Technology can be both a blessing and a curse. For me, I love the convenience of the ATM when I travel, but I’ve also had my fair share of fits over technology. If you’re planning on traveling abroad soon, and you haven’t thought about currency conversion yet, here are a few helpful tips I’ve learned over the years:

Know your options for exchange

And make sure to know those options well before you travel. The rates advertised for exchange online or in the newspaper aren’t always going to be the same once you arrive at your destination. Most of the advertised rates are from institutions that exchange a large amount of currency. If you’re a normal consumer – like most of us that fly coach – you’ll pay a retail rate.

Look for retailers abroad that advertise deals. Ask about fees – such as service charges and the cost of returning currency that hasn’t been used – up front. If the fees are too hefty, walk away – too many fees may erase the benefit of taking the deal.

Get a chip and pin card

Many countries have now brought chip and pin technology into use. These are cards that have a chip in them as opposed to the magnetic strip that the U.S. utilizes. When you go to pay, the chip is read and you’re required to enter your pin number – kind of like a debit car. On this plus side, pin and chip technology has beefed up security, but it has also caused some retailers to shun the magnetic strip.

Companies like Travelex have pre-loaded chip and pin cards that can be used wherever MasterCard is accepted. Little tricks like that make travel more convenient.

Exchange cash that you don’t use

Of course, you need to shop around for a decent currency conversion rate before you exchange. Occasionally some companies will offer programs that don’t charge to buy back your currency and still purchase it at the normal exchange rate. Just make sure you read the fine print before jumping into a deal.

However, if you plan on traveling to the same country again soon, and rates are higher than when you initially purchased, it might befit you to put the money away in a safety deposit box until your next trip.

Some friends came over the other night for dinner and drinks and we were talking about how much cash they should take on their upcoming trip to South America.

Talked turned to currency conversion tactics, and one friend said: “Don’t take cash. Use your credit card or ATM card.”

I disagree. While Traveler’s Cheques and plastic are certainly a must, having some cash on hand is always a good thing. But just how much is too much, or too little?

You need to take into consideration several factors before you leave:

• First, consider your budget. Think about what you plan to spend and where you’re going. If you’re going to a big city with lots of banks and ATMs, then you’re probably safe taking less money than if you are going to a place that’s isolated.
• You should carry both the local currency in small bills — just enough to make it through the day — as well as U.S. dollars.

• Do you plan to make small purchases at local shops? While most accept credit cards you may run into some smaller ones that don’t, and prices will be better if you have cash. Cash also is good to have for local transportation costs, tips, and vending machine snacks.

• While the almighty dollar isn’t as mighty as it used to be, some hotels need your greenbacks to conduct business with other U.S. travelers. It actually may give you the upper hand when it comes time to pay the bill.

• If you must convert your currency, don’t do it without shopping around first. Currency conversion rates vary, as do commissions. Currency conversion offices generally are grouped closely together. That means competition, and possibly better rates.

Finally, stay away from money-changing offices located in large hotels: The rates tend to be higher. If you’re not careful, you can lose a big chunk of change doing a currency conversion of your dollars into the local coin.

Cramming your family into a single hotel room or trying to book adjoining rooms for your vacation can be challenging and time-consuming. And, in the end, what do you get? Probably far less space than that to which you are accustomed, little privacy, and fewer dining choices because there’s no kitchen. That’s no savings…

Fortunately, there’s a great alternative that can save you a good bit of money even while it gives you a lot more space: Rent a condo and skip the hotel altogether!

Most of us don’t think enough about how much more a condo has to offer. Not just more square feet but many more amenities as well, including a kitchen that’s “open” 24/7 and a bedroom door that can be closed against TV noise when you and family members have had enough togetherness and want time and space for yourselves.

Even couples looking for the extra value of a deluxe suite or villa at minimal costs will find condo rental a good option, especially if traveling during the off-season.

There are numerous web sites that offer vacation rental properties in the U.S., Canada, Europe, Asia, and just about anywhere else!

Here are some web sites where I’ve found great rental lodgings at great prices; all offer pictures and reviews of the rental properties and provide direct contact with the owner:

• www.homeaway.com, offers more than 225,000 vacation rentals.
• www.airbnb.com, rents lodgings in 10,205 cities and 178 countries.
• www.vrbo.com, vacation rentals by owner; offers more than 150,000 rentals worldwide.

If you know of other sites that offer great savings on vacation spots, let me know about them!

Traveling abroad can be an exciting and wonderful experience. However, you must plan for how you’re going to pay for the things you need while in other countries. That’s why understanding currency conversion helps.

Basically, you can pay by credit or debit card, travelers’ checks or cash. The cash, of course, needs to be in the currency of the country you are visiting.

Many U.S. banks will provide foreign currencies for a small fee, but then you’re stuck carrying cash. If you lose it or get your pocket picked, that money’s gone for good. Travelers’ checks aren’t as popular as they were years ago, and some places won’t accept them as payment.

This leaves credit and debit cards, some of which charge foreign transaction fees of up to 3 percent at ATMS and as high as 20 percent for cash withdrawals.

You could find your credit card bill a lot higher than you might expect when you get home, once you factor in these fees, so find out what your card charges for currency conversion before you depart.

Seeking an ATM

Convenient as cards are, they have other drawbacks as well. While credit and debit cards are accepted by many retailers, some small businesses don’t accept them. You may not be able to find an ATM in remote areas.

Moreover, if you’re traveling in Europe, you’ll find that some retailers accept only “smart cards” and might lack the equipment to read the magnetic-strip cards we use here.

The bottom line in terms of currency conversion is, plan your form of travel payments before you leave, and if your card charges fees, allow for this when you use it.