Your vacation will probably already be planned. If you go abroad, you will have already bought the tickets, rented the hotel room and organized the tourist route for the days you will spend there. However, it is important to remember that there are different ways to make payments while on vacation.
Is it better to take the credit card? Or should you rather pay with your debit card? Maybe it pays to take everything in cash? We look at the pros and cons of each method so you can decide what best suits your situation.
Credit card pays more money than raising
Credit cards are especially suitable for paying higher value purchases: hotel room, airline tickets, car rental or even restaurant bills.
There is a major advantage to this payment method: When paying by credit card abroad, the exchange rate charged on this transaction is the one that is charged on interbank transactions (which is the most advantageous). That is, it is more affordable than exchanging money at currency exchange.
There are even some cards that do not charge any fees for this transaction. The best thing is to compare the offer and see what makes each of the issuers available.
However, when taking credit cards for holidays, please be aware of an important factor: not all establishments accept this method of payment, especially outside tourist areas.
However, despite all this, it is still more advantageous to pay by credit card than to make withdrawals. Fees charged in either case make withdrawal generally more expensive than direct payment.
Take your debit card for withdrawals, but beware of unexpected expenses.
The debit card can work like a double-edged blade and you have to weigh the scope of use well. Abroad, and with the widespread availability of ATMs, withdrawals are easy with this card.
One of the strengths is that when you raise money with your debit card, the exchange rate charged (if you are, for example, in Brazil raising Reais) is the one practiced between banks, so it is one of the most advantageous in the market .
However, you may have to pay many fees when you withdraw, so please check with your card issuer about how much you charge for these transactions. Also, unlike your credit card, your debit card will not provide you with a credit ceiling, so be careful with purchases that may exceed your available balance. It is not good to suddenly find yourself out of money abroad.
It’s always good to have some money for the unscrewing
It is important to have some cash in the currency of the country you are visiting, especially on the first day. Imagine you arrive late at the airport and the ATM is not working or the currency exchange office is closed. You may not be able to raise money and you find yourself in trouble with no money in hand. The safest thing is to get some money in foreign currency from your bank beforehand.
However, these exchange rates tend to be higher, the best option is not to exchange too high amounts. Also, to avoid theft it is important not to walk with a lot of physical money.
Debit, Credit or Cash: and the best option is
It is advisable to always carry some “paper money” to cover small expenses, especially in places that do not accept “plastic money”. However, most restaurants – mainly in tourist areas – accept cards, it is most economical to pay directly for purchases through this method.
And for your safety, it is also important not to overlook other aspects: divide the money – or even the cards, if you have more than one – in different compartments. So if you’re unlucky enough to be robbed, at least don’t take all the money.
It is also important not to make life easier for pickpockets, so it is worth buying wallets or backpacks that make stealing difficult. There are several available for tourists. Choosing the payment method and betting on the security of your money is half the way to having a restful, economical and headache free vacation.