The best exchange rate for changing Chilean pesos is obtained by always paying with a card, as it is by far the most economical option. For carrying some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024 the Wise card offers the best exchange rates and the lowest costs in the market) and only withdraw the amount of cash we will need from an ATM.
Certainly, this money-saving technique for your vacations might surprise you because if you go to any exchange house or bank, you will see them advertising loudly that “there are no fees,” and thus one might simply think that it would be logical to exchange pesos for the prevailing exchange rate at that moment, right? Well, not quite! Everything has a cost, even paying with a card, although they may not tell you or it may not be immediately evident.
I’ll tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and truth be told, exchanging cash is the worst option by far. Moreover, to give you an idea of the scale of this poor alternative, you should know that most currency exchange operators or banking employees have discounts for exchanging currencies compared to the exchange rates offered to customers. Even with those discounts, we never exchange cash. At most, depending on the trip, we only exchange a small amount for certain payments or if it’s necessary to enter a country.
So, it’s clear: always pay with a card and only withdraw the necessary cash from an ATM. Now, let’s see how to pay the lowest possible cost in both cases:
Which is the best card for paying abroad?
Based on the study we’ve conducted of all the cards in the market for this year 2024, for paying in any foreign country, travel cards have lower costs than regular bank cards, and among travel cards, Wise card provides the lowest costs.
These results are valid not only for the costs of payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be about 4 times more expensive on average, and regular bank cards about 10 times more expensive on average) but also for the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again have the lowest fees, other travel cards would be about 4 times more expensive on average, and regular bank cards about 20 times more expensive on average).
Also, if you want to know precisely the differences in costs and functionalities among the different cards you can find in the market in 2024, don’t miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all kinds of providers (banks, fintech, financial companies, etc.).
Is it necessary to take cards from our country abroad?
As we’ve mentioned, it is preferable to use the Wise card instead of a regular bank card or other travel cards, as it will save you a significant amount of money when paying in foreign stores and when withdrawing money from international ATMs by paying the lowest possible commissions.
In this regard, you may not need to carry any other card initially, but keep in mind that if you plan to make payments such as renting a car, you will need a credit card, as most car rental companies will hold an amount as a deposit and only accept credit cards.
If, on the other hand, you won’t be conducting these types of transactions, it’s advisable to leave your main bank cards with higher balances at home and only carry an extra debit card with some balance for emergencies (imagine your other card gets damaged or stolen, and you also lose your phone, leaving you with no means of payment).
Keep in mind that in case of theft, there’s a risk that fraudulent operations could be performed with your cards within their limits, whereas with the Wise card we recommend, your balance will never go negative, so only the amount deposited in it can be spent.
Moreover, you can instantly block your Wise card from your phone, whereas with your bank cards, you may have to call your bank to cancel them, risking them not providing service at that moment if it’s a holiday or outside of customer service hours.
So, when traveling, it’s much better to carry a debit card like the Wise card with the amount of money you’ll need. If you need more, you can always reload it instantly through the mobile app, and if you want to block it due to loss or theft, you can do so instantly through the app as well. This way, you’ll have full access to your money at all times, without paying fees for it and minimizing the risk of theft.
As you can see, this card offers numerous functionalities through the mobile phone, so it’s important to ensure your phone’s battery is always charged. Remember that in many countries, the power plugs are different. Therefore, it would be a very good idea to acquire a universal plug adapter for travel, as it will be useful for any trip you plan to take in the future. In this link, we show you a very affordable universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it’s important to know that if you’re going to take your credit card from your bank to pay for deposits in operations like car rentals, it’s recommended to notify your bank before traveling abroad and inform them about the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and while traveling, you’ll be spending more than usual, so if you have relatively low limits without knowing it, you could reach your limit and find yourself in a serious predicament.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance while abroad, you can easily obtain money through the following methods:
- If you have a bank card, contact a family member or friend who is a customer of the same bank to transfer funds to your account. Transfers between accounts of the same bank are instant, so after completing the transfer, your card can use the new balance from your account. Another option would be to make an “immediate transfer” between accounts of different banks, as this type of transfer is also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone else can do it for you) and receive the money instantly.
What to do if all my cards are stolen abroad?
If all your cards are stolen while abroad, these are your options to get by:
- Use cash you have withdrawn from an ATM: You can pay with the cash in foreign currency in case you made a withdrawal from an international ATM.
- Exchange your home currency in cash: It’s always recommended to carry some cash in your home currency in case of emergencies, as you can exchange it to pesos at currency exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, link your phone to your card. Even if the card is cancelled or blocked due to theft, you can continue making payments with your mobile phone without any issues.
- Have someone from your country pay for what you need: If you only need to purchase a plane, train, or boat ticket, anyone from your country can pay for it online and send you the mobile boarding pass (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many of these agencies. Anyone you know can send a transfer from your home country so you can receive the money abroad.
- Sell your jewelry at a gold buying store: In most major cities worldwide, there are numerous gold buying establishments that will buy any gold jewelry from you without any problem.
- Sell your valuable belongings at a second-hand store: The most desirable and easiest-to-sell items would be technological products like mobile phones or laptops, as well as high-quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask is next to vending machines since everyone gets change from them, and when asking, people are likely to give you something.
- Contact your Embassy or Consulate: As a last resort, the representatives of your country can provide assistance.
Where to find the best cash exchange for Chilean pesos?
As mentioned before, the cheapest way to obtain cash in pesos is by withdrawing money from ATMs.
In any case, if you were to exchange cash at a currency exchange office or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be good. A rate with a 5%-10% margin would be acceptable; a 10%-15% margin would be poor, and beyond 15% would be considered usurious.
You can easily find the official exchange rate of the Chilean peso against your currency on Google. Subtracting the rate offered to you and dividing the difference between the two by the official rate will give you the percentage margin they would be applying.
Normally, highly crowded areas in tourist locations are the worst places to exchange currencies as they apply higher margins on the rates. Therefore, it’s best to look online in advance for a reputable exchange office rather than going to the first one you see.
In any case, if you were changing a small amount of money, it wouldn’t matter much where you exchange it in case of necessity and urgency since you would only be assuming a small extra cost in the worst-case scenario.
How much cash is enough for traveling?
Exchanging cash only serves two purposes:
- It serves as emergency money in case your card and phone are stolen, so at least you can get by, eat something, make calls, travel to the embassy if you need to get a duplicate passport, and reach the airport to leave the country.
- It serves in case you need to make cash payments, such as at some street vendors, some vending machines, and for paying certain services like laundromats, phone booths, coin-operated shopping carts, etc.
Depending on the number of days you will be traveling and how much you plan to spend in cash, you can roughly estimate how much you’ll need, which in any case should not be a large amount.
Is it possible to predict if the exchange rate for pesos will be better or worse in the future?
Official currency exchange rates function like any other financial market, similar to the stock market. While there are analysts and financial experts who make predictions, just like predicting stock prices, there is no evidence that someone can accurately predict future exchange rates based on available data.
Generally, exchange rates in the foreign exchange market are quite stable, and within a month, they don’t fluctuate much more than 5%, unless there is an unexpected economic or political event, such as an unexpected victory of an opposition party with a disruptive economic program.