The Invisible Thief: Is Your Wanderlust Leaking Money?

The​‍​‌‍​‍‌​‍​‌‍​‍‌ luggage is ready. The schedule is prepared. After spending several months looking for the cheapest flight and the perfect rental, you must be exhausted. However, while you are busy saving on a budget airline seat, you are probably giving in to a banking algorithm without even realising it.

Most travellers only think of currency exchange as a last-minute task. However, it is actually the biggest "hidden tax" on your holiday. If you don’t plan how to carry your money properly, you are not just going on a trip, but you are also helping to finance a multi-billion-dollar exchange ‌ ‍ ​‍​‌‍​‍‌​‍​‌‍​‍‌industry.

The High Cost of Convenience: Understanding Fees

Three financial charges often trick modern-day consumers when travelling: dynamic currency conversion, predatory currency exchange spreads, and high charges for ATM withdrawals. Every time you go abroad and use a regular debit card to pay for a meal, you incur a series of charges: the card-issuing bank takes a foreign transaction fee (which can be up to 3%), you pay a fixed “out-of-network” ATM withdrawal fee, and the bank has an exchange rate markup during the foreign exchange transaction.

Checkout How to buy Foreign Currency Online

Given the currency differences, a dinner you thought to be cheap can actually end up costing 10–15% more than the listed prices. Also, these “Zero Commission” signs at the airport are a marketing strategy. Indeed, they don’t charge an initial fee, but they increase the spread to the extent that you lose substantially before even exiting the airport.

Mastering the Foreign Exchange Game: How to Save

If​‍​‌‍​‍‌​‍​‌‍​‍‌ you want to travel on a budget, the first thing to realise is that you should not be a passive consumer anymore; in fact, you should start behaving like a treasurer. Below is the blueprint of total currency control:

1. The "Rule of 80/20" for Cash: Do not carry all your money in cash, and do not completely trust your cards either. Technical problems and local places that only accept cash are pretty common in many parts of the world. Before flying, have 20% of the amount you will need in cash. This will save you from very expensive, desperate airport currency exchanges.
2. Use Multi-Currency Travel Cards: Don’t use your ordinary bank card. A travel card can let you fix a currency rate when it’s good without having to suffer the rate on the same day that you spend. These cards help you avoid traditional bank fees, which are a drain on your budget.
3. Paying in Local Currency Is a Must. If a card reader or ATM gives you the option of paying in either your 'Home Currency' or 'Local Currency,' always pick Local. If you select your home currency, you will be subjected to Dynamic Currency Conversion (DCC), which means that the merchant’s bank will give you the exchange rate that is very unfavorable!
4. Get a specialist to help you: The best decision is to go straight to your local bank. Specialist forex providers rely on a high-volume, low-margin business model. Thus, when you buy your foreign currency from a specialist dealer, you get the rates that are much closer to the 'interbank rate'—the standard that global financial institutions use—as opposed to the rates from your bank and high street forex ​‍​‌‍​‍‌​‍​‌‍​‍‌dealers.

Conclusion: Take Control of Your Capital

In an industry where most players rely on hidden fees, we see value in transparency. Partnering with a true currency specialist will keep your money where it should be: in your pocket. From securing great rates on physical cash to saving you money with a multi-currency travel card, we will help you keep the bank's middleman fees out of your budget. Your travel budget should be spent on experiences, not the bank. Letting a bank take your money in unwanted fees is a travel budget killer. Focus your budget on the experiences you want to have.

Read More: Foreign Currency Exchange in India

Let us help you keep your money. Want to keep your travel budget to experiences and not the bank? Start by booking your travel budget. Check out our rates to see the rates and see how much you will save.