Do's & Don'ts While Carrying Money Abroad
Blog Outline
What are some safe ways to carry cash abroad and save money?
Gone are the days when your only options were to carry cash or traveller’s cheques. Now, you have plenty of cashless options to choose from, such as:
- Multi-Currency forex cards
- Cash
- Credit cards
- Debit cards
- Traveler’s cheques
- UPI Apps
Do’s While Carrying Money Abroad
A. Pre-Departure Planning:
Before embarking on your journey, thoroughly research the local currency of your destination and familiarize yourself with current exchange rates. This knowledge allows you to make informed financial decisions during your travels, ensuring you get fair value for the money carried abroad.
2. Inform Your Bank:Take a proactive approach by notifying your bank about your travel plans. Informing them in advance prevents unexpected card freezes due to international transactions, ensuring seamless financial transactions during your journey.
3. Diverse Payment Methods:Carry a diverse range of payment methods, including cash, credit cards, and debit cards. Each form of payment serves a specific purpose and provides flexibility and convenience in various situations, catering to different transaction requirements.
4. Offline Financial Tools:Utilize offline financial tools such as apps and currency converters. These tools prove invaluable, especially in areas with limited internet connectivity. Offline accessibility ensures that you can manage your finances even when online services are unavailable.
5. ATM Network Compatibility:Research ATM fees associated with your cards and ensure they are compatible with foreign networks. Being aware of potential charges helps you avoid unpleasant surprises and allows you to choose cost-effective withdrawal options.
6. Travel Insurance:Invest in comprehensive travel insurance that includes coverage for emergency cash withdrawals. This ensures financial security in unforeseen circumstances, providing peace of mind and assistance during emergencies.
B. Safeguarding Your Cash:
1. Use a Money Belt:
Enhance the security of your cash by discreetly using a money belt or hidden wallet. These secure accessories provide a safe and easily accessible spot for emergency funds, minimizing the risk of loss or theft.
2. Divide Your Cash:
Spread your cash across different locations, including various bags and hotel safes. This practice minimizes risks in case of loss or theft, ensuring that you have access to emergency funds even if one source is compromised.
3. Document Copies:
Photocopy essential documents such as passports and cards. Keeping copies serves as a backup in the event of loss or theft, facilitating a smoother recovery process and expediting document replacement procedures.
4. Currency Tracker App:
Stay informed about real-time exchange rates by using currency tracker apps. Monitoring these rates allows you to make better financial decisions during your travels, ensuring you get the best value for your money.
C. Smart Spending:
1. Set a Daily Budget:
Establish a daily budget and diligently track your expenses. If you are a student, refer to various budget planning tips for you study abroad program. This disciplined approach ensures that you stay within your financial constraints, preventing overspending and allowing you to manage your resources effectively.
2. Credit Card Usage:
Leverage credit cards for significant purchases and travel bookings. Enjoy potential rewards, cashback benefits, and enhanced security features while keeping your transactions secure and traceable.
3. ATM Selection:
Choose ATMs in secure locations, such as banks or airports. This precautionary measure minimizes the risk of skimming or other fraudulent activities, ensuring the safety of your financial transactions.
4. Inform Credit Card Companies:
Notify your credit card companies about your travel dates to avoid inconvenient fraud alerts during international transactions. Proactive communication helps maintain the seamless use of your cards while traveling.
5. Beware of Scams:
Stay vigilant against currency exchange scams at tourist areas. Being aware of common scams allows you to avoid falling victim to fraudulent activities, ensuring a secure and stress-free financial experience during your travels.
Don'ts Of Carrying Money Abroad
A. Over-Reliance on Cash:
Carrying an abundance of cash poses significant security risks. Understand the situations where having excessive cash is unnecessary, and refrain from relying too heavily on physical currency for added security. While having some cash is essential for emergencies or places with limited card acceptance, carrying too much increases the risk of loss or theft.
