Mid-Valley

Travel Club

Money and Travel (Part 1) Overview Derek Stables - October, 2007 Here's a copy of Derek's tips on using money during travel abroad, presented at the October, 2007 meeting of the Travel Club: OVERVIEW OF THE 5 MAIN OPTIONS Credit cards ATM cards Travelers’ checks US currency Prepaid foreign currency Each option has its advantages and disadvantages, but no single one is adequate alone. Most travelers rely on at least 3, some use 4, and a few use all 5 options. Your choice should depend upon your individual comfort zone and also upon your principal destination(s). This Travel Skills segment deals only with credit card usage. The succeeding topics will be addressed in future Travel Skills presentations.   CREDIT CARD USAGE ABROAD A) Advantages • Widely accepted in developed countries • Less cash to carry • Minimal or no expense for fraudulent use • May earn mileage for next trip! B) Disadvantages • No use in some rural/undeveloped areas • Delayed replacement of lost/stolen cards • Foreign currency transaction fee-often 3% (see below) C) Precautions • Record local phone # of issuing bank • Notify issuing bank re dates & countries of travel • Plan for account payment during travel • Increase your credit limit if needed • Strongly consider a second credit card (I take 3!) D) Credit Card Transaction Fees Abroad • Visa/Mastercard - most banks: 3% • American express: 2% (but limited acceptance) • Diners club: 3% (but limited acceptance) • Discover: 0% (but only in central america) • Capital One VISA: 0% (no annual fee)** ** (http://www.capitalone.com / 1-800-955-7070). I acquired this card recently and have used it only a few times for foreign currency transactions, so far without any problems. However, Peter did a Google search on Capital One and found an avalanche of complaints about the Capital One credit card, so he advises careful oversight, if you open an account. For a sampling of complaints, go to: http://www.consumeraffairs.com/credit_cards/capital_one.htm http://www.classcounsel.com/publications/developments.html

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Peter Ronai
President
Mid-Valley Travel Club