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The Saltimbanque’s Tips (Episode 2) : MANAGING YOUR MONEY WHILE TRAVELLING: BANK CARDS, CASH AND MOBILE WALLET
When travelling long-term, managing your money is essential. Having a bank card is not enough: you also need to plan for technical failures, blocked cards, theft, difficulties withdrawing cash and the specific payment systems used in different countries.
After years of travelling, I would like to share my personal approach and the solutions I use to keep travelling, even when one of my payment methods becomes unavailable.
1. TWO FUNDAMENTAL PRINCIPLES: REDUNDANCY AND RISK DISTRIBUTION
Two concepts are essential when planning your payment methods for a trip.
Redundancy means having several parallel systems, so that if one fails, another can take over.
Risk distribution is based on a simple principle: never put all your eggs in one basket.
For example, avoid keeping all your documents, bank cards and payment methods in a single belt bag or backpack. If you lose that bag or it gets stolen, you could find yourself in a very difficult situation.
Spread your belongings and payment methods across different locations.
The goal is simple: make sure that a single incident cannot leave you without any way to pay.
2. BANK CARDS: TWO COMPLETELY INDEPENDENT SYSTEMS
For bank cards, I recommend having two sets of two cards, giving you four cards in total, divided between two independent systems.
First set: the main system
This consists of two bank cards linked to two different bank accounts, together with a phone associated with a French telephone number that can receive SMS messages for banking transactions.
Second set: the backup system
This also consists of two bank cards linked to separate bank accounts, together with a second phone equipped with another French SIM card.
For example, this could be a €2-per-month French mobile plan, provided it allows you to receive the SMS messages required for banking transactions.
The two systems must be genuinely independent, both physically and operationally.
The backup system should be kept somewhere separate from the rest of my belongings. The idea is not simply to have four cards in the same wallet, but to maintain a genuine alternative if the main system fails.
Personally, I have four bank accounts: N26, Revolut, BoursoBank and my traditional bank. This allows me to spread my payment methods across several banking institutions.
3. WHICH BANK CARDS SHOULD YOU CHOOSE?
I recommend considering digital banks, which often offer attractive cards for international travel, with reduced or even zero fees on certain transactions and cash withdrawals.
Personally, I use three digital banking services:
- Revolut
- N26
- BoursoBank
My fourth bank is my traditional bank, the one I have used for years.
Visa or Mastercard?
I recommend having at least one Mastercard, such as the one I use with N26, and complementing it with Visa cards.
Why? Because card acceptance varies from country to country and from one establishment to another. Although refusals are relatively uncommon, a Visa card may occasionally be rejected where a Mastercard is accepted, or vice versa.
Having both networks gives you more payment options.
Keep a card suitable for car rentals
Among your four cards, I also recommend having at least one card with deferred debit, often referred to as a credit card in everyday banking terminology.
This can be particularly useful when renting a car, as some rental companies require a credit card to place a pre-authorisation or security deposit.
However, requirements vary between rental companies and countries, so always check the conditions before booking.
4. SOME GOOD PRACTICES FOR KEEPING YOUR CARDS SECURE
Keep your backup system somewhere separate from the rest of your belongings.
I also recommend locking your backup bank cards when they are not in use. They remain available when needed while reducing the risk of fraudulent transactions.
The same principle applies to your backup phone. Check your SIM card settings and disable international outgoing calls if you do not need them, in order to reduce the risk of unexpected charges.
However, make sure you can still receive banking verification SMS messages when necessary.
Securing online purchases
For all my bank cards, I recommend disabling online payments whenever the bank offers this option.
For online purchases, I prefer using virtual cards, which are easy to replace if they are compromised or their details are stolen.
Replacing a virtual card is generally much easier than having to cancel a physical card and wait for a replacement while travelling on the other side of the world.
In my own system, buying airline tickets is an exception: I may use a physical card directly when necessary.
5. HOW DO YOU PAY LOCALLY?
First option: withdrawing cash from ATMs
The most conventional method is to use your bank card to withdraw money from an ATM and then pay for your expenses in the local currency.
But be careful: even if your own bank charges no commission, the local bank operating the ATM may charge a withdrawal fee.
In Africa, for example, ATM fees can be around €4 to €8 per withdrawal.
These amounts vary depending on the country, the bank and the ATM.
You need to factor these costs into your travel budget. Making lots of small withdrawals can quickly become expensive.
6. MOBILE WALLETS: A VERY PRACTICAL SOLUTION IN AFRICA
The use of mobile wallets has grown considerably across Africa in recent years.
