Travelers Cheques

DON'T take travelers checks!!! They are an outmoded method of carrying money on vacation. There are no low- or no-fee places to cash them. In fact, you'll be lucky to find a place to cash them at all.

You should take a debit card with a 4-digit PIN, attached to a checking account, and withdraw money from a bank ATM when you reach the airport in London. This will give you the best possible exchange rate. (Just make sure that you tell your bank when and where you will be traveling so they don't think your card has been stolen.) Taking two cards from two different checking accounts is a good idea in case of a problem with one card, but usually if your card fails to work, the next ATM will take it.

There have been lots and lots of prior discussions here on this topic. You can find those discussions by clicking the BOLD link called "getting more answers to your questions".

Ok Thanks! I didn't purchase any Travelers Cheques yet so good thing I got some insight. So I should like he said in the video take out more money when going to an ATM. It's a Visa debit so I shouldn't have any problems.

ATM is the way to go. Remember to follow the advice above and call your Visa issuer and advise them of travel plans (where and when you will likely use the ATM card.)

NOOOO, no travel checks. This is 21st Century. Use ATM.

What's a traveller's cheque?

Stephanie,

I'd also recommend using ATM cards to obtain cash. I definitely agree with Rick on that point - "I've cashed my last Traveller's Cheque!"

A few other points to mention though. I'd suggest taking at least two ATM cards, in case there are "problems" with one. I encountered that situation on a trip in May & June, when my primary ATM card would NOT work (turned out to be some kind of a "coding issue" between the Banks, and was eventually resolved). Fortunately I had a backup card and that worked well. My Bank had noticed the unsuccessful ATM attempts with the faulty card, and they called me while I was in France to find out what the problem was. I always travel with a Cell phone and being able to explain the situation when they called probably saved me from having both of my ATM cards blocked by the Bank.

In many cases, your travel funds must be in a chequing account with a four number PIN. You might check with your Bank on that point, but so far in my travels I've NEVER found an ATM that would allow me to access a savings account.

At least one credit card is also a good idea.

Happy travels!

Chris asks "What's a traveller's cheque?"

It's a dinosaur from many years ago, I saw a story about them on the Discovery Channel.

Interchange FX at Bayswater is at this minute will give you 1 GBP for $1.6694.
The current wholesale card rate is 1 GBP = $US 1.6517.

So as long as your card charges less than 1% in loading on foreign exchange plus any cash withdrawal interest charges you're better off with a card.

Thanks. Was thinking about a prepaid debit card for traveling. Just shopping for lowest fees.

Prepaid debit cards as a rule carry large fees, too. Be sure to check what it costs to initiate them, check balances, use them in an ATM, or cash them out if you have money left.

Funnilly enough one of the best places in terms of rates for foriegn exchange in in Bayswater at Interchange FX, 12 Queensway, the main street through Bayswater.

Whether you get better rates than out of an ATM depends on your card and any fees and charges it makes. The wholesale rate before charges you should get on any card you can look up on this web site. http://www.xe.com/
The charges you need to be aware of are the loadings applied by your card. This typically varies between 0% and 3% or a flat fee. This charge can vary in Europe to other parts of the globe. The other charge is any interest charge on cash withdrawals..
Check your cards, if your overall card charge are going to be over 1.5% then the best foreign exchange places in my experience give a better exchange when you work everything out though its not as convenient as an ATM.

Your local AAA or travel office can set you up with pre-paid debit cards and euros (or whatever) so you'll have local currency before you get there.

If you follow Mylene suggestion, check the fee structure very carefully. The fees for preload debit from AAA have been as high as 10 to 12% in the past. Normally getting Euro in the US prior to traveling can be expensive. And just a general note of caution -- a NO FEE place just buries their fees in a poor exchange rate. You will always pay a fee but you may not know the amount.