Using ATMs overseas

A reader at the Vagabonding.net Q&A writes: "I receive a monthly pension that I intend use for my travel. What is the best way to insure that I can access my funds monthly -- in third world countries, off the beaten track? Also, should I carry cash or travelers checks?"

I told him that I recommend talking to his bank and setting up an arrangement wherein his pension check goes directly into his account each month. That way his funds will be accessible at overseas cash machines via international ATM services such as Cirrus (he should check with his bank to see which ATM service he'll use). And, believe it or not, these ATMs are available in almost every big city in the world – and they will automatically give travelers local currency at the going international exchange rate (minus a service fee of $1-$2).

As for remote, off-the-beaten-track areas, you should prepare for these regions by getting ATM cash in the cities first. For safety reasons, of course, you should never carry more than you will need – and be sure stash it in several different locations (money belt, wallet, hidden pockets, bottom of your bag) so that you’ll have backup funds in the event of loss or theft.

In fact, overseas ATMs should be able to meet most of travelers' cash needs. Nevertheless, it’s wise to carry modest sums in cash and traveler’s checks as a backup. On a multi-month vagabonding journey, I’ll usually bring $200 in cash and $500 in traveler’s checks – and only spend them when I absolutely have to. Often I return home without having touched the traveler's checks -- which is a testament to the prevalence of ATM machines these days.