Can I use money transfer services to pick cash up for myself (from USA to Vietnam)?

Question

We're traveling from the USA to Vietnam in 2 weeks. Most of the trip's major expenses are paid off, but we want to have cash handy for small vendors and artisans and remote places generally. We want to avoid airport currency exchange because the rates are low.

One way is to find a money exchange vendor near us, find out the rates and bargain. Another is to go to a bank that we are customers of. (So far, from searching, big banks like Chase don't seem to offer Vietnamese Dongs!)

A third option that occurred to me is to use money transfer services (Western Union, Remitly, Ria, Xoom) to pick up locally at a bank branch.

We are asked information like "Place as in the ID", etc, that makes me wonder if a US resident can pick up cash at a designated bank branch in Vietnam without any bank account.

1. Can a US resident (tourist) use such services to send money to self to be picked up as cash while there?
2. Is there a better way of doing this or is an airport the best place to pick up cash?

Answer 1

The suggestion to use an ATM is great, but if it so happens that your home bank doesn't offer a good deal for travellers, just taking US dollars with you comes as a close second.

As you have the privilege of coming from the country with the most popular currency in the world, the absolute worst you can do is to purchase VND at home. Consider how low the demand for VND is in the US and you will realize that even the best bargain at a local foreign currency vendor will come with a hefty price tag. Now compare this with the currency exchange market in Vietnam, where crispy green American presidents are (as almost everywhere) in high demand, but there's also a significant volume of VND being traded.

In fact, the dollar is so ubiquitous that several years ago I would routinely purchase dollars in my home country for local currency, before travelling abroad and exchanging the dollars for the local currency at the place of my vacation and it would almost invariably turn out to be one of the best options.

It is true, that currency exchange rates at airports and in touristy centers can be unpredictable so it's worthwhile to shop around first once you arrive, however in all likelihood you'll be able to pay with your credit card for most immediate expenses on arrival. I have been to Ho Chi Minh only a few months ago and the level of acceptance of cashless methods of payment credit cards is quite high.

Answer 2

1. Check the specific terms of the service you are considering using, but, in general, yes, a tourist with appropriate ID will be allowed to use a money transfer service. However, the fees for such services are often high, and may or may not in practice be competitive with even the worst airport (or tourist-area street) currency exchanges.

2. In almost all circumstances, it is a much better deal (and far easier!) to simply withdraw cash at an ATM upon arrival. While not all countries have ATMs as ubiquitous as in the US, almost every international airport on earth has ATMs, and you can probably find some in any medium-to-large city you pass through. You may want to consider making a few larger withdrawals when an ATM is nearby rather than smaller ones as you might do when traveling in a country where access is more convenient.

Answer 3

From having just spent about 10 days in Vietnam I have some current information about this.

Again, credit cards are accepted in big and medium sized towns but with the idea to carry cash for the small towns/countryside or small vendors here are some options:

1. Airport

• Destination (Hanoi) - We got very close to market rate for USD to VND) (23200 VND)
• 3rd country (not your home country nor destination but the transit country. Typically airlines have to land in their home country when they connect 2 cities in 2 other countries.) - We got a not so ideal deal (21000 VND) because of the loss in conversion from USD to YEN to VND

2. 4/5 star hotels - If you are staying at an international hotel and a 3+ star hotel at that, they offer exchange too. This is also close to market rate (23320 VND)

3. ATMs - Make sure your bank doesn't charge you foreign transaction and foreign exchange fees because the destination ATM may still deduct some service/convenience fees. But even with the fees it may make sense in some cases when you only have a need for cash for that occasion and not any more. You don't want to be left with a bunch of currency you won't use after.

At home in the USA, (esp San Francisco Bay Area) where there is a sizable Vietnamese population none of my banks were able to provide me VND because they don't carry that currency. Other Foreign Exchange services that even offer home delivery of currency gave a best rate of 15000 VND.

So this tells me it is about the demand of the currency in a given country. And in some cases the denomination of the notes also matters. So something like notes of $100 attract a slightly better rate than notes of $20 or $5.

Answer 4

Options to get cash in Vietnam: Best option: ATMs are convenient and good exchange rates - but all with different fees and withdrawal limits. You can use the ATM Fee Saver app or website - it will give you a list of ATMs with no fees or lower fees than others along with withdrawal limits there.

Second best option: Carry dollars / your currency and exchange at local shops (not airports)

Third option: Western union the money

Fourth option: Transfer to someone you know there.