Currency Converter

Tips for Travelers

By Stacey Woody Thebodo
Assistant Director, Off-Campus Study at Middlebury College

How to carry your money

No traveler should carry large amounts of cash, but it is a good idea to change a small amount of money into the foreign currency before you arrive in your host country. You can change money at any international airport; however, the exchange rates and fees are not the most favorable. You can carry the rest of your money in the form of traveler's checks, credit cards, and/or an international bank draft or bank check, drawn in the currency of your host country. Check with your program or with the international office at your host university to find out the best way to transport your money to your particular host country.

Banking

You may want to open a bank account at a local bank when you arrive in your host country. Your resident director or the international office staff can advise you how to do this. You may wish to compare the account options and services at several different banks before choosing one. Be sure to ask if there are any restrictions for international students.

ATM cards

In many countries around the world (especially the more developed countries or those with high levels of Western tourism), you can find ATM machines where you can use your ATM card from home to withdraw money (in the local currency) from your bank account in the United States. Using them is a good idea, because you often get a good exchange rate from your bank, and the same is true for using credit cards. Be sure to check with your bank at home for availability and transaction fees, as well as making sure your PIN is valid abroad. It is a good idea to make sure your card is not just an ATM, but also has a Visa or Mastercard symbol on it.  If it has either of these symbols, you can use it in machines that bear these symbols, and you can also use it to make purchases similar to a credit card. Note that fraud is widespread; only use ATM machines attached to banks. Also, bring some cash to last for a few days to a week in the event that there's any problem with your cards or they are stolen.

Traveler's checks

Traveler's checks are a safe and convenient way to carry money, and they are widely accepted around the world. Furthermore, if the checks are lost or stolen, they can be replaced for full value, as long as you have kept a record of the serial numbers (keep the receipt of the check numbers in a separate place from your traveler's checks). You can purchase traveler's checks at any bank, and they can be exchanged at banks and money changing houses (e.g., Bureau de Change) overseas. (Note, however, that in some countries traveler’s checks can only be cashed at banks.)  You will have to show identification for changing checks, so bring along your passport. Be aware that there is usually a transaction fee for changing money.

Credit cards

In most places around the world, it is a good idea to have a credit card for emergencies. Check with your program or the international office staff for suggestions on which credit card(s) to bring, as there are always exceptions to what is accepted in particular countries. Credit cards can be useful for large purchases or for hotels, shops, and airline or train ticket purchases, and they can be used for obtaining cash advances from a bank.

You often get a good exchange rate when using credit cards. The advantage of an American Express card (www.americanexpress.com) can be using its offices as a helpful resource when you are abroad, if an office is located in your area. At www.mastercard.com international toll-free numbers are listed for lost or stolen cards. The visa website is www.visa.com.

Wire transfer

Wire transfers are quick, but relatively expensive and in some parts of the world, unreliable. In some cases you may have to establish an account abroad in order to receive the money. Therefore, it is not recommended that you rely on wire transfers for your money, but they can be useful in an emergency.

Checks and bank drafts

In most countries checking accounts are not as widely used as they are in the U.S. Do not rely on being able to cash personal checks from home from your own account or from your parents. It would take so long for the check to clear it would not be worth it. However, if you carry an American Express card, and if there is an American Express office in your host city, you may be able to cash personal checks there. Check with American Express for more information.

It is possible to obtain a foreign currency draft against a recognized bank in your host country from an American bank (e.g., a check in Japanese yen drawn against a Japanese bank). The exchange rate is not likely to be very favorable, but you can cash the check abroad (although it will take some time to clear). If you must get a check sent to you in American currency, it is advisable to get a check drawn against a major American bank (again, it will take time to clear).