Best way to carry money abroad? Pre-loaded credit cards vs. credit / debit cards, etc

[mikeerdas]

What's the best way to "carry money" for an eastern med cruise (Rome, Greece, Turkey, with post-cruise to France)?

 

In past travels, I have taken 2 credit cards (a 2nd in case 1st is lost or gobbled up by an ATM machine) and overpaid the balance roughly to an amount I expect to spend abroad--this is so I am not levied "cash advance" interest. Seems always to have worked. And travelers checks seem to be a thing of the 20th Century.

 

I've read that I should notify my credit card companies of the dates and countries I'll be traveling in; and that Turkey seems to be a place where I can't even use my cards--or that the credit card companies advised me not to use my cards there due to fraud. This is so expect spending patterns (expected to the traveler herself) are not interpreted as unauthorized purchases abroad. I've had my own AMEX card denied domestically (U.S.) several times at gas stations; had to phone and confirm recent purchases, etc. So I'm definitely notifying my card companies.

 

Anyway, for safety / convenience / peace of mind, etc, should I:

 

* Do what I've always done (2 credit cards and overpay the balance on one)

 

OR

 

* Purchase a credit card(s) pre-loaded with a certain amount of money--so my liability is limited only to what I've loaded the cards with. Any "gotchas" there, or is this approach completely ill-advised or unnecessary?

 

... or something else / combination of things.

 

My wife wants to bring her debit card, but since a debit card accesses one's checking or savings account directly, I've heard there isn't the same level of protection in case of fraud / unauthorized use (vs. a credit card). True or a myth?

 

Finally, is it better to use credit cards for large purchases from trusted vendors? (e.g. pre-cruise hotels) and cash for everything else? e.g. make one or two cash withdrawals of euros from an ATM and not use the credit cards for anything else? While I love my frequent flier miles, I don't love being scammed via credit card fraud--who does?

 

Thanks.

 

Mike

[phoenix1181]

Credit cards for large purchases and debit card for cash @ the ATM. You'll get the best exchange rate using ATM's. Check with your bank & credit card issuer about any fees. This also gives you the benefit of not tying up your money by prepaying your credit card.

 

Liability is different with a debit card versus a credit card but the most important thing is it's your money a thief would be using. A preloaded debit card sounds good but if it's lost or stolen, you can't recover anything until you get home so you still need to bring the credit cards.

[mjm1204]

You need to check which credit card company is giving you the best exchange rate and then compare it to what it would be in the country you're visiting if you used cash.

 

I used my AMEX for a week in Guatemala and they royally screwed me on the exchange rate... it wasn't a small difference either... I lost out on about $200 because of it

[yogimax]

 

I've read that I should notify my credit card companies of the dates and countries I'll be traveling in;

 

This is an absolute must! We didn't so this and had our ATM card repeatedly rejected.

 

The best exchange rate will generally be found using your ATM card

[CruisinManiac]

I took euro with me from my local bank. Shop around for the best exchange rate and order plenty. I only took my credit card for an emergency (which I didn't have to use, thank goodness). I used my shipboard account to get additional euro when mine was running out. Contrary to what I had heard pre-cruise, the ships exchange was no worse or better than at home, or in port. Finally, I used a Debit card to get more euro when I was on the land portion of my trip in Rome. However, I did not use a card that we have our main bank account in. I used a card from our previous bank, in which I still had funds that we had not transferred. That way, if my card was stolen, we would not lose as much.

 

We did call our bank, and Visa to let them know I was going to Europe. If you use a debit card, make sure that it is either a Visa or Master Charge sponsored DC. Have fun! :)

[uppitycats]

I use a credit card for whatever I can, and not try to carry around much cash, whether it be American dollars or the dollars of the country I'm in. I only use the my bank card (debit card) to withdraw cash from an ATM -- so I make sure there is enough of a balance in the checking account to cover possible cash withdrawals (I rarely have a huge balance in there...as soon as it gets to a certain level, it gets moved to a savings account).

 

I also notify my credit card company and my bank of my travels, as they are pretty vigilant about "unusual" charges on my account.

[megr1125]

Skip the preloaded cards. They can't be used on ships and other things, and unless you know the exact balance, MANY merchants' POS systems are not smart enough to know that it is basically a gift card-if you have say $200 on it, and spend $250, the charge will be denied, the funds MAY be frozen and you are SOL.

 

Stick with regular bank credit cards/debit cards. Also, same goes for the travelers cheque cards....RCCL says right in their docs that they can't be used...IIRC you CAN use them as a payment ON the cruise just not on the ship.

[zywnywld]

Have a checking account for vacations only with a debit card to pay for everything onboard. Keep everyone away from your regular checking & savings. Try to put the money you estimate you could spend onboard in this account and have this account the one RCCL accesses. I have always estimated what will be spent onshore or as tips and carried cash. Maybe foolish, but I just can't let myself use the ATM and pay the fees. Haven't been many places the dollar is turned away. You just need to be aware what the prices really are. Traveling overseas I'd get currency from your bank at home.

[marci22]

On our Med cruise, we used a Capital One credit card (no transaction fees) and our bank's debit card. There were ATM's everywhere, and this gave the best exchange rate.

 

We notified Capital One before leaving, and still got rejected at a merchant, but he was happy enough to call their 800 number and get it straightened out for us.

 

We talked to our bank before leaving and found out that if we kept a certain amount in our checking account, there would be no ATM fees on either end.

 

You should always wear a money belt under your clothing for cash, ID, and cc's when traveling around tourist areas so you don't have to worry about getting pickpocketed.

[TXFrank]

On our Med cruise, we used a Capital One credit card (no transaction fees) and our bank's debit card. There were ATM's everywhere, and this gave the best exchange rate.

 

We notified Capital One before leaving, and still got rejected at a merchant, but he was happy enough to call their 800 number and get it straightened out for us.

 

We talked to our bank before leaving and found out that if we kept a certain amount in our checking account, there would be no ATM fees on either end.

 

You should always wear a money belt under your clothing for cash, ID, and cc's when traveling around tourist areas so you don't have to worry about getting pickpocketed.

 

 

I am very much in agreement with Marci22. The last time I checked Capital One was the only one waiving the international banking fee component of the transaction cost. (I assume they still are.) As others have stated, by all means contact your credit card companies & state your need to use the card in a foreign country. Also make sure you get a bank card security contact number (some give you an overseas number) in case your card is stolen. Most will tell you that the exchange rates will be lower in the foreign location (places other than airports and train terminals however). While I found that to be true, I found comfort in having a few dollars in the local currency prior to leaving. Also as Marci stated, use a money belt or one that is around your neck and under clothing. While it may not make the fashion statement you wish, it is the best defense against VERY good pickpockets that work in groups. Just use common sense.