This article is tourism topic.
Information on the use of money can be found in the Buy sections of the articles. This article provides general information about payment methods.
Payment cards
Payment cards can be used to withdraw money ATMs as well as payment in shops, restaurants and hotels where they are accepted.
Differences between payment cards
The debit card is linked directly to the bank account and the money is transferred from your account when the merchant forwards the card payments to their bank. When using a credit card, the credit company will pay for your purchase and send you an invoice at the end of the period.
Debit cards are chipless payment cards issued by domestic banks. Most banks have also issued chip combination cards that have a debit card and a credit card on the same card. Finnish bank cards are leaving the market with the SEPA transition.
Credit cards include VISA, MasterCard, American Express (AMEX), Diners Club and JCB. VISA, MasterCard, American Express and Diners Club cards are issued in Finland. VISA and MasterCard are issued by banks and a few other companies, such as shops. American Express and Diners Club cards are issued in Finland only by these card companies.
Visa Electron and MasterCard Maestro are online cards. They work like debit cards, but they always require a real-time margin call. With this procedure, the bank wants to minimize the risk of overdraft. Banks issue these cards especially to young customers.
Debit cards work like old national debit cards, meaning purchases are debited directly from the account connected to the card. A few banks also issue Debit cards that work like online cards, meaning they generally require a real-time margin call.
Combined cards have several payment methods - most often Credit and Debit, ie the user can choose whether the purchase will be charged as a credit card purchase or a debit card purchase. VISA and MasterCard both offer a Credit / Debit combination card. If the store does not recognize the Debit payment method, the combination card will work like a normal credit card.
When buying stuff you should often use creditcard, because if the card is stolen you always have the opportunity to contact the credit company and you do not have to pay for purchases and withdrawals made by the thief; if, on the other hand, the thief gets access to your bank account then things are much more difficult. The credit company is on your side if the store charges an amount higher than the price of the goods, if you pay for something you don’t get or if the card is copied without your knowledge.
In many cases, a credit card offers a variety of additional benefits to the traveler such as insurance and airfare - ask your credit company.
Card acceptance
Acceptance of cards varies between countries - in Western countries they can be used almost everywhere and in some developing countries they can hardly be used at all. The most accepted credit cards in the world are VISA and MasterCard, followed by American Express and Diners Club.
Visa Electron and MasterCard Maestro cards are well-accepted as a means of payment in most Western countries, but due to real-time margin booking, they cannot be used in places where there are no suitable telecommunications connections (eg trains and airplanes).
With the SEPA transition, Debit cards are replacing national bank cards in Finland. Debit cards generally work in all SEPA countries. If you are traveling outside the SEPA area, you should check the functionality of the Debit card at your destination. In the United States, for example, European Debit Cards generally do not work. Note, however, that in Credit / Debit combination cards, the Credit card side still operates mostly outside SEPA countries. However, there are exceptions to accepting MasterCard and VISA cards in SEPA countries: in the Netherlands, for example, they can be used to pay at some restaurants, but as a rule, many other shops in grocery stores only accept Maestro card (Debit).
As a rule, Finnish chipless debit cards that do not leave do not work abroad.
Use of debit and credit cards at ATMs
As above, the most common credit cards operating at ATMs are VISA and MasterCard. In some developing countries, there are no ATMs at all, or they only work with the country’s own cards; for example In Myanmar, in some Africa countries and to some extent In Japan. In Japan, foreign cards can only be used at Citibank ATMs.
If you withdraw cash abroad with a credit card from an ATM, you will often have to pay various additional fees. Check your credit card terms for cash withdrawal surcharges.
With Visa Electron and MasterCard Maestro cards, you can also withdraw money from an ATM directly to your account. It is also often cheaper than withdrawing with a credit card. In Europe, it is also possible to make cash withdrawals in the SEPA area with Debit cards.
Remember
- It is a good idea to use the cards of many different banks and credit companies as a precaution if one of them falls into the hands of thieves or does not work in any of the ATMs. Instead, you should carry only one card on the street - keep other cards in the hotel safe in case your wallet is lost or robbed.
- Check in advance that your cards work abroad. Some banks and Credit Companies will close the card if they find that they are being used abroad.
- Make sure you remember the PIN for each card.
- Make sure your card has free space before you travel. A credit card is not useful on the go if you have used up your credit limit before you left.
- Be careful when copying card data! Do not allow anyone to take your card out of sight, such as in the back room of a restaurant. Also, do not use a payment terminal or ATM that is open or otherwise suspicious looking. After cloning your card, criminals can cancel your account!
- In most countries, you are not liable after you report that the card has been lost or stolen.
- In case of emergency, money can be withdrawn by debit or credit card through Western Union. There are additional charges.
For additional fees
- If you stay in one country for a longer period of time, you can save on transfer fees by opening a local bank account and obtaining a local debit card. This usually requires a local postal address and a residence permit.
- If a currency other than the euro is used in the destination country, the exchange rate can be either the date of the purchase transaction or the invoice date. This should be kept in mind if the exchange rate in the destination country varies.
- When you pay with VISA or MasterCard, in some stores the price will be converted into euros, which will result in a changeover fee of up to 7%. Look at the receipt and pick up the seller right away if you notice something like that. If the seller refuses and claims that the exchange is automatic, contact your credit company.
