# Why are people still buying foreign cash before travelling?



## Longtimeago (Aug 8, 2018)

On New Years, Travelex had their system hacked and are being held to ransom. So they have shut down their computers and some customers who had ordered foreign currency from them and PAID for it, are stuck without their money. https://www.bbc.com/news/business-51026383

When I read about this, I asked myself the topic of this thread. Why are people still buying cash when travelling rather than using their debit and credit cards to access their money? 

When I travel, I maybe buy around $100 worth of foreign currency just for minor items I might want to pay cash for on arrival somewhere. ie. taxi, sandwich, etc. But otherwise all my spending is done with a credit card and any cash I want is got from an ATM using a debit card. I haven't bought large amounts of foreign cash for travel in decades. The simple fact is that using cards ALWAYS gets you the best exchange rates even if you pay a currency exchange fee to your bank. There is no advantage at all to exchanging large amounts of cash before you travel and there are certainly downsides to travelling with large amounts of cash in your pocket.

Can it be that it is just a case of there still being large numbers of people who don't know this? While there are some circumstances under which carrying cash may be necessary when travelling, for most travel, cards are always better.

What this Travelex situation does point out though is that we are very dependent on the digital world and all it takes is one hacker to cause us grief. Imagine a hacker holding your bank to ransom and in the meantime your bank has to shut down their computers and you have no way of accessing your funds. The scary thing is that that is not a far-fetched notion at all and could happen tomorrow. We have become almost entirely dependent on the digital world.


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## ian (Jun 18, 2016)

Don't know. 

We very seldom buy foreign currency in Canada. We typically leave with 1000-1500 in cash and exchange in country while traveling. We also keep a small amount of currency at home from prior trips. Usually enough for transportation to our hotel. Thai, Euros, USD, GBP and Mex....hopefully enough pesos to get us to our hotel later this month. The amount varies depending on destination. After that we use ATM's bit typically infrequently. We place as much as possible on our credit card which bears no FX surcharge. How much cash we take depends on where we are traveling. Some areas and some businesses are more cash centric than others. Nor is it unusual for us to obtain a ten percent discount for cash, sometimes even more. Some accommodation and restaurants where we travel only accept cash.


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## AltaRed (Jun 8, 2009)

We take very little, if any, foreign cash with us. Always have a few hundred USD just in case, but we use CC and ATMs exclusively while in foreign country. The key is to have at least 2 cards of each in case one is compromised. I have no issue going to an ATM every few days to pull out local currency, which as Ian has said, cash is often the better vehicle for most things, including most restaurant meals. When we head to Mexico next month, I think I have just a few pesos left over from a prior trip.


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## Gator13 (Jan 5, 2020)

ian said:


> Don't know.
> 
> We very seldom buy foreign currency in Canada. We typically leave with 1000-1500 in cash and exchange in country while traveling. We also keep a small amount of currency at home from prior trips. Usually enough for transportation to our hotel. Thai, Euros, USD, GBP and Mex....hopefully enough pesos to get us to our hotel later this month. The amount varies depending on destination. After that we use ATM's bit typically infrequently. We place as much as possible on our credit card which bears no FX surcharge. How much cash we take depends on where we are traveling. Some areas and some businesses are more cash centric than others. Nor is it unusual for us to obtain a ten percent discount for cash, sometimes even more. Some accommodation and restaurants where we travel only accept cash.


This mirrors our approach.


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## Beaver101 (Nov 14, 2011)

^^^^ I don't think this digital hack problem is "why do people still order foreign currency online?" otherwise what's the answer to "why do people still bank online?". 



> The criminals behind the hack told the BBC they are demanding $6m (£4.6m) or company computer systems will be deleted and customer data sold online.





> Travelex says that there is no evidence customer data has been compromised.


 ... right, so what's the problem?


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## AltaRed (Jun 8, 2009)

I agree these are 2 separate issues.


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## Plugging Along (Jan 3, 2011)

I am one of those that ALWAYS has cash in my wallet and has a large amount of foreign exchange when travelling. I also have credit and debit cards to use. The amount of cash I take depends on the destination and what I am planning to do. 

