Hi there, it's Ernest from Trip Astute. Today's topic: getting cash abroad.
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Most people know that I prefer using credit cards when traveling, especially
internationally. However, there are times when cash is the only option, and in
those cases, getting cash when you arrive in the country makes a lot of
sense. You've probably seen the currency exchange booths at the airport.
They look pretty convenient. You walk down the terminal and you see a little booths
with a bunch of exchange rates and you think, "wow that's an easy way to exchange
cash." Well, there's a catch. The exchange rates and fees of those booths are
generally pretty unfavorable. That's why I avoid them at all costs. A better way
to get cash when you're traveling abroad is to use the ATM. Even if the ATM
charges you a transaction fee, it's generally less than what the exchange
boosts will charge you. Plus you're getting a much better exchange rate when
using the ATMs. Still you may want to check with your bank to see what the
fees are. I've included a link below that shows some of the fees for the major US
banks. If you're really savvy, I would suggest finding a debit card that doesn't charge
you a fee, or that reimburses you for any overseas fees. One such product is the
Charles Schwab High Interest Checking Account, which includes a debit card that
reimburses all ATM fees, both domestic and international. it's a great card to
carry, and I usually load it up before my trips overseas. What I usually do is
actually carry my normal banking debit card and leave it in the hotel
safe, so I still have it in case I need it. But my general everyday debit card when
traveling overseas is my Schwab debit card. And what I like about it is that it
adds a little extra buffer between my normal checking and what I need for my
trip. So if my card gets stolen or if I misplace it, I'm not as concerned about
it as I would be if I lost my primary debit card.
Before your next trip though, here are some tips to keep in mind when getting
money from the ATM. Number one: research how much money you plan to withdraw
from the ATM. I can't tell you how many times I've been to the ATM and try to
withdraw money, only to be completely confused at how much the exchange rate
is. I'll see things listed in the local currency and wonder how much is it to
withdraw the equivalent of forty dollars or maybe twenty dollars. You can save
yourself the trouble by looking it up in advance on an app or on a board. The
bottom line is just have an idea of how much the exchange rate is. It'll save you
a little bit of trouble when you actually withdraw money. Number two: look
for ATMs with official logos. In general, I find that the larger banks have more
reliable ATMs. I've been in situations where I've tried to withdraw money from
a convenience store or gas station, only to have the ATM freeze or completely
reject my transaction. I've even been in airports where I've used a smaller bank
and my transaction has completely failed. So my general rule of thumb is try to
stick to larger banks. You'll probably have a better chance of getting a
successful ATM withdrawal. Number three: use ATMs in more high traffic areas. In
general, you're less likely to get mugged in a place where there's a lot of people.
That being said, I've heard stories of people being mugged in airports and in
other locations where there's a lot of tourists, so just keep your your wits
about you. You never know who may be around the corner or who may be scoping out
the ATM, so always have your guard up whenever you're getting cash from the
ATM. Number four: look for any tampering on the ATM itself. Make sure that the ATM
hasn't been altered in any way. One of the most common scams is for thieves to
install a swiper in the card reader. Just make sure to take a look at your ATM and
make sure that there aren't any visible signs of tampering or alterations to the
machine. And lastly, number five: notify the banks of any travel plans that you might
have, especially if you're going international.
The last thing you want to do is to travel abroad, go to the ATM, and have all
your accounts shut down or put on hold because you didn't notify the banks that
you are traveling. Take the extra second. You can usually do it online, or if you
can't do it online, just call the bank or your credit union and let them know your
travel plans. It'll save you a huge headache when you travel. Anyway, those
are some quick tips on getting cash when abroad. I've included some helpful links
below, especially one to the Charles Schwab High Interest Checking Account, in
case you're interested in applying. Also, if you have any tips or any questions,
please add them to the comment section below. As always, if you like this video,
please click the button below and hit subscribe as well. Until next time, travel
safe and travel smart.