Tours requesting cash

[CoLeLe]

Taking our first cruise around Italy and Greece next year and looking for tours to take in Sicily.  I've contacted three different tour groups so far (Sicily Life, Sicily4you, and Sicily with Mario) and they all request payment by cash at the end of the tour.  There's six of us traveling in my family.  I can't imagine having that much cash on me for just one port and we would still have several other ports to go yet.  Is this common?  How do people usually manage this?

[VMax1700]

This is quite normal.  There will be ATM's close to the port, or the tour guide will stop so that you can use the ATM.  They don't have onboard credit card facilities to pay by card on the day, and you would be rightfully slow to pay by card in advance.  Just budget for it.

[kittinfeld1966]

We are a family of 5 in same predicament.  We are using Joe Banana Limos and they also require cash the day of. Its good to know there are ATM machines close to the port.

[CoLeLe]

Thank you. I guess my next question would have to be researching ATM fees.  If anyone has a helpful link, I'd greatly appreciate it.

[cruisemom42]

There are a few places offering a no-fee checking account (Capital One, Schwab) -- they don't charge a fee per transaction (if the machine charges it, the bank refunds it) and they don't -- or at least Capital One doesn't,  I can't speak for Schwab -- charge the dreaded "foreign exchange fee"  of 1-3% that most regular banks charge.

 

I have a Cap One account and I only use it for travel, thus I don't have to worry if my ATM card is stolen because it's not linked to any other accounts. Some have reported that their credit union offers a better deal than a big bank, so you could look into that if you're so inclined...

 

Finally, take comfort in knowing that even with the fees, using an ATM to get cash in country usually nets you a better exchange rate than just about any other way of getting cash, including exchanging at banks, hotels or onboard ship.

Edited November 17, 2018 by cruisemom42

[CoLeLe]

Great advice!  I do have a Capital One credit card, but I like the idea of not linking it to my other accounts.  I think I'll do that too. 

[Hlitner]

Just keep in mind that there are daily withdrawal limits depending on your own bank and the banking policies of the country where you withdraw.  In many cases you can be limited to no more than $500 a day which, when converted to Euros  will depend on the current rate of exchange.  Many frequent European travelers have learned its wise to have more then 1 ATM card/account...preferably with different banks or credit unions that do not charge fees.

 

Hank

[CoLeLe]

Hadn’t even thought of daily limits.  Good point!  I will have to find out from my bank and play it safer by having more than one card.  Thank you!

[nini]

Yes, the cash issue is very standard practice. We each took 100 Euros with us to get us started for our first transfer and then did  an ATM withdrawal for a few tours- using our Schwab account which gave us a great exchange rate and reimbursed our fees.

[littlelulu01]

I try and hit up a cash machine every day with a debit card once I arrive.  It’s the least expensive way to get cash but as others mention, most debit cards have a daily withdrawal limit.  Also try and use the right type of machine.  The cash machine sitting in an airport will likely have extra fees, similar to getting cash from a 7-11 here in the USA.  The machines will tell you rate and fee when you insert your debit card and start the process.  

 

Travelx Currency exchange desks at airports also have higher fees. I checked with my credit union about getting cash before travel. They said, “zero” fees but the rate was terrible.  

 

Some people feel more comfortable arriving with some cash.  The least expensive I’ve found is the travel x store, located in one of in my hometown banks.  The rate is a little higher than the actual exchange rate, but much less than my bank, AAA or airport travel x. The line to exchange is pretty long just because it’s the least expensive way to get currency prior to leaving for vacation. 

[Hlitner]

This entire topic should not be minimized by any traveler :).  As frequent cruisers and land travelers, we have learned that cash and credit card issues often require a carefully researched strategy.  We have taken combination cruise/land trips when we would spend 2+ months traveling.  We will often rent flats in Europe and these sometimes require large payments in cash (not to mention pre trip deposits).   The idea of carrying thousands or dollars (or Euros) in a money belt is just not my thing.  Using ATM cards is our primary method of getting cash, but this required a lot of strategy for longer trips when we would need thousands of Euros.  It ultimately drove us to open a 3rd fee-free ATM account at a third bank (actually a large credit union).  Having multiple ATM/Debit cards is a great backup strategy, but is best accomplished by having the accounts at different banks or credit unions.  Relying on a single financial institution can be disastrous if that bank decides to freeze your accounts (this can happen as the result of a bank error).  So we depend on 3 different ATM accounts (at 3 different banks) and have the online and/or phone ability to transfer funds between those accounts.  Our emergency back-up if the ATM cards were to fail is to use cash advances from credit cards (an expensive option).  In this case it is helpful to have multiple credit cards.

