Travelling around the world can be a thrilling prospect but it can also be riddled with unexpected financial hurdles. Hidden fees and costly surprises can turn an exciting adventure into a financial nightmare.
Wise, a financial technology (fintech), shares with Sinar Daily some tips to a smooth and cost-efficient journey. From currency conversion traps to unexpected hotel charges, equip yourself prepared to avoid hidden fees and ensure that your next voyage is an unforgettable experience for all the right reasons.
Pay in local currency
When you’re travelling overseas, card machines may offer to let you pay in your home currency using Dynamic Currency Conversion. While at the surface level this helps you understand how much you’ll be paying in your home currency, the exchange rate offered is inflated. Choosing to pay in local currency and letting your card provider convert the amount for you will result in a fairer exchange rate.
Know how and when to shop tax-free
Many countries let tourists apply for a VAT (value-added tax) refund and even offer tax-free shopping. This means you can get money back from your purchase abroad. When making large purchases, bring your passport and ask the retailer for a Tax Refund Application.
Do your research
Before shopping abroad, it can be helpful to compare prices online – especially for big-ticket or luxury items. This will help give you a better understanding of whether something is worth purchasing abroad.
Try out Wise
With a Wise account, you can spend, send and receive money in over 40 currencies, making it easy to manage your money. Wise always states all fees clearly for every transaction and converts currencies at the mid-market exchange rate so you never unknowingly end up paying more than you should. The Wise account also comes with a card that allows two free ATM withdrawals of up to RM1,0001 a month, so you don’t have to worry about withdrawal fees while abroad.
Customers in Malaysia can now add their Wise cards to Apple Pay and Google Pay and use it to pay for purchases both locally and internationally.