Your currency spending options abroad

Travellers Cheques

• Travellers Cheques are issued by some travel agencies and financial institutions, such as Thomas Cook and American Express. They are similar to an ordinary bank cheque- paper with a cash value imprinted on them.
• It is mainly used in countries with a good financial infrastructure or strong tourist influence.
• It is a good way for the security-conscious traveller to have a greater amount of purchasing power abroad, also giving them the option to convert them into hard currency whenneeded, or in some countries, such as the United States, easily use them as cash, even getting change in return.
• If travelers cheques are stolen, you must report the theft to your travellers’ cheque provider, and to the local police. You will be asked for the numbers of all stolen or unused cheques, upon which these will be blocked even if presented with a forged signature.
• Generally, your money will be refunded to you by the cheque provider within 24 hours.
• Some shops may require photo identification to be used when spending a travellers’ cheque, but more often then not, your countersignature is enough.
• Take photo ID with you whenever you plan to use your travelers cheques as
  banks also often require proof of identification when you attempt to cash a cheque.
• Travellers’ cheques are the best option if you are security-conscious and are taking large amounts of money with you to your destination.

  How They Work:

  • Upon receiving your cheques , you will be asked to sign each one once in a small box, and to write down the cheque numbers. Remember to keep this list in a safe place, always separate from the cheques themselves.
  • Then, when you need to cash one in, simply countersign the cheque again in the second box provided.
  • Remember to keep a note of all the cheques you’ve spent that day.
  • If the cheques are stolen, they cannot be used without your countersignature.

Cash Abroad

• Cash or hard currency is accepted everywhere in the country you are visiting
• Cash has none of the hassle of paperwork
• Cash is easy to keep track of.
• Even if you’re taking travellers’ cheques with you to your destination, it’s always a good idea to carry a little bit of local currency with you.
• Not without disadvantages, if stolen, there is no way to quickly replace your money – insurance claims can be protracted and are no good in an emergency.
• There is no 24-hour refund option, unlike with travellers’ cheques.
• Unlike debit cards and other options, any leftover travel money is useless once you get back home, unless you change it back into your local currency. Paying commission again on money you’ve changed over once before can be a real drag!
• Most travel agencies and banks offer a commission-free buy-back option to ensure that you don’t lose more money on leftover cash.
• A good idea would be to rid yourself of all foreign coins and smaller notes before returning home as changing tiny amounts is impractical and expensive.
• When travelling in taxis, paying in small restaurants or cafes, or buying food or medicine, it’s often impractical to pay with travellers’ cheques or cash cards. In cases like these, small amounts of local currency are vital.
• When travelling to underdeveloped countries, it would be wise to carry US Dollars on you. Often, these carry more weight than the local currency and can get you out of emergencies.
• Always be careful with your currency when travelling. Follow the security tips below, and be sensible.

Electronic Money Transfer

In the US, UK, Europe and other westernized areas, cash machines can be a good way to get money as it works the same way as at home. Before you depart, check with your bank in advance that you can use ATMs in your destination country. Your bank should be able to provide a print-out listing the locations of ATMs that will work.

Some of the advantages of this option are its ease of service, and the fact that it can often be cheaper than changing money at a bank or bureau de change. But also be sure to check any commission charges and ATM fees before you travel, and check the exchange rates before you withdraw to make sure you receive the correct amounts.

Shops that accept ATM cards and debit cards for automatic payment obviously would provide the same service, but as always, check the fine print of your card’s terms and conditions as using this system when abroad can incur a fee larger than it would have at home.