Reference
Travel Money and Crypto Glossary: 30 Key Terms
Travel money and crypto glossary: 30 plain definitions, from FX spread, DCC and IBAN to MiCA, stablecoins and the 183-day tax residence rule.
- FX spread
- The markup a provider adds to the real (mid-market) exchange rate. A small percentage spread on every conversion is often the biggest hidden cost of spending abroad.
- Dynamic currency conversion (DCC)
- An offer by a foreign terminal or ATM to charge you in your home currency instead of the local one. Its exchange rate almost always includes a markup, so choose the local currency.
- KYC (Know Your Customer)
- The identity checks regulated providers must run before letting you open an account or use a card. Expect to submit ID and sometimes proof of address.
- Custodial wallet
- A wallet where a company holds your funds or keys for you. It is convenient but means access depends on that provider staying solvent, compliant and online.
- Non-custodial wallet
- A wallet where you hold the private keys yourself. Only you can move the funds, and backups and recovery are your job.
- Stablecoin
- A crypto token designed to track a fiat currency such as the US dollar or euro. Useful for spending and transfers, but watch issuer quality and de-peg risk.
- eSIM
- A digital SIM you install over the internet instead of a physical card, so you can buy local data before arrival. Your phone must be eSIM-compatible and unlocked.
- IBAN
- The International Bank Account Number used to receive transfers in Europe and beyond. Some fintechs give you a local IBAN, which clients often prefer over cross-border details.
- SWIFT wire transfer
- A bank-to-bank international transfer routed through the SWIFT network. It is widely accepted but can be slow and carry fixed plus intermediary-bank fees.
- ATM fee
- A charge for cash withdrawals abroad, often a fixed amount plus a percentage above a monthly free allowance — and the ATM operator may add its own surcharge.
- Chargeback
- A card-network process to reverse a payment when a merchant fails to deliver or a charge is fraudulent. It is a key reason to put risky bookings on a card, not cash.
- Multi-currency account
- An account that holds and converts several currencies, often with local receiving details. It lets you time conversions and avoid repeated FX on every transaction.
- Fair use policy
- The rules on "unlimited" plans that slow speeds or limit features after very high usage. They tell you the usage threshold and the speed you get after it.
- Tokenization (Apple/Google Pay)
- Replacing your real card number with a device-specific token when you pay by phone, so the merchant never sees the actual card — a security benefit of mobile wallets.
- Off-ramp
- Converting crypto back into spendable fiat — for example, when a crypto card sells your tokens at the point of sale. Off-ramp fees and rates are part of the real cost.
- Card hold (pre-authorization)
- A temporary block hotels and car-rental firms place on your card for a deposit. It reduces your available balance until released, which can take several days.
- Mid-market rate
- The real exchange rate banks use between themselves, with no markup. Comparing a provider against the mid-market rate shows the true FX cost you are paying.
- Interchange fee
- A fee the merchant’s bank pays the cardholder’s bank on each card payment. It funds many card rewards, which is why cashback often comes from spending, not deposits.
- SEPA transfer
- A euro bank transfer within the Single Euro Payments Area, usually cheap or free and fast. It is the standard way to move euros between European accounts.
- Electronic Money Institution (EMI)
- A licensed company, other than a bank, that issues e-money and cards. It safeguards customer funds instead of covering them with bank deposit insurance.
- Two-factor authentication (2FA)
- A second login or payment check beyond your password, such as an SMS code or app prompt. Keep a working way to receive it abroad or you can be locked out of money.
- Virtual card
- A card that exists only digitally, used online or in a phone wallet without a plastic version. It is handy as a disposable or backup number with its own limits.
- MiCA
- The EU’s Markets in Crypto-Assets Regulation — one harmonized rulebook for crypto issuers and service providers across the EU. It sets licensing, conduct and stablecoin rules for those firms.
- CASP (Crypto-Asset Service Provider)
- A company authorized under MiCA to offer crypto services in the EU, such as exchange, custody or brokerage. After the transition period, a firm needs this license to serve EU users.
- EMT and ART (MiCA stablecoins)
- Two MiCA stablecoin types: an e-money token (EMT) is pegged to one currency (like USDC or EURC), while an asset-referenced token (ART) tracks a basket of assets. Issuers generally need authorization to offer them in the EU.
- Tax residence
- The country that can tax your income, usually decided by the days you spend there, where your permanent home is and your personal and economic ties. Settle it before you compare tax rates.
- Territorial taxation
- A system that taxes only locally sourced income (or only money brought into the country), leaving genuinely foreign income largely untaxed. Bases like Georgia, Malaysia and Thailand use versions of it, each with its own conditions.
- Non-domicile (non-dom) status
- A regime, notably in Cyprus, that exempts certain income such as dividends and interest from local tax for a period while you are tax resident. Employment income stays taxable.
- 183-day rule
- A common test that makes you a tax resident once you spend more than 183 days in a country in a year. Many countries also look at a permanent home or close ties, which can make you resident with fewer days, and some use shorter thresholds.
- Digital nomad visa
- A residence permit for people who live in a country while working for employers or clients abroad. It usually requires proof of income, savings and health insurance; local jobs and tax status follow separate rules.