YOUR MONEY: Advice on how best to pay for goods abroad
This week’s reader letter, courtesy of Fat Wallet
14 April 2022 - 05:00
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I am fortunate enough to be heading to Europe and Turkey for a short holiday soon. Two weeks. Any advice on how to best pay for goods? Credit card? Draw cash out of a machine there? Travel card? Get cash here before I leave?— Kira
Answer:
Credit and travel/currency cards are both widely accepted. Purchases via a credit card will be charged at the currency conversion rate at the time you spend the money. The same applies to withdrawals at an ATM. On the other hand, a travel/currency card allows you to lock in the exchange rate before your trip.
Generally speaking, it’s a good idea to take some cash with you or withdraw money at the airport on arrival for those times when you can only pay with cash. When deciding what option or combination of options to use, look at the associated currency conversion rates, fees and interest rates charged by your bank. Also bear in mind that the Reserve Bank has allowances related to foreign currency, so be sure to understand those limits before departing on your trip.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
FAT WALLET
YOUR MONEY: Advice on how best to pay for goods abroad
This week’s reader letter, courtesy of Fat Wallet
Reader question
I am fortunate enough to be heading to Europe and Turkey for a short holiday soon. Two weeks. Any advice on how to best pay for goods? Credit card? Draw cash out of a machine there? Travel card? Get cash here before I leave?— Kira
Answer:
Credit and travel/currency cards are both widely accepted. Purchases via a credit card will be charged at the currency conversion rate at the time you spend the money. The same applies to withdrawals at an ATM. On the other hand, a travel/currency card allows you to lock in the exchange rate before your trip.
Generally speaking, it’s a good idea to take some cash with you or withdraw money at the airport on arrival for those times when you can only pay with cash. When deciding what option or combination of options to use, look at the associated currency conversion rates, fees and interest rates charged by your bank. Also bear in mind that the Reserve Bank has allowances related to foreign currency, so be sure to understand those limits before departing on your trip.
— Investec Private Banking
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