 

For a typical cruiser, much of what I say would be overkill.  But once you expand your horizons into major independent land trips (we will sometimes spend weeks with a rental or leased car) all these back-up strategies become important in both practice and for peace of mind.

 

Hank

[littlelulu01]

Agree with Hank on back up cards.  When we sent our daughter for study abroad year we sent her with a couple backup accounts.  Our credit union set up the additional accounts free of charge and we wrote “back up 1’”and “back up 2” in sharpie so she wouldn’t accidentally use card unless the main account was comprised.  Several students did have issues over the year without a backup plan in place. 

 

We we also only deposited a certain amount into the account each week thus limiting loss if card was comprised.  We also placed a lock on auto deposit if the account became overdrafted. This way if someone did get ahold of account they couldn’t take any more than what was in checking.   

Edited November 18, 2018 by littlelulu01

[Desert Cruizers]

I generally will plan out how much I will need and get it from my bank before leaving, this way I don't have to worry about ATM's. 

[Earl Rosebery]

Paying in cash allows the vendor to cheat the local tax man.  There doesn’t seem anything that can be done about it in many countries.  

[VMax1700]

12 hours ago, Earl Rosebery said:

Paying in cash allows the vendor to cheat the local tax man.  There doesn’t seem anything that can be done about it in many countries.  

Possibly, but do you have proof of this?

What it does allow is that the cruiser does not have to pay in advance for a service which may not be received for a couple of months, or indeed be cancelled due to weather, tender or other unforeseen circumstances.

Also easier for splitting the bill when arranging tour shares.

 

[ptrpanpens]

I have an ATM money market account where I put a limited amount of money for withdrawal purposes overseas. It is linked to a very large savings account where I can transfer money into the Money market account instantaneously if I start to run out but which is not at risk should my ATM card be lost or stolen because it is in a separate account. I also have a backup ATM card linked to another bank as well as 3 credit cards with no foreign transaction fees. 

 

Those of of us who travel frequently overseas know that it is always cheaper to withdraw most cash after you get there rather than before you leave, due to large fees and bad rates charged in the US. Of course credit cards without foreign fees are always the preferred way to go if you can.

 

Also, I never cash in Euros or GBPs when I return as you lose both ways. Just save them for when you return to Europe. If you don’t return you can always cash in later and sometimes come out way ahead if the dollar goes up in the meantime.

 

i have traveled regularly to Europe for over 40 years and find that this approach works best for me.

 

 

[picsa]

On 11/17/2018 at 8:03 PM, CoLeLe said:

Taking our first cruise around Italy and Greece next year and looking for tours to take in Sicily.  I've contacted three different tour groups so far (Sicily Life, Sicily4you, and Sicily with Mario) and they all request payment by cash at the end of the tour. 

...

Is this common? 

 

Yes it is very common in Italy and Greece for businesses to prefer to be paid in untraceable cash rather than through card payments which the tax authorities can see.

[Hlitner]

On 11/18/2018 at 10:42 PM, Earl Rosebery said:

Paying in cash allows the vendor to cheat the local tax man.  There doesn’t seem anything that can be done about it in many countries.  

And is that different anywhere in the world?  As a consumer, who cares?  In some parts of the world you can often negotiate a lower price if paying by cash as the vendor can avoid some taxes and not pay credit card fees.

 

Hank

[littlelulu01]

I’d venture a guess that companies authorized to pick you up at the ship are legitimate, tax paying  businesses. 

 

There’s not only the cc fee but also potential conversion fees business eat when taking cc.  In Europe there’s not a whole lot of places that take American Express.  Not because of tax evasion but because Amex charges higher fees. 

 

I wouldn't  feel comfortable accusing someone of tax evasion just because they accepted cash only... well unless the “Gucci” purse they were selling me was from their blanket and they pulled up shop and ran away when police approached.  Btw- you can actually get in trouble with the law if caught purchasing obvious counterfeit wares from these guys. 

 

If someone approaches you for a ride offer and you are not at a taxi stand, there’s a good probability they’re not legitimate, don’t carry the proper insurance... best to not engage with them.  

 

I’d certainly feel comfortable with scheduling a tour with a cash only company that has a strong internet presence, thousands of excellent reviews on trip advisor, who has authorized entry to pick up at ship... 

