Reference

Travel money & crypto glossary

Plain-language definitions of the fees, terms and acronyms you meet when comparing cards, transfers, crypto and travel tools — so the rest of the site reads clearly.

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): When a foreign terminal or ATM offers to charge you in your home currency instead of the local one. It almost always uses a worse rate — decline it and pay in 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 control the private keys, so no company can freeze or move your funds — but you are fully responsible for backups and recovery.
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: Fine print on "unlimited" plans that can slow speeds or limit features after very high usage. Always check it before assuming truly uncapped data.
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 non-bank that issues e-money and cards. Funds are safeguarded rather than deposit-insured, so an EMI account is not the same as an insured bank deposit.
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 harmonised rulebook for crypto issuers and service providers across the EU. It sets licensing, conduct and stablecoin rules, but it is not deposit insurance for your crypto.
CASP (Crypto-Asset Service Provider): A company authorised under MiCA to offer crypto services in the EU, such as exchange, custody or brokerage. After the transition period, serving EU users without this licence is not allowed.
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 authorisation to offer them in the EU.
Tax residence: The country with the right to tax your income, usually decided by days spent there, your permanent home and your ties — not by the country you happen to be visiting. It is the key question before any tax rate matters.
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 — always with 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, even while you are tax resident. It does not exempt employment income, and conditions apply.
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. It is only the simplest test — a home or strong ties can trigger residence with fewer days, and some countries use shorter rules.
Digital nomad visa: A residence permit that lets you live in a country while earning from foreign employers or clients. It is not permission to take local jobs and not, by itself, a tax exemption — proof of income, savings and insurance is usually required.