The best exchange rate for Colombian pesos is obtained by always paying with a card, as it is the most cost-effective option. And to carry some cash, the best choice is to withdraw money from an ATM.
In other words, the most effective strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024, Wise’s card offers the best exchange rates and lowest costs in the market) and only withdraw the amount of cash we will need from an ATM.
Certainly, this technique to save the maximum amount of money on your vacations might surprise you, as one might think that changing pesos for the exchange rate at that moment at any exchange house or bank would be the logical thing to do since they advertise “no commissions,” right? Well, not quite! Everything comes with a cost, even paying with a card, even if they don’t explicitly tell you or you don’t see it at first glance.
Let me tell you a secret: this website was created by a group of friends who have worked in currency exchange houses for several years, and frankly, changing cash is the worst option by far. To give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or bank employees have discounts for exchanging currencies compared to the exchange rates offered to customers. But even with those discounts, we never change cash. At most, depending on the trip, we only carry a small amount for certain expenses or in case it’s necessary to enter a country.
So, it’s clear: always pay with a card and only withdraw the cash pesos you’ll need from an ATM. Now let’s see how to minimize the costs in both cases:
What is the best card for international payments?
Based on the study we conducted on all the cards available in the market for this year 2024, for making payments in any foreign country, travel cards have lower costs than traditional bank cards. Among travel cards, Wise’s card offers the lowest costs.
These results are valid not only for payments at international stores in foreign currency (Wise would provide the best conditions, other travel cards would be on average about 4 times more expensive, and bank cards on average about 10 times more expensive); but also for cash withdrawals in foreign currencies from ATMs outside your country (Wise would again have the lowest fees, other travel cards would be on average about 4 times more expensive, and bank cards on average about 20 times more expensive).
Also, if you want to know exactly the cost differences 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 extensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech, financial companies, etc.).
Do you need to take cards from your home country abroad?
As we mentioned earlier, it is preferable to use the Wise card instead of a conventional bank card or other travel cards, as you will save a significant amount of money when making payments at foreign stores and when withdrawing money from international ATMs, paying the lowest possible commissions.
Thus, initially, you would not need to carry any other card. However, keep in mind that if you plan to make payments such as car rentals, you will need a credit card since most car rental companies will place a hold as a deposit, and they only accept credit cards.
If, on the other hand, you are not going to engage in these types of transactions, it is recommended to leave your bank cards with higher balances at home and carry only an extra debit card with a small amount of funds for emergencies (imagine that your other card gets damaged or stolen, and you also lose your mobile phone, leaving you with no means of payment).
Keep in mind that in case of theft, there is a risk that fraudulent transactions may occur with your cards up to their respective limits. With the Wise card we recommend, your balance will never go negative, so only the deposited balance can be spent.
Moreover, you can instantly lock your Wise card from your mobile phone, while with your bank cards, you might have to call your bank to cancel them, risking not getting service at that moment due to holidays or being outside customer service hours.
For all these reasons, when traveling, it is much better to carry a debit card like Wise with the amount of money you’ll need. If you need more, you can always top it up instantly through the mobile app, and if you want to block it due to loss or theft, you can do it immediately through the app as well. This way, you’ll have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card has numerous functionalities through the mobile phone, so it’s important to make sure your phone’s battery is always fully charged. Keep in mind that in many countries, the plug types are different. Therefore, it would be a good idea to get a universal plug adapter for traveling, as it will be useful for any future trips you plan to take. In this link, you’ll find 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 plan to bring your credit card from your home country to cover expenses such as rental car deposits, it’s advisable to inform your bank about your travel plans and the limits you will need. Remember that all cards have daily, weekly, and monthly limits, and when traveling, you are likely to spend more than usual. In case your limits are relatively low, you might unknowingly reach your limit and find yourself in serious trouble.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance while abroad, you can always get money in a straightforward way:
- If you have a bank card, you should get in touch with a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts of the same bank happen instantly, so once the transfer is completed, your card can use the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, as it is also processed instantly.
- If you have a prepaid card like Wise, you can recharge it through the App (or someone else can do it for you) and receive the money instantly.
What should I do if all my cards get stolen abroad?
If all your cards get stolen while you are abroad, here are some alternatives to get by:
- Use cash you withdrew from the ATM: You can pay with the foreign currency cash in case you made a withdrawal from an international ATM.
- Exchange your home currency for cash: It is always recommended to carry some cash in your home currency in case of emergencies, as you can exchange it for pesos at exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, you can link your mobile phone to your card. Even if the physical card is canceled or blocked due to theft, you can continue making payments with your mobile without any issues.
- Have someone from your home country pay for what you need: If you only need to purchase a plane, train, or boat ticket, any contact you have in your home country could pay for it online and send you the boarding pass to your mobile (or you can download it from the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many agencies that offer money transfer services. With the help of a contact from your country, you could make a transfer from your home country so that you receive the money abroad.
- Sell your gold jewelry to a gold buying store: In most major cities around the world, there are numerous gold buying establishments that would willingly buy any gold jewelry from you.
- Sell your valuable items at a second-hand shop: The most sought-after items and easiest to sell would be technological products like 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 spot to ask is next to vending machines, as people usually have change, and when asked, it’s easy for them to give something.
- Contact your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where to find the best cash exchange for Colombian pesos?
As mentioned earlier, the cheapest way to get Colombian pesos in cash is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash at a currency exchange house or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be considered good. A margin of 5% to 10% would be acceptable; 10% to 15% would be a poor rate, and anything above 15% would be usurious.
You can easily find the official exchange rate for the Colombian peso against your currency on Google. By subtracting the rate offered to you and dividing the difference by the official rate, you can calculate the percentage margin being applied.
Usually, highly trafficked areas in tourist sites are the worst places to exchange currency, as they apply higher margins on the exchange rates. Therefore, it’s best to look online beforehand for a good exchange establishment rather than going to the first one you see.
However, if it’s necessary and urgent to exchange a small amount of money, it won’t make much difference where you exchange it, as it would only entail a small extra cost in the worst-case scenario.
What amount of cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as an emergency fund in case your card and phone are stolen, allowing you to at least manage in the situation: buying food, making phone calls, getting to the embassy if you need to request a duplicate passport, and reaching the airport to leave the country.
- It serves for cash payments: at some street vendors, certain vending machines, and for paying some services, such as laundries, payphones, shopping carts that require coins, etc.
Depending on the number of days you’ll be traveling and your projected cash expenses, you can roughly estimate the amount you’ll need, which, in any case, shouldn’t be a large sum.
Is it possible to know if the exchange rate for pesos will improve or worsen in the future?
Official currency exchange rates, like any financial market, function similarly to the stock market. While there are analysts and financial gurus who make predictions, just like stock predictions, there is no concrete evidence that anyone can consistently predict future prices.
Generally, exchange rates in the foreign exchange market tend to be quite stable, and over the course of a month, they don’t vary much more than 5%, unless there is an unexpected economic or political event, such as the unexpected victory of an opposition party with a groundbreaking economic program.