I get a lot of questions about foreign currency. People always ask
me, "what's the best way to get money abroad? Will my credit card work
overseas? Are travelers checks better than cash?" It's a confusing
subject. So I thought I'd go straight to the source. I spoke with
Melinda Mulcahy. she works in the traveler's check division at
American Express. Now, I use travelers checks a lot when I travel, so
I asked her if there are there any disadvantages.
Well, one person already educated is Conner Gorry; she travels all over Central and South America for the Lonely Planet guidebooks. I figured, if anybody can give me an on-the-scene report about what you need money-wise when you travel, it's her. So I asked Conner: out of credit cards, travelers checks, ATM cards, and cold, hard cash, what's does she find the most useful?
Now, even though ATMs are ubiquitous these days, I still tell people
to take a little local currency whenever they travel. It's a good
idea, in case you run into an ATM glich or the airport money changers
are closed. And always check with your bank before you go. In some
countries you need a special access code -- usually just an extra
digit or two on your PIN. And one other thing is still true. When you
pay with a credit card overseas, you usually get a better exchange
rate than you would with cash. That's because your credit card
company charges you the base conversion rate -- better than you'd get
on the street, or even at a bank.
But what if you are off the beaten path like Conner and you do get
stuck? See if you can get your friends in the U.S. give a call to the
international money company Thomas Cook and Associates at
800-287-7362. For $35, they'll wire money anywhere around
the world. And tell your friends not to worry...you'll pay them back
when you find your way home.
{ Travelers' Aid Index }
