I always carry a debit card (Visa), my regular credit card (Visa) and of course, my Skymiles American Express (gotta keep racking up frequent flier miles). What works best for each traveler is a personal choice. Below are some helpful tips to cover in preparation of an Indian adventure:

1. Carry a Visa or Mastercard issued credit/debit card. Amex and Discover just don’t have the coverage in India as the other two behemoths.

2. If you can’t get a credit card because of a bad credit history then sign up for a pre-paid credit card. These are widely available through online offers but read the fine print before applying. Applicants send an opening payment which becomes the “spending limit”. At the end of the month a statement is sent, payment is due for any purchases, and the monies received will be credited back to your spending limit much like a regular credit card. This will not only help to improve a low credit score but ensure you have an alternative form of payment beyond cash.

3. At the very least bring a debit card to India. ATM’s are sprawled across the country making cash withdrawals easy both in terms of access and not having to haggle on exchange rates. Your bank will automatically assign an exchange rate based on the open market. A service charge ($2-$5 on average) will be deducted from your bank account so withdraw the daily maximum amount to avoid multiple fees from multiple smaller withdrawals.

TIP: Avoid using debit cards at currency exchanges where additional fees may be incurred on top of ATM service charges.

4. Carry a back-up. Travelers with one card can be stuck should an issuing bank have to cancel accounts abruptly for security reasons. Bring a credit card and separate debit card with your trip’s full budget needs available.

5. India’s ATM PIN system is set to accept four (4) digits only at this time. International travelers will need to change PIN codes from anything more than a standard 4 digit code to prevent declined transactions.

6. Make photocopies of any credit/debit cards before traveling. This should include a front and back copy of each card. Block out the expiration date, personal photo and signature line. Leave a copy with friends, family or spouse and remember to bring a personal copy which can be stored inside your luggage. If you ever lose a credit card or suspect your number has been stolen even though you hold the card, it can be canceled right away. The majority of problems with the cancellation of credit cards occur during travel internationally. Many travelers forget issuer names and numbers wasting valuable time when it could be at your finger tips.

6.5 Consider carrying credit card information in digital form while you travel. Some USB flash drives let you encrypt data, protecting your photocopied information from prying eyes. If you lose your credit card while abroad, simply decrypt the file on a computer. You’ll be able to see a copy of your card and access important information.

7. If traveling with a partner or spouse, stay one step ahead with separate credit cards issued in separate names. Many couples have one account number issued with cards for each name. If one person loses their card, the other card by default is also canceled as they share the same account number. Request separate account numbers for individual cards from your issuing bank.

8. Inform your credit card issuing bank of your travel plans including dates of travel and destination. Some banks and credit unions cut off credit cards that are used 6 or more times in one day, to try and stop thieves from using stolen cards. Communicating with your bank beforehand can alleviate any reactivation hassles.

9. Be aware of conversion fees that many banks assess to convert charges in foreign currencies to dollars. Some banks do and some banks don’t charge a fee, generally 1% of the purchase amount. If you carry several cards, check with the issuers to see which one offers the best deal on foreign currency conversion.

10. Avoid merchant currency conversions. Store owners will offer to convert purchases into your home currency but charge a fee as high as 7%, pocketing the difference without your knowledge. Have charges processed in the local currency to receive the best exchange rate as noted above in tip #3.

Bonus Tips

11. If the magnetic swipe stripe doesn’t work while paying at merchant establishments, don’t keep swiping. Credit cards are blocked after 3 attempts. Avoid the hassle of having to call your bank, explain the situation and reinstate your card by asking the merchant to manually enter the card number. The option to manually issue a charge is usually located at bottom side of machine or by simply entering in the account number. Thanks goes to Shivi Kanwar at www.aapoaapshimla.com for this tip which I was unaware.

#CreditSmartIndia

"My design is based on the tricolour, with two lines at the top and white space in between. I wanted the symbol for the rupee to represent the Indian flag. It is a perfect blend of Indian and Roman letters: a capital 'R' and Devanagari 'ra' which represents rupiya, to appeal to international audiences and Indian audiences," design winner Udaya Kumar of his creation.

Take an emerging superpower, a burgeoning economy and a contest to design an iconic symbol to represent your country’s currency and what do you get? A fresh simplistic character with which India’s government hopes will become as globally recognizable as the $, ¥ and €.

For years the Indian currency, Rupee, has been designated in text as Rs or INR. But with the recent unveiling, India is putting it’s might behind a campaign to have the new symbol on computer keyboards within two years.

The winning design was selected by the Indian cabinet on July 15, 2010 from a shortlist of five following a national competition. The winner, Udaya Kumar, a teacher of design at the Indian Institute of Technology in Mumbai, will receive a prize of just $5350 for his efforts. Some critics feel the new symbol is boring, conservative and lacking much innovation for an emerging economy hoping to entrench itself even further onto the world map. But India’s information minister, Ambika Soni, had this to say upon the unveiling, “It denotes the robustness of the Indian economy.”

