August is here and that means many of you are traveling around the globe. Visiting exotic destinations is obviously thrilling and isn’t it always even more pleasant when you can save a bit on travel expenses here and there. As a global Acquirer in the travel space, we are lucky to have first-hand knowledge on this subject and this summer we want to share it with you through our ‘Credorax Around the Globe’ two-part blog series.
Enjoy part one below, which gives you some good tips on exchanging money at the best rates and tune in next week for part two, where we focus more on smartest ways both consumers and businesses can benefit when selecting the right online travel agency.
Are you itching to start your end of August summer holiday? We are pretty sure the answer is definitely. However, as most travelers today that tend to leave their local stomping grounds to explore exotic places in other parts of the world, you are probably quite weary when it comes to battling with messy exchange rates.
The question always remains: where can you go to exchange currency with the lowest probability of getting ripped off? Because let’s face it, changing currency always feels like a bad deal. You are not alone and in fact, according to a study published in 2017, British travelers say they lose around 1.5 billion Euros per year because of money exchange mistakes.
To avoid falling into the ‘tourist’ trap, here are three of our favorite tips we think will help you this holiday:
1. Cash or Credit? How about a Mix of Both:
Opinions are divided when it comes to cash or credit card payments abroad. For most people, it’s a matter of convenience. But whichever method you’re choosing, follow these tips to minimize the money pitfalls:
- Credit Card Smarts: Make sure you know the fees that apply to your credit card when paying abroad. As they can go up to even 3% on every payment you make. If you travel a lot, perhaps look into travel credit cards or currency cards with fair (or no) transaction fees.
- A bit of Cash Never Hurts: Not everyone accepts credit cards and the fees you’d pay aren’t worth it. For example if you’d like to buy a bottle of water or an ice cream, why hassle paying by card. Cash will be much easier and cheaper.
Also keep in mind, credit cards are not part of every culture. Take Berlin for example. In most small to medium sized restaurants, cards are not accepted.
2. Avoid Airports and Hotels when Drawing Cash:
There are smart ways and not so smart ways to get cash. Worst place: airports or hotels. They charge more than any other place. That’s true anywhere in the world (the reason is simple: convenience. People will always exchange money at the airport).
If you’d like to get cash, either change the money at your local bank before your travels or withdraw money once you’ve arrived at your destination. Just make sure to withdraw enough in one go so you can limit the amount of time you’re going to the ATM and pay the fees.
3. Local vs. Home Currency Always Wins Out:
If you’re asked whether you’d like to pay in local currency or your home currency, always go for the local one. The exchange rates are usually not accurate and you’ll end up paying more than you anticipated.
Safe travels and enjoy your holiday!