.svg)
Travel money explained
Travel money is usually the money that you take with you when traveling abroad. It can come in various forms, including:
Cash: Local currency of the destination country.
Travel Money Cards: Prepaid cards that can be loaded with multiple currencies.
Credit and Debit Cards: Used for international transactions.
Travelers' Cheques: Though less common now, they are still used in some places.
Travel money is used to cover expenses such as accommodation, food, transportation, and activities while traveling.
Sometimes, you will need to convert your currency into the destination currency, this is known as currency conversion.
These come with fees, and we are here to help you understand how you can lower them and get as much money for your travels as you can.
Top considerations
We understand that figuring out the top considerations can be confusing when organizing travel money.
Here's what you should think about before leaving home:
How much money to take
There are laws regarding how much money you can legally take with you when traveling.
You need to learn the limits so that the cash is not confiscated when traveling.
Also, make sure that you have some money in the local currencies to have backup options if you lose access to cards and the internet.
Fees
Consider the fees associated with your bank or money transfer company when traveling.
Find out if your bank has ATMs in other countries that provide fee-free withdrawals.
Minimizing expenses during your travels can save you a lot of money.
Transfer speed
It is essential to get money quickly if you need extra funds when traveling.
Specialist transfer providers like WorldRemit, Wise, XE, Currencyfair, Currencies Direct, Key Currency, Instarem, and TorFX provide instant transfers that enable you to get money right away.
Plan your travel
Good planning of your travels allows you to determine how much money is needed.
Therefore, you can avoid desperately looking for extra cash that comes with higher fees.
Top options for travel money
We understand that it can be tricky to find money transfer companies that match your needs.
Therefore, we present three top-tier options that travelers worldwide use for various reasons.
Choosing any one of these specialist transfer providers is a smart decision.
You can open a Wise multi-currency account that lets you exchange over 40 different currencies and hold them in the same place, ready to spend.
You’re charged the mid-market exchange rate with a fixed fee, and you can order the Wise payment card for a one-time fee of $9.
You can then use your Wise card to spend like a local while you’re abroad, with no fees or exchanges, provided you have enough of the correct currency in your account.
With the Revolut multi-currency account, you can store up to 28 different currencies at once, all in the same place.
Exchange the amount of currency you’ll need for your holiday and it’ll be ready to spend when you arrive.
Unlike Wise, Revolut offers a free card that lets you spend like a local in some countries. Just make sure you have enough money in your account.
You can take out money from ATMs in the network with your Revolut card without fees. Just make sure you have enough of the currency you want.
However, out-of-network ATMs have a free withdrawal limit of $400 or currency equivalent, with a 2% fee being added if this limit is exceeded.
Compare top money transfer services
Banks vs. money transfer companies for travel money
You can also rely on banks or money transfer companies when traveling. Both with their advantages and disadvantages.
Money transfer operators: The advantage of using money transfer companies is that they include worldwide coverage, fast transfers, and good FX rates for acquiring local cash. However, money transfer companies have a fee when withdrawing money using 3rd party ATMs.
Banks: Banks are a good choice if the country you travel to has local bank branches and may also provide ATMs with fee-free transfers of large amounts. However, most banks will charge higher fees for any conversions to the local currencies.
Best banks for transfers abroad
What about credit cards for travel?
Travel credit cards allow you to pay for products, book hotel rooms, and withdraw cash in various currencies. When choosing a credit card, consider the following:
Extra perks for travel
For example, some might come with a cashback system when using companies like Airbnb or Booking.com.
Cashback can be as big as 10%, which adds up for those who travel frequently.
Also, note that cashback and loyalty programs typically provide rewards that can be spent at a later date.
ATM fees
Credit cards can provide low fees when withdrawing cash from ATMs.Firstly you need to know your withdrawal limits. As well as you should consider the interest rate and charges with a credit card.
Choosing the right money transfer company for travel
Choosing an industry-leading money transfer company can distinguish between money problems and a stress-free trip.
Here are a few things you might want to consider:
The best travel-friendly companies provide access to money in various ways: This could be in the form of physical cash, credit cards, and money transfers.
Look for extra features that may come in handy when traveling: This might be travel insurance that can help cover medical costs. Note the extent of the medical insurance to understand what problems can be covered. Credit cards with low fees abroad are also great for traveling. These enable you to get cash without incurring high fees.
Do not forget to read about the reputation of a money transfer service: Visit websites like Trustpilot and social media portals. Read the customer reviews to find out what experiences you can expect. You may learn about the pros and cons that highlight what features match your expectations.
Now that you know what you need to consider, use the form below to find the best exchange rate and convert your money for travel.