For now the “old” standby of Rs and INR will be seen for many years to come. As for travelers to the South Asian country, there will be no changes at this point in the Rupee note design or in transactions involving the currency.

A walk of any market, in any city or village, will show you everyone else is already in on this tip. Locals carry coin and small bills. If you’re using a car & driver service, your driver’s car will be stocked with coins. As if by magic, when his stash runs low, you’ll find it restocked one morning when you greet him. He fields situations daily where small bills fall from his hands like water. And you’ll be needing these notes and coin for a variety of tips and small purchases like bottled water, soda or sundries. Here is what you’ll need:

Bills (Bolded denominations are what you need most)

Available in Rs 1000, 500, 100, 50, 20, 10 & 5.

Rs 1000 are hard to break for everyday purchases so ask the front desk of your hotel to make change. Smaller bills are dispensed like the rarest object on Earth, so turn on your charm if you want the Rs 10′s and 20′s.

Coins (All amounts are needed)

Available in Rs 1, 2 & 5 (With rare exceptions, you will not see the 25 or 50 Paise)

Rs 2 coins come in two styles as shown above

How do you, the newbie tourist in India, find coin or small bills when many restaurants and shops round up to avoid giving exact change?

1. Frequent chai stalls, STD/ICO booths, and of course the local markets where you can more easily pay by Rs 100 note and receive exact change. Cha-ching.

2. If a merchant asks, “Do you have Rs 2?” for your Rs 22 soda, simply tell him no in order to receive the proper change. Small bills and some coin. Cha-ching!

3. Stopping at temples? Ask the shoe attendant if he is willing to sell you some coin or exchange small bills for a larger. Cha-ching.

4. Doormen at hotels deal with small tips as well as bathroom attendants. As above, ask to buy small amounts of their change. Cha-ching.

5. Traveling by car/driver? Mention how hard finding change seems to be to your driver. If he doesn’t offer, ask him if he could possibly find change overnight in exchange for a Rs 50 note. Cha-ching.

Keep your eyes open for other opportunities and don’t be afraid to ask for exact change when merchants round up. Rs 5 notes are rare, and typically beat up, so if you receive as change, ask to have swapped for a coin instead.

Admittedly I failed asking what the exchange rate was until after my traveler’s checks were signed and the TC agent was processing my form. The average rate received through ATM’s the past 3 weeks of my travels was Rs 48 so I was shocked when she quoted me Rs 44 + fees. Losing nearly $100 by exchanging $1000 worth of checks was hard to swallow. During the final count, my clerk was unable to correctly count back my total. It took multiple tries, the help of another clerk plus a manager and a calculator to finally get a consistent and accurate stack of cash.

Had I not spent nearly two hours searching for the right TC office, a smarter, less tired me would have left.  TIP: Ask what the exchange rate is up front. Ask the advice of local drivers and/or hotel employees. Most 5 star hotels offer money exchange at very good rates. Use ATM’s for consistently good rates.

Keep your money, credit cards and passport safe with my favorite travel accessories. The undercover neck pouch is worn around your neck and then tucked into your shirt. Usually made of nylon or silk, this pouch is rather comfortable and fits without bringing attention as long as it’s not too stuffed. The adjustable strap allows for comfort fitting based on preference. To avoid any chance of forgetting important items, I move into the pouch the night before my trip. It’s easy to access needed identification for the airports and easily removable to tuck into my bag once on the plane. Eagle Creek makes one I recommend for several reasons:

• Side vertical zipper slot long enough to hold any cash/currency notes and traveler’s checks.
• Fold over flap with velcro closure and top zipper. Inside the small zipper slot, I can store my credit cards and hotel business cards
• Under the velcro flap, slip in slot for my passport.
• Behind this slot, a full length slot where I store any other important documents, usually back-up US currency.

Once in India, I switch my money, passport and credit cards into a waist wallet. Once again made of nylon for comfort, this wallet comes with two different color loops which slip over your belt. The different loops are meant to blend in better with any color belt you might wear. Once attached to your belt, the wallet is tucked into your pants or front pockets. I prefer tucking into my waist as it deters an opportunity for someone to quickly come up and slice the loop if sticking out of your pocket. This wallet has just enough room to hold any size currency and several credit cards or business card size items. A passport will fit but not as comfortably.

Although I have not run into theft issues thus far, being prepared is still important. These wallet/pouches roll up or fold easily allowing them to be stored into any bag no matter how tight room might be. Magellans.com has a large selection of travel pouches both for the neck and waist. Both styles are offered in tan and black. Leave your wallet or purse at home by giving these a try.