The era of traveller’s cheques” and Eurocheques (remember them ?) is behind us, and a plethora of payment possibilities await us as we head to the Alps (or any other ski destination) this winter.
But in 2016, what’s the best way to pay for your lunchtime lasagne or your après-ski aperitif ? And by “best” we of course mean spending as much of your money as possible on whatever it is you’re buying, and as little as possible on commissions to banks; most of all, avoiding the double or triple whammy of paying multiple banks and agencies on each side of the channel their own cut.
Having scratched our heads over a dozen different press releases from different banks and credit card companies, each telling us they were best, we decided to ask an independent expert.
“The cheapest way to spend abroad is to get a specialist overseas credit card. These cards smash all other ways to get your currency because they don’t add any charges, so the rate you get when you use the card is the rate the bank gets when it changes money. For example, spending on a specialist travel credit card or getting your travel money from the airport are poles apart – and the saving can be as big as £80 per €1000 spending,” Jo Gornitzki, Money and Insurance Editor at the independent website MoneySavingExpert.com told us, with the added warning :
“Just remember to pay it off in full after the holiday so you don’t lose everything you’ve gained paying interest.”
The next best option if you don’t want to apply for a special credit card is a prepaid card which anyone can get and load with cash before they travel and then use like a debit card. If you lose it, your cash is protected. You get the rate on the day you load the card with money, not when you spend, so currency fluctuations may mean you get a worse deal – or a better one.
“However,” Jo warns again, “the rate isn’t as good as that of a specialist travel credit card, and there are a few places that don’t accept them, including car-hire firms and pay-at-pump petrol stations.”
Canton FX market just such a card and Managing Director James Hickman is an enthusiast :
“You can use the card abroad just as you would a debit card; pay for goods and services, withdraw cash from ATMs and reload your card online or on your phone. Our smartphone app allows you to load your currency card at any point before or during your trip, check your balance and transactions and switch currencies, all with zero fees. You are also able to gain access to real-time, competitive exchange rates.”
So what about old-fashioned cash, or just your regular credit and debit card… these days accepted almost everywhere and usable in most foreign ATMS too ?
“Cash is always king, and keep in mind there are still a few mountain restaurants that don’t take plastic,” points out Ed Mannix, Owner/Director of Matterhorn Chalets in Zermatt (matterhornchalets.com). Anyone heading to Eastern European resorts will also find they’re largely cash driven.
“Nearly all UK credit cards levy significant charges for foreign currency transactions, and cash withdrawals don’t come cheap, but exercising your flexible friend is convenient and has the added benefits of insurance cover and free credit till the end of the month,” added Ed.
And finally back to Jo at MoneySavingExpert.com to answer that great conundrum of the modern era : what do you say when asked if you want to pay in pounds or local currency when you hand over your credit or debit card?
“Always pick local currency, as if you pay in pounds it means the overseas store/bank is doing the conversion, and rates are awful.”
