Taking Cash

Solo Traveller — Sat, 05 Sep 2009 19:01:57 +0000

Taking large amounts of your own currency for changing when you arrive is probably one of the worst options for carrying money.

Your exchange rate will be retail, which is always going to be more expensive that wholesale.

Also, in most places, the person doing the exchanging will always want their little “cut” from the transaction.

Banks and hotels are the best places to change money but you can still get ripped off by the unscrupulous. Keep an eye on the daily rates to avoid this.

Remember, there may also be a fee for currency conversion so always ask about this before handing over your money.

Also, cash is the least secure way of carrying money, once it is lost or stolen that is usually it.

If you do bring cash from home, make sure any bills you bring are clean and brand new (you will have less trouble changing them).

Similarly, don’t accept torn or worn money in developing countries because you will have trouble getting rid of it.

And never exchange money with anyone you don’t know (people off the street, for example), even if they appear to be giving you a great rate.

The black market for foreign currencies in some countries is driven by restrictions on foreign currency ownership and artificially high exchange rates.

As well as being illegal in most countries, changing money on the street puts you at risk of getting counterfeit notes, being short-changed, or even robbed (handing over cash to people you meet on the street is never a good idea).

All that said, some people advise changing and bringing a little local currency with you, if only to avoid the possible hassle of doing it when you arrive at the airport and you need some loose change for buses or snacks.

However, foreign currency can be expensive to buy at home, and for the small amounts involved it usually isn’t much of of a problem to buy it when you arrive.

If you do get it at home, though, try to find a commission-free provider. In the UK this would be someone like Marks & Spencer, Lloyds TSB, the Post Office or Thomas Cook. But check exchange rates before choosing as they can vary somewhat between each of them.

Ultimately, when choosing between the methods above of getting to your money, remember that there are usually only a few percentage points difference between each of them. But it is worth knowing about them, nevertheless, so you can make an informed choice at the appropriate time.

Traveller’s/Traveler’s Cheques/Checks

Solo Traveller — Sat, 05 Sep 2009 18:57:24 +0000

Once upon a time, everyone who travelled carried traveller’s cheques, but not anymore. Nowadays, credit cards are the norm.

Traveller’s cheques are similar to cash and can be used as such (especially in North America, not so much elsewhere), but they also have added security features that cash doesn’t. If you lose them or they get stolen then the money is refundable.

With American Express cheques you get 24/7 customer support, plus passport and credit card replacement assistance (the things that usually get stolen alongside your money). Find out more here.

They also come in a few selected (popular) foreign currencies so you don’t have the additional fees when converting your cheques into the local currency when you arrive.

Disadvantages are that there is usually a fee when buying them (there are exceptions, for example, for American Express Gold Card and Platinum Card holders buying Amex cheques this fee is waived).

Also, you may find it difficult to use the cheques, especially in developing countries and at small local shops that won’t recognize them or can even refuse to accept them. You also may have to pay another fee when converting them at a local bank into the local currency (but not at an American Express office for Amex cheques).

You may also have to wait around to get them changed (for hours, sometimes), and the currency exchanges and banks are not usually open 24/7 or over long weekends (unlike ATMs), so you could be without money for days if you are unlucky.

When looking around for a currency exchange, be wary of the “no commission” signs you see as here you will lose out with a bad exchange rate, wheras a good exchange rate usually means a high commission.

If you do decide to carry them then buy them in both large and small denominations as you may get charged either by the number of cheques you change or the total amount of the transaction.

Try to buy them from well-known suppliers, either American Express and Visa in the USA, or Thomas Cook and Barclays (for example) in the UK, and buy them in your home country, too, not abroad.

If you buy foreign currency traveller’s cheques remember that you will get hit with two fees if you do not use all of them (the fee to foreign currency plus reconversion when upon return). If you stick with your own currency then you can just deposit any unused ones in the bank when you get back.

Also remember that you will get the smaller retail rate when converting them to local currency (not the wholesale rate, as with credit/ATM cards). You can find some places (for example, at Post Offices in Norway) that will give you the wholesale rate.

American Express offices usually offer a decent rate, and a slightly better one for their own checks.

Overall, traveller’s cheques may not be worth the hassle for the small amount of added security you get (but I always take a few with me, though).

Round The World Travel - Packing and Gear List » Thomas Cook

Taking Cash

Traveller’s/Traveler’s Cheques/Checks