Should you take cash or card on your overseas travels? Travel writer Ewan McDonald has some tips. Photo / 123F
Should you take cash or card on your overseas travels? Travel writer Ewan McDonald has some tips. Photo / 123F
Ewan McDonald answers your questions about travel. This week, the First-Timer’s Guide to using cash overseas.
Q. On our last (pre-Covid) trips overseas, we noticed cash seemed to be giving way to cards at most destinations. Guess that this has only accelerated because of social distancing and online banking?
A. Oh. Questions about money. I knew this would come up sooner or later. There are a ridiculous proportion of accountants in our family, which is one reason I became a travel writer, and the other is questions about money. Here, I defer to the experts, and preferably local ones who understand Kiwi issues, so here’s some advice from the BNZ. They recommend:
Minimise the risk of being stuck without money overseas by taking a mix of both cash and cards. That way you’re covered should you lose one, or if you come across places that don’t accept plastic.
Credit cards offer extra protection. As with debit cards, most credit cards offer a zero-fraud liability guarantee, which means you’re covered for any fraudulent transactions as long as you’ve complied with the terms of service, and some credit cards come with travel insurance benefits.
Buy cash before you leave NZ. Even though getting cash out at an ATM once you arrive is easy, it’s a good idea to take at least some foreign currency with you. This means you’ve ticked an item off the to-do list when you first arrive.
Take a backup card. The second card could be a credit card or your debit card, but whatever it is, the peace of mind of having alternative access to money is invaluable. Make sure you don’t keep both cards in the same place (I keep mine in… probably shouldn’t mention it in a national newspaper).
Link your bank accounts to your credit card. This will be more cost-effective than getting a cash advance off your credit card. It’s also a safety net should you lose your debit card. This service isn’t available in all countries.
Let your bank know before you leave and let them know where you’re travelling and when.That way they’ll know it’s you using your card overseas and not a criminal. If they don’t know it’s you, you run the risk of having your card temporarily blocked.
Use a travel money card, a pre-paid debit card that you load with money before you leave home. It can be used to buy goods and services in stores and online just as you would with an ordinary credit or debit card, but in local currency. It can also be used to get cash out at an ATM – and I’ll come back in now, as one who’s been stung, be aware that some overseas bank-owned ATMs charge extra fees, and that some others are not bank-owned, but – shall we say – private money-making ventures. Look closely at the brand before inserting your card.
Yes, most major retailers, accommodation, transport and hospitality providers are card-oriented, whether it’s Europe, US, major Asian or Middle Eastern destinations. But it’s a different story when you’re dealing with Mum and Dad shops, B&Bs, taxis or bistros.
They are far more likely to prefer cash – in fact, you’ll likely find that you’ll get a substantial discount on that absolutely handcrafted, one-of-a-kind, genuine virgin lambswool carpet in the Turkish bazaar when you’ve haggled the chap down to his lowest possible price if you can flash the lira. (I leave it to you to decide whether the carpet or the bargain is genuine, as I have no wish to cast doubt on the integrity of the Istanbul carpet merchant profession.)
Same goes in almost every society across the globe, for a couple of reasons. One, smaller merchants are, strangely, not fans of the credit card companies’ commission charges; two… well, consider Italy, which has two national sports, one of which is football and the other involves not filling out tax declarations for the suits in Rome.
In summary, pay the big bills – the room and dinner at Claridges, the perfume from Saks Fifth Ave or Galeries Lafayette, the rental car (if you haven’t pre-paid it), that spur-of-the-moment balloon ride in Cappadocia – on the credit card. Be aware that China, if that’s on your list, generally does not accept foreign credit cards.
When you’re using a credit card, always tick the “pay in local currency” option and NOT “pay in home currency” (or similar wording) to avoid extra fees and the vagaries of Kiwi exchange rates.
Carry a small amount of local cash for the coffees, the picnic in the park, and for tipping in the US. In Bali, Thailand and Pacific nations, cash is still king, and will remain in power for some time.
Do you have a question for our First Timer’s Guide expert? Email travel@nzherald.co.nz with ‘First-timer’ in the subject line.
