One obvious way to avoid carrying wads of cash around when travelling, is to use your credit card. Whether you use VISA, MasterCard or American Express you will be able to make purchases and benefit from the policies, such as reward points, guarantees, insurance etc that your card may offer.

 On your travels you will however find that some cards are a lot more welcome than others. The main reason for this, is the amount the credit card companies charge merchants, which puts them off accepting the card or offer to pass those charges on to you by increasing the price!

 The credit card companies say that asking the consumer to pay a surcharge is against their policies and if reported that merchant will be removed from the network. We have seen this first hand, where a travel agent in Thailand was reported to American Express by an unhappy customer who was asked to pay a 5% surcharge because he wanted to use his credit card.

 The result - the agent was asked to stop this practice or be removed from the network, the agent chose to leave the network only to rejoin a year or so later without changing its policy in any way.

 The main problem with this practice seems to be with American Express, which, while it does offer travellers some excellent bonuses and benefits, is not, or at least does not seem to be from our own travels, the most popular credit card among merchants in Asia.

 For example in Hong Kong it is quite difficult to find restaurants outside of the major hotels that accept the card, many only accept VISA or MasterCard. In Thailand it is very common for the establishment to try and surcharge you, and this applies to all credit cards not just Amex.

 So, while carrying your credit card on your travels will help, it is not all smooth sailing, and cash is still very much in demand. Also read: Tips on using ATM and Credit Cards safely.

We recommend travellers to use their ATM cards to get cash when in a foreign country, because more often than not it is the most efficient, fastest and least costly way of obtaining the foreign currency you need.

Using your ATM card and credit cards does have risks, not just in Asia but the world over, and travellers should always be very wary when using them to avoid unwanted problems.

 There are things to look out for when using your cards to ensure you do not become a victim:

 - Never ever give out your security number on the phone, unless you are 100% certain who you are talking to. If someone calls you and claims to be from your bank or credit card company, ring them back on their general number (not the number the caller gives you) to make sure they really are who they say they are before you give out any details.

- Make sure your bank, or the bank you are using, is not the one ripping you off. In Thailand for example, the bank you are using charges THB 150 per withdrawal. You can get around this only by using AEON bank ATM machines that do not charge.

- When using an ATM machine, always make sure there is nobody loitering around suspiciously, if there is, use another ATM machine. If you feel someone is standing too close to you while you type in your PIN number - even a friend, ask them to step back, and always make sure you try and hide as best you can the number you are entering. We heard of one story where a gang had actually set up a telescope from an elevated position across the street so they could read the ATM number as it was being typed in.

- Always check the ATM machine carefully before you use it. If there is anything about the ATM machine which seems a little strange don't use it, use another. This includes carefully checking the slot where you insert the card, and making sure there are no hidden cameras anywhere.

One ATM scam going around the world at the moment is where people add what is known as a skimmer to the front of the ATM machine where you insert the card, they then stay near by and the details you enter into the machine are electronically transmitted to them, at the same time, a wireless camera is disguised to look like a leaflet holder and is mounted in a position to view your ATM PIN number. Once the process is complete they simply need to make a card with the information they gained and they can then use it at any ATM machine just as you would.

Another is where people put a clear plastic sleeve into the card slot. Unsuspecting users then insert their card but the machine is unable to read the strip (because of the sleeve) and so the machine keeps asking the user to renter the password, after a while the user gives up thinking the machine has swalllowed the card. What has actually happened is the ATM card is inside the sleeve and someone has managed to see the number you entered, from there they simply remove the card from the sleeve and use your account! The way to avoid this happening to you is to run your finger along the slot, if you feel any prongs or bumps don't use that machine.