Here's my reasons (no particular order)
- As a child, my parents told me to always have enough cash in my wallet that I could get home from where ever I was. I still follow that advice to this day, and pass it on to my kids. Though I think that my parents meant from a bus ticket or taxi. I just extended it to a plane tickets. 
- We have a lot is USD because our company has been paid in USD over the years. Back in the day, it was much easier to just take out the cash than use a credit card if you didn't have a foreign exchange one. We do now, so we take less. 
- A lot of place still provide cash discounts and will give me a much better discount in negotiations when purchasing from small vendors. I also do not like using my credit card with small vendors as I question their security. Larger, more reputable businesses I will use the credit card
- Depending on my arrival time, there have been many times where we need cash right away (usually smaller amounts) but there is no access to a bank machine or they don't take a credit card
- On numerous occasions, there has been problems on the other business end and our credit cards were not accepted. Cash has saved us.

Whether one agrees with my reasons, they are my reasons. For whatever the reason, the universe has brought weird travel experiences for me where having a large of amounts of cash have saved our butts. I try to use my credit card when possible, but I always have USD (regardless of the country I am in) as an emergency. For us, it doesn't costs anything. The risk of thief/losing the cash (which has never happened) is outweighed by the actual number of times we have had to use cash nothing else was accepted. That doesn't even count for the 'advantages' we would get by paying in cash.

Don't believe me, here are some examples where cash is king.
- On a trip to Asia, our plane was rerouted due to weather. When we finally arrived the information was not passed on to travel agency nor the people that were supposed to pick us up. We were literally stranded in this tiny airport with pretty much the staff there, and a group of tourists. Cabs weren't coming in case of the weather. A group of airport workers had a van and would drive our group 12+ people to our hotel, but would do it only for cash. They wanted $500 Cdn which we didn't have or would take $100 US (they didn't understand Cdn very well). I had the USD and off we went. 
- My spouse was commuting back and forth from NYC. He just passed security when all the power went out due to the east coast black out in 2003(?) People of NYC thought they were under attack again, and there was no power for machines. My spouse was able to get out of their because he had enough cash to pay a cabby and then when he arrived at the other airport which had their power on first, their credit system wasn't on line though the booking, so he paid cash for his ticket to get home. That doesn't even cover the hording that people were doing and the stored raised their price for $50 water cash only. 
- Traveling to South America, they do not have the same security system which locked our credit card, we ended up paying our hotel in cash. On the same trip, the airline screwed up our reservation, and we had to rebuy our ticket, but the only way to get our ticket without leaving the checked area was cash. So bought 4 tickets for $3000 USD in cash to make it to our tour. 

There's actually few other ones that were the equivalent where were would have been stranded with out cash. With the weird things that happen when we travel, I prepare for the worst. My kids even pack an emergency 24 hour bag in case we have sleep at the airport again. 

These are some of the reasons we carry so much cash.


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## Eder (Feb 16, 2011)

I bring a couple k USD that I hide in the boat in 3 different places for just in case stuff. Better than credit cards in many places in the world...especially off shore to buy "don't sink the boat" insurance from pirate wanna be's...(hasn't happened to me yet but worked for several friends).

Traveling in the motor home I hide USD as well...many areas in Mexico won't take cards...no ATM's or they only work from time to time. I've bought my way out from many traffic violations in Mexico as well...most police prefer to see Ben Franklin rather than a drivers license. Even worked in Montana once.


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## AltaRed (Jun 8, 2009)

Where one goes depends on how much cash I have in pocket. I had a bit more when we landed in Siem Reap in Cambodia last year versus what we would do landing in Europe.


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## Longtimeago (Aug 8, 2018)

There are as I said in the OP, situations where having cash is a good thing such as in less developed countries. I'm not questioning that at all. The point of the thread is more about why so many 'typical' travellers still buy cash before leaving home on a 'typical' vacation. It does seem to still be quite common. 

For example in the link I gave, you have a woman in the UK who is apparently going to travel in Europe and is buying 1000 Euros before leaving home. That just makes no sense to me whatsoever. If she is say going to spend 2 weeks on the beach in the Canary Islands, there is no need to take such a large amount of cash with her. It probably represents the entire amount she will spend while on vacation.

