UK. With a super introductory offer and 24 hour customer service promising to replace your card should you lose it, this card could be just what you are looking for

The New Style Plastic Power

Cards with a prepaid balance are another way to use your money abroad. They are safe to carry and if you are making your purchases on line or by telephone any fraudulent card use costs will be refunded to you. You cannot get into debt with these kinds of cards as you can only use the amount of money you have put onto the card. All you need to get a prepaid card is the money to put on it – there are no checks made into your previous credit history. There are many advantages of having a prepaid card for use when travelling and safety is the main one. If you lose your card you simply contact your provider and the card will be immediately cancelled and a new one will be issued to you. Depending on the card provider, you many be able to use your card all over the world and lucky enough to not have to pay anything at all by way of foreign exchange fees.

So where is the catch? Yes, as you would expect there is one. Due to the fact that prepaid cards are a relatively new idea to the market they are not too competitive at the moment, although this is changing from day to day. Costs like card application fees, cash dispenser withdrawals and top up charges need to be taken into consideration for the time being, but you may still find with the incurred costs that this kind of currency is the best for you. Think about the options open to you when topping up your card abroad. If you want to top up on line, make sure the card you have allows you to do this, for example. It will pay you to take a full look at what’s on offer as far as prepaid cards go in order to help you pick the right card for your needs.

Card users should take care when offered what is known as dynamic currency conversion. This is when the overseas merchants or retailers charge you in your own currency, not theirs. Although convenient, as you will know the price in your own currency, you may well be stung with a less favourable exchange rate making the deal not so good after allIt’s really best to be billed in local currency so check this out before signing on that dotted line

Our Recommendations

So with all these options open to you which way should you turn. Our advice would be to select a credit card or travel currency card as your main source of funding when you go off to foreign lands. Pick one without loading fees – the Post Office one looks good with no commission charges when you use it abroad.  The ICE Card is very good and has some excellent rates.  You can compare travel money here

If you simply can’t be bothered with making an application for a new card, then use the card or cards you have but not for cash withdrawals unless it is really essential. Carry small amounts of cash on your person for incidentals like a cup of coffee or local transport costs. Prior to setting off on your travels, change any cash to the currency you need and have a good look around so you get the best available deal. As far as a plan B goes, you may wish to have some travelers cheques with you or a prepaid card for use should an emergency arise

All that’s left to be said now is Bon Voyage!

Foreign Currency – How to buy

There are a few ways to go when dealing with foreign money exchange.  You could total up what you expect to spend and buy travelers cheques to use whilst you are there, or take a credit or cash card along with you.  Now you can also get a prepaid travel money card.  On the other hand you may decide to change all of your money into the currency you are going to need prior to setting off on your journey

However, there is an element of risk involved when you carry large sums of cash around with you and you may also find you don’t get the best possible exchange rate when you buy before you leave your own country. For this reason if it’s your intention to pay for things with cash, travelers cheques are probably the best option for you. Doing things this way affords you the luxury of being able to cash the amount of cheques you need at any given time and best of all should you lose your cheques, without a corresponding signature and photo id it is extremely difficult for anyone else to use them. The provider of the travelers cheques will replace any lost or stolen cheques upon confirmation of their issue. Other than this, you have the credit card option open to you, which we will talk about a little later on

So, how do you go about getting the best rate of exchange? Well, it’s far easier to tell you how not to do this and the first point to mention is strolling up to the first “Exchange”, “Cambio,” or “Wechel” sign you see and handing over your hard earned cash

You will find the only place where your exchange rate will be worse than this is when you use the services at the airport or the train station. They are providing a service of convenience to the client and they make their profit from you, the traveller, arriving in foreign climes with no local currency to hand;

All this can be avoided by simply thinking ahead and getting some of the currency you need from your local bank before you go on your travels. Once you reach your destination the banks located in towns and cities will change your travelers cheques into local currency and some of them provide this service without charging a fee. Banks more often than not come up favourable as far as exchange rates go, but there is nothing stopping you from doing a quick local currency exchange comparison between the banks and the exchange places on the streets, so you know where its best for you to change your money.

