Debit Card/Credit Card

Unless you have a lot of cash sitting in your checking account, you may run into problems. When you check into a hotel a hold of several hundred dollars can be placed on the funds in your account. When you check out that hold isn't always released immediately so you would need even more in your account to cover the actual bill. I saw someone turned away from a hotel Amsterdam because they only had a debit card. The front desk told them they could pay up front with cash, it was a catch-22 because it would have been over the ATM/bank daily withdrawal limit. This would probably be more of an issue at chain hotels.
I don't think a pre-paid credit card would help since it essentially the same as a checking account. When you use a traditional credit card the hold is placed on your credit limit. If you're able to accumulate enough cash to cover the entire bill at check-in time you should be able work something out with the hotel.

Thanks Michael, it will probably be advisable for me to contact the hotel and double check what their requirements are, before I even leave the US..lol.

Yes, check with the hotel in question. Some of my hotels in Europe have taken my credit card details to guarantee the reservation, but I don't think I've had a hold placed on the card. I definitely have had holds placed in the US. It's more common in larger places, where someone could clean out the minibar or run up a big bill at the spa and the restaurants, then not have sufficient funds at check out. The kind of places I stay in Europe...well, let's just say that spa bills won't be a problem. I don't think a prepaid card would help, except by minimizing your exposure on your main checking account. Places that want a hold want access to a line of credit.

If you load all of your travel cash onto a prepaid card (or have it all in your account) you might run into trouble if they place a hold on your card until your bill is paid. You could probably find out from the hotel if they will do so or not. You could, however, put the amount that the hotel is likely to cost on a prepaid card and use that for the hotel. Then you could use your regular ATM card to have access to the rest of your travel funds.

Thanks Nancy that is a brilliant idea, plus I could add an extra bit to cover any incidentals. I'm trying to sort things out well before I leave so I don't hit any unexpected problems once I get there. :)

It is also not very advisable to use a debit card in foreign travel, even when accepted. You place all of you checking account at risk if your card should be stolen or used frauduantly. While ultimately you'd lose no more than $50, your whole trip could become paralyzed without access to any funds for days. You'd be stranded. In your case, I'd recommend a pre-paid card rather than the debit card. You do pay more in fees or poor exchange rates, but at least you're more protected. Use cash to the extent possible and only use the debit card as a back up. And definitely make sure your bank is notified of your specific travel plans.

But, what's the alternative to using a debit card based on a checking account? My credit card has a relatively low credit limit, and I have to pull my money out of somewhere while I'm in the UK next month. (BTW, hi there, Douglas! I lived in Oak Park until a few years ago.)

Thanks Douglas :). I'd prefer not to use my debit card at all if possible which is why I was thinking of 2 prepaid credit cards. One loaded with the money for my hotel and extra for incidentals and another with spending money. But like u said that could get expensive unless I withdraw enough to last a few days instead of daily. I don't really want to have ALL my spending money in cash but will take enough cash to last a couple of days. Unless anyone has other ideas? I can't get an actual credit card so that is ruled out :(

Pay in cash. If you have money in your checking account, you can use an ATM to withdraw local cash. Sometimes hotels will give a discount if you pay in cash rather than with a credit card.

Kathy, you can use your regular debit/ATM card to get cash from ATMs. I carry two, one from my local credit union and one from an online bank. I don't use them for purchases, just for cash. If one didn't work I could use the other, and I can transfer money between the two accounts online if necessary. I had absolutely no problems with either on my recent trip. I have heard that debit cards aren't as well accepted for purchases as they are here, but I haven't tried it myself.

While expensive, the pre-paid credit card from Travelex is a good option. Bonus is that it comes with a chip & pin so you can use it even at un-manned ticket kiosks and gas stations. I'm not sure of the specifics, but I assume you can load it to whatever value you need and maybe even add to it at a Travelex store or online.

I would think if you paid upfront in cash when you arrive(drawn from your debit card or whatever) they wouldnt put any kind of hold on your card and you would be free to use it for the rest of your trip

My husband prefers to get all of our spending money in cash before we go. He's a former banker and does all of our banking online- a real techno geek. But on this one issue, he is very stubborn and old fashioned. He'd just rather not deal with ATMs that are not 'our bank's' ATMs. We do get a good rate with our bank (we are very valued customers) and he feels the fees are worth it. Plus he hates the idea of giving up vacation time to go to a bank. This is true whether we are in the US or Europe. There is really nothing wrong with carrying larger amounts of cash- so long as you are safety conscious and don't put yourself or your trip at risk. Get a good money belt! Another option would be to pre-pay your hotel bill with a wire transfer- again you'll pay some fees, but there is the convience of knowing it's already taken care of. Then take you debit card and withdraw what you need, as you need it. (Just be SURE you've informed your bank of your travel. You don't want a hold put on your account because they think your card has been stolen)

"Plus he hates the idea of giving up vacation time to go to a bank." When I was in Spain last month, there were at least an ATM/bank every block or so, sometimes more in the cities. I didn't give up any more vacation time using them than I did waiting for a coffee in a cafe. And actually, my travel companions waited for the coffees while I used the ATM next door, so no time lost at all!