From Card To Contactless: 6 Ways To Simplify Travel Payments Abroad

The tourism industry began as far back as the 17th century in Western Europe. As travel has evolved, it has also started to become easier to do so. However, while vacationing has become less physically challenging, it can still become problematic for the wallet.

Vacationing can be expensive, especially when going abroad. There’s the flight, hotel, food. It all adds up. The last thing you want is any extra charges or fees. 

With that being said, there are 161 official currencies in the world, and not every place will accept your local money. This leads to something called the exchange rate –  when one currency is priced relatively to another.

While you can’t avoid an exchange rate while travelling abroad, you can avoid unnecessary fees and make sure to pay attention to payment trends across the globe. Let’s look at six ways to simplify travel payments abroad.

A travel credit card gives you the ability to obtain points or miles through purchases, which can be redeemed for travel expenses such as flights and hotels. 

Furthermore, you can receive other travel-oriented benefits if your holiday goes askew. For example, protect yourself from a trip delay, obtain cancellation insurance, and even benefit from perks such as airport lounge access, hotel upgrades, and waived baggage on airlines. When travelling abroad, you also may be able to avoid foreign transaction fees – fees that credit cards issue on transactions either with a foreign merchant or overseas.

Giving your bank and credit card company a heads-up before travelling internationally is going to lessen the headache of leaving the country. This way, they do not flag any purchases and note them as fraudulent. A flagged credit card could stop you from making any more purchases for the time you’re away, as they may mark it as stolen. 

Notifying your bank, especially if it’s a larger company, may also help customers avoid bank fees when withdrawing cash in a foreign country. 

When taking out money or when using a credit card, you may be asked if you’d like to pay in your home currency. This option is called dynamic currency conversion (DCC). When presenting your card for a charge or withdrawal, you’ll be presented with two amounts: one in your home currency and another in the local. The home currency will have already been converted on the screen to the local price, but with the added DCC, which will most likely include fees and profit margins.

If you select the local currency, your bank will convert the charge at a much better rate.

If you travel internationally often, a great tool to have is some form of an international banking app. As one of the new trends in payments, international banking apps allow you to hold multiple currencies, which allows you to keep multiple types at a time and transfer money to accounts in various countries. 

The app will also keep your last currency exchange rate true as long as you have money stored. For example, if you travelled to London last year and plan on going again this year and have GBP stored in your app from the previous trip, the currency exchange rate won’t change from the last time you added the funds. 

A prepaid debit card allows you to load money onto it before travelling abroad. You can almost treat it like cash in the sense that you can use it to pay for various things while in another country, and instead of charging like a credit card, the money shrinks from your account. 

Also, depending on the card you choose, you may get better exchange rates and lower fees as opposed to your usual bank card. 

Knowing where to exchange currency can save you from racking up high fees. Visiting your local bank is one of the best ways to ensure you’re getting the best bang for your buck. Most major U.S. banks will carry the form of currency you’re looking for but will need to have it ordered when requested, so make sure to request the currency you need at least a week in advance.

One place you’ll want to avoid obtaining cash is at a currency exchange kiosk or counter at an airport. While convenient for the traveller, airports tend to jack up the exchange rates, making you spend much more money than anticipated. 

With these travel payment tips under your belt, you’re ready to jet off on holiday. Preparing your finances in advance is a brilliant way to ensure that your vacation runs smoothly and you’re not stung by the exchange rate.