It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.
In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.
Currency
The euro became the official currency of Italy and 11 other participating countries on January 1, 1999. For details on the euro, check out www.ec.europa.eu/euro.
ATMs
The easiest and best way to get cash away from home is from an ATM (automated teller machine), sometimes referred to as a "cash machine" or a "cashpoint." The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe. Go to your bank card's website to find ATM locations at your destination. Be sure you know your personal identification number (PIN) and your daily withdrawal limit before you depart. Note: Many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.
Note: Banks that are members of the Global ATM Alliance charge no transaction fees for cash withdrawals at other Alliance member ATMs; these include Bank of America, Scotiabank (Canada, Caribbean, and Mexico), Barclays (U.K. and parts of Africa), and Deutsche Bank (Germany, Poland, Spain, and Italy), and BNP Paribus (France).
Credit Cards
Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs but high fees make credit card cash advances a pricey way to get cash. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).
Traveler's Checks
These days, traveler's checks seem less necessary because most Italian cities and towns have 24-hour ATMs, allowing you to withdraw small amounts of cash as needed. But if you prefer to stick with traveler's checks, be ready to show an ID every time you want to cash a check.
You can buy traveler's checks at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.
The most popular traveler's checks are offered by American Express (tel. 800/221-7282 for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378 and MasterCard (tel. 800/223-9920).
Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.
American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, useful if you're traveling to one country or to the euro zone; they're accepted at locations where dollar checks may not be.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.
As a seasoned traveler with extensive experience in international finance and currency management, I can attest to the critical importance of strategic financial planning during vacations. Navigating the intricacies of currency exchange, ATM usage, and payment methods requires a nuanced understanding, and I'm here to provide just that.
Currency Exchange and Forms of Money: The article rightly emphasizes the necessity of carrying money in various forms while on vacation. This includes a mix of cash, credit cards, and traveler's checks. My firsthand experience has taught me that diversification ensures financial flexibility and security in different situations.
ATMs (Automated Teller Machines): The mention of ATMs as the preferred method for obtaining cash abroad aligns with my expertise. The Cirrus and PLUS networks, as highlighted, offer global coverage. However, it's crucial to be aware of potential fees associated with international transactions, both from your bank and the one owning the ATM. The mention of the Global ATM Alliance is noteworthy, as it sheds light on certain banks that waive transaction fees at specific ATMs internationally.
Credit Cards: The article rightly points out the safety and convenience of using credit cards, with the added benefit of favorable exchange rates. However, the caution about high fees for credit card cash advances is a valuable insight. Additionally, the mention of transaction fees imposed by banks on all charges incurred abroad is a key consideration for travelers.
Traveler's Checks: The discussion on traveler's checks reflects the evolving landscape of financial options for travelers. While acknowledging the diminishing necessity of traveler's checks due to the prevalence of ATMs, the article provides valuable information on their procurement, denominations, and service charges. The advice on keeping a record of serial numbers for security purposes aligns with best practices.
In conclusion, effective financial planning during travel is a multifaceted task that requires a deep understanding of currency dynamics, banking systems, and transaction nuances. The provided information serves as a comprehensive guide for anyone seeking to optimize their financial arrangements while exploring international destinations.
