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1. Currency Conversion Traps

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Its basically digital pick-pocketing when hotels, restaurants and shops that systematically cheat foreigners who use credit and debit cards in their businesses. The means used to scam foreign travelers goes by a fancy name: dynamic currency conversion, but its principle is simple. Foreign merchants add a stiff markup to your bill, convert it to your home currency, then claim it benefits you. You could be paying up to 8% for these charges.

To avoid this you can either deal with cash only for smaller purchases or request the receipt to state purchase amount in their local currency. Lastly take a photo of your receipt to have evidence of non-consented charges. We generally confirm the chargers over and above the agreed price but for smaller amounts we just use cash.

 

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2. ATM charges to be aware of

 

Money from an ATM abroad can often be one of the cheapest ways to get your foreign currency when overseas – but some banks charge more than others. Many banks charge higher fees for international ATM withdrawals either a flat rate or a set percentage of your total withdrawal. 

 

Instead of drawing smaller amounts every 2 days, withdraw a larger amount once a week as this will reduce these charges drastically. 

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3. Domestic and international flight baggage fees

 

You touch down from your international flight with a baggage allowance of 30kg but once you take a domestic flight within that country your allowance is only 15kg. The fees will shock you. 

 

Sometime booking the domestic flight with the same airline can allow for some leniency but these are charges you need to be aware of and plan for. Perhaps packing lighter is the best option. 

 

 

4. Taxi fares especially at the airport

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The taxi driver knows that you are overwhelmed once coming off your long flight, landing in a new country and will take full advantage of you knowing that you have no knowledge of the average pricing. Another thing to be aware of is the drivers taking detours to rack up more kilometers.

 

Best thing to do here is to Download Uber or Taxi App and type in your destination this will give you a good idea of fair prices to your desired destination.  From there you can either negotiate with the taxi drivers or just book the taxi on the App. Type the destination into your own Google maps and keep track of the route. I often co-drive and backseat navigate.

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5. Applying for visas or activities through travel companies

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Booking through companies can be a way to feel safe knowing that that everything is taken care of but these companies make their money by adding a service charge to all costs. There are also risks of them disappearing with your passport. 

If you are serious about saving money you will take the time to plan your trip and apply for visa directly. You can also arrange your activities directly with the adventure company. I’m not discrediting their services but I have just found that it unnecessarily takes large chunk of your travel money.   

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6. Using a different currency for the first time

 

When you find yourself in another country you need to be extra awake when dealing with the foreign money. Don’t trust everyone who is trying to help you with calculating amounts. When you in your hotel room take the time to look over the notes, colours and imagery on the money. It’s always interesting to observe foreign money. 

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7. Money Changing

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This happens mostly at markets where you give the amount in cash to the seller, but they exchange your 100 for a 10 without you noticing and claim you never gave them enough. Always be vigilant when doing transactions. 

 

 

8. Bar Scams

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Sometimes hearing the words my friend can leave alarm bells in your mind. Having a local very interested in befriending you and asking you all sorts of questions keeping you engaged while having a few drinks, only for him to disappear leaving you with his bill to pay. 

Best way to avoid this is to not run up a tab. Pay for your drinks with cash at the bar round after round. 

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9. Gift giving

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They use this tactic on the streets to make you feel obligated to either follow them to their shop or buy from what they can sell you on the street. They insist it’s just a gift and once they hand it to you they refuse to take it back. 

Try not take the gift in the first place which will leave you more freedom to exit the conversation and end the interaction. 

 

 

10. ‘It’s not open today’

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Often people such as taxi drivers get kickbacks when referring clients to their friend’s store or restaurants. They will insist that the place you want to visit is closed today and suggest an alternative place where they will gain benefits.

Say you meeting someone there and they say its open, double check on social media on their operating hours. Don’t believe every friendly face and get enough information to make your own decisions.