Using your credit card is another way to ensure your exchange rate is good. Of course, how you pay off your credit card balance has to be taken into consideration, but if it is settled responsibly with little if any interest being incurred then using your card is as good a way as any. Generally speaking, credit card companies are able to get better rates in restaurants and hotels so by paying by card instead of cash or travellers cheques, you may even find yourself saving some money in the long run

However, it’s not a good idea to get cash advances from the cash dispensers using your credit card. You are likely to get a better exchange rate but there are other charges such as cash advance fees and interest is accrued from the day you draw out the money, so this option becomes a less viable proposition. In simple terms this means for every cash withdrawal transaction you make over the duration of your trip abroad, you will have individual fees to pay.; Any excess money you have withdrawn and wish to be put back into pounds at the end of your journey will cost you in fees once again. If you have absolutely no choice but to take money from the hole in the wall, then take no more than is essential as the fees for withdrawing are nominal compared to the interest you are charged on the sums of money you find you didn’t really need after all.

Take Advantage of Any Discounts Offered and Ways of Saving Money

There are some great discounts to be had to help you save money. For example, if you are a student all you have to do is show your ID and reduced rates of entry to youth hostels, museums, cinemas, and various other places of interest, as well as special concessions on some forms of public transport become available. Similar discounts are offered to certain professional affiliations as long as proof is shown, so don’t forget to take any memberships you have along with you

There are great car rental deals available for those booking prior to leaving their country of origin. A lot of money can be saved doing it this way and you also get to see the terms and conditions of the contract in your own language, always an advantage

As far as accommodation goes, you are likely to find hotels, hostels, bed and breakfasts and guest houses charge little more when including a breakfast compared to simply the use of the room.

What are you waiting for? Get out there and enjoy yourself!

Travel Money Tips

One of these things is making sure you have currency for the country you are travelling to.  There are so many deals on the market; it can be quite overwhelming so we have put this brief guide together to help you through the process.  Our opinions have been formed impartially by reviewing our experiences of different products on offer and exactly what they cost to you, the traveller.

We enjoy good relationships with the providers we are working with at present and we hope the development of these associations will continue to go from strength to strength enabling us to provide you with the best possible deals available.

When it comes to purchasing foreign currency, the most common ways to do this are as follows:-

• - Buy your foreign currency from the UK prior to going on your travels.
• - Make use of your debit and credit card facilities.
• - If you prefer not to spend money you don’t have why not use a pre-paid debit card?
• - Purchase travellers´cheques to use whilst abroad.

A combination of the above is a good idea and you won’t go far wrong with a supply of local currency, travellers´ cheques and a credit or debit card to use as back up. These days the pre-paid cards are becoming more and more popular and they often attract extremely competitive rates of exchange.

According to our research, the average transaction for travel money is in the region of £500 – £700 depending on the way in which the traveller selects his provider and the exchange method he uses he can save himself anything from £20 – £50.  Surely, being able to save this amount of money is a good enough reason to shop around and these days the majority of folk can do this from the comfort of their own living room.

Banks, building societies and other financial institutions don’t always give you the best deal as far as currency changing goes so it really does pay to do a little research and check out all your options.

Keep an eye out for the promotions where free delivery on certain kinds of transactions is being offered.

The most common products on the market have been overviewed by us and the positives and negatives of each of them have been mentioned.

If you have a comment or opinion you would like to make about our suggestions we would be delighted to hear from you.  It will hopefully help us with out quest to provide you and many others with the cheapest travel money deals available.

To find the best deals on Travel Money see our travel money reviews

Cheap Travel Money

We have carefully selected the best providers for travel money exchange, providing a combination of fantastic offers but also a variety of delivery and collection options.