best way to pay

[rewok]

I found that using a credit card cost the same exchange rate as what it would cost to purchase US travelers cheques. The only way we can get around it is to get a preferred exchange rate -- my wife is employed by a major bank, and we sometimes do this. However, we're terrible at estimating how much we need and it seems like a waste to return with a few hundred extra $US. By going the credit card route, we pay a bit more in fees, but spend only what we need.

FYI, check your credit card agreements for the fee structure. Mine is 2.5%, but this rate can vary significantly between different companies.

Like he says! Anytime you exchange currency (credit card, traveller cheque, cash), you pay a fee, because the bank has to make some money out of it. It varies, but the 2.5% on my Mastercard is not so bad, and it's convenient. On cash withdrawal, I think it's 2% at my bank, but since my mom works there, I just call her and she takes money in her name which saves me that 2% (employee rate). I don't mind coming back home with extra cash, as we're crossing quite often, but we take max 500$ at one time (comfort level), which means a saving of... 10$ on a 3000$ vacation!! I call my mom mostly because it's easier, no lines, and I drop at her house to get my cash. I've stopped bothering a long time ago about the exchange fee.

 

[busyshrew]

We have a no-fee dividend credit card. So we are the same as some PPs, we think the 2.5% is fair for the extra protection offered by VISA services. We use the credit card to purchase our plane tickets, our hotel/condo, and our car rental. Everything else we do cash.

Whoops. Forgot to mention, we buy our tickets through Undercover Tourist, but we try to wait and get them when the dollar is high (over .98). We got lucky this spring, so DD & DH's tickets are already bought!

Now I'm just waiting to get my ticket - we'll see if that dollar ever gets over .97 again this summer, *groan*.

 

[minnie56]

You could open a USD Visa and then pay that in USD but unless you have some income in USD you are still up for paying the exchange rate to buy the USD at the bank...