When travelling overseas you will need to take extra precautions against the loss or theft of your money and other valuables. With regards to money, it is advisable to carry as little actual cash as possible. Cash is sought after by petty criminals in most countries and they often target tourists who are the most vulnerable victims because of the possibility of them carrying more cash on them that most other people in the country. This means you are better off with credit or debit cards, and a small amount of traveller’s cheques for when you find yourself in an area with no ATM or where a merchant can’t process your card.
It will be up to you to decide what you feel most comfortable with but whatever you do decide, it is a good idea to photocopy all your travel documents including your passport, credit and debit cards, keep one copy with you at all times and leave another copy at home in case you have to refer back to it at a later date and you have lost the copy you have with you.
It will be very difficult to travel without access to money therefore it is important you make up your mind before you leave about how you are going to protect your credit card, traveller’s cheques or cash while away. However, it will be best if we look at the benefits of each and how to use each method securely, before making up our minds:
- Cash: Cash is always the most convenient way of paying for something no matter where you are, be it at home or overseas. With cash you don’t need to be continually searching for an ATM or bank. A further benefit of cash is that you will probably be able to negotiate a better exchange rate to have it changed into a local currency than you could with travellers cheques. Cash however is a problem when it comes to security because once it is stolen from you it has gone forever, unless the police are fortunate enough to catch the thief before he or she can spend it.
- Traveller’s cheques: Travellers cheques are more secure than cash because they are able to be replaced if stolen and they require a countersignature before they can be used. You can also benefit from being able to get travellers cheques in American dollars, Canadian dollars, Japanese yen, British pounds and in Euros. On the down side however they are expensive to buy as they attract various fees and charges. They are also bulky to carry in a wallet or purse. You will still need to find a bank or financial organisations office to exchange your traveller’s cheques into the currency of the country you are visiting.
- Debit cards: These cards are not as attractive to a would-be thief as cash. If your debit card is linked to a major credit card company such as Visa or Mastercard you will find many outlets in most countries where you can get your money out in the currency of the country you are visiting. If you do plan on using your debit card while away, you will have to notify your bank of what you are planning otherwise you could find an alert will be posted when your card turns up at an overseas location, with the bank thinking a fraud is taking place causing your card to be immediately suspended.
- Credit cards: The best thing going for credit cards is that, like debit cards, they are small and easy to carry and easily replaced if lost or stolen, no matter if you are at home, or travelling overseas. You can easily reserve a hotel booking in advance and your reservation will be honoured. The same as when booking a rental car. You can also get money out through a bank or ATM in the currency of the country you are visiting. The biggest danger you face when using your credit card is that you are vulnerable to the actions of unscrupulous merchants who can steal your credit card details and gain access to your account. This can be overcome by you disputing such withdrawals but it is a time consuming process which you won’t want to become involved in if you can avoid it. You can avoid having to use your credit card at suspicious merchants by withdrawing enough cash for a couple of days usage and using the cash to pay for anything you buy from a merchant who looks a bit shady.
You can of course choose a variation of cash, traveller’s cheques, debit or credit cards but whatever you do you will need to be a bit more aware of what’s going on around you than you do at home where you are more familiar with your surroundings. Even though your credit card will be replaced if it becomes lost or stolen, it remains an inconvenience that is best avoided by being extra careful at all times.
About the Author: Alban loves saving money and blogging about it. When he is not writing, he offers saving tips at Savings Account Finder.
