UAE- Managing your wallet is key to a good holiday

(MENAFN- Khaleej Times)Are your flight tickets booked? Hotel reservations made and itineraries planned? You're still left with an important aspect of travel planning that demands your attention and some research - choosing the best source of money before you head abroad.

There are a few travel-friendly and convenient modes of payment available to choose from - credit cards debit cards prepaid cards cash and traveller's cheques.

Travelling with a credit card

Cards are a convenient and cashless mode of payment and credit cards are a popular choice among travelers for their international transactions.

Some key benefits of using credit cards while travelling include free travel insurance cover and access to emergency medical and legal referral services a chance to earn higher cashback on international transactions along with great discounts on travel-related spend with travel-reward credit cards.

But there are a couple of details you should be aware of before using your credit card abroad. Before leaving make sure to check with your bank or card provider about the transaction fees and currency conversion charges levied by them. Also make a note of bank contact numbers and leave your contact details with the bank or your relationship manager so they can get in touch with you while you're away.

While travelling it makes sense to hold on to transaction receipts and keep a tab on your card activity. You should also avoid using your card at dodgy looking stores and outlets and don't share your pin with hotel staff bank representatives or anyone for that matter.

Using a debit card

You can restrict your spending to your account balance when you use a debit card. Debit cards are as good as using cash but avoid the hassle of handling cash or getting currency converted physically. An SMS email alerts and online banking can help you track your spending. Checking your current account balance and card expiry date before leaving is also a smart thing to do.

Card companies like Visa and MasterCard levy a transaction fee of around one per cent on all international transactions made with their cards. On top of this your bank may also charge you a currency conversion fee. You can also use your debit card to withdraw cash from an ATM in another country but there are additional fees levied on non-UAE ATM transactions as well.

Getting a prepaid travel card

Many exchange houses in the UAE offer prepaid travel cards. These cards can be loaded with one or more international currencies. Like a regular credit or debit card you can use these cards to make transactions at various merchant locations. You can also keep track of your spending via SMS or email alerts.

Prepaid travel cards offer you some unique benefits like easy over-the-counter application and convenient re-loading options. And unlike a credit card you do not incur any debt.

For example you could take UAE Exchange's Gocash multi-currency card which can be loaded with up to six currencies has a hassle-free application procedure and is convenient to use and re-load.

Converting cash into local currency

If you want to carry some cash on your holiday you can either convert it into the local currency before leaving or when you reach your destination. While converting currency at the airport can be expensive you can check out places with several exchange houses to help you compare the rates and get the best deal.

Carrying some cash while travelling can be useful since not all establishments or stores accept cards especially the ones in smaller towns. You can also keep some cash stashed away for emergencies in your hotel room's safe deposit box.

Traveller's cheques - a secure way to transact

Traveller's cheques are not as popular as they used to be but are still the most secure way to transact when you're travelling abroad. Traveller's cheques are prepaid cheques for a fixed amount and are available in major world currencies. If lost or stolen these cheques can simply be cancelled and replaced by the issuer.

Traveller's cheques by MasterCard Visa and American Express are acceptable globally. What's great is that these cheques don't have an expiry date and can be reused on your next trip.

With quite a few options available when it comes to carrying money abroad you shouldn't have to choose one. A mix of two or more payment methods is a good option so you always have a back-up if your preferred source of money gets lost or stolen or is not accepted at certain establishments.

The author is the founder and chief executive officer of Souqalmal.com. Views expressed are her own and do not reflect the newspaper's policy.