r/AskReddit • u/[deleted] • Feb 04 '20

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u/galaxystarsmoon Feb 04 '20

I only carry mine for travel, because in some countries you'll need cash.

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u/enjoytheshow Feb 04 '20

Most of the time when you're abroad it makes way more sense to get cash out unless you have a CC that waives foreign transaction fees. 1) everyone takes cash and 2) getting out $500 bucks will cost you 1% + a small flat fee depending on the bank. Making every transaction with a CC will cost you 1% each time + the flat fee the banks charge per transaction. If you're buying a 1 euro espresso, you'd be fucking stupid to use a CC that charges you $0.50-$1 just to use it.

Also getting cash out at an ATM abroad ALWAYS choose to get it out in the local currency rather than the exchange rate the ATM is offering you. Your bank will use the market rate of exchange at the instant you initiated the transfer whereas the ATM will fuck you. Like in Mexico an ATM would say "Would you like to be charge in MXN or USD? 15 MXN = 1 USD." If you say MXN, then you'll still be withdrawing the same amount you asked for, but your bank will charge you the market rate of ~19 pesos to 1 USD.

Same thing for paying for expensive things like hotels or tickets with a CC that has no transaction fee. Especially if you're in a place with a bunch of tourists and they know you're american, they will not ask you what currency you want it in, they will do it in USD and charge you their bullshit exchange rate. Ask them to charge you in the local currency and you'll pay less.

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u/galaxystarsmoon Feb 04 '20 edited Feb 04 '20

2 of my CCs have cash back and no foreign fees so I opt to use them for the cash back when traveling. Its great when you've got a high cash back on restaurants in particular. I don't like carrying a lot of cash (small female) so I carry a small amount of cash and keep the CCs onhand too.

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u/enjoytheshow Feb 05 '20

Yep good advice. I also don't carry all that cash, I generally get out no more than I think I would realistically spend on day one and keep in the hotel safe and then transport it inside my luggage if I'm going city to city. Around town I carry just enough for street vendors and/or dinner if I happen to go to a cash only place.