Advance Purchase Cash / Travellers Cheques

[ccarcher]

have been thinking that as the exchange rate is currently very strong in favour of pound to the dollar

Whilst I am not going until July - August time I guess it may well make sense to get a significant proportion of any travellers cheques / cash we are planning to take now

For example with a rate currently available of £1 = $1.86

£3000 would give me $5580

Come nearer the summer time when I imagine the rate is likely to drop significantly to a more realistic £1 = $1.50

then £3000 would only give me $4500 thats like a $1000 difference

As I am going for 4 weeks this would seem to make sense

Anyone got any thoughts

[Snapper]

What if the $/£ rate is higher come July?

IMHO, I can't see it moving so much so quickly. A few cents maybe, but not 25%.

Why not buy some of your dollars now, some in two month's time and some closer to when you travel? It's called pound-cost-averaging (sometimes) and it helps you remove some of the risk from the exchange rate.

[wrpac00]

Its a gamble whatever way you do it but it is very unlikely that the rate will go down to $1.50. It has normally been in the $1.70s recently.

You could buy them in £500 lumps and see how the rate goes but it has been in the mid $1.90 (commercial rate) since about mid Novemeber.

[Robert5988]

Firstly there is absolutely no way any of us mere mortals can predict which way the UK£-US$ exchange rate will go. There is as much chance of the rate rising to £1 = $2.50 as it is to falling to £1 = £1.50 as you suggest. The probability is that it will not be much different to today's rate.

With regard to your other thread about a US bank account. Without doubt the best way to obtain US$ is to open a UK Nationwide BS account and/or get a Nationwide Credit Card. Nothing, but nothing, gives you a better exchange rate for US$(Yesterday was £1=$1,96) which you can obtain in cash from an ATM using a debit card or a credit/debit card for purchases. Both the current account and linked saving account(E-Saver) have very attractive interest rates.

[Clare R]

Always use Nationwide debit and credit cards when in Florida but did have a problem on a trip last year when I exceeded the otherwise un-notified number of transactions within a 24 hour period. Apparently this un-notified number of transactions is a somewhat fluid number and once you get to 'around' 8 credit card transactions in a 24 hour period your card, like mine, is then flagged up as 'fraud'.

No chance in trying to ring the number on the back of the card to sort it out as the number is encrypted by the embossing of my name on the front of the card!! I am still waiting for Nationwide to get back to me on this one from last November.

[Robert5988]

<blockquote id="quote" class="ffs">quote:Always use Nationwide debit and credit cards when in Florida but did have a problem on a trip last year when I exceeded the otherwise un-notified number of transactions within a 24 hour period. Apparently this un-notified number of transactions is a somewhat fluid number and once you get to 'around' 8 credit card transactions in a 24 hour period your card, like mine, is then flagged up as 'fraud'.

No chance in trying to ring the number on the back of the card to sort it out as the number is encrypted by the embossing of my name on the front of the card!! I am still waiting for Nationwide to get back to me on this one from last November.[/quote]

Clare,
I assume you always call Nationwide beforehand to tell them you will be in Florida?

I suppose though the possibility of Fraud would be flagged up if you use your card 8 times or so in 24 hours anywhere! It must take years of training and dedication to use a card that much[msnwink]

[Clare R]

Local branch tells me that there is no need to inform the company that the card is being used abroad however often I try to tell them. 8 times in 24 hours is nothing, lunch, dinner, petrol takes almost 50% of the charges without any trouble.

[Robert5988]

<blockquote id="quote" class="ffs">quote: Local branch tells me that there is no need to inform the company that the card is being used abroad however often I try to tell them.[/quote]

Head office told me that it was vital? and they must have it in writing.

I send a quick message on their on-line site - this is what I get back

<blockquote id="quote" class="ffs">quote:Thank you for your enquiry.

The information you have provided about the use of your card/s whilst abroad, has been passed to our Special Investigations Department. This information is used by this department when monitoring the use of cards.

If you should be unfortunate enough to lose, or have your card/s stolen whilst abroad, please report this immediately to our 24 hour Call Centre on 44 1793 456789. For Credit Cards please contact us on 44 1268 567213.

Regards,

Vicky Mitten
Internet Services

http://www.nationwide.co.uk
Nationwide. [/quote]

[Clare R]

Robert,

You have more faith in NW than I do

[florida4sun]

They are wrong as we have used the same card abroad in different countries fo large sums of money and multiple transactions in one day (just checked and one day was over 20 transactions). We have never warned them about this.
Still it doesnt hurt to call them. The main thing is that if you do not have a track record of sepnding abroad you could easily get a stop put on your card. Very often this is not doen by your bank but a pass through house.
We get this all the time with ticket sales. The payment gets stopped but the issuing bank denies all knowledge of stopping it. Its not until you explain the problem to them that it gets sorted


<blockquote id="quote" class="ffs">quote:Originally posted by Robert5988
<blockquote id="quote" class="ffs">quote: Local branch tells me that there is no need to inform the company that the card is being used abroad however often I try to tell them.[/quote]

Head office told me that it was vital? and they must have it in writing.

I send a quick message on their on-line site - this is what I get back

<blockquote id="quote" class="ffs">quote:Thank you for your enquiry.

The information you have provided about the use of your card/s whilst abroad, has been passed to our Special Investigations Department. This information is used by this department when monitoring the use of cards.

If you should be unfortunate enough to lose, or have your card/s stolen whilst abroad, please report this immediately to our 24 hour Call Centre on 44 1793 456789. For Credit Cards please contact us on 44 1268 567213.

Regards,

Vicky Mitten
Internet Services

http://www.nationwide.co.uk
Nationwide. [/quote]
[/quote]

[Robert5988]

I have used a variety of credit/debit cards abroad for many years and never bothered to inform the bank.

Some years ago, when spending some substantial sums in a short period of time(furnishing my property) the security people of Citibank called my UK phone, fortunately my daughter answered and explained the situation. The guy said they were about to stop the card.

My pal with a Nationwide account had his card stopped in Florida when trying to buy an expensive ring, he had been using it for the previous week without problem. He was told exactly the same as I about prior notification being required when travelling abroad, which prompted my call.

Anyway to clarify I sent a message to Nationwide and got a response.



<blockquote id="quote" class="ffs">quote:To: Call Centre
Subject: Credit Card general query

I use my Credit and Debit cards frequently abroad.

I always notify you of the dates when I will be abroad and using these cards.

I have been told that this is not necessary by other Nationwide customers; and it is not a requirement in your terms and conditions.

Can you please give me Nationwide's official position on this issue.

-------------------------------------------
Thank you for your enquiry.

It is not compulsory to advise us of any trips abroad, however it is advisable, so that your account is noted should any security issues arise.

Regards

Maureen Bushaway
Customer Advisor
Nationwide Credit Card Services [/quote]

As said above It does no harm to notify them. and on-line it takes seconds.