Planning an overseas trip and looking for the most cost-effective way to take money with you?
The most prominent way to buy foreign currency is with your current credit/debit card in overseas ATMs, prepaid forex cards, and foreign cash exchange, so we’ve researched them to find which provides the best value.
Using Your Credit Card Abroad
At the point when utilizing your own credit or ATM card, you benefit from having your money converted at the bank’s rate, rather than the rip-off rates you’ll find if you walk up to a random foreign exchange counter.
However, there are always some charges associated with swiping your card abroad and these charges are applicable each time you swipe your card abroad.
Other important thing to consider is when using your own ATM or credit card abroad is that foreign ATMs can charge very huge transactional charges for usage, and some countries don’t disclose before the transaction goes ahead.
Prepaid Forex Card
Prepaid forex/travel cards are comparatively new concept. These looks similar to any debit/credit card, you can load cash onto them before you head abroad in the form of currency of the country you’re travelling.
The upside of using prepaid cards is you always get best money exchange compared to cash currency exchange moreover, once you’ve loaded the foreign currency on the card, it isn’t subject to exchange rate fluctuations, so in that way they’re just like cash.
Cash has the undeniable advantage of being accepted everywhere worldwide.
And, obviously, the big downside with cash is the risk of losing it, with very limited coverage for loss/theft of cash under most travel insurance policies, and a slow claims process. Another concern is currency rates & commission is very high compared to other options.