With a handful of options, many travelers are unsure of the best ways to access money in Asia while traveling. Choosing the wrong way could cost you a lot of money lost in bank fees and commissions.
As the old investing mantra says: diversify. Your safest bet to always have local currency in Asia on hand is to have more than one way to raise funds.
Although ATMs are often the best way to get money in Asia, networks on islands or in remote locations can fail for days at a time. Machines often make capture cards; many banks do not send them to international addresses. For your peace of mind, you need currency exchange forms.
Your options for getting money while traveling in Asia are generally limited to these options:
- Use local ATMs
- Exchange money from home for local currency
- Using a credit card for cash advances
- Traveler’s check cashing
Using ATMs for local currency in Asia
In addition to small villages and islands, ATMs connected on all major western networks are now available in most tourist spots in Asia. Myanmar was one of the last holdouts in Asia, but now more ATMs can be found there.
Using ATMs to obtain funds means you can safely carry less cash, a good measure against potential theft. You can get money as needed. ATMs dispense local currency, eliminating the need to exchange money.
Before taking your ATM card to Asia, check with your bank; many charge a small foreign transaction fee (around 3% or less) each time you withdraw money.
- Learn about current scams in Asia before you arrive.
Tips for using your ATM card in Asia
- Please inform your bank that you will be using the card abroad so that they will not flag your account and deactivate the card when charges arise from Asia! See other things to do before you leave home.
- ATM fees in Asia vary widely, so always check first; The fee in Thailand is around US $ 5 per transaction! For this reason, you may want to take the maximum daily limit each time. Tip: ATMs connected to banks often have higher daily limits than independent ones that require more effort to reload with money.
- In some places, thieves plug card-skimming devices into the actual slot of ATMs. The reader steals your card number as your card enters the machine. Pay attention to the card slot and stick to using ATMs in banks or busy places.
- When choosing an amount to withdraw, choose a number that will cause the machine to dispense smaller bills rather than large bills that can be difficult to tear later. For example, don’t ask for 6,000 baht, ask for 5,900 baht instead.
Exchanging money in Asia
After ATMs, many people still change money at the airport after arriving in Asia. While they are reliable, exchange rates are generally not favorable.
- Get an idea of the international exchange rate before landing, but don’t expect to always get the current rate.
- Airport kiosks are safe, but they often offer the lowest exchange rates.
- Once on the street, stay with the exchange of money in banks; random street kiosks may or may not be legal. Counterfeiting is common: never exchange money with an individual on the street.
- Count your money before you walk away from the exchange window.
- Do not accept torn or discolored notes. Many are bent on foreigners and it may be impossible to spend them later.
- In some countries, like Nepal, you will have to save your receipt to change the money to your own currency when you leave. This is to make sure you did not earn money while you were in the country.
Check out current exchange rates and more tips on exchanging money in Asia.
Using credit cards in Asia
Although carrying a credit card on your trip is obviously a good idea for emergencies, don’t expect to use a credit card as your main source of funds for eating and shopping.
Most small shops, bars, and restaurants in Southeast Asia don’t accept credit cards, and those that do often add a 10% or more surcharge or commission. Your bank will probably also charge you a foreign transaction fee unless you have a card marketed for travelers.
Credit cards are best used at upscale restaurants and hotels, to pay for activities like diving, and to book cheap flights in Asia. The less you use your card, the less chance your number will be compromised, a growing problem in Asia.
Credit cards can be used at ATMs for emergency cash advances, although you will pay a foreign transaction fee and interest rates on cash advances are generally higher.
Visa and MasterCard are more widely accepted throughout Asia than other cards.
Use of traveler’s checks in Asia
American Express traveler’s checks can be cashed at banks throughout Asia for a fee. Carrying traveler’s checks is an old protection against carrying too much cash at the same time, yet they are becoming less popular.
- There is often a commission added per cashed check, so carrying larger-denomination checks will result in fewer fees.
- Traveler’s checks should only be used as an emergency method to exchange for local currency; hotels and merchants rarely accept them directly.
- Before leaving home, record traveler’s check serial numbers in a hidden email along with the international number to report lost or stolen checks.
Carry US dollars in Asia
No matter the economy, the US dollar continues to perform better as a travel currency in most parts of the world. Dollars can be exchanged or used in a pinch more easily than other currencies. In some countries, Cambodia, Laos, Vietnam, Myanmar and Nepal to name a few, sometimes even the dollar is preferred over the local currency. To counter this, Asian governments have begun to impose new restrictions that encourage the use of the local currency over the US dollar.
Even immigration counters often prefer to receive dollars for visa fees when travelers enter the country. Pay in whatever currency works best for you.
Carrying a large amount of cash is a bad idea, but having US dollars on hand in a variety of denominations will definitely come in handy. Make sure to bring clean new bills as money changers often reject old and worn bills.
- If the price is given in dollars rather than the local currency, you are relying on the merchant’s exchange rate – ask for the cost in both currencies.
- A common scam in Vietnam is to quote a price in dong, then claim the price was in dollars when asked to pay! Read more about the use of money in Vietnam.