Traveler's checks
A traveler's check is a paper like a gift card that you can buy at an exchange office or bank and redeem for cash at an exchange office or bank in the destination country. Check at the time of purchase that you will receive traveler's checks in the correct currency. Traveler's checks are signed at the time of both purchase and redemption.
If a traveler's check is lost or stolen, they can be died out like a debit or credit card. After notification, you will be given new checks - please ask for more details at the time of purchase. Keep check serial numbers even after use. Getting new checks can be tricky if you are unsure of which checks you have redeemed and which ones are in the possession of thieves.
In some hotels and large shops, you can pay directly with traveler's checks. However, this is quite rare.
If you buy traveller's checks abroad, check the exchange rates especially carefully.
If you have debit or credit cards and travel in the West, you should use them instead of traveler's checks. If, instead, you travel to developing countries where cards cannot be used, traveler's checks are a good option for cash.
cash
Cash is the most common means of payment and is practically everywhere.
Some countries may use Euros, US Dollars, or other major currencies but exchange rates are not always the best. In border areas and places where there are a lot of tourists, you can often use the currency of a neighboring country (eg Danish shoppers pay in their own crowns). In Flensburg, and so on.)
As a rule of thumb, paying in another country's currency is: use in good condition, banknotes of the latest series. If you pay or try to exchange worn / old banknotes, the store or bank may refuse to accept them.
The biggest risks with cash are that if they are taken out you will not get them back in any way and that if someone notices that you have a lot of cash you may fall victim to a robbery. Travel insurance replaces stolen cash in some cases but not always.
Check out the appearance of local banknotes before you travel. Banks and official money exchange offices are mostly honest but a street vendor or taxi driver can easily flood a “tourist” with the wrong banknote. Be especially careful with large banknotes.
Money exchange
Currency exchange offices operate on the principle that foreign currency is sold at one price and bought at another. Check the official exchange rate [1] before the trip. The rate is often better where exchange offices have to compete for customers. In some cases it is worth exchanging money before the trip, in others only at the destination. Airports and hotels often have worse exchange rates. In developing countries, it is worth withdrawing money from an ATM where the exchange rate is better.
Counterfeit money is in circulation everywhere, so you should check the currency of your destination country before traveling. Almost everyone in the world has watermarks, holograms, invisible threads, etc. If you doubt the authenticity of the note you received, do not accept it but ask for another note immediately, it is too late to complain to anyone later. If you put the wrong banknote in circulation, you are also guilty of a crime and, in the worst case, you could be questioned by the police.
Convertible currency
Some currencies are easily convertible, others are worthless outside the country. In some countries, such as Cuba there are two currencies; drainage for tourists can be changed outside the country, no for locals. Some countries like Tunisia and India prohibit the export / import of currency.
Exchangeability is a legal term and reality does not always correspond to the law: the Indian rupee can in practice be exchanged outside the country while Eswatin lilangenia can hardly be exchanged outside the country.
In some countries, state-owned shops require tourists to have an "exchange certificate" by which they ensure that money has been exchanged at an official location at an official rate. In these countries, paper is also required when planning to exchange back the extra money.
If you are traveling to a country whose currency is difficult or impossible to exchange outside of it, you should exchange the remaining money in the country for Euros or US Dollars when you leave the country.
Hard currency
In poor countries with high inflation, and a non-convertible currency, a traveler should use some world currency. The "gold standard" of currencies is the US dollar. In many Caribbean and Southeast Asia countries the US dollar is either de facto - or even the official - currency. Euro is also a common currency in the world, especially in popular destinations, and local stable currencies are often accepted in neighboring countries such as Thailand baht In Laos and In Cambodia mixed Australian and New Zealand dollars In Oceania.
If you pay in hard currency you can get even better prices for the products. In such cases, it is advisable to use as small banknotes as possible.
Keep a hard currency banknote in case of emergency and put it in a safe place.
Money exchange on the black market
In countries where the official rate is locked by law to a completely absurd level, money can most often be exchanged on the street in the dark. In 2007, for example Zimbabwe the official exchange rate for the dollar was $ 250, per US dollar, while on the street the Yankee dollar got $ 600,000 Z!
If you decide to exchange money on the street, remember that it is not entirely risk free. In such countries, switching on the black market is illegal and both you and the changer may have to deal with the police. In addition, you can get old or counterfeit banknotes or fewer banknotes than you think. Check and count the banknotes yourself before giving the money to the changer.
Loose change
Generally, coins cannot be exchanged after you have left the country. Swap them in the country, throw them in a charity collection box, or keep them as a souvenir. Also pay with coins so that they do not accumulate much in vain. Some money exchange points or banks also exchange the largest coins that already have significant monetary value. You can ask about it before you go abroad.
Transporting money across borders
If you are transporting large sums of money across borders, the authorities will be interested. Usually cash over € 10,000 / dollar (depending on the country) has to be entered on the customs clearance form. Please note that traveler's checks are also counted as cash. Once again, check with the authorities in advance if you plan to import or export larger amounts of money across national borders.
In many countries, the ceilings for bringing in / out of money are surprisingly low. However, in the case of these countries, it is common practice that the currency in question cannot in practice be exchanged outside the country.
If the money runs out
In the event of an emergency, American Express credit card holders can withdraw money in the form of traveller's checks from companies or travel agents authorized by the company.
A guy can send you money:
- Through services like Western Union.
- By depositing money into your account which you then withdraw from an ATM.
- Through a courier service - although some companies refuse to carry cash.
In the extreme case, you can try to sell your camera or watch.