Travel Money Tips

If you don’t know much about spending money abroad, we’re here to help. Take a look at our top travel money tips, from getting your travel money to keeping it safe.

The Best Time to Get Your Travel Money

Many travellers want to exchange their pounds for the local currency before they travel to ensure they have enough money for a cab from the airport and a bite to eat when they get to their destination. You should look into purchasing your travel money several weeks before your trip. To get the best rate, you should compare exchange rates offered by different companies and order your travel money when the pound drops in value. You can order your money online and have it delivered to your home or order it in a store and take it home the same day.

How Much Money Should You Bring with You?

Take some cash in pounds and the local currency with you. Keep your pounds separate from your other money so you can use it in the airport before you depart and have some cash on hand when you return to the UK. Avoid travelling with more than £100 in foreign cash at a time. It’s a less significant amount of cash to lose or be stolen.

Alternatives to Cash

Sometimes, having cash isn’t convenient. If you wish to spend more or have another form of payment with you while abroad, here are the most common alternatives to cash.

Debit Card

You can use your debit card while abroad, but you will need to inform your bank of when and where you will be travelling so they’re aware that any foreign transactions are yours. Not many people like to use their debit card while abroad in case it is lost or stolen and they lose access to their money when they need to cancel their card.

Travel Credit Card

Some travellers prefer to take a travel credit card with them because they offer zero liability protection. This means that you won’t be charged for any unauthorised transactions or payments made using your travel credit card. If you purchase a faulty item or don’t get what you pay for, you can ask your credit card provider to initiate a chargeback. With a travel credit card, you won’t be charged for spending or withdrawing money abroad. However, many people a wary of the high interest rates that come with having a travel credit card.

Travellers Cheques

Travellers cheques can be purchased from a bank and are available in different denominations. They can be used like cash. Travellers cheques are a less popular option for holidaymakers because some places do not accept travellers cheques as payment. This means that travellers may need to exchange them for cash at a bank while abroad.

Pre-Paid Travel Money Card

Instead of carrying your debit or credit card around with you, you can load a fixed amount of money to a pre-paid card and use it like you would any other card. If your prepaid card is stolen, the thieves will only have access to the money that is on the card. These can be convenient; however, you should be aware that pre-paid cards have a card purchase fee, annual or monthly usage fees, transaction fees, and withdrawal fees.

Spending Responsibly While Abroad

Create a daily budget before you depart for your journey so you don’t run out of spending money before the end of your trip. A part of that daily budget should be set aside for your meals and transportation to and from your accommodation. When using your debit or credit card, opt to pay in the local currency to avoid foreign currency transaction fees and poor exchange rates.

You can save when travelling by taking advantage of credit card rewards, such as lounge passes, priority boarding, frequent flyer miles that you can put towards flights and seat upgrades, rental car discounts, and hotel discounts.

Keeping Your Travel Money Safe

Tourists can stick out like a sore thumb and make themselves targets for pickpocketing. Theft can happen anywhere, not just in major cities and touristy areas. Pickpocketing and credit card fraud are common, but there are several things you can do to keep your travel money safe.

Store Your Money in a Secure Place

While you are away, you should store your money in a secure place. If you have a lot of cash, don’t take it all with you when you go out. Keep some of it in your hotel safe until you intend to use it. While you are out and about, keep your money at the bottom of a cross body bag, in a money belt, or in a zippered pocket in your coat or trousers. If you choose to put your money in your coat pocket, do not take it off. If you do, you will make it easier for someone to pickpocket you or steal your coat.

Don’t Keep Your Money and Cards in One Place

Keep your money, debit card, and credit card separate, so that if one of them gets stolen, you can fall back on another form of payment for transportation to the police station and to your hotel. Keep your cards in a slim wallet in your pocket if you are going to keep cash in your bag.

Be Careful When Using ATMs

Try to use ATMs as little as possible. If you need to withdraw cash, avoid ATMs in secluded locations and use one inside a bank. You can also get your cash over the counter in a bank when possible. Be alert when using ATMs to make sure no one is watching you and be discreet when putting your money in your wallet. Look out for signs that the ATM has been tampered with to prevent your card being skimmed.

Set Up Account Alerts

By setting up account alerts with your bank and credit card company, you will get notifications any time money has been spent using your cards. This can help you to identify any suspicious purchases early on and prevent someone from using your card further.

Set Up a Withdrawal Limit

If your card gets stolen and used by someone else, it’s handy to have a withdrawal limit set up on your card so that the person who stole your card can only withdraw a certain amount per day. Most cards have a withdrawal limit of £300 per day, but you can lower the daily limit by calling your bank before you travel.

Don’t Flash Your Cash

If you are carrying more money than you usually would, don’t flash your cash in public. Try to keep smaller notes and change separate from larger notes, and only get them out when you need them (i.e., in a shop, in a restaurant, or when paying admission to get into an attraction).

What Should I Do if My Money Is Stolen While Abroad?

You should purchase travel insurance when booking your trip to ensure that you will be reimbursed if your travel money (including cash, debit cards, credit cards, travellers’ cheques, and more) is lost or stolen. You will need to report your lost or stolen money to the police within 24 hours of you noticing. You will need a written police report and a withdrawal slip, a bank statement, or a credit card statement in order to make a claim with your travel insurance provider.

If one of your cards (or multiple cards) are lost or stolen, call your bank or credit card company immediately to cancel your card to prevent it from being used. If your card is used and you are able to recover your funds via your bank or credit card provider, you will not receive further compensation from your travel insurer.