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Pyypl Team
Jun 11
/
3 mins

How to Avoid Hidden Charges When Paying Abroad

Avoid these unnecessary hidden charges and make the most out of your money.

Paying with a payment card
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Summary

When it comes to planning your dream vacation or an essential business trip abroad, there's enough to worry about. Flights, accommodation, packing - and let's not forget the impact of exchange rates on your budget. However, with some knowledge and a bit of strategy, you can avoid these unnecessary hidden charges and make the most out of every dirham spent. Here's how:

Be Aware of Transaction Fees

Your UAE-based credit or debit card may not be your best friend when you're travelling. Every swipe in a foreign country can come with hefty transaction fees, which can add up quickly. When travelling, it's essential to be aware of these charges and plan your expenses accordingly.

Watch Out for Dynamic Currency Conversion (DCC)

DCC is when you are given the 'convenience' of having your transaction converted into your home currency at the point of sale. While this may seem helpful, the conversion rates used are often not in your favour, leading to higher costs.

Use a Prepaid Virtual Card

A prepaid virtual card can be a game-changer for travellers. You load the card with the amount you plan to spend, helping you stick to your budget. The best part? A UAE virtual prepaid card like the one provided by Pyypl offers competitive exchange rates, saving you a considerable amount.

Consider Using a Local Currency Card

If you're frequently visiting a particular country, consider getting a card in that country's currency. This option can save you from unfavourable exchange rates and foreign transaction fees. However, this isn't a feasible solution for everyone or for every country you may visit.

Keep an Eye on ATM Fees

Withdrawing cash from ATMs abroad can also rack up charges. While it's always handy to have local cash, limit your withdrawals to necessary instances. Many places accept card payments, so you can use your virtual prepaid card from the UAE abroad as well.

Plan and Budget

One of the most effective ways to avoid hidden costs is to plan your spending and stick to a budget. This isn't just about knowing how much you plan to spend on accommodations or attractions, but also considering everyday expenses such as meals, local transport, and incidentals.

Prior to your journey, dedicate some time to researching costs in your destination. The cost of living can vary significantly from one place to another, and understanding what to expect can help you budget more effectively. Explore travel forums, blogs, and guides to get a realistic picture of the everyday costs you'll encounter, and plan accordingly.

Regularly Check Your Account

Keep an eye on your account to track your spending and to spot any unexpected charges. Using a user-friendly mobile app for your virtual prepaid card can make it easy to oversee your transactions, ensuring you always have full control over your finances. It's about making your travel experiences not just enjoyable, but also financially savvy.

Final Thoughts

Using payment cards abroad doesn't have to be a costly affair. By being aware of potential hidden charges and planning ahead, you can focus on what truly matters - enjoying your time abroad!

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