2. Consider ATM Access:In countries with limited ATM access, depending solely on cash can become challenging. Explore alternative financial options, such as prepaid travel cards or ensuring your credit and debit cards are widely accepted. This proactive approach ensures financial flexibility and convenience, especially in regions where cash transactions are not prevalent.
B. Ignoring Card Fees:
Beware of cards that impose high foreign transaction fees or substantial ATM withdrawal charges. Prioritize cards that offer favorable terms for international use to minimize the financial impact of these fees. Choosing cards strategically can result in significant cost savings during your travels.
2. Dynamic Currency Conversion:Opt against dynamic currency conversion when using ATMs abroad. Dynamic currency conversion allows the ATM to convert the transaction amount into your home currency, often at unfavorable exchange rates. Instead, choose the local currency option to maintain transparency in transactions and avoid unnecessary additional charges. By doing so, you retain control over the exchange rate and potentially save money on conversion fees.
C. Improper Card Security:
1. Keeping Your PIN Confidential:
- Always maintain the confidentiality of your Personal Identification Number (PIN).
- When entering your PIN make sure to choose lit and public areas to enhance transaction security.
- Use your hand to shield the PIN entry, from prying eyes ensuring no one can observe it.
2. Staying Alert for Skimming Scams;
- Educate yourself about card skimming scams, where fraudsters use devices to capture card information.
- Stay vigilant when using ATMs and card terminals checking for any attachments or irregularities.
- If something appears suspicious consider finding a machine or location for your transactions.
- Avoid storing your cards in places like loose pockets or open handbags.
- Opt for concealed compartments such as a wallet with RFID protection or a designated travel pouch.
- Minimize the risk of loss or theft by keeping your cards in a location that’s not easily accessible to others.
D. Dealing with Emergencies;
- Create a budget that prevents you from exceeding your limits during the trip.
- Take into account emergency expenses when planning your expenditures.
- Practice financial discipline to ensure you have funds, for unforeseen situations.
- It is important to maintain a balance between cash and credit cards to have options.
- By having a variety of payment methods you can be prepared for situations.
- Make sure to consider the payment preferences and acceptance in your destination.
Registration with Authorities;
- Before you leave it’s an idea to provide your travel itinerary, to embassies or consulates.
- This way the authorities will be aware of your location and presence making it easier for them to assist you in case of emergencies.
- Stay updated on emergency services. Know where the nearest embassy or consulate is so that you can receive prompt support when needed.
Why Should You Consider Using Niyo Zero Forex Card While Traveling Abroad?
It’s crucial to find ways to save money without compromising your travel experience. This is where Niyo comes in. The Niyo Global card offers a range of services that allow you to carry and spend money during your travels and purchases. You can load your currency (INR) into the account, which can then be used as foreign currency, in the country you’re visiting.
Features of Niyo Zero Forex Card:
- Zero forex markup on all international transactions
- Free lounge access at select int terminals in India
- Load in INR use in 150+ countries and 130+ currencies
- Earn 1% cashback as global coins
- Card delivery in 2-3 days
- 24×7 in-app chat support
Conclusion
Frequently Asked Questions
According to RBI, travelers can retain foreign exchange up to US$ 2,000 in the form of currency bills or traveler’s cheques to use in the future. Any access amount must be surrendered to the bank within 90 days. If there are traveler’s cheques, they need to be surrendered within 180 days of return.
Yes, notifying your bank is crucial to avoid potential issues like frozen cards due to suspicious international transactions. It ensures a seamless financial experience during your journey.
Registering with the embassy provides an additional layer of security. In case of emergencies or unexpected situations, authorities are aware of your presence in the country, facilitating prompt assistance if needed.
There’s no universal limit on how much money you can travel with internationally, but most countries have individual reporting requirements. These typically apply to cash and monetary instruments (e.g., traveler’s checks, money orders) exceeding a certain threshold.
