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Top Document: FAQ: Air Traveler's Handbook 3/4 [Monthly posting] Previous Document: [3-9b] Best Seats Next Document: [3-11] Frequent Flyer Programs See reader questions & answers on this topic! - Help others by sharing your knowledge There are two factors involved in exchanging currency abroad, the exchange rate and the commission fee. Don't rely solely on the exchange rate, but factor in the commision as well. Commission fees can vary significantly. So look for the best combination of exchange rate and fee. Since changing exchange rates can affect the value of your money, you'll want to be cautious about the currency you carry. When the dollar is strong, you'll want to carry dollars; when the dollar is weak, you'll want to carry either the currency of the country you are visiting, or a strong currency, such as Swiss francs. When the dollar is in flux, you'll want to carry both, and spend dollars when the dollar is rising and foreign currency when the dollar is dropping. When the dollar is dropping, try to pay for as many expenses as possible in advance. When the dollar is dropping, be careful with using credit cards. If there is a delay in posting the transaction to your account, you'll get a less favorable exchange rate. On the other hand, the exchange rate used by the credit card companies is often better than that for cash or traveler's checks. If you need extra cash, the exchange rate used by ATMs is the preferential commercial/wholesale rate. [Although true in most countries, it is not necessarily the case in Japan, where the government sets the exchange rate.] Even with the interest charges and/or transaction fee, getting a cash advance on your credit card or bank card can sometimes be the cheapest (and most convenient) option, because you don't pay a commission. If your credit card is actually a debit card (such as a Mastercard or Visa secured with a bank account or a brokerage account, or an ATM card from your bank) you won't pay any interest on cash advances, since the cash is withdrawn directly from your account. Thus using an ATM to get cash in the foreign currency is probably one of the best and least expensive methods. On the other hand, when the dollar is rising, you'll want to pay by credit card when possible. ATMs, banks, and traveler's check offices have the best rates. Avoid exchanging money at airports, train stations, hotels, and money changers if at all possible. To avoid the interest charges for cash advances on SOME credit cards, try overpaying your credit card bill before departing. You'll have to read the fine print, however, to determine whether this works. Some banks charge interest on cash advances, whether or not the credit balance covers the charge. Others will charge you a cash advance fee that is equivalent to a high finance charge. If you're lucky, your card will treat a cash advance like a purchase that starts acruing interest immediately. If so, maintaining a credit balance will eliminate the finance charges. There are, however, some caveats about using an ATM. Not all ATMs overseas can be used 24 hours a day; some are restricted to regular banking hours only. As usual, there are daily withdrawal limits. Your bank card or credit card must be on the Plus or Cirrus network for you to be able to use it abroad. Both systems have more than 100,000 ATMs in 40-50 foreign countries. American Express Express Cash is also quite common. There are many other smaller banking networks, which may or may not have machines conveniently accessible at your destination. There are some countries, however, which don't yet have any ATMs, or at least not very many, on the Cirrus or Plus networks. For example, the Netherlands doesn't have any Plus machines, but does have several machines on the American Express Express Cash network. Likewise, there are also countries that don't have any American Express Express Cash machines. Check for availability of machines on your network before you leave on your trip. Before you leave, call your bank to make sure your PIN (personal identification number) will work in ATM machines in the foreign country. In the US and Canada, call 1-800-4CIRRUS to get the address of the nearest ATM on the Cirrus network. In the US, use 1-800-THE-PLUS for locating PLUS ATM machines. With respect to credit cards, bring a Mastercard, a Visa, and an American Express card. Bring at least two cards, since replacing a lost or stolen credit card overseas can be difficult. Don't keep all the cards in the same location, so that you won't lose all of them at the same time. Don't bring your Discover Card -- few establishments outside the US and Canada recognize it. Mastercard is generally usable anywhere you see a Eurocard sign; Eurocard is the European equivalent of Mastercard. Before you leave, take at least $50 worth of foreign currency in small denominations with you, to pay for incidental expenses at the start of your trip (e.g., transportation from the airport to your hotel; taxicabs don't accept credit cards overseas). Airport currency exchange offices have long lines, and often charge a higher exchange rate than banks. Later on you can get foreign currency for