A Canadian who is going to Florida for 2 weeks and buys $1000 USD before leaving home is the same kind of thing. In my parents' days, they would buy USD cash or traveller's cheques in USD before going on a beach vacation to Florida. That was the way things were back then. ATMs did not exist and very few people had credit cards. The first modern card was Diners Club which started in 1950 but mainstream use really didn't get going till around the 70s. 

But this is not 1970 and carrying cash or travellers cheques is no longer necessary or even convenient. Yet people are still doing it and it is not just 'old' people who are stuck in their old ways of doing things. Even the banks themselves recognize that many Canadians still buy large amounts of USD when travelling south and try to tell people it is not the best idea. https://discover.rbcroyalbank.com/five-smart-reasons-not-carry-cash-u-s/

I'm trying to understand the THINKING that gets so many people to still buy cash when they travel. When I Google, 'why do people travel with cash', I don't get any hits that explain the psychology behind why people do it and that is what I am trying to understand. 

Other than someone like Plugging Along having had so much bad luck when travelling that it has made him somewhat paranoid (understandably), what can the psychology be behind the average/typical vacationer to Florida going to their bank and getting a couple of thousand in USD cash be?


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## Longtimeago (Aug 8, 2018)

Plugging Along, in all my decades of travel, I have never had ONE situation such as you describe where having a large amount of cash would have saved me. You really do seem to have had some seriously bad luck. I have travelled in countries where only cash was accepted for everything, but I knew that going in and so carried cash out of necessity. When I was young and bumming around Europe one year, I carried cash in a money belt out of necessity because I had no credit cards but where is the necessity for a 'gap year' student to do so in Europe today? And yet some still do. 

The question isn't under what circumstances might someone need cash, we can all think of examples for that. The question is why do people still take cash under circumstances that indicate they are not likely to need to buy cash before leaving home. To me, it's like in your case, having already been struck by lightning several times, it is understandable that you travel with a lightning rod but why would someone who has never been struck by lightning when travelling decide it would be a good idea to buy a lightning rod before leaving home?

Here is an article in which the writer suggests taking $50/100 in cash for each day of your trip duration. Where did the writer get the idea that it made sense to do that? Of course Readers Digest is not what I would consider a reliable source of research for anything. LOL https://www.rd.com/advice/travel/how-much-money-should-you-bring-on-vacation/

If you go to any popular tourist destination you will find all kinds of foreign exchange places. When I lived on a Greek island where you could pay for pretty much anything with a credit card, just like here in Canada, there were literally hundreds of little independent offices exchanging foreign cash to local cash and I would see tourists going from one to another checking the exchange rates for their cash from home to local currency. Sitting in a bar at night I would hear one tourist telling another where they had found a little exchange place that gave them the best rate. Meanwhile, I'm sitting there knowing, that in fact they would have got a better rate at any ATM.

It remains a mystery to me why this is still so common.


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## AltaRed (Jun 8, 2009)

Longtimeago said:


> It remains a mystery to me why this is still so common.


How about old habits die hard? Doing what parents used to do?

Why do people, mostly seniors, still go to the bank branch to pay their bills they have received via Canada Post? Or worse, drive to the desk of each utility even (I've seen people go to the local Shaw office to pay their Shaw bill). Or snail mail cheque payments?

Why do people still write cheques? Why do people still get paper bills? And even those that go to e-billing still manually pay via Bill Payment rather than Pre-authorized debit/credit?


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## Longtimeago (Aug 8, 2018)

AltaRed said:


> How about old habits die hard? Doing what parents used to do?
> 
> Why do people, mostly seniors, still go to the bank branch to pay their bills they have received via Canada Post? Or worse, drive to the desk of each utility even (I've seen people go to the local Shaw office to pay their Shaw bill). Or snail mail cheque payments?
> 
> Why do people still write cheques? Why do people still get paper bills? And even those that go to e-billing still manually pay via Bill Payment rather than Pre-authorized debit/credit?


All valid questions AltaRed but not the question I asked. You could start a thread on those questions but I don't see how they apply to the question I have asked here. 

Are you perhaps just trying to imply that the answer to my question is that people just do stupid things and that is the answer? I guess it could be a potential answer but then it would just lead to the question of why do people do stupid things? 

