Before leaving for a trip, take time to think of how you can make the most of your money overseas.
For past travelers, checks were known as the popular means to take money abroad. Today, travelers are more inclined to use prepaid travel cards, credit cards, or cash through ATM withdrawals.
In this guide, we will focus on how you can prevent those pesky currency exchange costs when making purchases overseas. Additionally, this can help you know more about travel money exchange rates. We can also help you compare financial products quickly and easily and help you ease the stress and worry of making financial decisions.
What is Travel Money
Travel money is defined as the currency that you take overseas on your holiday to spend. As you take a trip abroad, you have to determine on your preferred option or mode of payment for products or services that you might need. You can either choose cash or take prepaid cards instead.
Moreover, it is ideal to compare travel money from different destinations. This can help you get the best exchange rates. The exchange rate is the amount of travel money you can get in return for what you pay. For instance, for every £1 you pay, you’ll get a $1.40 for an exchange rate of 1.4 in the US dollar.
Because of the current COVID-19 or coronavirus pandemic policies and prevention set by the UK government, providers of travel money are no longer pursuing collection services. But the delivery of travel money is still in circulation as usual.
Should I buy currency online?
Everyone enjoys taking a holiday and traveling to places. However, it can be tricky to figure out where to buy travel money. You may have to consider certain factors when buying travel money such as:
» Where to get the best rates of travel money
» Where to compare holiday money
» The amount of travel currency that you should bring
It would be a good idea to shop or currency online when checking for the best rates. You can compare rates online rather than doing it the airport or with the high street.
Furthermore, doing it online might give you a better exchange rate or a better deal. This is because the travel money costs are extremely lower if they’re online.
Getting the Best Travel Money Exchange Rates
By shopping online and comparing different providers offering travel money deals, you’ll likely to find the best currency exchange rate.
By all means, you must avoid getting your travel with high street or at the airport. Getting it at the airport can cost huge price. This means you have to prepare before boarding a plane and enjoying your holiday.
Moreover, you have to compare your alternatives when finding your travel money. Considering the factors below can help:
High Travel Money Exchange Rates
Compare currency rates to ensure getting the best deals. This means the higher the rate the more travel money you can get.
The costs of delivering your travel money may differ when you exchange currency online.
Special Offers on Travel Money Exchange Rates
Try checking travel money offers and see if you can get the best deals ad higher exchange rate or even free delivery offers.
By considering these factors, it would be possible to find the best deals of travel money online before you take your trip across the globe. You can also check our guide on how you can get the best rates and other costs.
Keep in mind that currency exchanges are changing over time. This means it is possible to get different rates from providers on various days.
Can I get commission-free travel currency?
There are service fee charges each time a provider exchange your money. This is called a commission fee, which is normally a hidden charge within the advertised exchanged rate.
It’s not new to several companies advertising no service charge or 0% commission fee online or on high street. However, they might possibly take the service fee into account through a less competitive exchange offer.
Can I buy travel currency online?
You can buy currency online; but, the amount you can trade differs between providers. However, you are allowed to exchange up to £7,500 online from the best travel money providers.
Additionally, the amount you’ll pay is usually rounded to the nearest figures. For instance, if the exchange rate of pound to euro amounts to 1.29, you have to pay £310.32 for 400 instead of paying £300 for 386.70. You must also take note that you can only withdraw some of the currencies if you’re in the country of destination. These are known as closed currencies.
Restrictions on Getting the Currency Delivered
The Royal Mail’s special delivery service. will deliver the currency when you buy online. So, you have to be at home to sign the delivery. Individual deliveries apply for cash orders that are valued more than £2,500 due to travel insurance purposes.
Is there next day delivery for currency?
Once you compare travel money, you might notice some providers offering next day delivery. This is possible through utilising Royal Mail’s Special Delivery Guaranteed by 1 pm service.
You will normally pay additional costs during a next day deliver. So, try to scrutinize how much it’s worth. Another alternative to avoid delivery charges is utilising pre-order currency that you can pick up in stores.
Codes for Different Foreign Currencies
Usually, travel money providers have a three-letter code for each of the currency. The most common for UK travelers are as follows:
GBP – UK sterling/£
EUR – Euro/?
USD – US dollar/$
AUD – Australian dollar/$
NZD – New Zealand dollar/$
CAD – Canadian dollar/$
CHF – Swiss franc/Fr
JPY – Japanese yen/ ¥
You must take note that exchange rates are normally in pairs. It implies the costs of the second currency when buying one unit of the first currency.
- GBP/EUR 1.21
This means it takes 1.21 EUR to buy £1.
- EUR/GBP 1.21
This means it takes 1.21 GBP to buy 1 EUR
How much travel money should I take?
The answer to how much travel money to take depends on your itinerary. You must carefully consider budgeting the costs of your travel to ensure that you don’t run out of money. Besides, you have to consider the following factors in making a budget:
• your destinations
• accommodation expenses
• food and meals
• entertainment or events
• emergency expenses
You must also take note if the country you’re traveling to impose charges on tourist tax and other entrance fees. You have to make sure that you take all the costs into account before taking the trip.
Can anyone buy my currency back?
You can utilise a buy-back service in converting your money back to pounds in case you have money left from your trip. Through this service, you’ll know the rate you’ll get back when converting the money. For details, you can check our guide on Compare Euro Exchange Rates.
Travel Money Cards and Alternatives
After comparing the currency exchange rate, you might find out that taking cash is not an option for you. This means you have to look for alternatives that could be suitable for paying for products or services abroad. You can take a certain amount of cash and consider options that include:
Credit or Debit Card
Credit cards are widely accepted, yet it entails charges for every transaction. Before taking a holiday trip, you have to inform your bank to ensure that your card remains active.
You can load your prepaid cards with foreign currency or pounds which you can use around the globe.
You can convert your pounds into a foreign currency cheque and sign it. These cheques can be cash when you’re overseas. These are rare in practice due to very few banks offering it.
Pros and Cons of Taking Cash as Holiday Money
As you decide whether to take cash as your travel money or holiday money, you must know both its pros and cons.
• You are compelled to stick to your budget
• Locking in a specific exchange rate for the entire holiday trip
• When the exchange rates go lower than what you have, you’re secured for exchanging it at a better rate and cash it
• It might be lost or stolen
• Can prevent you from getting the best travel money rates
• It might be hard if your accommodation requires credit card payments
• Taking cash is less secure as using a credit card
• You can’t take advantage in case the exchange rate goes u