Foreign Cash or ‘Plastic’?


I am sure a lot of us have asked this question prior to embarking on a trip. The
answer depends on a lot of variables, like what is your destination, who is paying for
the trip, and do you want to save money.
Common misconception among travellers – plastic is convenient and offers better
rates but in today’s complex world of electronic payments, where there are too
many players and intermediaries with one aim to make profit, debit and credit card
payments could be much more expensive than bringing foreign cash. For instance,
an ATM withdrawal in a foreign country is subject to service charges by both card
issuer and ATM provider (up to $7 per transaction), and credit card cash
withdrawals are considered as cash advance and are subject to daily interest rates
charges by your financial institution.
One small glitch by one of the parties that connects your plastic to complex web of
network providers can disable point of sales (POS) and ATMs. For example, in 2018
one of those glitches shut down service at POS terminals and ATMs in most of
Europe, and you can imagine the consequences for the tourists who did not have
cash.
Moreover, by using your plastic you are allowing data analysts at financial
institutions to collect info on your spending habits, and your info can also fall into
the hands of scammers that steal your financial information and get access to your
bank accounts.
To answer the initial question of plastic or cash, my answer is a combination of both
foreign cash and plastic. rapidoFX can offer you foreign cash at competitive rates
delivered to your home or office.