How to pay abroad when traveling from Colombia

The difference between what a Colombian traveler thinks they are paying abroad and what they actually end up paying can reach 15% or more of their budget. Here we tell you what to compare between bank cards, prepaid cards, cash, and USDT, and what to resolve before setting off on your trip.

Download the belo app and check how to pay abroad according to your account and current conditions.

How much you actually lose paying from Colombia

The difference between what a Colombian traveler thinks they are paying and what they actually end up paying can reach 15% or more of the total trip budget. 

This gap appears in ATM fees, in the TRM (Representative Market Exchange Rate) applied by the bank days after the purchase and in currency conversion surcharges that many issuers add without the traveler noticing until they check their statement.

Understanding how to pay abroad from Colombia before leaving changes the equation completely. The real cost of spending with Colombian bank cards is not defined at the moment of purchase. 

When you pay with a credit card in another country, the bank converts the amount according to the TRM of the day it processes the transaction, which can be two or three days later.

If the rate moved during that period, the amount in Colombian pesos changes without you having done anything differently.

To this is added the 4x1000 tax and the conversion costs defined by each bank, which together can represent an additional 3% to 8% over the original price.

Bank card, prepaid, or crypto: what to bring

Paying abroad from Colombia with a traditional bank card comes with a cost of predictability that few calculate. 

A traveler who spends the equivalent of 5 million Colombian pesos over two weeks in Europe can end up with a considerable difference between what they thought they spent and what the final statement reflects.

This margin grows when there are several expenses distributed over different days, because each one is processed with a different TRM.

Imagine you are in Mexico City and you need to pay for an Uber, have lunch at a restaurant, and buy tickets to Teotihuacán, all on the same day.

With a Colombian bank card, those three transactions can be processed on different dates and at different rates. 

With a prepaid card that deducts from the balance instantly, the amount is closed with each transaction. This difference seems minor on a small purchase, but it multiplies when you add up hotel, transport, and meals over ten days.

Traveling with a prepaid card allows you to know exactly how much you have spent at any moment of the trip, something you can only estimate with a bank card.

The expense is reflected immediately, without depending on the statement closing or the TRM of a day that has not yet arrived.

Cash is still necessary as a backup, especially in destinations where digital payment penetration is low or where small businesses do not accept cards.

Carrying your entire budget in cash involves risks of loss or theft that are eliminated with digital means. The recommendation is to carry cash equivalent to two or three days of basic expenses and resolve the rest by card.

To carry travel money without exposing yourself, a combination of 70% digital and 30% cash works in most Latin American and European destinations.

Comparison of payment methods abroad

Among digital options, stablecoins like USDT are gaining ground as a store of value prior to traveling. 

If a Colombian traveler converts part of their budget to USDT weeks before leaving, they protect themselves from a potential devaluation of the Colombian peso against the dollar between the purchase date and the travel date.

At belo, we designed the wallet so you can keep USDT and convert at the moment of payment, giving you control over the exchange rate without depending on the bank's timing.

What to check before going abroad

Blockage due to international use is the most frequent cause of financial frustration in the first days of travel. 

Many Colombian banks automatically block cards when they detect transactions in another country if the cardholder did not previously activate international use.

This activation is usually done from the bank's app or by calling customer service, and it is best to do it at least 48 hours before traveling.

Four things to have sorted out before leaving

• Check the withdrawal limits at ATMs abroad, because many Colombian banks set a daily limit that might be lower than what you need during the trip.

• Set up real-time transaction notifications to detect any unrecognized charge the moment it occurs.

• Verify if your card allows you to choose the billing currency at the point of sale, because when a business offers you to "pay in Colombian pesos" instead of the local currency, it is applying a Dynamic Currency Conversion (DCC) which is almost always more expensive than letting your bank do the conversion.

• Have at least two different payment methods, because relying on a single card abroad is a risk that is easily resolved before leaving and is expensive to resolve once away.

International ATM fees have two layers that many travelers are unaware of. The issuing bank in Colombia charges its fee for international withdrawals, and the bank that owns the ATM at the destination charges another.

Both add up, and in destinations like the United States or Europe, the combined cost can become significant per withdrawal. When you need cash, it is better to make few withdrawals of higher amounts instead of several small withdrawals.

Download the belo app and check your options to pay abroad according to your account and current conditions.

Frequently asked questions on how to pay abroad when traveling from Colombia

How do I pay abroad being Colombian?

The main options are bank credit or debit cards with international use activated, prepaid cards that operate with preloaded balances, and, in some destinations, digital wallets with interoperable QR codes that allow you to pay without a physical card. Each method has a different cost profile that depends on the destination, duration of the trip, and volume of expenses you expect to make.

The bank card works in most businesses but leaves the final cost subject to the TRM of the day of processing. Prepaid cards define the amount at the time of payment, which gives more budget control. For those who already operate with stablecoins, converting USDT at the moment of consumption can offer a more transparent exchange rate than the traditional banking circuit.

What is the best way to carry money for travel?

A combination of methods is what works best in practice. Carrying one card with international use as the primary method, a second card (ideally from another network, like Visa if the first is Mastercard) as backup, and cash in the destination's currency equivalent to two or three days of basic expenses covers most scenarios without overexposing you.

Before defining how much cash to bring, it is advisable to research the specific destination. In European cities like Amsterdam or Stockholm, cash is barely used and you can operate practically everything by card. In markets in Mexico City or in towns in the interior of Peru, cash is still essential for minor purchases. This difference defines whether your ideal ratio is 90% digital and 10% cash or exactly the opposite.

What is Dynamic Currency Conversion (DCC) and why is it best avoided?

Dynamic currency conversion occurs when a business abroad offers to charge you in Colombian pesos instead of the local currency. Although it seems convenient, the exchange rate applied by the merchant is almost always less favorable than the one your bank would apply, making the purchase more expensive without you noticing immediately. Whenever the terminal asks you in which currency to pay, choose the local currency of the country where you are.

When is it convenient to use stablecoins to travel?

Converting part of the budget to USDT makes sense when there is a risk that the Colombian peso will devalue between the date you plan the trip and the date you travel. By fixing the value in dollars in advance, the traveler is protected from that variation. This strategy works best combined with a wallet that allows you to convert and pay directly from your crypto balance.

What happens if my Colombian card does not work abroad?

The most common cause is that international use is not activated, something most Colombian banks deactivate by default. If you already had it active and the card still doesn't work, it may be due to a withdrawal or purchase limit reached, or because the merchant does not operate with your network (Visa or Mastercard). Having a second card from another network and some local cash resolves these situations without major setbacks.