Im sure im being thick but ill ask anyway

[buzz for boys]

Hi all,
I see lots of threads on here about exchanging money and im confused
i was planning on just using my debit card for everything like I do over here if w eneed cash - simply get it out of cahpoint over there. Have I missed something ?? Why exchange here and have hassle of travellers cheques???

I know there is probably a really obvious answer to this but Ive asked the question anyway *** im a bit dumb and dont know the answer !!

Thanks guys
Louise x

 

[wickesy]

First thing that comes to mind for me is security - what happens if your card is lost/stolen?, cash machine swallows your card? With travellers cheques at least they can be replaced.

Also, depending who you bank with, there is a chance that you could be charged an ATM fee and/or commission every time you get cash out and you will never know what exchange rate you are going to get as it will change from day to day.

You would probably be OK but personally I wouldn't rely on one source of money so far from home.

 

[Andrew Bichard]

Nothing wrong with that. I do this every trip but....

The ATM company will take a few dollars off the top for letting you use their machine, and then you have to figure in a possibly poor exchange rate, plus your own bank's commission. Plus you don't know what the exchange rate will be on the day you use the ATM.

It depends what you value most... convenience or counting every penny!!

re: 'I wouldn't rely on one source of money so far from home'

When travelling, I will have bankers cards for two separate banks and several different credit cards. My wife will have similar. Most of our cards will be in the room safe at our hotel. In any case, most of our spending will be on our Disney room key.

Andrew

 

[wicket2005]

I think the majority of people do not want to pay to use an ATM which is what the majority of debit card banks will do. We use Abbey Zero and Nationwide credit cards abroad which do not charge us a transaction fee. I also do not depend on one source of money, we have credit cards, a debit card, travellor's cheques plus a bit of cash. I also take different credit cards to my hubbie just in case he gets his lost or stolen.

 

[fuse04]

I would usually take some cash for cabs etc, which I would get in the UK to avoid the ATM handing charges and the commission, and low exhcnge rate.

Most of the purchases will be put onto a credit card. However most credit card companies will 'hide' their commission in the exchange rate, also the exchange rate will be based on the high street rate.

Many on DIS use Nationwide or the Post Office credit card because the exchange rate you get is the interbank rate which is better than the high street rate, and there is no commission.

Relying upon only one source of money is a bit risky should you lose it.

 

[Frances999]

The safest and (usually) cheapest way of paying whilst in the USA is using a fee-free credit card such as those offered by Nationwide, the Post Office, Audi or Abbey Zero. Why?

a) You get the commercial exchange rate - much better than the rate you would get exchanging your cash on the high street
b) You get the security of paying by a credit card - the ability to chargeback purchases which are not to your satisfaction
c) You get a (usually) 56 days interest-free period before the balance needs to be paid. Keep your hard-earned money in a high-interest savings account (if such a thing exists in today's economy!!) until the balance needs paying.

 

[wayneg]

We used under $10 for tolls at Xmas, everything else on Fee free Nationwide credit card.
I take 3 or 4 of my cards and DW takes some of hers, we have at least 5 cards with us so no worries about any problems.

As for Debit cards just check what the fees are, some are very expensive. You need to be using a fee free one.

 

[Cinderella]

Hi Louise, I've had problems in Florida a few times with my card not working in machines etc, so I prefer to take travellers cheques. Plus, if they're stolen, you can get them replaced pretty quickly.

If you get US dollars travellers cheques, you can use them to pay for things and you're given the change in cash, so it really isn't any hassle.

 

[Chilly]

Also some banks stop your card when it is used abroad in case it has been stolen, ringing the bank to tell them you are going abroad does not work as it is an automated system that stops the card not a person.

US travellers cheques can be used the same as cash so are very easy to use.

 

[feline figaro]

If you re intending on using a switch card just a word of warning not everyone accepts them in America. We could only use ours in a couple of places, many said its not a card they accept. They tend to prefer cc payments

 

[Beep]

We use a combination of things. I don't use my bank card (Halifax) but I use credit cards, cash and travellers cheques.