In many countries, they are now a particularly convenient payment method, especially in small and medium-sized towns.
The process is simple: when you get a local SIM card, ask your mobile operator about opening a mobile wallet linked to your telephone number.
You can then use this wallet to pay for purchases at participating businesses.
You can also send money directly to another person, provided they have a mobile wallet too.
Wallet-to-wallet transfers have become very common in many African countries.
Some of the best-known services include Orange Money, Wave and MTN MoMo, among others.
Why use a mobile wallet?
The main advantage is that you can significantly reduce your need for cash.
In Africa, one recurring problem with cash payments is getting change. Shopkeepers do not always have enough small notes to give you the correct change.
With a mobile wallet, you pay the exact amount. No more problems getting your change!
Cash nevertheless remains essential as a backup. You will need it when electronic payments are not accepted, when the network is unreliable or when you are in a small village where cash is the only accepted payment method.
These transactions generally involve small fees or commissions. They are often modest, but it is best to check the fees charged by the local operator.
When travelling in Africa, mobile wallets and cash are therefore complementary payment methods.
7. THE DJAMO CARD: A PARTICULARLY INTERESTING OPTION IN AFRICA
Another payment method worth knowing about is the Djamo card.
Djamo offers, among other products, a prepaid international Visa card that is not directly linked to a traditional bank account.
It can be obtained relatively easily in countries where the service is available, including Côte d’Ivoire and Senegal.
It allows you to pay for purchases and, subject to the applicable conditions, withdraw cash from ATMs.
What is the advantage?
For me, its main advantage concerns cash withdrawals.
With a conventional foreign bank card, local ATMs may charge a fee for every withdrawal. To reduce the overall cost, you may therefore be tempted to withdraw large amounts each time.
With a Djamo card, withdrawal conditions may differ from those applied to conventional foreign cards. This can make smaller withdrawals possible, provided you check the fees charged by Djamo and the ATM operator.
The card can therefore be useful for travellers visiting countries where Djamo is available.
However, I advise against using it indiscriminately in other countries without checking the exchange-rate conditions. Currency conversions may be less favourable than those offered by other cards.
It is important to distinguish between countries where the service is available and countries where the card can simply be used on the Visa network.
8. HOW DO YOU TOP UP MOBILE WALLETS?
There are several ways to add money to a mobile wallet.
The first is to withdraw cash from an ATM and then visit a dedicated kiosk to deposit that cash into your wallet.
Personally, I never use this method.
I prefer to top up my mobile wallets directly using my international bank card and money-transfer apps.
I have three on my phone:
- Sendwave
- Western Union
- MoneyGram
The principle is simple: link an international bank card to the app, then transfer money to your local mobile wallet.
When the service is available and the transaction is approved, the money generally arrives within seconds.
What about fees?
Fees vary depending on the app, the country, the amount transferred and the payment method used.
Sendwave sometimes offers transfers with a fee of around €1. MoneyGram can be a little more expensive, while Western Union’s fees vary considerably depending on the circumstances of the transfer.
Always compare the fees before making a transaction, and remember to take the exchange rate into account as well.
Why use three different apps?
For the same reasons mentioned earlier: redundancy and risk distribution.
First, an app may not work in a particular country.
Second, fees can vary between services.
Finally, agreements between money-transfer services and mobile-wallet operators are not always the same. Depending on the country and the service involved, some combinations will work while others will not be available.
That is why I recommend having several apps.
Use a different virtual card for each app
I also recommend linking a different virtual bank card to each of these apps.
In my own system, I lock the virtual cards associated with the two apps I am not currently using, leaving only the card I need unlocked.
This helps isolate risks in the event of a security problem and limits the number of active cards at any given time.
Verify your identity before you leave
One essential point concerning money-transfer apps and mobile wallets is to have your identity verified before departure, or as soon as you open your account.
Providers may ask you to submit a copy of your passport or other identity documents. This process can take time and may require a reliable internet connection.
This verification is important because transfer and payment limits may remain relatively low until your identity has been confirmed. You could otherwise find yourself unable to transfer a larger amount when you need to.
It is therefore best to complete these procedures in advance, while you still have a good internet connection and can easily submit the required documents.
Keep in mind that limits and identification requirements vary between providers and countries. Also check that your account allows the transactions you intend to make.
Western Union: a backup solution for obtaining cash
Western Union offers another useful option: if you run out of payment methods, you may be able to send money to yourself through the app, provided you have an accepted way to fund the transfer.
You can then collect the money in cash at a Western Union location, depending on the services available in the country and the conditions of the transfer.
