While planning an overseas trip, among other things to consider is how to carry money while travelling abroad. Knowing what forms to carry your money in can help you enjoy your holiday peacefully as it helps avoid the risk of losing travel money.
You should do a little homework if you want to carry your money efficiently abroad. You can select from different options to carry your money while travelling overseas. The primary challenge is selecting the right option while keeping in mind your needs and requirements.
The following post discusses the different ways in which you can carry your money during an international trip so that you can use it safely for different transactions on your vacation.
Ways to Carry Money While Travelling Abroad
Credit Cards
These cards are accepted universally as payment modes, and all international transactions are made at the bank rate. Moreover, the transaction fees for foreign currency when using credit cards to purchase goods are minimal. There are nearly endless variables of credit cards from which you can add the suitable one to your travel wallet.
Few questions you should ask yourself while selecting the credit card are- Will my card even be accepted where I'm going? Does it offer complimentary travel insurance? Does it offer you frequent flyer miles?
While it is true that credit cards are a fantastic mode of carrying money while you are travelling to a foreign country and can be among the best ways to carry cash while travelling, you should not completely depend on credit cards for your international trip transactions. Have this in mind that credit cards are not accepted in some places at all and prefer cash over anything, so plan accordingly.
Debit Cards
One of the answers to how can I carry money while travelling abroad? - is opting for debit cards for international transactions. These cards offer convenience when looking for foreign exchange in local currency and can be easily used for withdrawing cash from any local ATM machine in a foreign land.
However, the moment you step your foot overseas, your debit card becomes a tainted proposition as most banks charge you explicitly on every transaction made. So, try to use in-network ATMs, as some banks have overseas sister banks that will save you at least one fee. Then withdraw huge sums as infrequently as possible, and use the card in stores instead of cash.
Cash
You should carry cash while travelling abroad as a way to make transactions internationally. This is because while there are drawbacks and advantages of using digital payments, cash is the most effective way to make payment in case of an emergency. The safety of carrying cash with you while travelling abroad rests with you, but it is highly recommended that you carry some amount of cash in local currency when visiting a foreign country.
Also, remember to carry foreign currency within permissible limits while visiting a foreign country. Though traveller cheques and travel cards are the best options, you should carry local currency to pay for essentials like food, drinks, tips and taxis.
There are times when cards and cheques don't work; at that point in time, cash comes in handy. Moreover, the amount of cash you can carry depends upon the country you are travelling to. There should be a card-to-cash ratio of 75:25.
Multi Currency Travel Card
This payment mode is also considered one of the best ways to carry money while travelling to an international destination. Prepaid travel cards are among the most popular and safest ways by which travellers carry their money abroad. A multi-currency forex card is a smart way to take multiple currencies at once.
Also, it offers travellers protection against cross currency transaction charges, currency fluctuations, and minimum transaction charges on prepaid forex card usage at ATMs overseas. Many banks even provide complimentary travel insurance on the purchase of travel cards. You also have the option to lock-in the exchange rate before travel, thereby reducing the chances of facing any future uncertainties.
Another reason why travellers prefer prepaid travel cards is because they come with security features such as PIN safety and the advantage of locking the card in case they are stolen or lost.
Traveller’s Cheques
In the era of omnipresent ATMs, do travellers cheques even still exist? Well, to our surprise, yes! Traveller’s cheque is a tried and tested old payment method that has been found to be helpful when making transactions in a foreign country.
Honestly, it is quite unlikely that you will use this option, but traveller's checks are useful for places where there are few ATMs and cards are not accepted. Even if they are stolen or lost, no one else can use your traveller’s cheques to make transactions. Also, these cheques come without an expiry date.
Travellers cheques can also restrict a traveller from spending over and above his budget unlike a travel card which gives a traveller more flexibility. However, the drawback of using a traveller’s cheque is that any signature mismatch can lead to the cheque being considered void, so you have to be mindful of how you sign the cheque.
