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View Full Version : Travellers cheques, cash or visa?



yellowbellies2004
05-06-2004, 16:49
I seem to fancy reading somewhere that it was better for your pocket to use your visa card on holiday as much as possible, rather than to keep cashing your travellers cheques. Has anyone else heard this?

Ann-Marie
05-06-2004, 17:11
I only use my visa card if I need to on holiday. Much prefer to use my travellers cheques as they can be used just the same as a dollar bill everywhere, with change given in dollars - no need to go to the bank to exchange them.

Ann-Marie:)

blott
05-06-2004, 17:11
No, I don't think so. It all depends on what sort of Visa card you have as to whether it's cheaper to use this method so if you want to tell us which one you have? In fact, some are positively more expensive than travellers' cheques.

If you get commission free travellers' cheques, these are 'free' anyway as you pay nothing when you use them in the USA and you can treat them like cash in shops, etc and get change. Just make sure that you get US$ travellers' cheques rather than GB£ ones.

yellowbellies2004
05-06-2004, 22:50
I think that by the sound of it so far it would be best to stick to travellers cheques then. I probably saw it on one of those financial programmes, I don't know. The visa card I would be using would be a Barclaycard standard, Smile or Mint.

Thanks for your input

Kate

05-06-2004, 22:55
<blockquote id="quote" class="ffs">quote:Originally posted by yellowbellies2004
I seem to fancy reading somewhere that it was better for your pocket to use your visa card on holiday as much as possible, rather than to keep cashing your travellers cheques. Has anyone else heard this?
[/quote]

One point I have just got some US$ travelers cheques at 1.77, my husband just used his visa debit card in Chicago and got 1.86, so you don't need to be good a maths to see what the best is??

If you find out if the credit card uses the exchange rate of the day which Visa does I think you are quite often better using them.

I have always taken TC's but this year I think I will try using the Visa or Visa/debit more.

wrpac00
05-06-2004, 22:58
Kate,

We use a mixture of both. We use our credit card for restuarants, supermarket, shopping etc and use the TC's for smaller items and tips.

blott
06-06-2004, 02:30
<blockquote id="quote" class="ffs">quote:Originally posted by yellowbellies2004
I think that by the sound of it so far it would be best to stick to travellers cheques then. I probably saw it on one of those financial programmes, I don't know. The visa card I would be using would be a Barclaycard standard, Smile or Mint.

Thanks for your input

Kate
[/quote]If you use Barclaycard for purchasing in shops, you'll be charged 2.75% foreign exchange fee on top of all your purchases (read the 'fadey' print on the back of your statement, including your other cards, to check). If you use Barclaycard in a cash machine, you'll also have cash advance charges - I think 1% per day.

Cheapest is a Nationwide card which doesn't charge anything for foreign exchange on purchases. The one I chose recently also has a cash back facility of 1% so spending actually saves you money (I always wanted a card that did that! ;)).

yellowbellies2004
06-06-2004, 22:40
That's really interesting to know. I've only just applied for a Barclycard so that all the holiday stuff like extras you were't planning for could go on there as it's 0% until Feb. Now I know that I'm going to look elsewhere and also investigate my Mint and Smile.

We've been to Skegness today(East coast of England, in Lincolnshire)and we've bought a blow up tube each, you know the kind you sit in with your bum in the water. We also got a 6ft 6in crocodile to sit on in the pool. I want to blow them up right now! Then we can take them back next time (and there will be a next time!)

Only 6 and a half weeks to go!

blott
07-06-2004, 03:00
I thought you must be called Yellowbellies for some reason - my Dad came from Lincolnshire so even I know what it means, me dook! I used to live in Stamford too.

