Asp

Any time yuo are changing from one currency to another you are losing money. Example:

Back in 1977, when I was going to England, I bought Amex Travelers' checks in pounds sterling, and a few in deutschmarks. Since I didn't have an Amex card I had to pay a one percent commission for the checks themselves (this is fairly common." In addition, I had to pay more than the going exchange rate for the foreign currency. The posted exchange rates always provide for a percentage to the person making the exchange.

In 1986, when I went to Australia, I just took a wad of American dollars and exchanged them for Australian dollars whenever I needed them. Thus I only paid one fee, the difference between the going exchange rate and the exchange rate charged at the cambio.

When we went to Ireland last year, I bought euros at the local Amex Office before we left. They had two exchange rates, one for cardholders and one for hoi polloi.

My experience with exchanging American dollars travelers checks for local cash was when I went to Ireland for the first time about 12 years ago. I seem to recall that the banks had two exchange rates in Ireland, one for cash and the other for travelers' checks. The checks bought fewer punts than did cash, of course.

It's pretty common now to use plastic everywhere overseas. You need to be very careful to ask your bank what their fees are, since they vary wildly. One card actually charged 3 percent above the cambio rate, while the other charged 1/4 percent. Needless to say that's the one I used. On the plus side the exchange rate you get is very very close to the prime rate charged on huge transactions, typically $1 million or more. Close, but still a little rake for the trouble.

All in all, these banks charge fees to cover their costs. Can't blame them. I still wonder about all the people who say, "The bank is charging me for getting my own money." So what? It's like saying, "My doctor shouldn't charge me for an office visit because, well, because." Think those cash machines are free? Think the bank isn't losing interest on the money they stuff into the cash machines? Think there's no risk involved? Of course not.

And why shouldn't we pay for the convenience of not having to carry wads of cash around?

TEd [/rant]


TEd