 

[picsa]

On 11/21/2018 at 5:03 PM, littlelulu01 said:

I’d venture a guess that companies authorized to pick you up at the ship are legitimate, tax paying  businesses. 

I

 

You really think the port authorities carry out a tax audit on companies before allowing access onto the dock! Hilarious.

[littlelulu01]

20 hours ago, picsa said:

 

You really think the port authorities carry out a tax audit on companies before allowing access onto the dock! Hilarious.

Of course not.  Not sure how you concluded that I think the port authorities are in the tax auditing business. All I know is that the port authorities don’t just let anyone pass through their secure areas. Legit companies are allowed past port security and they can pick up at the ship. I’m not comfortable accusing a company of criminal activity just because they accept cash. 

[picsa]

On 11/29/2018 at 7:06 PM, littlelulu01 said:

Of course not.  Not sure how you concluded that I think the port authorities are in the tax auditing business. All I know is that the port authorities don’t just let anyone pass through their secure areas. Legit companies are allowed past port security and they can pick up at the ship. I’m not comfortable accusing a company of criminal activity just because they accept cash. 

 

 

And yet you say the same thing again! A "legit" company does not necessarily pay their taxes. So whether a company is allowed onto the port tells you nothing about whether they pay their taxes or not.

 

As for companies who only accept cash for sizeable transactions of being involved in tax evasion - if it walks like a duck and sounds like a duck...

 

But feel free to carry on in your innocent world handing over envelopes of cash and believing it gets reported.

[littlelulu01]

1 hour ago, picsa said:

 

 

And yet you say the same thing again! A "legit" company does not necessarily pay their taxes. So whether a company is allowed onto the port tells you nothing about whether they pay their taxes or not.

 

As for companies who only accept cash for sizeable transactions of being involved in tax evasion - if it walks like a duck and sounds like a duck...

 

But feel free to carry on in your innocent world handing over envelopes of cash and believing it gets reported.

Here’s an article about cash transactions in Europe.  Perhaps this will enlighten you. This forum is for travelers to learn and broaden their understanding of travel and cultures. Not to accuse tour guides or companies as criminals just because they reside in Italy or Greece and follow their cultural norms. 

https://www.ricksteves.com/travel-tips/money/pay-credit-cards-vs-cash

[picsa]

On 12/3/2018 at 6:12 PM, littlelulu01 said:

Here’s an article about cash transactions in Europe.  Perhaps this will enlighten you. This forum is for travelers to learn and broaden their understanding of travel and cultures. Not to accuse tour guides or companies as criminals just because they reside in Italy or Greece and follow their cultural norms. 

https://www.ricksteves.com/travel-tips/money/pay-credit-cards-vs-cash

 

So you want me to listen to an American, Rick Steves, about what goes on in Europe. No thanks, as a European I know far more about this subject than he or you do. 

 

You may convince yourself that a tour guide asking for large sums in cash is doing for innocent reasons, but the only person you are fooling is yourself.

 

Both Italy and Greece have a notorious tax evasion problem, that a few seconds research would have shown you. But hey ho, Americans believe they know everything.

[lisiamc]

On 11/19/2018 at 3:42 AM, Earl Rosebery said:

Paying in cash allows the vendor to cheat the local tax man.  There doesn’t seem anything that can be done about it in many countries.  

 

On 12/3/2018 at 4:52 PM, picsa said:

 

 

And yet you say the same thing again! A "legit" company does not necessarily pay their taxes. So whether a company is allowed onto the port tells you nothing about whether they pay their taxes or not.

 

As for companies who only accept cash for sizeable transactions of being involved in tax evasion - if it walks like a duck and sounds like a duck...

 

But feel free to carry on in your innocent world handing over envelopes of cash and believing it gets reported.

 

We spend half the year in Italy, and pay for almost everything in cash, because that’s the way most of the local merchants prefer it.  A good indication of whether the money is actually being put through the books is whether or not you get a receipt for your purchase.  If you get a receipt, it is more likely to be a properly recorded transaction.  

 

Something to bear in mind:  the Guardia di Finanza require that receipts be given for business transactions, and they also require that the customer be able to show that receipt on request.  So the merchant and the customer will both have trouble and a possible fine if the Guardia di Finanza ask for a receipt and there isn’t one.  And they do appear out of nowhere sometimes and ask.  I’ve seen them.  Always stick your receipt, even for a gelato or a coffee, in your pocket until you get back on the ship or into your hotel.

Edited December 12, 2018 by lisiamc