We take around $500 cash (split between us) and a fair chunk in travellers cheques. I prefer to do it this way as it helps control our spending. I find it too much of a temptation to put everything on a credit card! this time we are taking the Fairfx card as we have a lot to pay on card both when we are there and beforehand (getting married) and this was the best way for us.

If I had one of the no-fee cards such as the Nationwide card I would use that.

 

[jen_uk]

Travellers cheques are so easy to use its not any hassle, I would worry that something may happen to the card and I would be left with no money. Plus I wouldn't want to have to keep using the cashpoint, that would be more hassle.

 

[buzz for boys]

Wow thanks everyone - such a lot of replies and certaintly gave me a lot to think about

I hve looked at the fair fx card but i felt they charged a lot of fees - unless ive got it wrong ?? I know its a populaur option for people on here. Im also a little nervous about something I dont know !!

My debit card is a visa so I know it will work I looked at the fees at its only 2.5% for cashpoints.

For travellers cheques im worried that ill buy and find the exchange rate has improved since buying how far in advance do we have buy them??

Sorry I know another bunch of questions - did warn you I can be quite thick !!

 

[wayneg]

My debit card is a visa so I know it will work I looked at the fees at its only 2.5% for cashpoints.

For travellers cheques im worried that ill buy and find the exchange rate has improved since buying how far in advance do we have buy them??

Sorry I know another bunch of questions - did warn you I can be quite thick !!

Which bank is your debit card with?
If you do go with TC's then you don't have to buy them until a few days before you travel if you wanted, as long as they have enough in stock.

 

[wickesy]

If you use the FairFx card as a credit card there won't be any fees at all. They do charge you a fee for using it at cashpoints though. I have used mine on two trips to the US and never had any problems.

I think you can get traveller's cheques even a couple of days before you go if you want to.

 

[buzz for boys]

Which bank is your debit card with?
If you do go with TC's then you don't have to buy them until a few days before you travel if you wanted, as long as they have enough in stock.

I bank with barclays - i phoned them up and they said that the only charge they impose is with cashpoint withdrawals !! No doubt you are about to tell me different wayne

 

[wayneg]

I bank with barclays - i phoned them up and they said that the only charge they impose is with cashpoint withdrawals !! No doubt you are about to tell me different wayne

Unfortunately yes.
If I read this correctly from Barclays site you will be charged a 2.75% fee to convert to $US + 2% fee to withdraw(Min+max see their text)
Someone please correct me if I am wrong but working on a $500 withdrawal with current rate of eg $1.50 will work out at £342 (after 2.75% fee) plus £4.50 fee = £346.50 or a conversion rate equivelent to $1.44 plus some cash machines charge a fee in US, you would have to make sure you used a fee free one.


A 2.75% charge for Barclays handling costs and any VISA processing fees is included in the sterling conversion shown on your statement and applies to all foreign transactions.

There is an additional 2% transaction charge (min £1.50 max £4.50) if you withdraw cash overseas via a cash machine or in a bank, except Barclays cash machines or those within the Global Alliance as listed below.

If you use a cash machine outside the Global Alliance, you may also incur an additional service charge on top.

 

[wayneg]

Compare that to a Nationwide debit card where you would get the whole $1.50 so that would convert to £333.33 and save you £13.17 in fees.

 

[Cyrano]

Compare that to a Nationwide debit card where you would get the whole $1.50 so that would convert to £333.33 and save you £13.17 in fees.

This has helped me convince OH that Nationwide is the way to go for Florida

 

[buzz for boys]

Arrrggh my brain is fried now !! So simply I will pay a small fortune with the bank account I have but it will be convienant!!
Im not really up for changing banks just to save £13 but I do see your point and maybe ill do better to change money and only use debit card as a back up!!
I dont see how the fairfx card is an option though as they charge you a fee to get back the money you dont spend ( I know its unlikely but hey !!) Also charge a 2% fee for cashpoint withdrawals.
So wayne you have converted my way of thinking who do you reccomend I use to change my money???
sorry I know im a pain !!