Travel Money Options
If you're travelling abroad on holiday or business, the normal money rules don't apply. Not only will you be using a different currency when paying by cash, but your normal methods of payment such as credit or debit cards may not be accepted.
So what's the best way of taking money abroad?
Currency
It's always a good idea to take a small amount of local currency with you to see you through your first few hours in a country. For example, you'll probably want to take a taxi or train from the airport to your destination, and cash is the easiest way to pay for this.
Taking anything more than you'll need on your first day, with a little in reserve for emergencies, is not a very good idea. If you lose currency, or it's stolen, you have no recourse. Not only will you probably not be able to get your money back, but if most of your funds were in cash you could be struggling for funds for the rest of the trip.
Travellers Cheques
Travellers cheques were introduced to overcome this insecurity problem of cash / currency being lost. They have a surprisingly long history, with the concept first used as far back as 1772 when the London Credit Exchange introduced cheques that could be used in 90 cities.
The basic idea is that you buy cheques in the denomination of your choice, signing one half in the presence of the cheque issuer. Once you're abroad, you can cash a cheque at a participating money exchange by signing the other half as a security check, matching your signature against the one on your passport.
The advantage of travellers cheques is that they are traceable - if they are lost or stolen, the issuer can cancel the originals and provide replacements, usually within 24 hours. The disadvantage is that you'll probably be charged a commission when you buy the cheques, to cover the costs and profit of the issuer.
It's usually recommended to buy cheques in a major currency such as sterling, euro, or US dollars as this will mean you can exchange them for local currency almost anywhere in the world.
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