Page 10 - AAA Northampton County - AAA Now! Summer 2015

TRAVEL
TM
TRAVEL WITH SOMEONE YOU TRUST®
INTERNATIONAL TRAVEL: KNOW YOUR CURRENCY OPTIONS BEFORE YOU TRAVEL
There are many ways to pay for goods and services when traveling internationally, but savvy travelers make sure they are equipped for all travel occasions. We recommend carrying at least two forms of currency products to be prepared for varying expense needs. Here are some guidelines to help you in your decisions:
Cash is king.
Foreign currency is still the quickest and simplest form of payment for incidental travel expenses. It’s accepted everywhere and everyone should travel with some. If you are looking to quickly tip the bellhop, pay taxi fare, or grab a light lunch, cash is the best way to do this. Purchasing your foreign currency prior to traveling is recommended so you arrive at your destination prepared to meet small travel costs and you may save on exchange rates.
Cash travel tips.
Deciding how much cash to travel with is an individual decision, but past travelers’ experience indicates carrying $50-$100 worth of foreign currency per person, per day of travel. Take precautions when you are out exploring and only carry the amount of cash you feel comfortable with.
The next best option to obtain foreign currency abroad (aside from arriving with it) is to purchase it from a bank or ATM. Keep in mind, not all foreign banks will service non-customers or may charge a fee to do so. ATMs
will have fees associated with each transaction (generally fees from your home bank as well as the foreign bank) and many small transactions
can add up quickly in fees. Make sure you know your daily withdrawal limit before traveling, but be aware that foreign ATMs may have their own limits, which could be less than your bank’s allowance.
If you need to replenish your cash supply while traveling, steer clear of “no-fee” exchange houses where you may find higher rates to compensate for the lack of fees. You may want to reconsider using exchange terminals in airports, train stations, hotels, and tourist sites as the most convenient exchange channels often have high exchange rates.
Chip-and-PIN, another reason to carry cash.
Countries around the globe are adopting the “chip-and-PlN,” aka “smart card,” technology. These cards come embedded with a microprocessor and are popular due to their greater fraud prevention abilities. Locations where travelers can run into problems are at automated payment locations where an attendant is not available, such as train and subway stations, toll roads, bike rentals, lockers, parking garages, and gas stations.
Credit cards, a good compliment to cash.
Credit cards make a good travel money complement to cash. They are good to use for large transactions and generally provide a competitive exchange rate. The majority of credit cards will charge a
foreign transaction fee, so
know the fees associated
with your card.
Be wary of dynamic currency conversion (DCC) services where merchants offer the option to convert and pay for a transaction in U.S. dollars. This provides customers a rate of exchange at the point of sale rather than waiting for the end of their billing cycle. The problem is the merchant sets the exchange rate, not the issuer of the credit card, and the DCC may have a higher exchange rate that could include hidden fees.
Some merchants may try to profit from the fact that Americans can be intimidated by a different currency and will post their prices in U.S. dollars. This may seem convenient, but in reality you are adding another middle man to the currency conversion because you’re paying a conversion price based off an exchange rate the merchant dictates.
Foreign currency and TipPaks® are available at participating AAA locations across the country.
With over 70 types of currencies offered, AAA members can have the most popular currencies available within two business days and certain other currencies available in about five business days. Foreign currency can be ordered at participating AAA Clubs, by phone at 1-888-626-2027, or online at: www.AAA.com/travelmoney.
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Call 610-258-2371
AAA Northampton County 3914 Hecktown Road
Easton, PA 18045
10
3914 Hecktown Rd., Easton, PA • (610) 258-2371 • www.aaanc.com
SUMMER 2015
Now!