How are currency cards better than travellers' cheques for holiday money?

[Sunlover]

Well I've booked our annual holiday and am considering how to bring spending money. I usually use sterling travellers cheques, but have been looking at cards, all kinds. I only pay 1% for travellers cheques, and change them commission free in Las Americas for a better rate than I get at home. I might be a bit thick, but with all the card charges, some for loading or some for withdrawing cash or both, I cannot see how cards are cheaper. Hoping someone can explain it to me. :)

[Ecky Thump]

CaxtonFX, no charges for loading, no charges for ATM withdrawals, no annual fees, load the card from home, good rates of exchange, can be used in any shop, cafe, bar, etc. that accepts Visa, no joining fees, two debit cards, no walking to find a bank that's open, secure from thieves...the list could go on.:lol:

[macdonald5]

I find our Halifax Clarity card very good,
No cash withdrawal fee ( though some ATM providers may charge a small fee)
No fee to use worldwide
No annual fee
Bank rate is used for conversion
£5 interest is paid to account each month £300 is spent on card
Martin Lewis ex Money supermarket .com always lists it as one of the best to use abroad

[bennoa1]

I use a Halifax Clarity card too. No fees and very good rate, almost identical to interbank rate. The only comment I will make is when you pay make sure you pay in euros as if you pay in sterling the rate will be set by the bank managing the payment which will be more than likely significantly worse than you can get at any of the exchange places, defeating the object of using the card in the first place.

[kathml]

Don't trust firms that say they give interbank rates as these are quoted for transactions in millions so what's the snag how do they make money
Is it if they go out of business your money disappears
I would say if you're happy with traveller cheques stay with them you'll get current rate which may go up or down they are safe will be replaced if stolen and they are still easily accepted

[Ecky Thump]

Don't trust firms that say they give interbank rates as these are quoted for transactions in millions so what's the snag how do they make money
Is it if they go out of business your money disappears
I would say if you're happy with traveller cheques stay with them you'll get current rate which may go up or down they are safe will be replaced if stolen and they are still easily accepted

Basically "Interbank rates" is just a term that is used for banks that hold money to cover any possible withdrawals from customers, if a bank doesn't have enough at any given time it then has to borrow money on a short term basis to cover this from another bank on the interbank market. This works exactly the same with companies that issue travellers cheques, if they had a large influx of withdrawals and at that time didn't have enough cash due to investments that they make with customers money, they also use the interbank market...it's just short term loans between banks. As long as money exchanges are regulated by the FCA then you have no worries.

[Debra R. Hernan]

Using cash when you’re abroad is never as safe as using cards or traveller’s cheques.

Travel insurance will usually only cover you up to a certain amount of cash if it’s lost or stolen. This is typically between £200 and £500, so if you’re carrying much more than that you run the risk of losing your money altogether. Check your insurance policy so you know what you’ll be covered for.

A good way to make sure you’re covered just in case is to take a small amount of cash as well as some traveller’s cheques and a card. So, if you lose your cash, you’ll still have some money left to spend. It’s worth checking whether traveller’s cheques are accepted where you are going, and if there is an ATM.