restraurants and other establishments that don't accept credit cards. But don't take too much cash with you, because flashing a big wad of bills is the quickest way to lose it. If you buy traveler's checks, be careful when exchanging them for foreign currency. Exchange rates and processing fees can vary considerably, depending on which bank, exchange office, or hotel you use. There is no fee for exchanging American Express traveler's checks at American Express offices. You can also get them at AAA for no fee if you are an AAA member. Traveler's checks are safer than cash, but you'll still want to be careful. Although they can be replaced if lost or stolen, replacing them can take some time. The other drawback to traveler's checks is, of course, the 1-2% commission you pay when you buy them. Only in the US are traveler's checks considered the equivalent of cash; in Europe, you'll probably have to exchange them at a bank, since many establishments won't accept them in payment. Only get traveler's checks if you're concerned about safety, or don't have a credit card, or are traveling to a destination that doesn't have any ATMs. Traveler's checks are also available in foreign currency, including British pounds, Canadian dollars, Dutch guilders, French francs, German marks, Hong Kong dollars, Japanese yen, Spanish pesetas, and Swiss francs. If the dollar is in flux or dropping, you'll want to buy some traveler's checks in the foreign currency or in a strong currency, such as Swiss francs. Many shops and restaurants will accept traveler's checks that are denominated in the native currency, saving you the bother of exchanging them. Bring some dollars with you for the trip home (e.g., drinks and movies on the plane, and cab fare home). If the dollar is very strong, you may be able to get more for your money in open markets as dollars than if you had exchanged them for the local currency. In general, don't make yourself dependent on only one form of money. Bring some cash in both currencies with you, but also bring credit cards, and maybe even some traveler's checks. When returning to your home country, try to avoid bringing coins back with you. Many banks will exchange bills in foreign currency but not coins. Either spend the coins before you leave, or convert them to bills. Note that in some countries (e.g., Japan) you will have to pay the departure tax before boarding your return flight. So make sure you keep enough local currency to cover the tax. Because you may have trouble doing exchange calculations in your head, precompute the value of several common items in the foreign currency. (Don't use items whose value in the foreign currency doesn't correspond with their value in dollars.) Then use these items as standards when shopping in the market. Chocolate bars and the cost of lunch are good yardsticks. It won't be exact, but it'll give you a quick and instinctive test for whether you're getting ripped off or not. Better yet, bring a calculator with you. Of course, it is a good idea to familiarize yourself with the foreign currency, so that you don't have to rely on the vendor to count your change. If the government required you to declare how much money you brought into the country, keep receipts for all money exchanges and purchase. You may be required to prove that you exchanged your money legally. If you're inexperienced, don't dabble in black market currency exchanges. The black market is usually illegal, so you can get into a lot of trouble. The person you exchange with could be an undercover policeman, or could turn you in. Or they could be setting you up to be mugged afterwards (checking out how much money you have). If you don't know the going rate, you'll probably wind up being cheated. Never exchange money with a person you meet on the street. The black market will only exist in countries where hard currency (e.g., US dollars and strong currencies) are more desirable than the local currency. For example, countries with exchange controls, artificial exchange rates, or high inflation rates, and developing countries are likely candidates. Clean, crisp, high denomination bills are generally preferred. The safest way to take advantage of the black market is to use your currency to buy stuff at the peasant market (aka bazaar, shuk, etc.). After bargaining in the usual fashion using local currency, pull out an amount of your currency of lower total value. High class establishments will generally not engage in the black market. As a general rule, the benefits of black market exchanges don't outweigh the risks if you're just traveling on vacation. User Contributions: 1 cheap viagra Feb 25, 2021 @ 2:14 pm https://genericviagragog.com buy viagra without doctor prescription Comment about this article, ask questions, or add new information about this topic:Top Document: FAQ: Air Traveler's Handbook 3/4 [Monthly posting] Previous Document: [3-9b] Best Seats Next Document: [3-11] Frequent Flyer Programs Part1 - Part2 - Part3 - Part4 - Single Page [ Usenet FAQs | Web FAQs | Documents | RFC Index ] Send corrections/additions to the FAQ Maintainer: mkant@cs.cmu.edu
Last Update March 27 2014 @ 02:12 PM
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