Hugh Curley

International Travel Tip – Money

International Travel Tip: Having Enough Money

The tips below are based on my experience and meant to be a starting point for your own research. Where I list countries or money types, it is from my experience. If you have experience in other countries or with other currencies within the past ten years, please e-mail at Hugh@HughCurley.com and I will include your experiences.

Scene at one bank
Me: “I would like to use my credit card to get some local money.”
Bank Receptionist: “Do you have an account at this bank?”
Me: “No.”
Bank Receptionist: “I am sorry, we cannot help you.”

Scent at another bank
Me: “I would like to convert some US dollars to local money.”
Bank Receptionist: “Do you have an account at this bank?”
Me: “No.”
Bank Receptionist: “I am sorry, we cannot help you.”

One hotel I stayed at would give me local money and put it on the hotel bill, but only $25.00 per day.

One exception: The Bank of China will convert US Dollars to Chinese RMB and they did not charge me a fee. All you need is a passport and the US Dollars.

Short Term Stay

Upon Entering a Country

When entering a country, I use the money changer just outside of customs and immigration at the airport to change enough for the entire stay. I have found this is easiest and usually their rates are as fair as any. In some countries I have found it difficult to locate other places to change money.

One time when I knew I would be arriving in India about 1:00 a.m., long after the money changer closed. I changed my dollars for Indian Rupees at the Denver airport before I left.

You can usually change cash: US dollars, Canadian dollars, Japanese Yen and Euros are almost always accepted. In my experience, Indian Rupees are usually refused.

My experience with Traveler’s Checks from over ten years ago is that they were usually refused because so many have been counterfeited. The problem may have been corrected. Verify before buying Traveler’s Checks.

You can usually use your credit card to get the local money at the airport money changers; remember that the credit card companies view that as a cash advance and begin charging interest immediately. They also may add a foreign transaction fee. Frequently, the cash advance limit on the credit card is significantly lower than the credit limit. If you go to several countries and use this method, you may exceed your limit. It is my experience that the credit card companies get the best rates and it frequently is cheapest even with the interest and fees.

Also, before leaving your home country, notify your credit card companies what countries (with dates) you will be visiting. Unless you are a very frequent international traveler, they will probably balk at honoring a sudden request from overseas. I tried to get some money in Germany and my credit card company refused the transaction, called my wife in the US to verify I was in Germany, and then when I tried again, honored the request.

Also, if you have fraud detection on your credit card, you may have to notify them separately.

Getting More Money

There are times you may need more money that you got when you first entered the country. Most banks will not deal with you unless you have an account with them. For that reason, OPEN AN ACCOUNT IN THE USA with an international bank before going to the foreign country. My credit card is with Chase Bank, not common in Asia. HSBC is very common in Asia, so before travel to Asia, I may want to open an account with HSBC.

Transferring Money

On one trip to China, I needed several thousand dollars cash so asked my wife (in the USA) to transfer it to me. She was able to do that using Western Union.

Western Union said it takes about five to ten days to make a bank-to-bank transfer; a person-to-person transfer takes about one day.

The problem was that my wife and I are both on the checking account, but only I was on our two savings accounts. There was not enough money in the checking account and the bank would not let her transfer money out of the saving accounts to the checking account. She solved that problem by using my computer to make an online transfer. As soon as I returned home, we put her on the savings accounts also.

Bank Holidays

Plan ahead. Remember the time zone differences and be sure to transfer money before the weekend. Also, be aware of long bank holidays; Banks in China close for over one week for The Chinese New Year.

Long Term Stay

Several of us employees of an American company bid on an opportunity to work in Japan for one year. We would continue to be employed by our American company and paid in US dollars deposited into an American bank. When I heard that I was one of those selected and would be leaving in three months, I opened a bank account in a local bank (California) that was a subsidiary of a Japanese bank. When I arrived in Tokyo, I opened an account in the parent bank and was able to transfer funds quickly and easily during my stay.

Several of my peers who did not set up accounts in American banks that had a relationship with a Japanese bank had trouble transferring money for the entire year they were working in Japan.

Summary

I usually pay for my hotel with a credit card. If I rent a car, I pay a credit card. Other expenses can usually be covered with cash. Just be ready for the unexpected and do not get excited when it occurs – it will.

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