When traveling abroad you can afford to lose just about everything except for your passport, your money and your mind. Keep those three and you have every chance in the world of having a great vacation and getting home safe and sound.
Working out how to carry your money can be a bewildering prospect, however -- do you carry a bankroll of dollars in your front pocket, invest in traveler's checks or rely on the good old piece of plastic to see you through?
Still, spare a thought for travelers of old, to whom none of the above was even an option. Voyagers of centuries past would hide gold pieces inside the lining of their clothing or, in extreme cases, cut open a pouch of skin in the arm to hide a precious jewel.
All things considered, we have it easy today but you should still assess your options carefully before leaving home.
Cash
American dollars are accepted the world over. Even if you can't find a money exchange counter open, there's a good chance that a shop or restaurant will be able to change a small amount for you.
As far as changing money goes, you're best off using official exchange counters or banks. On one occasion in Nicaragua I changed money on the street and was delighted to get 10% more than the official exchange rate.
Feeling like a travel expert my good mood lasted until I got back to the hotel and realized I'd been given a pile of counterfeit currency. Would you be able to recognize authentic Nicaraguan Cordobas?
While carrying cash makes life very easy, the drawback is that if you're robbed you don't get it back! You'll want to carry at least part of your money in cash for emergencies and you should think carefully about how to carry it:
- A thin money belt that can go under your trousers or skirt is a great place to hide your passport and cash. Don't use the thick ones with multiple pockets that hang around the outside of your waist -- you're practically asking to get robbed.
- If you're wearing jeans, pickpockets will find it nearly impossible to get their hands into your front pocket.
- Separate the larger bills from the cash that you'll need that day so that when you take out your money you don't flash a big roll.
- When leaving money in your hotel room you could leave cash between the pages of a book. If it's a respectable place the maids are unlikely to take anything but there's no harm in being on the safe side.
Traveler's Checks
One easy solution to the danger of getting robbed is traveler's checks. Reputable brands like Visa, American Express and Citibank are accepted in most countries around the world and if they're stolen they'll replace them within 48 hours.
All you have to do is take the checks along to the bank, sign your name and they'll hand you the equivalent amount of local cash.
Traveler's checks would seem to be a great option but the following should be considered:
- The companies won't replace the checks indefinitely. If you get robbed more than once on a single vacation they'll make life very hard for you the second time around.
- In order to get your checks back the company may insist you get a police report to back up your story. This happened to me in India and the local cops refused to file a report that I'd been robbed as it reflected badly on their control of crime in the area. The police chief and I had to compose a story about a fire in my house burning all that I owned.
- The companies frequently offer a slightly lower exchange rate and may take commission when you buy the checks.
- Make sure you get checks of different denominations if you only need $10 to get to the airport it's a drag if you have to change a check of $100.
- If you're a long way off the beaten track it may be that the local bank doesn't deal with your brand of traveler's checks. Remember, money is only worth anything if it's accepted!
Debit and Credit Cards and ATM machines
Of course, there's always plastic. A debit/credit card fits neatly in your pocket or wallet and, if stolen, it can be cancelled with one phone call. You can use plastic to pay in bigger stores and restaurants and you can take out cash from ATM machines that display your card's logo.
Life isn't always that easy however:
- Machines don't have a sense of logic and may decide to swallow your card. This happened to me once in Brazil on a Saturday night and I was due to fly the next day. I had to move hell and high water to get the bank manager to come down and open up for me.
- Your bank will also charge you a few bucks each time you withdraw money.
- There are often limits on how much money you can take out each day. Conversely, if you're using a credit card then you may well drastically overspend and spend the rest of the year paying off your vacation.
- In more remote parts of the world there may not be many ATM machines in town that handle international transactions. Looking for one that accepts your card can be a wild goose chase but any major bank should be able to handle the transaction for you.
- Don't forget your pin number! If you have to write it down, send an email message to yourself with the number inside it. Don't leave it on a scrap of paper in your wallet or a thief might help themselves to your bank account.
- And your plastic won't take you very far at the local taco stand!
Wire Transfers
If you get robbed of all your cash, Amex refuses to refund your traveler's checks and your ATM card is swallowed by a bank machine that speaks only Spanish, all is not lost. You can still get money wired from home by friends or relatives and it's not a bad plan to leave some cash with them for this eventuality.
The easiest way to send money abroad is by Western Union wire transfers. The money arrives within minutes and there are branches in all major cities across the world.
- Whoever sends the money phones you or sends an email with the money transfer number and you head along with your passport to collect the cash.
- The sender will need to know your full name and maybe your address. You should know theirs also in case the local branch wants all the forms filled out.
- However, while very efficient it is also very expensive. Western Union typically charges 8-10% and often gives bad exchange rates.
- It ought also to be noted that Murphy's Law is at its strongest when it comes to money exchanges. Whatever can go wrong, will go wrong. Be patient and try to get someone reliable and competent at home to send the money.
You'll have seen by now that each method has its risks and rewards, so what should the savvy traveler do?
Really, the common sense answer is to mix and match. No one but Jackie Chan would carry all his money in cash but it's worth keeping a few hundred bucks aside for emergencies. For the bulk of your vacation money use traveler's checks and/or a debit card with international recognition.
Failing all that, of course, you could always try to insert a ruby into a bicep but I doubt your health insurance would cover it if things went wrong.
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Tom Glaister is the founder and editor of www.roadjunky.com - The Online Travel Guide for the Free and Funky Traveller.
