I know people don%26#39;t use Traveler%26#39;s Checks too much anymore, but would it be economical to use them in certain situations? Let%26#39;s say I am in the U.S. and I purchase 1,000 euros in traveler%26#39;s checks with U.S. cash. I then go over to Paris and cash in the Traveler%26#39;s Checks (which are in euros) for euro bills.
First of all, can I buy TC%26#39;s in euro denominations in the U.S.? Secondly, is it easy to convert the TC%26#39;s into euros when I get to Paris? Lastly, is it economical to do this, or should I just bring dollars to Paris, and convert them to euros at a bank or currency exchange?
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Yes it is possible to purchase Traveler%26#39;s Checks in Euros the US, however you need to keep in mind that it is not easy to convert the checks into Euro bills. The last time I traveled with any Traveler%26#39;s Checks was 2004, and while the bank in St. Remy cashed my checks throughout the first 3.5 weeks of my trip, 4 days prior to my departure they suddenly declared that there had been too many incidents of forgery and that they would no longer cash them. Fortunately, I had %26quot;face recognition%26quot; with the Bank Manager and was able to cash checks to have cash on hand for the rest of my stay that day, but he advised me then and there that the days of traveler%26#39;s checks were over and that he suspected that in the near future you would have to cash/convert them at the AMEX offices, which might be OK if you%26#39;re just going to be in Paris, but is not very convenient if you are way out in the countryside. Also, I think that you can pretty much forget about using Traveler%26#39;s Checks to make purchases virtually anywhere.
All in all, I think that your best bet will be to use your Debit Card(s) to make withdrawals from ATM%26#39;s, which are all over, even in the smaller towns of Provence. Although some US Banks charge a small fee for these withdrawals (usually about 1 - 1.5%), you should check with your Bank prior to departure and see if they have agreements with any European Banks or Bank Groups that will eliminate these tranaction fees.
Whatever you do DO NOT BRING DOLLARS as Banks will charge you a fortune to convert Dollars into Euros and the curency exchange bureaus will charge you even more.
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Interesting question Pixfield. Is the point so that you can capitalize on the current exchange rate for US dollars to euros, and not have to rely on whatever the rate is when you travel - without having to carry pocketsful of euros in cash? We were trying to find a way to do this in Canada before our last trip when the rates were really low, but we didn%26#39;t have any success. We couldn%26#39;t find any pre-loaded euros credit cards, and the only option we could find was to open a euros account, but then the ATM card wasn%26#39;t useable in Europe! It was only useful for getting euros in cash here in Canada before we left but that was it.
I%26#39;m curious to see what all of the responses to your question will be.
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YES...you can prepurchase conventional Travelers Cheques in €uro denominations from American Express, VISA, Thomas Cook in the US. You will take an exchange rate %26#39;hit%26#39; at the time of purchase due to built-in fees and charges...in much the same way that you would if you converted US dollars into €uro currency.
Once in Europe, even TC%26#39;s in €uro denominations, will be difficult or inconvenient to transact at any but the very large grand magazins or shops. Most small stores, shops, restaurants, cafés won%26#39;t accept them....and you will most likely find yourself searcing about for places to convert TC%26#39;s into €uro currency....with fees charged by many Bureau de Change.
As someone who organizes and escorts student tour groups, I can understand why you might be interested in Travelers Cheque usage...since this is one of the prefered methods of carrying travel funds for student travelers, who may not have access to local bank accounts with ATM/Debit card access (though in this day and age, most of this sub-group already has or can easily gain electonic funds access).
As for the potential gains that MIGHT be realized through foreign exchange %26#39;arbitrage%26#39;-- %26#39;betting%26#39; that the US dollar will weaken vs. the €uro between the time of purchase and the time of travel--this is juat a generally bad %26#39;bet%26#39; for tourists to make....and even if they get it right, the fees and charges usually associated with Travelers Cheque transactions often negate any up-side gain and increase any down-side loss.
Pre-loaded/re-loadable ATM/Debit cards--VISA TRAVEL MONEY as an example--are a more practical alternative to conventional TC%26#39;s...but when you check the terms %26amp; conditions of usage, fees and charges, they%26#39;re generally bad deals as well. American Express discontinued offering its own Travels Cheque Card some time ago. Bear in mind that these electronic products compete directly against their own TC product...so it would be follish to expect significantly better deals. But, if nothing else, pre-loaded/re-loadable do offer something in the way of relative convenience, due to their access to the ATM system.
Your best bet in advising student travelers with regards to carry travel funds is for them to either use their existing ATM/Debit card tied bank accounts...or open such local ATM/Debit card-tied accounts well prior to travel...or get parents to make one of their cards available to them for their use. Conventional TCs, even in €uros, simply aren%26#39;t either cheap or convenient to use.
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I know I can use my bank card to withdraw euros but there is a limit of 1,000 euros per withdrawal. However, I need to make a payment of 1,500 euros in cash for an apartment rental. That%26#39;s why I want to bring the money over in TC%26#39;s, cash them at an American Express office (I think there is one next to Opera Garnier) and make my payment in euros.
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If your main reason for wanting Travellers Cheques is so that you can have access to a larger amount of cash to pay for an apartment on your first day then your best option is to open a second (or third) account and use the ATM card to withdraw the extra from the other account. Anyone relying on ATMs for their cash should have more than one account anyway.
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Or buy some actual euros in America before you go.
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Yes, why not just buy the euros before going. It seems so much simpler.
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Regarding the suggestions that you purchase the actual Euros prior to departure, I would say that one reason that you may not want to consider this option is the cost - some banks really stick it to you when you purchase foreign curranc, so finding on with a reasonable rate of exchange may erquire considerable research, especially in this environment of a constantly fluctuating market.
With regard to Traveler%26#39;s Checks, the last time that I did buy AMEX Traveler%26#39;s Checks (2004) I did so through AAA - to the best of my recollection there was no fee, or at most a very minimal one, charged to AAA members. I suuspect that if AAA is sill providing this service you can exchange these AMEX Traveler%26#39;s Checks at the AMEX office in Paris that you mentioned with no fee.
However, I think that I ultimately agree with HarleyB and the suggestion that having another card that you can use to withdraw Euros from the ATMs in France is probably the best suggestion, since it will provide you with flexibility regarding access to your money throughout France.
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I have never checked it personally, but I believe the rates come out about the same in the long run. In Australia you pay a percentage plus there is an exchange rate, at a bank or agency, buying euro is based on an exchange rate that differs in the buy/sell amounts, using an ATM incurs and foreign currency fee here in Australia and heavens knows what exchange rate. Wherever, you can be pretty sure that the bank or exchange makes some money and apart from airports and hotels, the amount (cost to you)is probably roughly the same.
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There really isn%26#39;t going to be all that much difference (or any at all) between the net cost of pre-purchasing €uro currency or €uro denomination TC%26#39;s. AAA charges a fee for €uro denomination TC%26#39;s (usually free for US dollar TC%26#39;s to members) and then offer the prevailing foreign exchange rate. You%26#39;ll pay the prevailing exchange rate to pre-purchase €uro currency...and depending in the Bureau de Change you use some sort of postage %26amp; handling fee (though some waive s%26amp;h for larger amounts)....for a net sum %26#39;..wash..%26#39;.
As you live in or around NYC, I%26#39;d be inclined to %26#39;..shop..%26#39; the larger international banks and on-line Bureau de Change for foreign exchange rates and fees and pre-purchase €uro denomination currency....and an under-garments money belt or pouch.
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