jenstravel posted on December 11, 2009 14:30
It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.
In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.
ATMs -- ATMs are linked to a network that most likely includes your bank at home. Cirrus (tel. 800/424-7787; www.mastercard.com) and Plus (tel. 800/843-7587; www.visa.com) are the two most popular networks in the U.S.; call or check online for ATM locations at your destination. Be sure you know your four-digit PIN before you leave home and be sure to find out your daily withdrawal limit before you depart. You can also get cash advances on your credit card at an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds someone can withdraw away from home; it's therefore best to call your credit card company before you leave and let them know where you're going and how much you plan to spend. You'll get the best exchange rate if you withdraw money from an ATM, but keep in mind that many banks impose a fee every time a card is used at an ATM in a different city or bank. On top of this, the bank from which you withdraw cash may charge its own fee.
Small Change--When you change money, ask for some small bills or loose change. Small cash will come in handy for tipping and public transportation. Consider keeping the change separate from your larger bills, so it's readily accessible and you'll be less of a target for theft.
Currency Exchange -- The currency exchange facilities at any large international bank can exchange non-U.S. currencies for dollars. You can also exchange money at the International Airport. Also, you'll find foreign-exchange facilities in large hotels and at many banks.
Traveler's Checks -- Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Traveler's checks used to be the only sound alternative to traveling with large amounts of cash. They were as reliable as currency, but, unlike cash, could be replaced if lost or stolen.
These days, traveler's checks seem less necessary because most cities have 24-hour ATMs that allow you to withdraw small amounts of cash as needed. However, you're likely to be charged an ATM withdrawal fee if the bank is not your own, so if you're withdrawing money every day, you might be better off with traveler's checks-provided that you don't mind showing identification every time you want to cash one.
You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7782; Amex Gold and Platinum cardholders who use this number are exempt from the service charge.
Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. AAA members can obtain Visa checks without a fee at most AAA offices or by calling tel. 866/339-3378. MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you.
Credit Cards -- Credit cards are invaluable when you're traveling. They are a safe way to carry money and provide a convenient record of all your expenses. You can also withdraw cash advances from your credit cards at any bank (though you'll start paying hefty interest on the advance the moment you receive the cash). At most banks, you don't even need to go to a teller; you can get a cash advance at the ATM if you know your PIN. If you've forgotten yours, or didn't even know you had one, call the number on the back of your credit card and ask the card issuer to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or pass some other security clearance.