I know, exciting isn't it? Just one tip but it's too late now and that is that inflatables are normally cheaper in Florida (unless you got an out of season bargain). You can blow them up right now if you want but you'll have to flatten them again before you can pack them!

yellowbellies2004
07-06-2004, 13:46
Well fancy that - a Lincolnshire connection. I often get asked why I'm called yellowbellies. I thought the floats might be cheaper over there but I was just so excited. The croc was only £5.99 and the tubes were big ones for £1.99 so I thought they were okay. ALso my daughter will want to use them immediately! Hey I am driving my family mad [}:)]

blott
07-06-2004, 17:00
Your daughter may just get brave enough for a quick dip at Skeggie before you go I guess! I think you did OK for prices though but, hey, you're going on holiday! :D

Achilles2k
11-06-2004, 03:46
If I buy travellers cheques then I know what I paid for them and therfore how much I am actually paying for stuff over there. Isn't it the case thath if I use my VISA or other card then I am at the mercy of the exchange rate and will not actually know how much I am paying [?]

BTW I have been living in Lincoln for just over 10 years now. Hated it when we first moved here (with work) but it has grown on me over the years. Since we are now building an extension to our house to add two bedrooms I guess we will be here for a while longer :)

Cheers duckies[msntongue]

blott
11-06-2004, 03:59
Oh, you're an adopted 'me dook' too! :) It sort of grows on you doesn't it?

That's true Nigel (the exchange rate could go up though!) but don't not take one as you'll need it for the car rental desk and also for any emergencies (although I hope you don't have any!).

paulshep
05-07-2004, 15:27
always been surprised at the good rates when using plastic.

BarryR
05-07-2004, 18:01
I normally take and use all 3.

TC's in larger demoninations for security and larger purchases, cash for smaller purchases, taxi's and tips. And credit card for things like security deposit swipes, and fast track car hire return.
I've often used a Barclaycard in the US and been plesantly surprised on several occasions when the statement comes through. Maybe I've just been lucky with the exchange rates. :D
Whatever method you use a foreign exchage rate is applied somewhere in the transaction.

Bigblue33
16-07-2004, 23:34
Daft question time, with T/C's do you have to have your passport with you?

Don.

chrisj
17-07-2004, 01:18
We were never asked for ID when we used T/C;s and after the first few times this happened
we stopped taking our passport with us.

Bigblue33
17-07-2004, 01:50
Thanks Chris, we are off tomorrow..had great start...I broke my finger on Tuesday,playing BasketBall,and had to have a small op on Wed. Good news is I dont have a cast just a bandage...[xx(]

Don.

chrisj
17-07-2004, 02:04
Don

Have a great time, we arrive next saturday, cant wait

yellowbellies2004
17-07-2004, 02:12
Hey we go down to Gatwick on Wed and fly out on Thurs. Looks like we're all going! Have a good time everyone :D

chrisj
17-07-2004, 03:22
Seems a lot of people from this site will be there at the same time :D

Bigblue33
17-07-2004, 04:47
Dont forget our Shamu pool party![:o)]....shhh...dont tell John and Sarah [msnwink]

Don.

chrisj
17-07-2004, 13:54
hehehehe id forgotten about that

Will pop round when we get there so we can organise it :D:D

Snapper
17-07-2004, 14:02
Being the inquisitive type I just tried a few sums to see how the differences work out; I love Excel at times.

Using the numbers from earlier in this thread (travelers cheques at 1.77 dollars to the pound, credit cards at 1.86, 2.75% handling fee on the credit card) here's what I work it out at:
If you spend 500 dollars on your trip the travellers cheques cost you £282. The credit card is a bit less at £276.
$1000 gives £564 (TC) vs. £552 (CC)
$2000 gives £1129 (TC) vs. £1104 (CC)
$3000 gives £1694 (TC) vs. £1657 (CC)

So the credit card seems to work out a smidge cheaper; but the flip side is that you don't know exactly what rate you are getting with the credit card until the transaction posts. It's also easier to buy that extra bit more on a card too!! [msnsmile2][msnsmile2][msnwink][msnsmile]

What I find interesting is that there is so little difference in the final figure. If you shop with a credit card the fee is charged as a fee. If you use travellers cheques the fee is hidden in the weaker exchange rate you get, which is also covering the handling costs for issueing the travellers cheques, cards being almost 100% electronic these days.

Cash rates tend to be a bit less than travellers cheques I think so there is probably a bigger 'fee' hidden in them.

So the good news is that unless one spends loads and loads on holiday there isn't much difference it would seem (in terms of exchanges rates, fees and costs) between travellers cheques and credit cards.

