(From "Travel Smart", a brochure published by American
Express and Lonely Planet)
Travelers Cheques
Probably the safest way to carry money, Travelers Cheques often
enjoy better exchange rates than cash, are widely accepted from
Amsterdam to Zanzibar, and can be replaced easily within 24 hours
if lost or stolen, virtually anywhere in the world. You can purchase
Travelers Cheques at leading banks, credit unions, participating
American Express Travel Service Locations, and AAA offices (if you
or your parents have an AAA membership, the cheques can be obtained
commission free.)
| PROS |
CONS |
| Fully refundable if lost or stolen, usually within 24 hours
virtually anywhere in the world. |
Possible commission at the time of purchase (usually 1%) |
| Widely accepted at retail locations such as hotels, shops
and restaurants |
May be subject to minimum charges and handling fees |
| Often have better exchange rates than cash. |
Sometimes can incur service charges - though American Express
Travelers Cheques can be cashed commission-free at American
Express Travel Service Locations. |
| Available in a variety of denominations and in 12 currencies. |
|
| Never expire. |
|
ATM/Credit Cards
For most of us, plastic is now part of our everyday lives. For
the traveler, credit cards are widely accepted throughout the USA
and much of Europe, and they are becoming increasingly popular throughout
Asia, Africa and South America.
You may also be able to access your bank account back home via
an ATM overseas - check with your bank or credit union before you
leave. But do not rely on ATMs for all your foreign cash; if a broken
ATM eats your card, it could put a big dent in your plans.
| PROS |
CONS |
| Convenience and easy to use. |
May have annual fees. |
| Allow for a ready supply of money especially for unexpected
purchases. |
Cash withdrawals and credit limits may apply |
| Remove the need to carry large amounts of cash. |
|
| You get the local currency from the ATM, therefore do not
need to exchange money. |
|
You must speak with your bank/credit union to inform them that
you are going overseas so that they do not stop payment on your
card in case they assume it was stolen. Also, make sure you check
what your daily withdrawal limit is; you might want to have it increased.
Cash
It is convenient, but if you lose it, it's gone forever - very
few travel insurers will come to your rescue.
| PROS |
CONS |
| Convenience and easy to use. |
Foreign exchange commission. |
| No service charges. |
Exchange rate is usually higher than on Travelers
Cheques or Charge/Debit Cards |
| |
Not replaceable if lost or stolen. |
Currency Exchange
Usually, you can find the best exchange rates from withdrawing
from an ATM overseas or from travelers cheques. Here are a few websites
that show the lastest currency exchange rates.
http://www.oanda.com/convert/classic
http://www.xe.com/ucc/
Tips
You should take a combination of Travelers Cheques, cards and cash
to have both convenience and protection.
Take with you only the ATM/credit cards you really need. Make sure
you inform the financial institution which issued your ATM/Credit
cards that you will be traveling abroad so that they do not stop
payments on your card because they think it was stolen. Before you
leave, try using your cards to make sure the PIN works. You may
need to request an international PIN. You do not want to find out
that it does not work once you are overseas!
Get some cash in the currency of your first destination before
you leave the U.S. if at all possible. It will give you the money
for a taxi or bus ride to a hostel or hotel and save you from the
often exorbitant rates of airport exchange services.
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