Purchases abroad are becoming more common due to technological facilities and the growing use of cards credit and debit. If you are going to travel this season, for example, remember that these types of transactions are usually deferred for up to 36 installments, but customers must take into account the “fine print” of their bank, so as not to be surprised in the process.
“Although entrusting the disposition of all the economic resources of the trip to credit or debit cards is not the most desirable, neither should one travel without them in any case. Practically all the countries in the world have ATMs that withdraw cash. And although it is true that not all ATMs allow the use of debit cards, credit cards are universal,” reported Bbva Colombia.
A survey carried out by LR of more than 10 banks determined that Banco Falabella, GNB Sudameris, Banco Agrario, Banco de Occidente and Itaú have the cheapest rates for credit card advances abroad, at $4,880, $5,150, $5,450, $5,600 and $5,600. , respectively.
While, for withdrawals with debit cards at international ATMs, Banco Falabella, GNB Sudameris, Banco Caja Social, Bancolombia, Banco Agrario and Banco de Occidente have the cheapest prices, at $4,900, $5,150, $5,150, $5,300, $5,450 and $5,600, in that order.
With the options of changing currency, withdrawing money from an ATM or paying by card, the question that arises is: what is the most profitable alternative?
“To travel abroad, if it is a rest plan, it is important that a high percentage of the expense is done with programmed savings. If it is in dollars, better and avoid debt or financing as much as possible. You have to be very careful with credit cards credit, which due to its easy use and unmeasured impulse can put at risk the economic stability of household finances, with this means of payment purchases abroad are deferred to a medium term and the cost of financing that added to the exchange rate and if it is high it is quite onerous,” said Wilson Triana, a banking and insurance consultant.
It is likely that in some tourist places they offer a change of pull apart No commissions. “In these cases, the commission is hidden behind the exchange rate, which is more unfavorable and is far from the official rate”, according to Bbva, so the purchase and sale price of the currency must always be taken into account, to adjust the budget.
Regarding the withdrawal at ATMs, being outside the country, a cost will be added to the currency exchange commission that will be higher when the ATM does not belong to your entity. Also, experts recommend withdrawing a large amount rather than doing many small withdrawals.
The third option is to make purchases directly with a card. Although the rates offered for payments abroad are usually better than those offered for currency exchange, it is common for them to carry a percentage commission on the operation carried out, which is usually between 2% and 6%. Although RappiPay and Banco Caja Social do not charge.
“For RappiPay it is very important to be the perfect ally for our users when traveling, that is why we think of benefits that generate value for travel such as cashback, which also works on purchases abroad. We aim to become the credit card with which users acquire everything they need, with special attention to travel purchases,” the company said.
A frequent doubt when making purchases is about the Market Representative Rate (TRM) with which the transaction is charged, since the price of the dollar changes every day. In most banks, the TRM charged is the day the purchase is made. However, Bancolombia stated that with Mastercard and American Express the TRM is charged on the day of payment of the debt and with Visa, that of the day of the transaction.
Therefore, it is advisable to take advantage of the purchase opportunity when the exchange rate is trending downwards, since, when converting to pesos, the value would be lower.