Travel Reference
In-Depth Information
The main problem arises at self-service machines—like train station and subway ticket ma-
chines, self-serve gas stations, toll roads, and bike rental stations. These machines will often
only accept the chip-and-pin cards; so again, it is a good idea to always have cash.
Some US banks are starting to offer chip-and-pin cards to their customers but it's still fairly
rare.
Pay in local currency.
Sometimes the merchant will ask if you'd like to be charged in your
home currency—it's called a Dynamic Currency Conversion (DCC). This may sound like a
good idea but it's really just a way to scam you out of a little more money. Basically, when
the company does the conversion, they use an unfavorable exchange rate and you pay more.
Plus, sometimes your home bank still converts the charge and does its own exchange rate—so
you're essentially penalized twice. If you see anything on the receipt other than the local cur-
rency, there is a good chance they used DCC.
Everyone loves cash.
I know I've mentioned this a few times before, but it's important: al-
ways have cash. You'll run into a lot of situations when you'll need it. Many small restaurants,
green grocers, and street food vendors will only accept cash.
ALTERNATIVE WAYS TO ACCESS MONEY
Prepaid debit cards.
Over the past few years, the usage of prepaid cards has exploded. Using
a prepaid card while traveling can have its advantages but they rarely outweigh the disadvant-
ages. These cards are used like credit cards so you don't put your bank account at risk if the
card is stolen. Additionally, many, but not all, cards offer theft protection so they're a bit safer
than cash. Some cards can be reloaded with funds, making it a simple way for people back
home to send you money.
However, prepaid cards come with a lot of extra fees so read all the fine print. There is usu-
ally an “activation fee” and a fee for adding money to the balance. Many charge a monthly
maintenance fee and inactivity fees. Additionally, there will be a fee each time you use the
ATM and prepaid cards can often have a worse exchange rate than normal debit cards. All the
extra fees can quickly outweigh all positive aspects of a prepaid card, so do your homework.
Travelers cheques.
Travelers cheques fell out of fashion about twenty years ago, so not
many people really use them anymore. It can be difficult to find a place that accepts them, so
they aren't worth the trouble. They are fine as an emergency fund, but quite impractical for
frequent use.