This can be a particularly useful emergency solution when travelling long-term and encountering problems with your bank cards.
However, you need to plan for possible difficulties. You must be able to fund the transfer, access the app or another way to initiate it, and reach an accessible collection point. Fees and identity checks may also apply.
It is therefore another backup option worth knowing about, although it is best to check that it works in the country you are visiting before you actually need it.
9. SHOULD YOU CARRY FOREIGN CURRENCY IN CASH?
Yes, absolutely. But it depends on how you travel and what you intend to use it for.
For a conventional holiday, some travellers choose to rely mainly on cash and exchange money at local exchange offices.
Personally, when travelling long-term, I consider foreign currency in cash primarily as an emergency reserve.
It is useful in three particular situations.
First situation: emergencies
Imagine finding yourself somewhere without any money available through your bank cards because of a technical problem, a blocked account or difficulties withdrawing cash.
Having a reserve of foreign currency allows you to exchange money locally and continue your journey.
It is an additional safety net that can prove invaluable when you are far from home.
Second situation: countries where international cards work poorly or not at all
Some countries present particular difficulties for international bank-card payments.
Iran, for example, is cut off from international financial networks because of sanctions. Conventional foreign bank cards are therefore generally not usable there.
Nigeria can also present difficulties in certain situations, particularly when trying to find ATMs that are accessible and connected to international networks.
In these countries, carrying foreign currency in cash can be essential to finance your stay.
Third situation: when official and parallel exchange rates differ significantly
In some countries, there can be a substantial difference between the official exchange rate and the rate available on parallel markets.
In such circumstances, carrying foreign currency in cash may allow you to obtain more local currency when exchanging money.
Be careful, though: unofficial currency exchange is not necessarily legal.
What if you run out of cash anyway?
In some countries, such as Iran, conventional international bank cards do not work. It is therefore essential to carry enough cash.
But what if you nevertheless run out?
One possible emergency solution is to use a PayPal account. In some situations, you may find an exchange office or an intermediary willing to give you cash in return for a transfer to someone in their network who lives in Europe.
The principle is simple: you make a remote transfer, and your contact gives you the equivalent amount in cash locally.
However, this should only be considered a last resort. Commissions can be extremely high, sometimes in the region of 10% to 25%, depending on the terms offered.
You must also check whether the transaction is legal, whether the intermediary is trustworthy and whether PayPal’s terms allow the transaction in the country concerned.
The risk of fraud is real. Never transfer money to a stranger without verifying their identity, the legitimacy of their activity and the actual possibility of receiving the promised cash.
This illustrates an important principle of long-term travel: even when your usual payment method stops working, alternatives may sometimes exist, provided you understand their limitations and risks.
My principle remains simple: foreign currency in cash is primarily an emergency reserve. It complements bank cards and mobile wallets rather than replacing them.
10. US DOLLARS OR EUROS: WHICH CURRENCY SHOULD YOU CARRY?
Personally, I prefer US dollars, although I also carry euros.
Why?
Because in some places, euros may be accepted at the same rate as dollars, without taking their actual relative value into account. You can therefore lose money when exchanging them.
The euro is nevertheless widely exchangeable around the world.
My advice is to carry some of both, prioritising whichever currency is easiest to exchange in the countries you plan to visit.
Remember to carry different denominations!
Another detail people do not always consider is the size of the banknotes they carry.
I recommend having a range of denominations, including smaller notes, such as $20 bills, as well as larger ones.
Smaller notes allow you to exchange only the amount you need, rather than having to change a larger sum.
Conversely, when exchanging a substantial amount, larger notes may sometimes qualify for a more favourable exchange rate than smaller denominations.
At some exchange offices, a $100 bill may therefore receive a better rate than five $20 bills representing exactly the same amount.
The key is to diversify both your currencies and your denominations, giving you maximum flexibility when managing your money on the road.
11. THE KEY PRINCIPLE: ALWAYS HAVE A BACKUP PLAN
Banks, money-transfer apps and mobile wallets are constantly evolving. Their fees, terms of use and availability also vary according to the country and the time.
Rather than providing a list of solutions that may quickly become outdated, I prefer to explain the principles behind my personal approach: redundancy, risk distribution and diversification of payment methods.
It is then up to each traveller to check which services are available when they travel and in the countries they plan to visit.
The objective remains the same: to ensure that you can access your money whatever difficulties you encounter on the road.
When travelling long-term, it is better to prepare several alternatives before you need them than to desperately search for a way to pay when you find yourself stuck.
What about you? What methods do you use to manage your money while travelling? Feel free to share your experiences and tips in the comments!
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