But the answer to why we do stupid things usually implies that we KNOW we are doing stupid things like supersizing a meal or something. In the issue of this thread however I don't think that is the case. I don't think people who go and buy a lot of USD before going to Florida know it is a stupid thing to do.


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## Plugging Along (Jan 3, 2011)

Longtimeago said:


> Plugging Along, in all my decades of travel, I have never had ONE situation such as you describe where having a large amount of cash would have saved me. You really do seem to have had some seriously bad luck. I have travelled in countries where only cash was accepted for everything, but I knew that going in and so carried cash out of necessity. When I was young and bumming around Europe one year, I carried cash in a money belt out of necessity because I had no credit cards but where is the necessity for a 'gap year' student to do so in Europe today? And yet some still do.
> 
> The question isn't under what circumstances might someone need cash, we can all think of examples for that. The question is why do people still take cash under circumstances that indicate they are not likely to need to buy cash before leaving home. To me, it's like in your case, having already been struck by lightning several times, it is understandable that you travel with a lightning rod but why would someone who has never been struck by lightning when travelling decide it would be a good idea to buy a lightning rod before leaving home?
> 
> ...


I can tell you that I my kids who in the cashless society, always have cash on them (they are too young for credit cards). That was taught by me and personally seen having cash comes in handy. I would bet the people who carry cash in their day to day lives (me) are the same ones that carry it travelling. I use credit cards for the points and rewards when at home, but I still carry a larger amount of cash.

Do you question people who carry cash with them? 

Reasons for cash vs credit cards or debit:
- When we are at a water park or some where I don't carry my wallet, I find it easier to throw some cash in the swim bag. If someone steals my bag, my lost is capped at the cash in there, and I don't worry about my card being stolen. 
- Psychologically, I still use cash for small amounts under $10. I find it weird to use a credit card or debit for my coffee or treat. I think that comes from in the early days of debit, there used to be a fee to use your debit at some small stores. Just a habit I have not gotten out of
- More convenient when travelling. I hate taking the time out of my travels to find an ATM or bank. So I will have cash already exachanged before I arrive. The one time I didn't have any Cuban pesos and were spending most of the time a resort, I thought I would just cash the money there. The line ups where so long for people exchanging both ways was stupid. I had Canadian cash, found someone in line selling back pesos, and offered the split between the buy and sell rate. Did the same for what I exchanged back. That was a win-win. Time savings and savings on fees. 
- Cash has a lost limit. Someone who gets your credit cards or debit cards can do a lot more damage in the future, cash is limited to what was taken. 
- Some people use cash because it helps them keep track of their spending better. 
- Big one, as I said, is CASH IS KING. Cash is something that can be used as a very useful tool to get you out of binds. Sure a credit card and debit can do the same, but they are not as widely as cash. As I have said before, it surprising how many times cash has bailed me out from some where. Not just in developing countries. Even in my city, there have been outages or tech problems, cash has always come through and is more security for some people. 

Given more time, I could come up with dozens of more reason why people travel with cash. You may not agree or have experienced it, but it's an explanation. When I travel, I also bring at least a 24 hour bag that has everything I need in case they lose my luggage or delay us. It has a refillable water bottle, meds, , emergency blanket, eye mask, ear plugs, non perishable food, cash (that isn't in my wallet) . Some people think it's over planning. I have used it in 4 out of the last 7 trips we have taken on a plane. I still have it packed at home as an emergency bag. It's been used FOUR times for emergency hospital visits over the last year. That's where my psychology comes from. Weird things happen to me, so I am prepared for the worst and hope the best and always have cash for anything else.


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## Plugging Along (Jan 3, 2011)

Longtimeago said:


> All valid questions AltaRed but not the question I asked. You could start a thread on those questions but I don't see how they apply to the question I have asked here.
> 
> Are you perhaps just trying to imply that the answer to my question is that people just do stupid things and that is the answer? I guess it could be a potential answer but then it would just lead to the question of why do people do stupid things?
> 
> But the answer to why we do stupid things usually implies that we KNOW we are doing stupid things like supersizing a meal or something. In the issue of this thread however I don't think that is the case. I don't think people who go and buy a lot of USD before going to Florida know it is a stupid thing to do.


