How To...

How a little financial planning can make for a stress-free trip abroad

CHIC SAVVY TRAVELS

There’s a perception that relying on credit and debit cards when you travel is a better bet than bringing cash, since it’s convenient and allows you to avoid fees. But this isn’t always the case. Here are a few tips courtesy of Dan Northam, vice-president of International Currency Exchange Canada, on how a little planning can make for a stress-free trip:

Photo courtesy of ICE Canada

1. Find out exactly what using your plastic abroad will cost you.
A quick call or trip to the bank and you’ll know exactly how much your bank will charge for each cash withdrawal or purchase abroad. Visa and MasterCard typically take one per cent on top of any fees the local ATM or bank levies. Many banks charge a $5 flat fee for cash withdrawals on your debit card in a foreign country.

2. Take at least a nominal amount of currency with you.
Chances are, you’re going to patronize several businesses that only accept cash, and you can’t tip the maid on credit. Taking a mix of both cash and plastic ensures that you’ll never be caught without money for tipping and small purchases from merchants who don’t accept cards.

Photo courtesy of ICE Canada

3. Find out whether your cards are usable in your destination country.
Many nations operate on a four-digit PIN system. Vancouver traveler Isabel DaCosta was travelling in Vietnam and found her six-digit PIN card unusable. She was able to take cash out on her non-chip-and-PIN credit card, but she came home to a $900 bill with $70 in fees alone.

4. Take the sting out of currency conversion.
Picking up currency for your trip needn’t be painful. Inquire at your bank about whether preferable rates are given to certain accounts. ICE, for example, offers a no-fee, pre-order service called Click & Collect, which allows travelers to order currency online and have it ready for pickup and purchase at the airport or a location close to them.

5. Inform your bank and credit card company of your travel plans.
Debit and credit card fraud are a booming business and, as a result, banks are quick to freeze accounts they believe have been compromised. Kill two birds with one stone by inquiring about fees and disclosing your travel plans at the same time.

For more tips and information, visit ice-canada.ca.

Date Added: September 25, 2012 | Comments (0)