Travel Smart, Spend Wisely

Cold, hard currency is the lifeblood of international tourism. Everyone needs it, and few truly have enough to dive to their hearts' content. So it goes without saying that good money management is a basic necessity on any dive trip. From booking the flight to tipping the divemaster, knowing who, what, when, why and how much is the key to getting the trip you want and can afford, and avoiding any monetary surprises along the way. Here's what you need to know to plan ahead, spend wisely and keep your money safe on your next dive trip.

Credit/Debit Card Savvy

Visa and Mastercard credit/debit cards are the most widely accepted cards internationally, with American Express coming in third, says Ben Woolsey, director of marketing and consumer research for creditcards.com. Discover cards have a very limited international range. The best exchange rates will be for card purchases because the card companies get better rates than individuals. Cards also offer protection against fraudulent purchases, and they can be replaced within 24 hours if lost or stolen.

Call Ahead With identity theft on the rise, banks and credit card companies are increasingly cautious about sudden charges from a foreign country. Call your credit card companies and banks before you leave to tell them where you're going and the dates you'll be there. "Making hotel and flight reservations shouldn't cause any problems," Woolsey says. "But call before you're actually in-country because foreign transactions can trigger fraud alerts if the credit card companies aren't aware." He also advises travelers to check their credit lines at least a week before a trip and request a credit limit increase if necessary. "Trips can be expensive, and you don't want to run over your credit limit while you're out of the country," he says. "Going over the limit will incur an over-limit fee, as well as penalty APRs, which can be as high as 32 percent. Most issuers can increase your credit line within a couple of days if you give them a heads up."

Refunds and Security Holds For large purchases like flights, car and hotel reservations, and diving expenses, credit cards are better than debit cards. If you cancel and need a refund credited back to your card, the credit card companies will be more aggressive about getting the money back. Also, make sure you have ample funds for holds and deposits. Woolsey explains that car rental agencies and major hotel chains will typically block out a certain amount of credit on your card and hang on to it until everything is settled. If this deposit isn't used to cover incidental costs, it will be refunded, but during the trip, this can tie up a significant chunk of your credit limit, or actual cash funds if you charge them to your checking account through a debit card.

Hidden Charges For day-to-day purchases abroad, be aware that paying with credit/debit cards will incur "foreign transaction fees," on average about 3 percent of the purchase price, which can come from both the issuing bank and the credit card company. A breakdown of foreign transaction fees for major credit cards can be found here: creditcards.com/credit-card-news/foreign-transaction-conversion-fees-1276.php. Capital One is the only credit card issuer that doesn't charge its customers foreign transaction fees, other than Discover, which isn't readily accepted abroad. Also, avoid taking cash advances on your credit cards--the interest rate is much higher than for cash purchases.

In Case of Emergency "Before you go, make copies of all your cards, front and back, and keep them separate from your actual cards while you're away," says Debbie Lanham, dive travel specialist at Maduro Dive Fanta-Seas. On the backs of your cards, you should find collect international phone numbers. If not, ask your bank how to contact them from outside the country. "This number is the most important thing to know if you lose your cards and money," Woolsey says, "because the card companies can overnight a replacement card to you and arrange emergency cash through a local bank."

Getting & Spending Cash Abroad

Today, traveler's checks are going the way of the dodo. A debit card is the cheapest, easiest way to get spending money abroad--just hit the ATM and withdraw what you need in local currency. You'll get a competitive rate without carrying around wads of U.S. dollars. You'll usually pay a transaction fee to the local bank, and another to the bank that issued the card. "In the last five years, ATMs have become a lot more prevalent," Lanham says. "But some destinations, like Belize and Roatan, still have limited ATM access. In these cases, it's best to bring extra cash with you." When you need to change live greenbacks, head for a local bank or exchange house whenever possible; you'll pay transaction fees there too, but the rates will be better than at the hotel.

Arrive with cash in hand

When you show up you'll need, at the very least, money for a taxi and possibly a meal when you get off the plane. "Most airports will have a place to change money," Lanham says. "And many places, especially in the Caribbean, accept U.S. dollars." In destinations where U.S. dollars are accepted, make sure you have small bills--ones and fives-- because the cabbie probably won't change a big bill.