Tips on How to Carry Money Safely When Travelling Abroad
Now that you know the different ways how to carry money while travelling abroad, it will be helpful to learn some tricks to carry your money safely. Here are some tips that you can resort to when on an overseas trip:
Carry More Than One Source of Money
It is wise to carry cash and cards along with you on your international vacation. If your cards stop working or get lost/stolen, you can use cash as a backup for making transactions.
Avoid Using Cash Freely
Instead of using cash for most transactions, restrict its use to only when necessary. Use your prepaid travel card or credit/debit card instead, as if they get stolen, you can block these cards, but cash lost cannot be recovered.
Check Denominations Before Handing Over Cash
While using cash, be careful when making transactions. Get familiar with the local currency and double check the notes before handing them over to the seller/store.
There are countries whose currency exchange rates are lower compared to the Indian Rupees, which is why you must be careful not to spend extra simply because you were careless.
Avoid Rupee Conversion When Abroad
Converting Indian currency into local ones comes at a high exchange rate, which can be quite an expensive affair. You should keep the Rupee Exchange as your last resort, having spent all other means of transaction.
Take Photographs of Cards and Documents
This way you will have the details of your cards when making online payments in case your cards get lost/stolen. Moreover, you must save the details of your customer service number and your account number to be safe.
Isolated ATMs Should be Avoided
Opt for ATM machines that are installed inside banks to ensure safe monetary transactions. Depending on your need and accessibility to ATMs around you, exercise discretion about how much money you can withdraw at a time from an ATM machine.
Make Use of Hotel Safe
When looking for accommodation for your vacation, opt for a hotel that comes with a safe. This way, you can keep your valuables and important documents in the safe before you leave for sightseeing and other activities.
Do Not Keep All Your Money in a Single Place
It cannot be overemphasised that keeping all your money in a single place can be highly risky. If your belongings are stolen, you will lose not only cash but your other means of payment as well. Instead, use different places to stack cash, like socks, books, bags, phone covers, etc.
In case you lose your money and cards and have no means to make payment in a foreign land, your travel insurance can be highly resourceful in providing you with emergency financial assistance until you can find a way to access your funds.
This is one of the biggest reasons why you should opt for a travel policy for your international trip. But what does Travel Insurance cover? Let us find out.
Travel Insurance by Reliance General Insurance for Your Safekeeping
At Reliance General Insurance, our aim is to help you make your international travel experience safe and enjoyable, which is why our travel policy comes with comprehensive coverage for your overseas trip.
From financial coverage for trip-related risks to compensation for personal liability, we cover aspects that may pose a heavy financial risk to you in a foreign country.
Moreover, catering to medical expenses for hospitalisation and other medical treatments in a different country is part of our International Travel Insurance policy. This is a huge financial saving for you, as paying for medical costs overseas is exorbitantly priced, which can easily rob you of your life’s savings.
Other ways in which our travel policy covers you financially is providing reimbursement for loss of check-in baggage, compensation for hijack distress and making provision for your family member to come visit you if you are ill for a lengthy period overseas.
Conclusion
Keeping all things in mind, you should not rely on a single mode of payment while travelling to a foreign country. You should have a balanced travel money portfolio, including traveller’s cheques, debit cards and credit cards, among others.
Make sure you get a travel insurance policy, as it will not only cover your trip but also provide you with emergency cash assistance in your hours of need. With the tips and tricks mentioned above, you will be able to enjoy your vacation without being constantly worried about the safety of your travel money.
Frequently Asked Questions
What safety measures do you take while carrying cash when travelling outside India?
Carry only a reasonable amount of currency when travelling abroad. Also, ensure that you keep cash hidden and close to you all the time. Avoid keeping cash and fanny packs in the back pocket. Do not leave cash in hotel rooms or leave your purse/wallet unattended at any time.
What amount of cash can be carried legally abroad?
The Reserve Bank of India states in its guidelines that Indians cannot carry more than ₹25,000 when travelling overseas.
Is it possible to use a debit card outside India?
Yes, it is possible to use your debit card outside India but you have to inform your bank to activate your card for international transactions, and you must be aware of the fees charged for such services.
What if I lose my luggage with cash in it when travelling abroad?
Your travel insurance will provide compensation for the total loss of hecked-in baggage, subject to policy terms and conditions.