I don't think carrying cash is stupid as explained. You may think that, I disagree. Everyone has their own reasons for doing things, you make generalizations that it's stupid to buy USD before going to Florida. That's your opinion.


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## AltaRed (Jun 8, 2009)

Longtimeago said:


> All valid questions AltaRed but not the question I asked. You could start a thread on those questions but I don't see how they apply to the question I have asked here.
> 
> Are you perhaps just trying to imply that the answer to my question is that people just do stupid things and that is the answer? I guess it could be a potential answer but then it would just lead to the question of why do people do stupid things?
> 
> But the answer to why we do stupid things usually implies that we KNOW we are doing stupid things like supersizing a meal or something. In the issue of this thread however I don't think that is the case. I don't think people who go and buy a lot of USD before going to Florida know it is a stupid thing to do.


Simply giving examples of people doing what they do.... Nothing more than that and I really don't care why people do what they do.


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## Beaver101 (Nov 14, 2011)

Plugging Along said:


> I don't think carrying cash is stupid as explained. You may think that, I disagree. Everyone has their own reasons for doing things, you make generalizations that it's stupid to buy USD before going to Florida. That's your opinion.


 ...+1. And why are some people so judgmental and likes putting down others?

So what's the point of this thread?


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## ian (Jun 18, 2016)

I am at a complete loss as to why on earth I would ever care about how other people handle money issues on international vacations.

Or thinking what I do is the right way.

Or passing judgement about someone who has a different opinion.

I mean really, what is the big deal. We are big time into the MYOB league.


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## Eclectic12 (Oct 20, 2010)

Longtimeago said:


> There are as I said in the OP, situations where having cash is a good thing such as in less developed countries. I'm not questioning that at all. The point of the thread is more about why so many 'typical' travellers still buy cash before leaving home on a 'typical' vacation. It does seem to still be quite common.
> 
> For example in the link I gave, you have a woman in the UK who is apparently going to travel in Europe and is buying 1000 Euros before leaving home. That just makes no sense to me whatsoever. If she is say going to spend 2 weeks on the beach in the Canary Islands, there is no need to take such a large amount of cash with her. It probably represents the entire amount she will spend while on vacation ...


It seems a key question is whether the CC's available to her are similar to the ones you use for travel.

This UK article talks about some CC's adding 3% regardless of the better rate they get by pooling all their customer's transactions and other CC's that for foreign transactions, charge interest even if the balance is paid off on time.

https://www.moneyadviceservice.org.uk/en/articles/cheap-cards-to-use-abroad


If there's a similar CC to your choice then it may be a lack of knowledge or force of habit.
If there isn't or she can't be approved by the ones similar to your travel CC, it may be a lack of choice.


Another CMF-er keeps complaining about the Canadain banking system still using cheques that are easy for fraud instead of free, secure online transfers that have been around for a long time in Europe so differences seem possible.




Longtimeago said:


> ... A Canadian who is going to Florida for 2 weeks and buys $1000 USD before leaving home is the same kind of thing.


How many people do this though?

Most I know going to Florida, California, New Jersey etc. take a much smaller amount and use CCs.




Longtimeago said:


> ... I'm trying to understand the THINKING that gets so many people to still buy cash when they travel.


I'd want to find stats saying a significant number are doing this. When I have exchanged pocket money as well as discussed with friends/family traveling to the US, it was nowhere near $1,000 USD being bought.


Cheers


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## Plugging Along (Jan 3, 2011)

ian said:


> I am at a complete loss as to why on earth I would ever care about how other people handle money issues on international vacations.
> 
> Or thinking what I do is the right way.
> 
> ...


Agreed. I responded because I always find it really interesting understanding other people views and how they think. It helps me expand my world, and reminds me have complex people are. Also, every so often I learn a new way of doing something better.

But I think OP once again is doing it to validate that he is right or prove he is superior or something. I find those who pass judgement tend to have a narrow or fixed mindset of the world or are narcissistic.


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## Money172375 (Jun 29, 2018)

Seems almost everyone who responded, including the OP, does still purchase some foreign cash, even if it’s a small amount. The reasons are mainly convenience and peace of mind. It might not be a bad way of budgeting their spending too, for those who can’t control their plastic spending. 

