Money Matters
Program Costs and Billing

Although it seems obvious, please remember you will be dealing with a foreign currency while abroad. This money will look odd and seem like Monopoly money for a while. But it is real. Some countries deal mainly in coins rather than paper currency. Once you arrive abroad you may be tempted to exchange all of your U.S. money into the local currency and then start to spend. Please wait! It will take you a few weeks to really figure out how the exchange rate works and what things are really worth. Students can find themselves broke after only a month or two because they didn't understand how the new currency really works. Whatever you "need" to buy will be available within a few weeks after your arrival. Take the time to get to know the currency and city before you spend all your cash.

The ATM machine has greatly facilitated money transactions abroad. Most countries now offer this service on a wide scale basis. However, be sure to check with your program provider before planning to use ATMs as your sole means of obtaining money. Also check with your own bank to be sure you understand any fees or surcharges applicable to international use of your ATM card. These charges can be steep and may determine how you budget your money. It is also important that you notify your bank that you will be traveling abroad, providing them with the dates and countries of travel.  Otherwise your card could be declined, as it is believed to be stolen.

If ATM machines are widely available where you will be studying, ensure that your bank card has international withdrawal privileges. You may also want to considering adding a family member to your account for the time you will be abroad. This way, if you need additional funds, or have any issues with your account while you are away, your family member can access your account and facilitate a solution. Be sure that you know your numerical PIN. Some machines don't have the alphabet written above the numbers that makes it very difficult to punch in your code.

Credit cards are another source of money which are widely accepted throughout the world. As in the U.S., credits cards can be used in shops, restaurants, and hotels. If you do decide to use a credit card on your trip, Visa and Mastercard are the most widely accepted names. American Express is accepted in some countries but is less widely used.

Many countries around the world, particularly in Europe, have been transitioning to chip and PIN technology in their credit and debit cards. Chip and PIN technology is a new, more secure way of paying with credit or debit cards. The card has a computer chip embedded into it and it also has a PIN (personal identification number). In countries with Chip and PIN technology, credit cards are no longer “swiped” on a magnetic strip as is done in the USA. Instead, the card goes through or is inserted into a chip reader and the cardholder must enter their PIN to complete the sale. American debit/credit cards should still work in ATMs in other countries regardless of chip-and-pin technology, but you may have to request for your card to be swiped instead of using a Chip and PIN reader. Keep in mind that some restaurants and stores may only take cards on the Chip and PIN system, so you should always have cash on hand. Unmanned payment kiosks (typically found in train stations) usually require cards with the Chip and PIN technology. Most US banks and credit card companies are now offering cards with the Chip and PIN technology. Check with your bank and/or credit card company for more information.

Credit cards can also be used for cash advances in case of an emergency. We do not, however, recommend that you use them for this purpose unless it is truly an emergency! Cash advances carry very high fees and interest charges, which, if not paid immediately, add up to huge balances/debt. It is a good idea to check with your credit card company for details before you depart. Remember to leave your credit card numbers with someone at home in case they are stolen or lost while you are abroad. It is also important that you notify your credit card company that you will be traveling abroad, providing them with the dates and countries of travel.  Otherwise your card could be declined, as it is believed to be stolen.

If possible, do not travel with a lot of cash. Cash is impossible to replace if lost or stolen. If you must travel with a lot of money, make sure it is in the form of traveler's checks. Traveler's checks are the safest form of money you can use since they are insured and can be replaced if lost or stolen. Always keep a list of the serial numbers for your checks and record the check numbers as you spend them. (Keep this record separate from your actual checks and leave a copy with someone at home.) This will make it easier to replace them if necessary.

Although you can obtain traveler's checks in other currencies, we recommend only carrying traveler's checks in U.S. dollars. You must purchase them yourself in the U.S. as you will be the only person allowed to sign them once abroad. They can be cashed at most foreign banks or currency exchange centers for a small fee. Unlike in the U.S., traveler's checks cannot be used to make purchases in stores in most countries.

While you should not carry a lot of cash, you should exchange a small amount of U.S. dollars into the local currency of your country of destination before you depart, enough local currency to cover the first few days in your new country. Your program sponsor should be able to give you an idea of how much local currency to bring. With advance notice, currency can be exchanged at some of the larger banks in Saratoga Springs and Albany. Be aware that you will be charged a fee for the service. (If you are going to a lesser-traveled country, you may not be able to obtain currency until your arrival.) Currency can also be exchanged at the airport prior to your departure. It is also a good idea to keep a small amount of U.S. dollars ($50) for your return trip. Again, this will cover expenses when you return home.

If you will be in a country without good ATM and credit card access, there are other options for your money. As mentioned, traveler's checks are commonly accepted in most countries. If funds become tight and you need emergency cash, money can be sent as a bank draft in the foreign currency. This costs about $25 and takes at least one week. It can also be wired directly to a foreign bank via telex, which costs about $30 and takes from 1 to 5 days. Funds can also be transferred via American Express or Western Union. It is a good idea to have your parents or guardian look into this before you depart so that you have an emergency plan in place. In a true emergency, the local U.S. Embassy or Consulate can assist you.