Touring Overseas – for North American Technicians – Dealing with Currencies
Here’s an addendum to the most recent article about touring overseas for North American Technicians. It’s about something central and important, money.
How to deal with local currencies when touring overseas
While many of your touring expenses may be covered by Tour Management or a Tour Accountant there are always times when you need to pay for some personal expenses.
In the bad old days dealing with local currencies was a nightmare and you always came back from a tour stint with handfuls of useless coins and strange denomination notes that may have been worth something somewhere but have become unuseable.
So how do you pay for stuff when you are on the road in a series of different countries.
Let’s explore different ways to handle this
You need to take a regional approach because things are very different in different areas. These days charge (credit) cards are accepted at lots of places so if you have a major credit card you can usually pay for Taxis, Ubers and restaurant meals by card which is quick and simple. Another advantage of charge cards is that the exchange rate is usually good or better than your local currency exchange and most card issuers don’t charge any additional exchange fees. The most widely accepted cards appear to be Amex and Visa cards, Apple Pay and Google Pay are not accepted in many parts of the world.
A drawback of charge cards is that most of the world outside the USA uses chip cards which are still not a necessity in the USA. If your credit card is not the chip variety, which requires a PIN number to compete transactions, then I suggest you apply for one, the major advantage is that they are much less prone to compromise by bad actors.
If your bank issues debit cards (which are different from charge cards) you can use these at local bank ATMs depending on their global association. Look for the PLUS sign or other international bank alliance, on your card. You can use your debit card to withdraw cash in local currency at any bank that is a member of the same alliance and the charges are small or nothing, depends on the bank.
I really don’t recommend using a credit card for withdrawing cash, the card companies all charge outrageous interest rates on any cash withdrawals.
Despite the prevalence of charge cards there are many situations where you need cash in the local currency and the farther away you get from the centre of major cities the more common it becomes. Cash is the easiest way to tip people, especially porters, drivers, waitpersons, concierges and people who can make your life easier by offering small services.
How to manage cash transactions in different regions
First off I recommend that you carry some US dollars in cash. These are easy to exchange for local cash at Cambios (the international term for money exchange companies) all over the world, including airports, hotels and shopping centres, and the rates are usually good but there are usually exchange fees.Europe
With the advent of the EU and the fiscal union of so many different countries, carrying Euro cash with you is an easy solution. You can usually buy Euros at your local bank before you leave, or at a currency exchange, but shop around, they may charge a fee. Euros are accepted all over Europe, even in Scandinavian countries that don’t officially use that currency.
Nearly all merchants accept credit cards and NFC phone “tap” payment is common but does not work with N. American credit cards in many countries, I have no idea why not!
Not many support Apple Pay or Google Pay and there are multiple competing payment systems in Europe and Asia.
Asia
Charge cards are so universal that almost all your purchases can be made by card. Changing a few US dollars for local currency, just enough for tip money, is all you usually need. Pay by phone “tap” is extremely common in Japan and Taiwan but again I don’t know the popularity of Apple Pay or Google Pay, there are many local competing systems.
Mexico & Latin America
In Mexico many workers in the tourist trades will accept US dollars as tip money but there are many small stores that don’t take cards and require payment in pesos. This includes smaller restaurants, bars and stores so you will need a stock of pesos if you are purchasing any supplies or eating out. Many merchants do accept credit cards but not so many of them have “tap” and you’ll need a chip card and to enter your PIN number to complete charges. Many banks will issue local currency at bank ATMs using foreign bank debit cards. Again check for an international alliance symbol that matches the one on your debit card.
Each Latin American country has it’s own currency and some of them are extremely volatile, to the point where you don’t really want to have any local cash at all. This is especially true in Argentina and Venezuela. If you have to have local currency then just change very small amounts from US dollars at your hotel or a neaby cambio.
It can get messy in a hurry so deal in small amounts and if
you have any left over when leaving then just give them to a local on your way
out.
Australia & New Zealand
US currency is uncommon but the local banking systems are very robust and it’s usually easy to do currency exchange at a bank. Many banks offer local currency from their ATMs from foreign debit cards. Again check for an international alliance symbol that matches the one on your debit card or check your bank web site for International Alliances.
Other, not so obvious points
You always have to think about the “what ifs” when travelling internationally, the same applies to money. Here are some suggestions that I have.
a) Have a secure place on your body to carry cash and a credit card. Zippered pockets are great, money belts even better. Fanny packs and shoulder bags are not secure. In many places street criminals will cut them off your body and run away with them while an accomplice is distracting you.
b) Avoid withdrawing cash from no-name street front ATMs or the ones in bars. They charge significant fees and are very dodgy, your card may get skimmed or compromised. Use only the ones at major banks or at major convenience stores.
c) Don’t carry
all your cards and cash with you when you are out and about. Take only what you
need and leave the rest in the hotel room safe. I usually carry a small amount of local cash (or USD) and one credit card when out and about and leave the rest in a secure location.
c) Take at least two credit cards overseas with you, stash one as a spare and use the other for daily transactions. If your daily one gets compromised you can carry on touring and let the card issuer deal with the loss, theft or skim.
d) If you have US dollars and need some local currency your tour promoter will probably be happy to help out. It might be worth checking if you are in a challenging location and most likely without any fees!!
Very Important!
e) Before you leave, call your credit card issuer(s) and tell them that you are travelling overseas in whatever countries and continents you are travelling to.
Tell them to add a note to your file not to flag your card as stolen.
Credit card companies use a lot of different algorithms to evaluate stolen and compromised cards and will put a block on a card that trips one of their algorithms.You don’t want to be three days into a two month tour of Asia only to find your card is suspended.
Safe Travels !
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© Clive Alcock 2023