I guess this just means go with whichever system you feel most comfortable with, travellers cheques or cards, and have a better holiday by not having to worry about which method of foreign exchange is better.

Steve.

yellowbellies2004
17-07-2004, 15:54
Steve, those calculations are a big help - thank you

Magical Dreams
24-07-2004, 04:01
Just so you know, I used my debit card (Visa) to put my $5000 deposit down for our villa. This worked out at £2773, which is an exchange rate of just over $1.80 to £1. This was done 3 weeks ago but has only jusy been posted to my account! Shame as the Dollar is a little stronger than it was 3 weeksd ago!

So the difference would be minute!!

Be careful!!

CarolAnn
05-09-2004, 13:14
We only ever take $100 cash, CC the rest and get money out of a cash mc for any readys needed:)We have never found ourselves out of pocket, and there is the added security. :)

Wibawoba
12-09-2004, 16:42
What about Amex - is it cost effective using this in Florida?[?][?]

blott
12-09-2004, 16:58
It's widely accepted, as you would imagine, but there's a charge for purchases in a foreign currency (as in a poor conversion rate) as with most cards, apart from Nationwide.

chrisj
12-09-2004, 17:28
Nice to see ive converted you Blott over to Nationwide :D

blott
12-09-2004, 18:13
I'm one of your (many) followers Chris! :D Particularly since I chose the Nationwide credit card with cash back, which makes a nice change from cash out! ;)

chrisj
13-09-2004, 01:40
Many [:I][:I][:I][:I][:I] oh dear better go and hide under a rock :D

dykwim
16-09-2004, 18:32
<blockquote id="quote" class="ffs">quote:Originally posted by steveharrison
Being the inquisitive type I just tried a few sums to see how the differences work out; I love Excel at times.

Using the numbers from earlier in this thread (travelers cheques at 1.77 dollars to the pound, credit cards at 1.86, 2.75% handling fee on the credit card) here's what I work it out at:
If you spend 500 dollars on your trip the travellers cheques cost you £282. The credit card is a bit less at £276.
$1000 gives £564 (TC) vs. £552 (CC)
$2000 gives £1129 (TC) vs. £1104 (CC)
$3000 gives £1694 (TC) vs. £1657 (CC)

So the credit card seems to work out a smidge cheaper; but the flip side is that you don't know exactly what rate you are getting with the credit card until the transaction posts. It's also easier to buy that extra bit more on a card too!! [msnsmile2][msnsmile2][msnwink][msnsmile]

What I find interesting is that there is so little difference in the final figure. If you shop with a credit card the fee is charged as a fee. If you use travellers cheques the fee is hidden in the weaker exchange rate you get, which is also covering the handling costs for issueing the travellers cheques, cards being almost 100% electronic these days.

Cash rates tend to be a bit less than travellers cheques I think so there is probably a bigger 'fee' hidden in them.

So the good news is that unless one spends loads and loads on holiday there isn't much difference it would seem (in terms of exchanges rates, fees and costs) between travellers cheques and credit cards.

I guess this just means go with whichever system you feel most comfortable with, travellers cheques or cards, and have a better holiday by not having to worry about which method of foreign exchange is better.

Steve.
[/quote]


Another benefit of paying by card though is that you are only hit with the fee once - when you buy something. As apposed to travelers cheques where you get "hit" again on your return home when you need to change say £200 worth back into your own currency. This doesn't exist when using a card as there is nothing to "change back".

flyrr100
28-01-2005, 20:05
<blockquote id="quote" class="ffs">quote:[i]

If you find out if the credit card uses the exchange rate of the day which Visa does I think you are quite often better using them.

I have always taken TC's but this year I think I will try using the Visa or Visa/debit more.
[/quote]

The credit card companies will all use the rate that is posted in their bank on the day on the transaction. Right now, for the Brits, it's a great rate every day! I was planning a trip to London next month. I'm waiting, hoping the dollar gets a little better!

Nostromo
28-01-2005, 21:26
<blockquote id="quote" class="ffs">quote:Originally posted by Wibawoba
What about Amex - is it cost effective using this in Florida?[?][?]
[/quote]

Most (but not all) places that accept Visa or Mastercard accept Amex. Occasionally, there may be a very small additiona charge for Amex cards, but it could still work out cost effective for you on the long run because of their 'points' system. Over the years, I have bought a camera, small hi-fi set and an entire luggage set from accumulated Amex points.

