| "> | | | | forget flights can be delayed on the way home as |
| The best ways of travelling with money. Some | | | | well as the way out - so dont spend it till your |
| survival tips and whether to use cards, cash or | | | | confident it is safe to do so. Relying on your airline |
| traveller’s cheques to make purchases or to | | | | or tour operator to provide you with emergency |
| get cash. What do credit cards and debit cards cost | | | | food and drink would be a fools paradise, as they |
| to use abroad and in ATMs? | | | | only provide the bare minimum where there are |
| The UK market for Traveller's cheques has been in | | | | substantial delays. |
| steady decline for a few years, despite the overall | | | | Cash versus Card |
| increase in travel. (source Mintel Market Research - | | | | Obviously it is unwise to go around carrying large |
| Holiday money UK). This has been caused by a | | | | amount of cash. Well I say obviously but I know |
| number of factors, not least being the increased | | | | some people do this. If you are not careful this will |
| issuance of credit cards and debit cards, and the | | | | attract attention and increase your chance of being |
| extent to which they are accepted abroad. Support | | | | robbed. Having to dive into a money belt just |
| for the use of cards and the undermining to | | | | draws attention to the fact your wearing one - so |
| Travellers Cheques has been further eroded by the | | | | avoid this by carry ready money in a purse or |
| massive growth in the worldwide ATM network. This | | | | wallet. |
| is coupled with the perception (and fact) that TCs | | | | Ok so cards win out over cash on security grounds - |
| can be a pain to cash. Especially at weekends or if | | | | and we've discussed some of the back up strategies |
| you run foul of local bank holidays (quite likely in Spain | | | | for cards. But when it comes to making purchases |
| where there are local bank holidays!) | | | | which is the better route (pay by card, exchange |
| I can cite my own example of this. Trying to pay | | | | money using your card, or get money from an |
| by credit card in an Ibiza restaurant in 1988 was an | | | | ATM). This is much less clear cut and depends |
| offline transaction that had to be supported by a | | | | largely what type of plastic you pack. |
| passport and they were most reluctant despite | | | | Bear in mind if you use a credit card in a bureau de |
| displaying the Visa symbol. Fast forward 20 years | | | | change (BdC) your card company will probably treat |
| and you have no problems using cards in restaurants | | | | it as a cash advance and clobber you for interest |
| and bars, even in out-of-the-way places. The | | | | and 1.5 to 2.5%, as well as any charges made by the |
| problem is more likely that your card issuer will 'stop' | | | | BdC. |
| the transaction as suspect because it is not chip and | | | | If you are given the option to pay by card but in |
| pin. It is now routine to pay in Supermakets and | | | | sterling (or your native currency) there will probably |
| virtually all shops by card; this wasnt the case a | | | | be a hidden agenda, like the exchange rate you get |
| few years ago when cash was still king. | | | | will be very poor. This is called dynamic currency |
| Cash and Travellers cheques do have one big | | | | exchange as a rule always decline this offer. |
| advantage for the budget conscious its much easier | | | | These days most card companies charge you a % |
| to keep track of what you're spending especially if | | | | of the transaction if it (the purchase) is not in your |
| trying to keep to a daily budget! | | | | native currency. This does vary widely. It started a |
| One of the reasons I decided to write about this | | | | few years as as a modest 0.75% and has been |
| topic was that I came across a post on Galavanting | | | | steadily climbing ever since as it not something most |
| . Essentially they were saying why take TCs, you | | | | of us consider when choosing a card. It can now be |
| find it hard to pay with them, you get charged to | | | | up to a massive 2.75% |
| buy them or to cash them or lose in the exchange | | | | Typical (but is does vary widely) debit card charges |
| rate. These are all true - you also have to keep track | | | | for withdrawing cash from an ATM abroad are |
| of which ones you use. | | | | £1.50 flat and 2.75%. However the rate of |
| However I can give you one reason to use them: if | | | | exchange is usually very good and close to the |
| you only have one card, if you are travelling alone, if | | | | wholesale rate of exchange. However you wont |
| you are travelling in remote areas. If some or all of | | | | know what that is going to be. Charges on credit |
| these apply think on this. The reality for most card | | | | cards can be similar but interest will start to accrue |
| issuers is not like the old ads - they will not be | | | | for the day of withdrawal (unlike with a purchase). |
| rushing you a new card within 24 hours. If you lose | | | | As a rule if you make a purchase by credit or debit |
| your card, have it stolen, the mag stripe and or pin | | | | card you will get decent exchange rate and you will |
| packs in, then you have a problem if this is your only | | | | only have to pay the 2.75% or whatever the |
| means of payment and getting cash. Your card | | | | transaction rate is. |
| could also get skimmed (ie cloned) and then maxed | | | | Charges on debit and credit cards used abroad are |
| out. If any of these things happen you possibly have | | | | now so high that I urge to check your terms and |
| a huge problem. | | | | conditions so that you know what youre in for. |
| Never ever ever travel with only one means | | | | Bear in mind if you use a credit card you get |
| payment and a bit of cash. Always have a back up | | | | protection on purchases over £100 (section 75 |
| and dont travel with it if possible. If it is not possible | | | | protection) you will not get this with a debit card. |
| keep one/some on your person and one/some | | | | You can get more information on where to exchange |
| secreted in your luggage somewhere secure. This | | | | money and how to pay when you're abroad from |
| applies even if you are travelling with a partner - | | | | our website Holiday Travel money page. One last |
| there is always the possibility of both being | | | | tip dont wait till you get to the airport before |
| mugged. Wiring money from friends or relatives is | | | | changing money, see the travel money page, for the |
| expensive and fraught - especially if you and they | | | | best places / ways to do this. |
| have not done it before. | | | | The best credit card on the market, currently, is |
| Dont carry more plastic than you need at one time: | | | | Abbey's zero card which at the time of going to |
| Anyone who has lost a wallet or purse knows the | | | | (word)press doesnt make transaction withdrawal |
| heartache of having to ring round cancelling half a | | | | charge for cash and has no Forex loading. But you |
| dozen cards. This is even more painful abroard. | | | | do pay interest from the date of withdrawal. |
| Take cards you wont be using out of your wallet | | | | Debit cards of note are Nationwide flex account Visa |
| and leave them at home, in your room or hotel | | | | debit card. This beats every card out there, even |
| (hide them or put them in the safe). | | | | specialist credit cards as it doesn’t load, |
| Try and avoid running your cash down to the last | | | | doesn’t charge ATM fees and is interest free |
| cent/penny/euro before getting more. Always keep | | | | (unless you’re overdrawn). However you |
| one large denomination note somewhere safe. Dont | | | | need to open a Nationwide current account. |