One of the main doubts of every traveler is about how to take money. Nowadays there are so many options that we end up even lost among them, right? Evaluating all alternatives is essential to making a choice without mistakes and regrets. After all, should we take cash, credit card or prepaid card?
If you’ve always asked yourself that, you can rest assured! I will explain a little about these options and clarify some common doubts. Each person usually has a style of travel, so it is important to understand what is the best option within the type of tour you plan to do ?
Currency in kind
This is the preferred way of people who intend to take a trip low cost! Undoubtedly, taking cash is really the cheapest way. The famous IOF (Tax on Financial Operations) is applied to different operations, one of which is foreign exchange. That is, every time you buy or sell any currency, the tax will be applied.
The good news is that the IOF for the purchase of paper money is less than the rate applied to cards. For cash, you will be charged 1.1% tax (IOF in 2018). This amount is added to the amount you will have to pay to buy the chosen currency. In the case of the dollar, for example, suppose you need 400 reais to have 100 dollars. IOF will be charged on the amount of 400 reais, which will be R $ 4.40. Do you understand?
Ah, airport exchange offices tend to be more expensive. For this reason, plan to buy the currency a little while before your trip. If you don’t have enough money to buy everything you intend to take, buy the coin little by little. It’s a very practical way and it doesn’t weigh so much in your pocket no
With the money purchased, other concerns arise. How to take and save this money during the trip? In this case, macaques are one of the best solutions! As many people do not feel comfortable walking with all the money in hand, set aside a little to keep in the money changer, another part in the wallet and the rest leave it in the place where you will be staying.
In hotels, it is interesting to leave a little in the safe, for example. If you are going to share a room with strangers, hide it in a corner of your suitcase and put the lock. Try to disguise the money in socks or in necessaires, always with other things, you know? Saving a little money in each place is one of the alternatives that most often work!
Unlike the currency in kind, the IOF fee charged for credit cards is much higher. Currently, the tax for this type of transaction (2018) is 6.38%. Very expensive, right? Another disadvantage is that, depending on your card, the amount paid at the end will always be uncertain.
Some banks / cards do not have a method that locks the foreign currency quotation with the value of the shopping day. Consequently, the amount paid at the end will be determined by the quotation on the closing date of the invoice.
However, this is a slightly safer method for those who don’t want to carry a lot of money. In addition, some banks have miles programs and bonus services. If this is the case, it is worth doing some research on what benefits the bank offers and if they are really interesting.
Prepaid card (or Travel Money)
Like the credit card, the IOF fee is 6.38%. The difference is that the quote is locked, no matter what bank or flag it is. That is, the currency exchange value will be the one paid on the day of the card recharge.
Some exchange offices get a slightly lower rate than that charged on credit cards, so take a look at the options in your city. If you need to, you can also withdraw the money when you reach your destination. However, this service will also be charged. Oh, and always keep an eye on your balance, okay?
The debit card is usually the black sheep in the middle of all these options. Although he has a credit card advantage, as he charges the charge according to the exchange rate of the day, the debit card is the champion in complaints. Many establishments end up not accepting this type of payment or the transaction cannot be made!
For these reasons, don’t rely on your credit card for anything. Always take other forms of money to avoid embarrassing situations and possible problems. We are not always able to guess all possible obstacles, but in this case it is good to be careful and attentive ?
NOTE: o IOF charged is also 6.38%.
So, were you able to decide what the best alternative for you? My tip is: take a little on a type of card and the rest on paper money. That way, you will always have the guarantee that you will have money to cover your expenses!