Tip: Use Amex for petrol in the UK. Almost all bunks accept it, do not charge extra and since fuel is a regular and substantial expense, you accumulate a lot of points.

Steve and Dawn
23-03-2005, 01:00
<blockquote id="quote" class="ffs">quote:Originally posted by blott
Your daughter may just get brave enough for a quick dip at Skeggie before you go I guess! I think you did OK for prices though but, hey, you're going on holiday! :D
[/quote]

That's our home town Skeggie, Can't remember the last time I went in the Sea, think i was a kid at the time. Somehow the look of the Brown water isn't as inviting as the Gulf [msnsmile2]

Steve & Dawn

NigelM
14-03-2011, 15:13
Hi all

Just to refresh.

is it still the best option to take a float of $'s and then take money out of cash machines with a nationwide debit card?

lynnroy
14-03-2011, 16:23
We use Post office mastercard- O% fee on purchases abroad and good exchange rate.

chris c
14-03-2011, 17:16
<blockquote id="quote" class="ffs">quote:Originally posted by NigelM
Hi all

Just to refresh.

is it still the best option to take a float of $'s and then take money out of cash machines with a nationwide debit card?
[/quote]

The Nationwide debit card is not, unfortunately as good as it was. They have now introduced charges for taking cash out of machines and on our last trip (January) we found it slightly better to use the Nationwide credit card to pay for purchases.

The rate of exchange they give is still very good though!

bargainqueen
15-03-2011, 00:00
I opened a Norwich & Peterborough account before I left UK and drew out $440 (Nationwide) and $360 (N & P) on same day. Both had the same rate of exchange $1.62 but with Nationwide I had to pay £5.26 + £1 in fees. Also you have to pay a fee now to use ATM machines, Suntrust in Walmart $2.95 but Presto in Publix is $2.

With N & P there's a £250 a day limit whereas Nationwide is £300 each card holder.

So far I'm impressed with N & P and glad I persevered to open account. It's working out just the same as Nationwide before they introduced the charges.

NigelM
15-03-2011, 18:23
So with NW you pay a flat fee of a quid plus 2% of the amount taken out plus $2.95 to the US ATM bank?

Jeepers!

NigelM
15-03-2011, 18:26
I am now thinking of converting to Amex T/cqs before we go and then cashing them over tghere. There used to be a bank that cashed the T/cs free. Can anyone help me by confirming this with the name of said bank?

shockey
16-03-2011, 13:40
There are a few credit cards which now give you a better rate than either Nationwide or travellers cheques, with no exchange fees. Look at the Halifax Clarity card or the Post Office credit card.

You can also use the Halifax Clarity credit card to get cash from ATMs, with no fees except the small fee that the ATM owner charges (which seems to be unavoidable). If you use the Halifax card to get cash you pay interest from the time you withdraw the cash, but as long as you pay it off promptly the interest is a lot less than the fees charged (about 2.75%) on most debit cards.

Katys Grandad
16-03-2011, 14:02
It's become more complicated recently because, as far as I can tell, there isn't 1 card that offers the best deal on cash withdrawals, purchases and interest. I suppose the answer is to use different cards for different things but whether it's worth the trouble is debatable.

I still have the Nationwide cards and used to stick with them but they're probably not the best for anything these days. On my last few trips I've been using my Amex Rewards card because I reckon the value of the rewards is greater than the small additional charges I incur. YMMV.

Albert the Frog
16-03-2011, 18:46
I have opened a Santander Zero account because there are no fees on any overseas transactions. I used it recently in Cyprus and checked the rates etc and you still get the inter bank transaction rate-very impressed.
When we go in August I intend to use my card for virtually all my transactions as i do here.

NigelM
16-03-2011, 19:59
<blockquote id="quote" class="ffs">quote:Originally posted by NigelM
I am now thinking of converting to Amex T/cqs before we go and then cashing them over tghere. There used to be a bank that cashed the T/cs free. Can anyone help me by confirming this with the name of said bank?
[/quote]

i am keen to bottom this out if anyone knows the position

Thanks

NigelM
21-03-2011, 18:34
I have managed to ascertain via a phone call with a BoA branch in Kissimee (selected at random and thank you Maria!!)that they will cash Amex US$ TCqs without commission uop to a ceiling per day.

