Currency and ATM: How to manage money on the trip

Currency and ATM: How to manage money on the trip is written by The editorial staff, RejsRejsRejs

The best currency tips for the trip: How to get money on the trip

Where should you exchange currency when you are going to travel? Can you withdraw money abroad? How much can I use my credit card? Is it best to pay in local currency or Danish kroner? How do I avoid the bank blocking my card while I'm travelling?

The questions can be queued up as the holidays approach and the last details about money need to be settled.

That is why we have collected the five best tips for currency for both before, during and after the trip, so that you can leave safely.

Do you need to exchange currency at home or abroad?

One of the big questions when traveling abroad is whether it pays best to exchange money at the destination or from home.

Here the answer is that it is generally best to exchange when you arrive at your destination - especially if it is a small amount of currency.

This is because it is cheaper to exchange and withdraw the local currency when you arrive at your travel destination where the currency is in use.

This is especially true if you travel to countries with small currencies, e.g. Thai Baht, Vietnamese Dong or Indonesian Rupiah.

So first advice is: Wait to get local currency until you arrive at your destination.

What credit cards and money should you take with you on the trip?

It is always a good idea to have at least two different credit cards for two different accounts with you on the trip. Then you can withdraw more if necessary. You also have an extra card if one is stolen.

Remember to store the cards in two different places in the luggage, and you can also store an extra bank note in a good place in the luggage.

The banks say that their systems flash red when you suddenly use your card abroad. In the worst case, your card will be blocked. You can avoid this by using your card at the airport on your way out, so that the bank's security system understands that you are about to travel.

In addition, it is a good idea to exchange currency such as euros or dollars from home and take them with you so that you can exchange them for the local currency when you arrive. If in doubt, dollars are the best choice. It doesn't have to be more than a few hundred dollars unless you are traveling to one of the few countries in the world, where it is difficult to withdraw money locally.

So other advice is: Take at least two credit cards with + dollars or euros.

Think about the condition of the money when you exchange currency

If you're planning to travel the world, you need to think not only about what currency you're taking with you, but also what condition the notes will be in when you receive them. A crumpled or damaged note is often rejected, even if it is worth a lot of money, and therefore it is also ok to say no to damaged notes when you are out shopping.

The value of the notes is also important. It happens that you can get a slightly better rate for large bills, but be careful not to bring only large bills from home.

In some places they cannot exchange, for example, a 100-dollar note, or it will give too large amounts of local money if they do not have large notes. Here it is good to have small change instead of large bills.

Therefore, think about where you are going and make sure to exchange money accordingly. So you avoid exchange problems when you arrive.

So the third piece of advice is: Bring newer banknotes, preferably in different denominations.

How much can you use your credit card on the trip?

In many places in the world today you can pay by credit card, and it can be an easy solution. If you also have a credit card on the phone, it can often also be used.

However, we would definitely recommend that you always get some local currency, because there may well be places where they don't take cards - or where it doesn't work. It can be markets, buses or just a bit out in the countryside.

There may also be places where you might not want to give out your credit card, for example at a restaurant where they take the card in at the back, or in a small local travel agency you don't know. Credit card fraud is unfortunately something travelers have to think about.

There can also be a financial advantage in paying in cash. You may occasionally end up paying 3% extra if you use Mastercard, as this is the cost the store has on the payment. This is particularly true in Asia. You may also find that you can only get a discount if you pay in cash. This applies, for example, in countries with high inflation.

That's why cash is still important when you travel.

You can withdraw cash in ATMs - often marked 'ATM' - which you will find at banks and around the streets.

However, as far as possible, avoid withdrawing money from Euronet's ATMs, as they charge some of the highest exchange fees. This also applies to similar physical exchange booths, e.g. the one at Copenhagen airport.

If possible, withdraw currency at an ATM inside a bank – or at an ATM belonging to a bank. Then there is someone who can help withdraw and exchange currency if something doesn't work or the card strikes. 

The banks' ATMs are also usually cheaper to use. Here you sometimes also have the opportunity to stand more hidden from prying eyes. Always remember to keep an eye on whether others are watching if you withdraw currency on the street.

So the fourth piece of advice is: Use your credit card where you feel safe and get local currency when you arrive by withdrawing from an ATM at a bank.

Should you choose local currency or Danish kroner when you use your credit card on the trip?

As a rule of thumb, you must always pay in local currency on the journey, as you otherwise risk paying a lot in exchange fees. The local exchange fees can easily add up to DKK 50, both in pure fees and in relation to the fact that you can get a worse exchange rate.

Therefore, always choose the local currency instead of Danish kroner if you have the option. This applies both when you pay by card in a restaurant or in a shop, and not least when you withdraw money from an ATM.

If you often withdraw abroad, you can also consider using Revolut, It is an all-in-one payment app where you can also exchange currency and keep an eye on exchange rates.

It is also always a good thing to have a currency converter as part of it your travel apps.

So the fifth piece of advice is: Choose to pay in local currency on your credit card when you want to pay the least possible fees with your money on the trip.

Bonus type: Do you come home with local change?

Imagine the following: You have gone on a lovely holiday and land at the airport. The head is full of lovely travel memories, but the pockets rattle with something you could well be without; annoying change from the trip, and you certainly can't change it back to Danish kroner.

Fortunately, we have a good idea of ​​what you should do with the change. You can donate them at the airport to charitable social projects. That way, you get rid of the change, and at the same time you support a good cause. Just look for the collection boxes at most airports.

In some countries it is also officially illegal to export their currency, so always check before you go – no matter what.

Now you have control of the travel money, the currency and how you can use an ATM on the journey.

Nice trip.