Going to America - Cash or Credit Card

T

TTI

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Hi,

Is there much different in exchange rates between a credit card and exchanging for dollars at an exchange?
 
Currency exchanges don't give you good rates at all, much better using the credit / debit card
 
If you are getting cash get it here before you go. I found it very expensive to change cash over there. Ended up going through a friends bank account.
I use credit card alot when in the US. It is safer and can be used anywhere. Last thing you want is getting your cash taken.
 
dogfish said:
If you are getting cash get it here before you go.
Click to expand...

+1

You should only need it for small value transactions, use credit card for the rest. We were in the USA on holiday last year and split the cash between my wife and myself. She managed to lose her wallet on the flight over. When you lose cash there is no comeback.

Try to figure what you might need ahead of going over and bring that, e.g. $ X times Y days. If you run short there are ATMs but you'll get charged for using them, and the USD EUR rate won't be competitive.
 
TarfHead said:
+1

You should only need it for small value transactions, use credit card for the rest. We were in the USA on holiday last year and split the cash between my wife and myself. She managed to lose her wallet on the flight over. When you lose cash there is no comeback.

Try to figure what you might need ahead of going over and bring that, e.g. $ X times Y days. If you run short there are ATMs but you'll get charged for using them, and the USD EUR rate won't be competitive.
Click to expand...

This is the approach I take as well, if travelling abroad. Take a certain amount of cash, but use the credit card for most purchases, meals etc. Enjoy the trip.
 
While I would definitely advise not carrying a large amount of cash and using a credit card in the US, I did draw up an expenditure chart for my trip there last year and I was a little surprised to note that the credit card was a more expensive option.

In each case where I can be certain of proximate transactions, especially after close of business in Ireland, the effect of the 1.75% charge that the bank add to every credit card transaction is obvious. Where I was spending a lot on the credit card (€250 plus) the difference for a day was amounting to about €5 more expensive than if I had just used the cash on me.

However, that is looking at exchange rate only, when I add in the charge the bank add for extracting cash things become more equitable, there is a tipping point where it is better to have cash but the amount saved is not worth the risk.

(note that the cash I brought with me from Ireland, by an unfortunate dint of forex timing turned out the worst exchange rate but looking at the ECB website, I can see that the day I purchased the money here (01/06/2012) was a local dip - so for the purposes of this I am looking only at days where I extracted cash in the US using a debit card and also purchased something within a short period of time using a credit card)
 
I used the new An Post currency card when I was over there in July. Very handy being able to have all my holiday money on a card and it was accepted everywhere I used it. Way better than carrying cash or even having to withdraw from my current account considering the extra fees and potential for skimming etc.
 
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