Know What You Spend

Avoid the "monopoly money" trap when using foreign currency. When travelers are unfamiliar with the value of the local money, it's easy for them to spend more than they realize. Before you go, check the exchange rate for your destination on a site such as xe.com, memorize a rough estimate of the conversion and divide purchase prices by that number for a quick calculation into dollars. For example, at press time, one dollar was worth about 10.3 Mexican pesos. Mentally round the conversion to 10; if you buy something priced at 85 pesos, think 85/10 = 8.5, or about $8.50.

Rental Car Insurance Costs

When you book a car, the quoted rental price doesn't include insurance costs, which can add as much as $40 to the rental price. As a general rule, U.S. auto-insurance policies do not provide coverage when the drivers are outside the U.S. and Canada without a special policy. In some countries, renters are required to buy supplemental car insurance, and in others, drivers may have to put down a deposit relative to the level of coverage purchased. There are four main types of coverage offered with a car rental--some or all may be offered depending on your destination:

Loss/Damage Waiver Not actually insurance. Paying for this waives your responsibility for the vehicle if it's stolen or damaged.

Liability Insurance Covers the cost of any damage done to other people or property in an accident.

Personal Accident Insurance Covers personal costs like hospital fees.

Personal Effects Coverage Covers personal items stolen from or damaged by the vehicle.

Tipping

Yes, you should tip. No one will yell if you don't, but stiffing service workers is just plain crass. Change larger bills whenever you get a chance, and keep a stash of small bills on hand just for tips. Of course tipping is a subjective process, but here's a rough guide to tipping in common vacation scenarios.

Taxis If the driver handles your bags, tip about $1 per regular bag, $2 for a heavy dive bag. In many international dive destinations, getting around by taxi is a negotiated expense in which you determine the price before you drive away. It's not necessary to tip over the negotiated price.

Divemasters You may think they're living the life, but divemasters bust their humps long before you show up 'til long after you're sipping rum in a beach hammock, and they may save your life in an emergency. Don't be stingy. For two people on a two-tank dive, the tip should start at about $20 and go up from there. If the divemaster is especially attentive or provides rescue assistance, tip more, and do it at the end of every dive day unless you're on a liveaboard. The crew on day boats won't be the same every day, and the tip you give the DM usually goes into a pool and gets split among the entire boat crew.

Bars/Restaurants Start at 15 percent for average service. Go higher as necessary. Do look at your bill before paying, however. "In some places, especially European destinations, a service charge is included on the bill," Lanham says.

Hotels When you book a room at a hotel, ask up front about the tipping policy; some resorts may include "service fees" in the final bill. "All-inclusive resort vacations, in the truest sense, do not require guests to tip," says Elisa Johnson, sales and marketing director for Caradonna Dive Adventures. "But if the services are outstanding and warrant a tip, any monetary gesture would surely be appreciated." For bellhops, tip as you would other baggage handlers: start at about $1 per bag, $2 for heavier ones. For cleaning staff, tip from $2 to $5 per day. Also, put the money in an envelope and leave it somewhere conspicuous like the pillow or bathroom counter.

Money Safety

When in transit, money belts--thin nylon pouches that fit around your waist and tuck underneath your pants--are good places to stash large amounts of cash, travel documents and credit/debit cards. You can also find versions that strap to your leg or that hang around your neck, under your shirt. But you don't want to pull out the whole wad to pay the taxi driver, so keep enough in your pockets to cover basic costs. Front pockets are safer because they're harder to pick than back pockets.

If your hotel has an in-room or front-desk safe, use it for the bulk of your cash and emergency credit cards; if not, find a discreet pocket in your luggage to stash extra funds--definitely don't leave any cash or cards lying around in your room. Out and about, bring only what you'll need for the day, and keep your funds in multiple places on your body--that way, if one pocket gets picked, you don't lose everything.

Do bring cash with you on the dive boat. If the boat stops someplace for lunch, you'll probably need a little spending money, and of course, you'll need to tip at the end of the day. Pack cash and cards in a small waterproof box or dry bag that you can leave in the bottom of your dive bag. And be careful not to leave valuables in your car when you're beach diving. "In places like Bonaire, use a waterproof money belt to carry your car key, about $20 and your driver's license," Lanham says. "And take that in the water with you."

Money Matters