Some info about Dollar Travellers Cheques please

[Katies Dad]

Hi, we are considering taking cash (dollars), travellers cheques and a Nationwide credit card.

I understand that you can use the travellers cheques as you would use cash. So am I right in assuming if you go out for dinner and say it costs $44 if you give a $50 travellers cheque you would get the appropriate change? Also do you need to carry your passport around all the time for cashing the travellers cheques. (Sorry if I sound a bit thick, but need to get it straight in my mind before deciding how much I need to buy).

Would it be easier to use my credit card?

Thanks for any info and advice you can give me.

 

[Sue & Co.]

Hi, we took dollar traveller cheques last time we went and although at first we carried a passport around we were never ever asked for it. Secondly yes, if you give a cheque for slightly more than the bill, they will give change in cash. \hope this helps.

 

[bubblefactory]

Hi Katies Dad,

Yes you are quite right you get cash change when you use a check. I. d is not usually required in parks or in restaurants but some deparment stores or outlet shops ask especially on large purchases. I find it easier and safer to carry the photocard driving license in case I need I.d.

I prefer travellers checks to credit cards as you can buy in advance if the rate is good and it helps budget if you want to split your checks like x dollars per day.

I always carry a credit card as well for emergency back up.

Alec

 

[Katies Dad]

Thanks both of you, that was pretty quick. I hadn`t thought about the rate on the credit card. Where as the rate to buy cheques etc at the moment is good.

Think I`ll be better looking into one of these photo dr licences.

 

[rob@rar.org.uk]

Comparing like with like, you'll always get a better rate of exchange using a credit card, expecially the Nationwide visa. Travellers cheques offer the worst exchange rate when compared to credit card or cash.

Regards

Rob

 

[Katies Dad]

Am I being a bit thick here, but surely if you have already bought your travellers cheques in UK you have got the best rate. I wasn`t going to cash them, just use them as cash.

 

[Rain]

Katie's dad,

The other thing to watch out for with Travellers cheques is that you don't take too many!!!

We came back with around $1800 in T.Cs and lost about £200 changing them back to sterling.

I really took far too much as a just in case.

 

[bubblefactory]

I don't personally like the gamble with the exchange rate - yes its true credit card transactions go through at bank rate which is better than tourist exchange rate but who's to guess wether (in my case) it will be 1.53 or 1.63 in october? I've bought at 1.61 commission free which I'm happy with.

There is also no need to change back any unused checks (very rare with my DW in tow) as they can be used on future trips anywhere in the world . They can be exchanged for local currency at any exchange office out of the UK for the "sell rate" not the buyback rate - you do not have to be American to use the dollar outside the US - I used the leftovers of mine once in Southern France with no trouble

Alec

 

[TraceyL]

.......... and the TC exchange rate is always slightly better than the currency rate (usually by about 1c per £). Don't spend it all at once

 

[rob@rar.org.uk]

Originally posted by Katies Dad
Am I being a bit thick here, but surely if you have already bought your travellers cheques in UK you have got the best rate. I wasn`t going to cash them, just use them as cash.

No that's not right. On any given day it will be cheaper to buy $100 worth of goods with a credit card than it will be with Travellers Cheques. With TCs you pay the tourist rate of exchange when you buy them (and normally a slightly worse rate of exchange than buying cash), but with credit cards you pay closer to the bank rate (which is always a better rate of exchange). Most credit card companies add a small surcharge to the transaction to increase their profit margin (although Nationwide does not), but even with this additional cost you will still have a better exchange rate with your credit card.

What makes the situation slightly more complicated is the potential change, up or down, of the dollar rate against the pound. This could work in your favour or against you, but which ever way it goes you need to bear in mind that credit cards always start with a slight advantage over Travellers Cheques becuase they are a cheaper way to buy foreign currency.

There are other reasons why I prefer credit cards over TCs:

1. They are even more convenient than carrying TCs, more widely accepted and just as secure.
2. They provide insurance on some purchases.
3. I only spend what I need, so no changing back into sterling at an even worse exchange rate.
4. My holiday money stays in my bank account until after my holiday, rather than having to buy in advance.
5. Some credit cards, including the ones I use, provide perks such as AirMiles.

Regards

Rob

 

[rob@rar.org.uk]

Originally posted by TraceyL
.......... and the TC exchange rate is always slightly better than the currency rate (usually by about 1c per £). Don't spend it all at once

Not in my experience. The TC rate is normally a little worse than buying cash. This makes sense as the TC product is more complicated for banks to process, and there has to be an element to cover against faudulent use.

Regards

Rob

 

[TraceyL]

Have to disagree with you on that one sorry Rob. Every time I've bought TC the exchange rate has been better than buying currency - can't comment on changing it back again as we never bring anything back ! Maybe you get you $$$ from different places to me ?

Halifax TC $1.62010 Currency $1.61193
Post Office TC $1.6091 Currency $1.6074
Thomas Cook TC $1.595 Currency $1.59
Lloyds YSB TC $1.6145 Currency $1.6115

M&S TC & Currency $1.621
Going Places TC & Currency $1.60
Lun Poly TC & Currency $1.595


Its only cents difference though

You have a point about the extra work for the banks - including the replacement safeguard. Wonder why Travellers Cheques are a better rate ??

 

[Katies Dad]

Thanks for all the info everyone.

We have bought all our passes on-line, so just allowing for meals, parking, lots of extras etc would you think about $150 a day or may we need a little more (we are going for 20 days). In your expert opinion as being well travelled Disney people could you give me some idea as to what is the best way to split our money up, i.e. cash, cheqes, card. We are used to planning for 2 weeks in Greece, so this is mind boggling.

Any more info would be gratefully accepted.

Thanks Phil

 

[mickg7dyd]

Hi,
One other thing I would strongly advise is to keep your credit card receipts and check your statement carefully.After my last trip to Florida I got $600 worth of charges that I didn't make.Got the money refunded eventualy and had to cancel my card.

Mick.

 

[Katies Dad]

Gosh Mick that`s a lot of money you didn`t actually spend. Can you give us any idea where the extras occured, was it restaurants or just general spending. Don`t want to be nosy just be on my guard.

Phil

 

[mickg7dyd]

Hi Phil,
My card number was used by someone online and they bought lots of stuff from firms all over America.But the CC company said that in the States it's common to order on the net then collect from the actual store nearby.Had no problems getting the amouts refunded just had to wait for the new card.
Not much an individual can do to prevent it,make sure you keep your reciepts as they often have your a/c number on them and try to keep your eye on your card when you pay,this still doesn't stop anyone at store copying your details from their copy of the transaction later though.

Mick.

 

[Katies Dad]

Thanks Mick, its amazing the tricks they get up to with c cards.
Hope it didn`t cause you too much grief.

Phil