Travellers cheques, cash or visa?

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! ;)

Many [:I][:I][:I][:I][:I] oh dear better go and hide under a rock :D

<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".

<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!

<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.

<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

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?

We use Post office mastercard- O% fee on purchases abroad and good exchange rate.

<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!

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.