Taking Money Abroad

Travellers cheques, cards and cash

Travellers cheques - the pros and cons

Unlike cash, travellers cheques are protected the minute they're purchased.

If lost or stolen, American Express Travellers Cheques can be replaced with a single telephone call - usually within 24 hours.

Don't rule them out as old fashioned, especially if your travel insurance policy won't cover you for the sort of sums you're likely to be carrying around when going shopping abroad.

They're still a safe way to protect yourself against the hassle and inconvenience of losing your cash.

Advantages

• Safer than cash - if stolen or lost you can obtain a refund or replacement, usually within 24 hours
• Convenient - available from the Post Office or buy online
• Easy to use - sign upon receipt, note serial numbers, countersign when you use them to pay or exchange for local currency
• Any change is provided in local currency
• Exchanged at banks; many hotels, restaurants & shops; FX bureaus and AmEx Travel locations (photo ID may be needed)
• They don't expire, so save them for another trip, or sell them back

Disadvantages

• Up front payment
• Not accepted everywhere
• Signatures need to match - a subjective opinion so they cannot be cashed for/by other people
• Small fee incurred in use
• Need to keep record of numbers
• Not the anti-fraud or insurance benefits of some credit card purchases

Hole in the wall

More and more of us are sidestepping travellers cheques and using cash and credit cards in ATMs (Cash Machines) to draw out cash around the globe.

It beats the hassle of buying travellers cheques beforehand.

On the other hand losing cash abroad can make you lose time on holiday. You can minimise the risk by planning several withdrawals while away.

Even more worrying, according to the statistics, at least - every 36 seconds a British traveller abroad is a victim of theft.

Which might make you think twice about opting to use your debit/credit card at the ATM. Another reason can be hefty charges for ATM use and poor exchange rates offered.

Avoid unlicensed and street currency dealers always. They can have tricks, traps and moving stories a relaxed and off-guard holidaymaker can easily fall prey to.

Cold Hard Cash

Cash has the significant advantage of being very easy to use and free to hold.

The advantages of cash make it extremely desirable to other people too.

If you carry all your travel money in 'reddies' and one place you could be very vulnerable to theft or street robbery.

Storing it also in a hotel room, apartment, villa or hostel can be a problem is there is no safe.

Travel Insurance for Money

Personal money definition

Personal money tends to mean bank notes, currency notes and coins in current use, travellers' and other cheques, postal or money orders, pre-paid coupons or vouchers, travel tickets, event and entertainment tickets, phone cards, money cards and credit/debit or pre-pay charge cards all held for private purposes.

Different levels of policy insure different values. Often total values covered are from £250 - £500 with a large proportion of this for cash losses.

Insurance tends to cover for the accidental loss of, theft of or damage to personal money and for foreign currency during the 72 hours immediately before your departure on the outward journey.

Claiming Money

Typically conditions relating to claims include:

• Reporting of the loss to the local Police in the country, within 24 hours of discovery, or ASAP after, obtaining a written report of the loss, theft or attempted theft
• If personal money/cash is lost, stolen or damaged while in the care of a hotel or your accommodation provider, you must report it to them, in writing, details of the loss, theft or damage and obtain written confirmation.

Exclusions

Not covered are typically the following:

• The first £x amount (eg £65) of each and every claim per incident
• Cash confiscated or detained by customs or any other authority.
• Loss or damage due to depreciation (loss in value), variations in exchange rates or shortages due to error or omission.
• Personal money tends to be excluded from a policy if it is left unattended at any time (including in vehicles, checked luggage or in the custody of a carrier, tour or public transport operator) unless in a hotel safe, safety deposit box or in locked accommodation. Loss or theft of traveller's cheques are excluded if you've not complied with the issuing agent's conditions or where the issuer provides a replacement service