If you are one of those people who love to travel and do it as much as they possibly can, you should be aware of a few things regarding the currency you use as you happily traipse across the planet.

All currencies are not created equal and some have definite advantages over others, especially in certain parts of the world.

The three types of currency that most people are familiar with when travelling are:

- Traveler’s Checks

- Credit Cards

- Bank (ATM) Cards

Many people who are not even from the USA use traveller’s checks in U.S. dollars. This is because they are easily converted to whatever currency you need.

Many other people routinely use their credit cards when they travel because they are very simple and are accepted in most places.

Others prefer to use their ATM cards and withdraw cash from banks around the world in the local currency. There are advantages to all three of these methods and there are also some drawbacks.

Traveller’s Checks

While this was once the most common way to carry money for travel, it is not longer quite as popular. When you purchase traveller’s checks, you pay for them right then and there. This means that all the money you are using on the trip is out of your account before you even leave home. This can mean that you lose interest on savings that could have stayed in the account for a few more weeks.

Most banks in the USA will charge you between two percent and five percent of the total you purchase in traveller’s checks as their fee for providing them.

Traveller’s checks can be issued by American Express or Visa. Both are recognized by foreign banks and you will have no trouble cashing them at banks everywhere. You will need to always carry your passport for identification when you visit these banks and you will need to countersign the checks in the presence of the bank officials where you cash them. This is to verify that your signature matches the one you provided at the time you purchased the checks.

The anti-counterfeit measures that have been recently updated on traveller’s checks means that they are still widely accepted everywhere without too much risk.

There are still many places you can go on the planet where you will not be able to use your traveller’s check though. Even within the USA and Canada there are a lot of small towns and rural areas where they will not be accepted. You should check this out before you leave home and be quite certain that the places you are going will accept this form of payment.

If you lose your traveller’s checks or if they are stolen, you can contact American Express or Visa from anywhere in the world and they will replace them very quickly.

Credit Cards

This is the most popular way to access funds while travelling now. Credit cards are accepted in many more places than ever before and they can be used directly for purchases, hotel rooms, airline tickets and can double as an ATM card at banks worldwide where you can access funds. One of the advantages of using your credit card at ATMs is that you can get money in the local currency right off your own credit card and do not have to stand in line with one currency waiting to exchange it for another everywhere you go.

If you do not wish to use your regular credit card for a trip, you can speak with your credit card companies like Visa, MasterCard and American Express about some secured credit offers they may have available. You can pre-load one of their cards with whatever amount you want and simply use the card while travelling to deduct from that fund as you go.

This can be a good way to stay on budget when travelling. Once you allocate a certain amount of money onto this kind of credit card you will be able to see exactly how much money you have left so that you don’t overspend on the trip. This is also a good way to keep yourself from overspending on your regular credit cards.

Another benefit of using your credit cards when travelling is that you will have a detailed list of how you spent your money while away. When your statement arrives you can see exactly what you did and where you did it.

Debit Cards and ATM Cards

If you choose to simply use your regular debit card or bank ATM card when you travel, you don’t have to do much to prepare before you leave home. You just need the same old card you always use at home.

One of the biggest advantages of using your debit card is that you can access your funds at banks all over the world and they will give you cash in the currency you need over there. This is the same as using your credit card at an ATM but when you use your debit card you are not charged any interest like you are on the credit cards. Your debit card simply uses your own funds.

You may be charged a small convenience fee or inter-bank fee when you withdraw funds using ATMs overseas. These charges are minimal and you don’t need to really budget for them.

When relying on your debit card entirely for travel expenses you may want to be careful to leave some additional funds available for any emergencies. Especially if you are not also carrying a credit card or traveller’s checks for emergency situations, you should make sure your account has enough in it for something unexpected.

How to Choose the Form Of Money For Travel

There are a few things to consider when choosing to use traveller’s checks, credit cards or debit cards for your travel. One of the first things to consider is how you spend your money.

If you typically overspend on shopping or meals when away from home, you may be better off sticking to traveller’s checks or your debit card.

If you are travelling to countries or places that are not very modern or urban, you may better off with some cash and some traveller’s checks. Credit cards and debit cards will be entirely useless if you can’t even find a bank.

Be Comfortable and Be Prepared for Spending

You should decide which kind of currency to carry based on your needs, your destination and your comfort level. Any combination of the three kinds is acceptable and more than one currency is always a good idea.

Never leave home without emergency funds that equal enough for a plane ticket home. Whether you leave room on a credit card for this or whether you hang onto some traveller’s checks that are for emergency only, you should always leave yourself a few options. Don’t be naïve about the accessibility of American funds in the rest of the world. Before you ever leave home you should do some research about what to expect where you are going.

Once you have dealt with the choices about how to carry money on your trip; decided how you will deal with any monetary emergencies and packed your bags, the only thing left to do is enjoy your trip!