If the question’s focus is more along the lines of “why do people still buy large sums of foreign cash”......well then that’s a different question. As a former banker, you’d be surprised at how many people would buy travellers cheque’s 10 years ago......only to redeposit them back when their trip was over. Was a tidy (tiny) little source of revenue....I think the charge was 1%. Lol.


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## Longtimeago (Aug 8, 2018)

Eclectic12 said:


> It seems a key question is whether the CC's available to her are similar to the ones you use for travel.
> 
> This UK article talks about some CC's adding 3% regardless of the better rate they get by pooling all their customer's transactions and other CC's that for foreign transactions, charge interest even if the balance is paid off on time.
> 
> ...


I have tried to find stats Eclectic12 but had no luck. The bank link I gave here earlier though indicates at least that the banks recognize a significant enough number of people do and the bank considers it significant enough that they put up a page advising them not to. 

Other than that, the only 'statistical' evidence I have is personal experience when living in a busy tourist destination. As I described here, I saw how many places to exchange cash there were and they weren't there because no one was using them obviously. For, without exaggeration, 100s of such little businesses to stay in business they would have to change a lot of cash and obviously since they continue to be in business, they are changing a lot of cash. I heard tourists talking about finding the best place to change cash, very often as I wrote. They weren't buying before leaving home, they were travelling with their home currency in cash and exchanging it after arrival but it's much the same, travelling with cash.


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## Longtimeago (Aug 8, 2018)

Money172375 said:


> Seems almost everyone who responded, including the OP, does still purchase some foreign cash, even if it’s a small amount. The reasons are mainly convenience and peace of mind. It might not be a bad way of budgeting their spending too, for those who can’t control their plastic spending.
> 
> If the question’s focus is more along the lines of “why do people still buy large sums of foreign cash”......well then that’s a different question. As a former banker, you’d be surprised at how many people would buy travellers cheque’s 10 years ago......only to redeposit them back when their trip was over. Was a tidy (tiny) little source of revenue....I think the charge was 1%. Lol.


Yes you are right Money172375, it is about people who travel with large amounts of cash, not just a small amount. They take cash whether they exchange before leaving home or exchange their home currency after getting to their destination, as their PRIMARY means of accessing their money. I'm talking about the average tourist going to an average tourist destination where there is no problem with finding a bank or ATM to get some pocket money if you want some and no problem paying for most things like a meal etc. using a credit card.

The woman from the UK in my OP was buying 1000 Euros, why? She had cards, she used one to buy the Euros online, so it wasn't that she simply had no choice, she must have for some reason thought it was a good idea to leave home with 1000 Euros in her purse to spend after she got wherever she was going. Why would she have thought that way rather than expecting to use her cards when she got there? That's my question, what is the thinking behind her decision? 

Your example of traveller's cheques is much the same. There is no real reason for anyone to buy TCs anymore when using a card would actually be easier. You mention 10 years ago based on your experience but I can assure you that people are still doing it today.


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## Plugging Along (Jan 3, 2011)

Longtimeago said:


> Yes you are right Money172375, it is about people who travel with large amounts of cash, not just a small amount. They take cash whether they exchange before leaving home or exchange their home currency after getting to their destination, as their PRIMARY means of accessing their money. I'm talking about the average tourist going to an average tourist destination where there is no problem with finding a bank or ATM to get some pocket money if you want some and no problem paying for most things like a meal etc. using a credit card.
> 
> *The woman from the UK in my OP was buying 1000 Euros, why? * She had cards, she used one to buy the Euros online, so it wasn't that she simply had no choice, she must have for some reason thought it was a good idea to leave home with 1000 Euros in her purse to spend after she got wherever she was going. Why would she have thought that way rather than expecting to use her cards when she got there? That's my question, what is the thinking behind her decision?
> 
> Your example of traveller's cheques is much the same. There is no real reason for anyone to buy TCs anymore when using a card would actually be easier. You mention 10 years ago based on your experience but I can assure you that people are still doing it today.


A few thoughts. Maybe a thousand Euro's isn't that much for the lady. I easily have a $1000 in cash when I travel (that seems low for me) but it's not my main form of spending. The article didn't disclose what else that she was carrying, you are just making assumption. What is a large amount for you in cash is not for others. For the longest time, I had a $1000 cdn bill in my wallet (not for emergencies, long story there)). Never did I worry about losing it or having it stolen.

