How to Motorcycle Travel on the Cheap – Mad or Nomad

Banks and cards

Your bank can quietly drain money from your account as you travel if you’re not careful. Most high street banks have high charges for withdrawals and exchanges abroad and charge you foreign exchange and transaction fees every time you make a purchase.

Imagine how often you’re going to need to withdraw cash, and then slap a fee on that every time. You could easily spend hundreds of pounds on unnecessary bank fees without even knowing it.

You need to research and find either a credit card with a foreign withdrawal and transaction fee waiver or see what deals your current bank can offer you. It’s worth spending the time to do this before you leave on your trip as it will save you a lot of money over time.

The best banks for UK nationals

If you’re from the UK, you could opt for either a Monzo or Revolut card. These are basically mobile app based bank accounts. We’ve been using them for years throughout the world and thoroughly recommend them.

Download the app, create an account, transfer money into it and then use it as you would any other debit card (both in the UK and abroad).

The main benefit for a motorcycle traveller is when it comes to using the card abroad.

Withdrawals – You can withdraw up to £200 for free from your account per month. Withdraw over that and Monzo will charge 3% and Revolut 2%, which are both still considerably cheaper than the majority of high street banks (these fees only apply abroad, there’s no charge for withdrawing in the UK).

Consider that most high street banks will charge more than 3% for any amount of money withdrawn abroad plus an additional fixed non-sterling transaction fee!

We suggest getting one of each card, then you can withdraw up to £400 without a charge per month.

Transactions – All transactions are free with no exchange or transaction fees. The app will notify you every time you spend, keeps a record of how much you’re spending, on what and the exact location. This makes it easier to budget as well. It’s also cheaper to pay someone abroad with international bank transfers.

They are extremely useful and secure. If you lose your card just log on to the app and freeze the card. Monzo is Mastercard and Revolut Visa, so they work anywhere in the world.

Exchange rates

Research exchange rates before you cross borders. It’s easy to get caught out when foreign money is being thrown around. Know how much you want for your money and what exact number you’re willing to go down to before you start negotiations. That way you can’t be caught out or put under pressure.

Always carry US dollars and plenty of small denominations. It makes exchanging easier and also helps when crossing borders. For example, when crossing into Kyrgyzstan from Tajikistan, the border guards only accept US dollars and strangely never have any change. Many people get caught out as they only carry large bills. 

ATMs

Do your research on which banks and ATMs charge and what their fees are. For example, in Japan nearly all ATMs will charge you a fixed fee. But, every 7/11 convenience store (and 7/11 is absolutely huge and everywhere in Japan) has an ATM and they don’t charge a single Yen.  

And the golden rule is to always withdraw and pay for things in the currency of the country you are in. Never let the ATM use its own exchange rate because you will always be charged more. This is a very common problem that can come up when making everyday purchases too. Anytime you use your card in a shop, restaurant or supermarket, the card machine may ask the cashier if you want to pay in your home currency. Say no and opt for local currency.

Summary

• Know the exchange rate and how much you’re willing to spend on the exchange before entering negotiations
• Carry small denominations of USD
• Understand your bank’s exchange rates and foreign transaction charges
• Shop around for the best credit/ debit card deal before you leave
• Know where and how to withdraw cash
• Never pay in your home currency