Forex – cash, travellers cheques or cash cards?

The Rand is weak against almost every currency in the world – I know. I just bought R10 000 worth of Euro’s and R900 worth of pounds… and it really hurts! It must be great however if you travel to South Africa!

You have a few options when traveling when it comes to carrying cash, travellers cheques, credit/debit cards or an international Forex card.

Cash

Pros:
You won’t pay bank charges (other than the commission you pay when buying it).
Rand exchange rate won’t affect you once you’ve bought this.

Cons:
If you lose it, you’ll be penniless.

Suggestions:
Carry a little bit of cash to pay for small items/food.

Travellers Cheques

Pros:
If you lose it, you can get a replacement with the serial numbers.
Rand exchange rate won’t affect you once you’ve bought this.

Cons:
You still need to swop it for cash.
There is commission fees when buying it.

Suggestions:
It may be a good idea if you want to carry a little cash and don’t want to take your credit card along.

Credit / Debit Card

Pros:
Most places accept cards and your cash is protected by pi.jpgn.

Cons:
If you lose it you need to phone home to cancel it – and get money in another way.
Bank charges.
Rand exchange rate may change at any time.

Suggestions:
Keep you cards safe as this is a good way of carrying cash.

International Forex Card

Pros:
Rand exchange rate won’t affect you once you’ve bought this.
You can cash out what you don’t use when you get home.
You can get 2 cards and this works like a debit card – but in the currency you need it in.
You don’t pay charges when swipi.jpgng at a merchant.

Cons:
If you get only one card the replacement fee is $100.
You pay charges when drawing money.
There is a 1 to 2% commission .

Suggestions:
This is a really great option and you can get it from most banks.

When choosing your money option, the most important thing to remember is that you need to be comfortable with your option.

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