Money Makes you go round the world
Money, This is always a bit of a confusing challenge. This trip we had ten different local currencies to deal with so quite a bit different than just heading to one place with one currency or around the EU with just Euro. There is no way we could get all these sorted before we left home.
There are travel cards. In the past we found that we end up with the wrong currency or at the end the trip you have $50 left on it you can’t get off and there are still conversion fees and charges.
Cash is always good! This time as we are away so long we didn’t really want to be carrying huge amounts of cash as the risk of losing it or having it stolen is also a consideration! However we did end up with a bunch of Euro and USD as these are pretty much convertible anywhere.
Surprisingly we mostly just used our Visa card at the restaurants and shops. It is amazing where you can use a credit card and PIN in the remotest of places (even though after using a PIN we were often asked to sign as well?!- and only about twice did we ever have simple pay wave). This way you are simply paying the banks exchange rate on each transaction. Generally no extra charges, unless of course the local business adds their own. The most we were quoted was 20%! But often a hotel quoted 5% however, most shops didn’t charge anything extra. In my books that is a good deal.
Getting extra cash from an ATM is an interesting challenge! We found many ATM’s would have a very low maximum cash withdrawal limit with a rather hefty local ATM fee separate to what you might be paying to your bank for the cash advance on your credit card.
The ‘best ‘ was just on 14% for the ATM fee to the local provider! And the maximum we could get out was only about $66. But if you are at the Juliaca airport in the back blocks of Peru with zero cash left and you need some for a taxi then you just do it! The taxi is less than half price of back home. So all good!
Whilst some banks at home espouse their no fee for international cash withdrawals, you still have to either find their ATM (good luck with that) or you still have the local fee! So no real advantage in my books. With the cash advance on your credit card, banks will normally start charging you interest from the time of the cash advance, plus a conversion fee (usually quite small) and the standard currency conversion. Again In the end not too bad in my view compared to the 10-14% local ATM fee! If you are just paying for goods at the local shop or restaurant on your credit card with a PIN, it is generally no different than back home you get the X days of interest free, and just the bank international exchange rate which is usually the bank rate on that day.
Then there was the exchange desk on our arrival at Cartagena Colombia that converted at said rate. A bit later we converted more at a local money exchange and got a 25% better rate! You are never really going to win. So no point lamenting it. Just move on and enjoy the learning experience! If you are in South America most of what you are buying is way cheaper than at home so a random added fee still makes your life on holidays cheaper than living at home so there is no downside in that!
Our rule of thumb. For Cash: Take cash from the local bank at home- but that is not so easy these days and if you are going to multiple destinations and away a long time this is not always going to work. Never use the guys at the airport at departure! The exchange on arrivals are better. The local Money exchange shop in town at your destination is best! For everyday purchases use Credit card (but keep an eye on the machine and the amount!), and usually Visa, even though the sign on the door says AMEX, very few actually did accept it in South America at least, and Mastercard likewise.
None of this is meant to be financial advice! it is just our own experience, you will need to check with your own bank to determine what works best for you.
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