Small, simple financial gestures can save us a lot of hassle abroad. Our tips for saving money and traveling lightly.
Change our currencies in the right place
Seeing the country is also having a good time and paying for trafficking. We go for a walk; we have a bite to eat, we offer ourselves some souvenirs and small treats… It will therefore be necessary to hold local currencies. Same thing if you plan to take public transport or a taxi. The question then arises: do we withdraw cash before our departure, or do we do so once we reach our destination? Is it better to go to a bank teller or go to a bureau de change?
First of all, we avoid carrying too much liquid on us. We prefer a discreet money belt to protect ourselves from thieves or accidental loss, which we wear under our clothes. You can find it in most stores that sell luggage and other travel accessories for about twenty dollars. We can also distribute this amount among various places, such as our hotel safe, the lining of a suitcase, and our wallet. “When traveling as a couple or as a family, we separate the amounts transported. Everyone should also have a credit and debit card with them. If we get robbed or lose our backpack, then we will be less deprived”.
Before leaving, many order foreign currency from their financial institution. Even though it claims that there are no transaction or commission fees, there are significant amounts behind the proposed exchange rate. This cost can exceed 3% or even much more when relying on the Bank currency converter (free online application). For a withdrawal equivalent to $ 500, that’s $ 15 or more.
Your best choice is to shop at a currency at a conversion rate(World Currencies, Globex 2000, KnightsbridgeFX, Calforex, etc.). We do it in advance, and we make sure that the desired currency will be accessible when we present ourselves. Interesting detail: more and more offices allow online currency purchases with home delivery for a shipping fee. It is also useful to learn about our currencies’ redemption on return: several exchange offices allow this.
Finally, we refrain as much as possible from changing our currencies at airports: their rates are often even higher than those of banks. “So we go there as a last resort. These offices pay higher fees, in particular, rent, which they then pass on to consumers”.
Learn about payment methods abroad
Once at your destination, you can withdraw money from the various ATM networks. Today, they are found even in the most remote areas. Before departure, we check with our financial institution to find out about its partners’ network and its international branches. Our bank’s network logo may also be on our ATM and credit card. We also learn about the protections offered if someone makes unauthorized transactions with our debit card.
Please note: our card may not work in all ATMs. Some keyboards only have numbers (no letters), and instructions are sometimes displayed in a language that you do not understand well. It is, therefore, better to memorize our PIN in numbers. If it contains more than four, that could also be problematic, hence the importance of informing yourself about this beforehand.
Withdrawals abroad are not free. Each bank has its fee schedule, which is often added fees for using the local counter. Typically, the cost per transaction is $ 5 overseas and $ 3, plus a foreign currency conversion fee. We, therefore, limit the number of transactions during our stay by favoring higher but less frequent withdrawals.
If the terminal used abroad offers us to pay for the transaction dollars, we are wary! This “dynamic currency conversion” can indeed cost much more than the usual fees associated with our debit card. Generally, the merchants benefit from this type of service, allowing them to know the transaction’s value in our currency.
Get the right credit card
While traveling, paying our expenses with a credit card can be useful and more secure. Visa (Plus network) or MasterCard (Cirrus network) cards are generally accepted everywhere. However, beware of cash withdrawals with such cards, as a cash advance can be very expensive. In addition to the many transaction and conversion fees (as with debit cards), interest rates apply when the money is obtained. To avoid these interest charges, we reimburse our full credit card balance before leaving and adding a surplus.
The majority of credit cards charge fees of around 2.5% or even more for transactions abroad. There are a few exceptions, including the Scotiabank Visa Infinite Passport ($ 139 annual fee) and the HSBC Premier World Elite Mastercard ($ 149 annual fee). With these cards, the transaction amount is converted at a benchmark exchange rate, with no additional fees. Some cards charge a conversion fee but offer cash back rewards or bonus points on amounts spent overseas. Each has its interest rates and benefits. So about it, it is worth comparing and shopping around. The Financial Consumer Agency offers an online credit card comparison tool.
When you travel several times a year or take long stays in the United States, it might be a good idea to have a U.S. dollar credit card, especially if you already have a savings account or investments ( income) in U.S. dollars. We can also deposit our surplus currency there and use it to pay off our credit card balance.
Notify the right people
Most financial institutions allow you to report a travel advisory, online or over the phone. Notifying our bank that we plan to use our debit and credit card abroad during specific dates will prevent unpleasant surprises, such as a merchant’s blocked transaction.
It is also advisable to write down the numbers of our cards, insurance policies, and passport somewhere in case of theft or loss. Let us not forget either the email addresses and the telephone numbers of the interveners useful in a glitch. “You can make copies of these important contact details and give one to a loved one before you leave. Some travelers bring a copy with them, which they leave in their hotel safe or a discreet accessory”. You can also email this information, along with photos of important travel documents, to our personal Gmail, Videotron, Hotmail, Outlook, or other addresses.
Am I protected enough?
Before leaving, it is better to have good travel insurance. We get one from our travel agent or an insurance broker. Several credit card companies also offer this service.
There are products specifically designed for travelers aged 50 and over. In the United States, for example, hospital costs quickly become exorbitant. We first check the protections offered by our credit card and how many days we are insured: the duration is sometimes limited to 15 days. And if we only pay for a portion of the trip with our credit card, our coverage may vary.
Do we travel with our spouse, our children, or our grandchildren? In this case, it could be advantageous to take out a family premium. When you leave several times a year, annual insurance is also beneficial. Also, we can save by adding a deductible to our travel insurance. “This addition is particularly interesting for people who pay high premiums, such as those who go abroad for several months”. One must, of course, be able to pay the deductible before considering such an option.
The older we get, the more the protections attached to our credit cards tend to be reduced. For example, if a drug’s dosage changed just before our departure, we might not be covered in the event of discomfort abroad. It is, therefore, better to find out about the exclusions. People struggling with an illness or special conditions are interested in asking their insurer for details on their coverage. And if we have group insurance, we check the coverages included in the trip. Indeed, why pay twice for nothing?
When traveling by plane, insurance covering flight cancellation, trip interruption, and luggage loss is very useful. And if we travel by car instead, we check to what extent we are protected in the event of an accident. Although the Société de l’assurance automobile du Québec (SAAQ) compensates Quebec residents for bodily injury suffered anywhere in the world, regardless of who is responsible, it is different if someone injures someone. ‘other.
We decide to go in our vehicle? In this case, you should know that lawsuits are commonplace and can cost a fortune. However, the civil liability protection related to automobile insurance is insufficient to cover the bodily, material, and even moral damages of others. We recommend that you increase it to two million dollars, or even more if you travel several times a year.
If you choose to rent a vehicle instead, you should carefully check the protections offered by the rental company. In some countries, it is advisable to add endorsement 27 (Damage to vehicles not belonging to the insured) to your automobile insurance contract, which is generally more economical than what rental companies offer. . This endorsement is limited to certain types of vehicles (campers are not always covered). We must also check whether the amount of insurance provided for in the endorsement is sufficient to cover the rented vehicle’s value. This could prove to be problematic if one is renting a luxury car. Please note, however: rider 27 does not include any civil liability protection.
In matters of civil liability related to the automobile, the laws of the region visited prevail. If a civil liability lawsuit arises while a vehicle has been rented, the landlord’s insurance could affect. And if the amount covered is insufficient, the insurance of the person renting the vehicle would then come into effect. Therefore, it is better to read our rental agreement to know what we are exposed to in the event of an accident or a lawsuit.
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