The other question that you have not answered, why do you care or does it bother you so much. Quite honestly, unless you ask individuals on why they have so much cash on them, everything you say is an assumption. 

I know a very well off person who usually has at least a couple thousand in at least 3 currencies EACH. I almost fell off my seat when he took out he his ziplock bag of cash to pay for something. He two other bags with at least $2k in cash in currency. Hus explanation was very complicated, though it made sense when he explained it. The amount he had was peanuts compared to what he normally spends. I have seen him TIP a $1000 on a restaurant meal. So is he stupid? I would say not. He just lives in a different world than me. He travels over 250 days a year with 'a lot' of cash. Seems to be doing fine to me.


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## ian (Jun 18, 2016)

I really do not know what a an 'average' tourist destination is. Last winter we were a month in Thailand and a month in Australia. Credit cards were no issue in Bangkok...for the two days we were there. In other places we stayed often the requirement was for cash. On Ko Lanta it was the equiv. of $800 cad cash for our stay. Even more so with some of the other locations in the country that we travel to. Thailand is swarming with tourists. It was the exact opposite in Australia. Credit cards are the norm for just about every purchase. Tap and go. 

Working on a seven or eight week trip to Mexico at the end of this month. I am finding that many places want cash for accommodation. Not dissimilar to Thailand. We use our card whenever possible if only because of the FX but where we sometimes travel cash is king.


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## PabloPenguino (Dec 10, 2019)

When I travel to Europe or South America, I always buy a few hundred dollars worth of foreign currency from my bank before departing on my trip. I will still use my credit card abroad in certain places (grocery store, shopping mall, etc. despite the rate being higher) but I will use cash at most bars, restaurants, and tourist venues. The rate I get from my bank is as good or better than what I will get at my destination, and there are no transaction fees. I like the peace of mind of having cash with me and it helps me with budgeting my spending money.

I'm usually more relaxed when I travel to the US. Sometimes I will go with no cash. I'm not sure why my mindset is different there - maybe because it's the land of "charge cards," so I know I can use my credit card anywhere.

When I visited Peru I realised that majority of places don't accept Mastercard. I kind of knew this from researching before the trip, but it wasn't until I was there that I realised how exclusive most places were to Visa. I'm glad I had some US dollars and Peruvian Sol.

I seldom use cash at home. I'm all credit card. I guess I have this fear in the back of my mind that my card won't work while I'm abroad and I'll be stuck without money. Anyway, everyone has their preference and I think a big part of it is psychological (personal comfort).


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## Eclectic12 (Oct 20, 2010)

Longtimeago said:


> I have tried to find stats Eclectic12 but had no luck. The bank link I gave here earlier though indicates at least that the banks recognize a significant enough number of people do and the bank considers it significant enough that they put up a page advising them not to ...


Is it to warn people or is it potentially get more CC and cross border accounts business to make fees from?


Even if it is numbers based large fx amounts - are they really sorting through someone like myself who has a large USD exchange because of the destination/purpose of the trip including lack of being able to use CC/debit/ATM versus the "I have always done it this way" types who could use CC/debit/ATM more cheaply?

I'm doubting it so the bank page seems no more reliable than the anecdotal observations that vary in this thread.
I'd put more weight behind a survey, particularly if the bank page was quoting a third party survey.




Longtimeago said:


> ... Other than that, the only 'statistical' evidence I have is personal experience when living in a busy tourist destination. As I described here, I saw how many places to exchange cash there were and they weren't there because no one was using them obviously ...


Where says there's volume but on it's own, does not give a reliable idea of the big amounts that could have been done more efficiently on CC or other means.


Cheers


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## jargey3000 (Jan 25, 2011)

BFD......Getting back to the first post.....maybe it was bunch of people just buying a few bucks at a time....does it say anywhere that they were buying huge amounts?......maybe it was a bunch of drug smugglers, laundering money?....anyway, who cares?...brrrrrrrrr...cold today.....


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## Spidey (May 11, 2009)

We always take about 200 Euros or US dollars between the 2 of us. Otherwise we use credit cards.


