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In today’s digital age, traveling without foreign exchange cash has become easier than ever. With the rise of digital payment methods and banking apps, you can explore the world without the hassle of carrying physical currency. Here’s how to travel cash-free and make the most of your adventures abroad:
Use a Travel-Friendly Debit or Credit Card
Before you set off on your travels, make sure to get a debit or credit card that’s optimized for international use. Look for cards that offer low or no foreign transaction fees and have good exchange rates. Visa and Mastercard are widely accepted around the world, so having one of these cards will ensure you can pay for goods and services almost anywhere you go. My favourite travel card? Wise.
Why Wise?
Wise (formerly known as TransferWise) is a financial technology company that provides online money transfer services and multi-currency accounts. It offers several benefits that make it an excellent choice for travelers. One of the main advantages is the lower fees. Wise typically charges lower fees for currency conversion and international transfers compared to traditional banks, which can save you a significant amount of money on transaction fees when spending abroad.
Another key benefit is that Wise uses the mid-market exchange rate, which is the rate you find on Google and is usually much better than the rates offered by banks or currency exchange kiosks that often include a markup. This ensures that you get more value for your money. Additionally, Wise allows you to hold and manage multiple currencies in one account. This feature enables you to receive, hold, and spend money in various currencies without the need for multiple bank accounts, simplifying your financial management while traveling.
Wise also makes international transfers convenient. You can send money to local bank accounts in various countries quickly and efficiently, often within a day. Furthermore, the Wise debit card allows you to spend money directly from your Wise account in multiple currencies. It automatically converts your money at the best rate when you make purchases or withdraw cash from ATMs abroad, making it extremely practical for travelers.
Transparency is another hallmark of Wise. The company is known for its clear and upfront fees and exchange rates, so you always know exactly how much you will pay and receive before you make a transaction. The user-friendly Wise app enhances this experience by allowing you to manage your money on the go. You can check your balance, convert currencies, and track your spending directly from your smartphone.
In terms of security, Wise is regulated by financial authorities in various countries, ensuring that your money is handled securely and your transactions are protected. This provides peace of mind when dealing with your finances abroad.
To use Wise when traveling, sign up for free using this link! You can then set up your multi-currency account, add money in your home currency, and convert it to the currency of your travel destination. Ordering a Wise debit card before your trip allows you to use it for spending and ATM withdrawals abroad. Throughout your travels, you can manage your money using the Wise app to monitor spending, convert currencies, and make international transfers as needed. Using your Wise card, you can withdraw cash from ATMs in the local currency at competitive exchange rates, avoiding many of the hidden fees and unfavorable exchange rates typically associated with international travel. This makes Wise a smart and cost-effective solution for managing your money while you explore the world.
Load Up on Digital Payment Apps
Digital payment apps like PayPal, Venmo, and Cash App are lifesavers for travellers. They allow you to send and receive money instantly, making it easy to split bills with friends, pay for accommodations, or even shop at local markets. Just make sure to link your app to a bank account or credit card before you leave home to avoid any issues while abroad. The best bit about having Wise? Yep you can do all those.
Opt for Contactless Payments
Many countries now offer contactless payment options, allowing you to simply tap your card or smartphone to make a payment. This is not only convenient but also more hygienic, especially in a post-pandemic world. Just be sure to check if your card or smartphone is enabled for contactless payments before you travel.
Stay on top of exchange rate!
Staying aware of exchange rates when using your card abroad is important for saving money and managing your budget. Exchange rates can change a lot between banks and card companies, and knowing the current rate helps you avoid bad deals that cost more. Some cards also add extra fees for foreign transactions. By keeping track of the exchange rate, you can pick the cheapest way to pay, whether it’s using your card, taking out cash, or exchanging money ahead of time. This helps you budget better and prevents surprises on your bank statements, making sure you get the most for your money.
Understanding exchange rates also helps you make smart choices about how to pay. Some stores offer to let you pay in your home currency instead of the local one, but this can be more expensive. Knowing the exchange rate helps you decide if this option is worth it. It also helps you spot any mistakes or fraud in your transactions quickly. Staying on top of exchange rates ensures you save money and have a smoother, more secure financial experience while traveling.
This is where Wise shine: because I know I’m getting the best exchange rate, I can avoid those foreign fees by opting to pay in the foreign currency. So when I’m in Bali for example, I’ll opt to pay in Indonesian Rupiah, so I can avoid those exchange fees, and I know Wise will provide a great exchange rate for me. Going to Bali without a Wise card is a big no-no!
Plan Ahead for Cash Emergencies
While traveling cash-free is convenient, it’s always a good idea to have a backup plan in case of emergencies. Keep a small amount of local currency on hand for situations where digital payments may not be accepted, such as at small vendors or in rural areas. I use my Wise card to withdraw some money on the ATM when I arrive. It doesn’t really matter even if it’s on the airport – as long as the ATM doesn’t charge me extra, I’ll get a good exchange rate regardless.
By following these tips, you can travel the world with confidence, knowing that you have the tools to make cash-free payments wherever your adventures take you. So go ahead, pack your bags, and embrace the freedom of traveling without foreign exchange cash!