Cheques or debit card

[PigglyWiggly]

Hi - came across these boards by accident but glad I found them !

Please can anyone tell me which is the best way to take currency? I travelled once before and took travellers cheques but have since heard that Nationwide do a debit card which has no charges at all.

Do travellers cheques have a conversion fee when changed/cashed and is there a charge for using a debit card when using ATM?

Please can anyone help?

 

[wilma-bride]

We found that Travellers Cheques were an excellent way to take money. Not only do you have the added security if they get lost/stolen but all the parks take them just as they would cash and you just get the change in the normal way. As far as I am aware, there is no charge. We found that if we bought something for $20 (incl tax) and used a $50 travellers chq, we got $30 change. We will most definitely be taking travellers cheques again this year.

 

[peewakio]

We always take travellers cheques and see no reason to change.
I believe it is difficult to cheque your balance with the new Amex travellers Debit Card

 

[alanjones]

We always use travellers cheques. Virtually everywhere, from McDonalds to WalMart and everything in between, will accept them as though they were cash, with no extra charges. Some places will require ID (passport or drivers license), but other than that, they are very easy to use.

Even if your debit card doesn't charge you directly for using it in the US, it may have a worse exchange rate, so it might just be hiding the charge.

 

[gilld]

I used to take travellers cheques and they do work well, especially as a way of spreading your money throughout the holiday.

Now we just take a couple of hundred dollars to be going on with and charge the rest to a CC. If we need more cash, we use an ATM - our bank account does NOT charge us to withdraw cash abroad

 

[Frances999]

I like to take TCs, but we always use our credit cards as well. IMO it is a good idea to take a mixture. What I like about TCs is you know the exact exchnage rate you paid for them. When using a CC it is hit or miss and you don't usually find out the rate you have been offered until you receive your statement.

 

[sue&and]

Hi, I also use a mixture. TCs are great but I also use my Nationwide debit or credit card. They don't put any loading on the transaction either cash withdrawal or purchases and you get a far better rate of exchange than if you buy TCs and dollars on their own.

 

[rob@rar.org.uk]

There are a few advantages to using plastic:

1. You will get a better exchange rate if you use a credit/debit card. This will be close/at the interbank rate rather than the tourist rate which is what you will be charged when you but traveleers cheques. The Nationwide visa is especially good becuase they don't add a commission to all foreign currency purchases (most credit cards do, varying between 1.5 and 2.75%).

2. If you don't spend all your travellers cheques you will get a worse excahnge rate when you convert them to pounds. This spread between the buy rate and the sell rate is part of the profit that the banks make when they sell you TCs. Obviously this doesn't apply to a credit card, as you only change into dollars the exact amount of money you spend.

3. There may be some fringe benefits to using a credit card, eg, airmiles, purchase portection on some items, etc.

4. If you use a credit card you don't have to pay for your holiday spending until you've actually spent it. Your money stays in your account earning interest until after you're back from Orlando.

Credit cards are accepted almost everywhere in Orlando. We take a bit of cash with us for small purchases such as road tolls, drinks from refreshment carts around the park. Everything else goes on my Visa or Amex card.

Regards

Rob

 

[Frances999]

There are a few advantages to using plastic:

1. You will get a better exchange rate if you use a credit/debit card.

While you may get a better exchange rate , often the charge of 1.5% - 2.75% can cancel out this and results in it actually costing more than the tourist rate. The best advice is for one to check what their own credit cards offer. If it is a 2.75% fee, then TCs could actually prove to be a slightly better bet.

 

[Amyrlin]

I will take some cash, and mostly traveller cheques, just make sure they are $ ones, and most places will take them as if they were cash.

 

[peewakio]

There are a few advantages to using plastic:

1. You will get a better exchange rate if you use a credit/debit card. This will be close/at the interbank rate rather than the tourist rate which is what you will be charged when you but traveleers cheques. The Nationwide visa is especially good becuase they don't add a commission to all foreign currency purchases (most credit cards do, varying between 1.5 and 2.75%).

2. If you don't spend all your travellers cheques you will get a worse excahnge rate when you convert them to pounds. This spread between the buy rate and the sell rate is part of the profit that the banks make when they sell you TCs. Obviously this doesn't apply to a credit card, as you only change into dollars the exact amount of money you spend.

3. There may be some fringe benefits to using a credit card, eg, airmiles, purchase portection on some items, etc.

4. If you use a credit card you don't have to pay for your holiday spending until you've actually spent it. Your money stays in your account earning interest until after you're back from Orlando.

Credit cards are accepted almost everywhere in Orlando. We take a bit of cash with us for small purchases such as road tolls, drinks from refreshment carts around the park. Everything else goes on my Visa or Amex card.

Regards

Rob

Rob
How can I get a better rate than my TCs when I bought them when the tourist rate @ M&S was at $1.857 several months ago. At the current business rate of approx $1.745 and dropping rapidly I think I'm doing very well on my £2.5k thanks very much.
But I do agree that there are benefits to be had using your plastic but there are obvious occasions when you can take advantage of TCs.

 

[rob@rar.org.uk]

Rob
How can I get a better rate than my TCs when I bought them when the tourist rate @ M&S was at $1.857 several months ago. At the current business rate of approx $1.745 and dropping rapidly I think I'm doing very well on my £2.5k thanks very much.
But I do agree that there are benefits to be had using your plastic but there are obvious occasions when you can take advantage of TCs.

If you had used your credit card to make dollar purchase the same day as you bought your TCs you would have got a better rate with your card. The original question didn't refer to speculation on the international currency markets, which is a good thing because I'm not qualified to comment on that!

All other things being equal, a credit card is a cheaper way to buy foreign currency.

Regards

Rob

 

[rob@rar.org.uk]

While you may get a better exchange rate , often the charge of 1.5% - 2.75% can cancel out this and results in it actually costing more than the tourist rate. The best advice is for one to check what their own credit cards offer. If it is a 2.75% fee, then TCs could actually prove to be a slightly better bet.

The spread between interbank and tourist rate is normally between 5% and 8%. If you get the Nationwide Visa you can avoid this additional loading altogether.

Regards

Rob

 

[gilld]

The current account we have at our bank doesn't charge ANYTHING for withdrawing cash from ATM's abroad so that is probably the cheapest way for us though we will still use a CC for the security.

 

[PigglyWiggly]

Thanx for all the replies

I think that cheques will be the way to go - they seem a safe bet

:thewave: