With cashless transactions rapidly on the rise worldwide, travelers need to change the way they spend money while abroad. On this front, Sweden and the United Kingdom have led the charge. According to this data, in fact only ten percent of purchases made in Sweden are done so with cash. As this landscape continues to change, it’s important for everyone to have a plan in place to manage their money, especially when traveling internationally.
When getting ready to go on a trip, it’s important that consumers aren’t faced with unnecessary challenges when trying to pay. Credit and debit cards can offer significant convenience, but there’s a catch. Making smaller payments or withdrawals with a debit card can be subject to bank fees. You would be surprised how fast those fees start stacking up! Fees and expenses When withdrawing currency from overseas cash machines using a credit card those fees can really stack up. What a pricey way to pay off your holiday bills! Being aware of these influences can save travelers money and stretch funding dollars while keeping America traveling.
The Shift Towards Cashless Payments
The interest in going cashless is quickly picking up steam across the globe. Meanwhile, across the Atlantic in Sweden, the citizens are adopting digital payments at an all-time high. Today, just 10% of purchases are made with cash — a clear sign that consumer behavior is rapidly changing. Across the pond, the UK is going cashless. Most local transport networks take contactless payment with UK debit/credit cards.
This transition creates seamless, fast, comfortable travel beyond the airport, and it’s certainly a challenge for travelers. As convenient as cashless payment systems can make life in many countries, there are still many parts of the world where cash is necessary for routine transactions. Japan’s cash-obsessed culture business owners, especially small business owners, don’t trust the technology. Many residents urge travelers to bring cash to avoid inconveniences and unplanned costs.
“If you’re in the UK and switching cash from one foreign currency to another foreign currency, then it’s likely you’ll be charged two sets of fees or commissions,” – Alastair Douglas
Travelers need to understand these nuances to avoid being caught off guard with extra expenses on the road. Anticipating local payment preferences not only improves the travel experience, it saves visitors from confusion and surprises that may be unnecessary.
Assessing Payment Options Before Traveling
Prior to planning any international trip, American travelers should pay more attention to the credit and debit cards they already own. Andrew Hagger from Moneycomms.co.uk suggests asking card providers about their charges on overseas purchases and FX on ATM withdrawals.
“Check what your existing card provider(s) will charge for each purchase and ATM withdrawal,” – Andrew Hagger
By arming consumers with knowledge of common charges, travelers can adapt their spending behavior to match the rest of their holiday spending budget. By planning ahead, travelers can spend the right way and avoid adding up to a costly trip that leads to more substantial financial obligations after the trip.
One of the best new options for people who need a cheap payment solution abroad is travel debit card Currensea. Currensea offers three pricing tiers, one of which is an Essential plan, with no annual fee but a £4.95 delivery fee. The card links directly to the user’s current bank account, making day-to-day purchases easy and affordable.
Alastair Douglas shows you why it is always better to select to pay in the local currency when you’re using your credit card or debit card overseas. Whatever you do, never pay in pounds and pence! This practice helps travelers to avoid negative exchange rates typically charged by 3rd party vendors.
Currency Exchange Options and Recommendations
While cashless payment systems are the new norm, international travelers will often still want to convert currency for certain scenarios. In the UK, firms including Sterling FX and Thomas Exchange Global offer similar services to provide currency exchange options. They serve all people who require access to physical currency. Douglas advises caution when exchanging money.
“Otherwise, when you get back, you might find out you’ve been paying extra, adding to your post-holiday blues,” – Alastair Douglas
First, it is always wise for travelers to stop before converting currency and consider what they actually need to get. Such close scrutiny can help avoid huge drainers on your budget in the form of avoidable fees.
After you order a travel card, it generally takes less than five days for it to get to you. This advance notice allows passengers to prepare ahead of their journey. It makes sure they have access to the money immediately when they get to their destination.