Surely then as long as you do not mind planning your trip with just a few trips to BoA it is a relatively cheaper option.

sammibabe
22-03-2011, 03:13
<blockquote id="quote" class="ffs">quote:Originally posted by NigelM
I have managed to ascertain via a phone call with a BoA branch in Kissimee (selected at random and thank you Maria!!)that they will cash Amex US$ TCqs without commission uop to a ceiling per day.

Surely then as long as you do not mind planning your trip with just a few trips to BoA it is a relatively cheaper option.
[/quote]

If they are dollar t chqs most places will let you use them like cash (there are a few that won't take them but not many) and you get change as cash so why have the hassle of going to the bank? We still use them so we don't take as much cash (so safer), but are constantly being topped up through our holiday. I know a lot don't use them but I still like them. We use the clarity card (used to have Nationwide but they changed the t&c's) as it is not loaded when goes on the statement

chrissb
23-03-2011, 15:33
I have the Santander Zero card and use it for everything when we are away. However make sure you have a backup as Santander have a habit of suspending the card even if you have told them you will be away. Over 2 weeks at Christmas they suspended our cards 3 times in total and we spent a long tome on the phone to them. Eventually I spoke with a manager at the call centre and she sorted things out, but if we had not had back up cards then we would have had problems.
<blockquote id="quote" class="ffs">quote:Originally posted by Albert the Frog
I have opened a Santander Zero account because there are no fees on any overseas transactions. I used it recently in Cyprus and checked the rates etc and you still get the inter bank transaction rate-very impressed.
When we go in August I intend to use my card for virtually all my transactions as i do here.
[/quote]

Robert5988
23-03-2011, 22:46
<blockquote id="quote" class="ffs">quote:However make sure you have a backup as Santander have a habit of suspending the card even if you have told them you will be away. Over 2 weeks at Christmas they suspended our cards 3 times in total and we spent a long tome on the phone to them.[/quote]

You are apparently not alone, I have read several reports about this happening with Santander on their credit cards, debit card and internet banking.

Since they changed the name of Alliance and Leicester and Abbey, my wife has had her debit card stopped and internet banking suspended.
I have also had my internet and telephone banking suspended twice.

In every case they were adamant that we had wrongly entered our pin - three times. With internet banking it is a real bind as they have to send a new pin by snail mail to your home address(takes 7 to 10 working days) and you have no access during that period.

Scorpio
29-02-2012, 12:55
<blockquote id="quote" class="ffs">quote:Originally posted by NigelM
I have managed to ascertain via a phone call with a BoA branch in Kissimee (selected at random and thank you Maria!!)that they will cash Amex US$ TCqs without commission uop to a ceiling per day.

Surely then as long as you do not mind planning your trip with just a few trips to BoA it is a relatively cheaper option.


If they are dollar t chqs most places will let you use them like cash (there are a few that won't take them but not many) and you get change as cash so why have the hassle of going to the bank? We still use them so we don't take as much cash (so safer), but are constantly being topped up through our holiday. I know a lot don't use them but I still like them. We use the clarity card (used to have Nationwide but they changed the t&c's) as it is not loaded when goes on the statement[/QUOTE]

I agree with you, we also use travellers cheques and have never had a problem using them, even if buying a cheap item at a supermarket using a $50 cheque the change comes in cash. We tried the pre-paid debit cards, but still prefer the cheques.

Philomena
29-02-2012, 21:45
We always take cash and credit cards now and do not bother with t/c although, when we did, we never had problems using them just as you would cash.

Big_Momma
03-03-2012, 13:52
We are here at mo and are using mainly tc and cash, but also Halifax clarity for bigger purchases! Had no probs with any. Got cash n tcs when rates were better than now.

DisneyPrincess
10-03-2012, 16:05
We got a cash card off the travel agents - it was just like a normal debit card but all the currency was insured for loss/theft etc. it was fantastic