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## Beaver101 (Nov 14, 2011)

Money172375 said:


> Seems almost everyone who responded, including the OP, does still purchase some foreign cash, even if it’s a small amount. The reasons are mainly convenience and peace of mind. It might not be a bad way of budgeting their spending too, for those who can’t control their plastic spending.
> 
> If the question’s focus is more along the lines of “why do people still buy large sums of foreign cash”......well then that’s a different question. As a former banker, *you’d be surprised at how many people would buy travellers cheque’s 10 years ago......only to redeposit them back when their trip was over.* *Was a tidy (tiny) little source of revenue....I think the charge was 1%. *Lol.


 ... no doubt, almost like highway robbery. 

But then I'm not surprised the unspent portion gets deposited back as I don't suppose they burn them papers.


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## Beaver101 (Nov 14, 2011)

jargey3000 said:


> BFD......Getting back to the first post.....maybe it was bunch of people just buying a few bucks at a time....does it say anywhere that they were buying huge amounts?......maybe it was a bunch of drug smugglers, laundering money?....*anyway, who cares?.*..brrrrrrrrr...cold today.....


 ... apparently LTA does. And where's your super-size MCD coffee?

OTOH, I would be more concerned when our financial institutions gets delivered the same kind of hack. Imagine, going to the ATM to get some bills/your money, you find the message flashing "We are currently out of service. Please visit your financial institution for service or further information."


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## Eclectic12 (Oct 20, 2010)

Longtimeago said:


> Yes you are right Money172375, it is about people who travel with large amounts of cash, not just a small amount ... I'm talking about the average tourist going to an average tourist destination where there is no problem with finding a bank or ATM to get some pocket money if you want some and no problem paying for most things like a meal etc. using a credit card.
> 
> The woman from the UK in my OP was buying 1000 Euros, why? She had cards, she used one to buy the Euros online, so it wasn't that she simply had no choice ...


It doesn't say where she was going so we don't know if destination easily accepts CCs and/or has ATMs. 
The article implies she has at least a debit style card as she complains that the money for the Euros has been taken from her account despite not having received the Euros yet.




Longtimeago said:


> ... Your example of traveller's cheques is much the same. There is no real reason for anyone to buy TCs anymore when using a card would actually be easier. You mention 10 years ago based on your experience but I can assure you that people are still doing it today.


Interesting ... when I tried to buy traveller's cheques in 2006, I was told they were no longer sold as a chip card that could be loaded had replaced them.


Cheers


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## Eclectic12 (Oct 20, 2010)

jargey3000 said:


> BFD......Getting back to the first post.....maybe it was bunch of people just buying a few bucks at a time....does it say anywhere that they were buying huge amounts?


Two were mentioned with only one having an amount mentioned. It was 1,000 GBP, which using an online calculator should be about 1175 Euros.

I leave it to you to decide whether 1175 Euros for an unknown length of vacation, at an unknown destination is "huge". :biggrin:


Cheers


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## Eclectic12 (Oct 20, 2010)

Beaver101 said:


> ... OTOH, I would be more concerned when our financial institutions gets delivered the same kind of hack. Imagine, going to the ATM to get some bills/your money, you find the message flashing "We are currently out of service. Please visit your financial institution for service or further information."


I was glad to have two bank accounts where the one bank wasn't processing ATM transactions for about three days.

At least then, if I didn't have an alternative - the local branch had tellers that could give out cash or make payments. I see that these days, there's investment people plus a receptionist and ATMs.


Cheers


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## jargey3000 (Jan 25, 2011)

Beaver101 said:


> ... apparently LTA does. And where's your super-size MCD coffee?
> 
> OTOH, I would be more concerned when our financial institutions gets delivered the same kind of hack. Imagine, going to the ATM to get some bills/your money, you find the message flashing "We are currently out of service. Please visit your financial institution for service or further information."


THAT'S exactly why I cant buy a coffee!
how about small loan, beav.......$1.65......?


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## Beaver101 (Nov 14, 2011)

^ Sure, why not ... now where do you want me to send you 165 "Canadian" copper-pennies?


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## Longtimeago (Aug 8, 2018)

Eclectic12 said:


> Two were mentioned with only one having an amount mentioned. It was 1,000 GBP, which using an online calculator should be about 1175 Euros.
> 
> I leave it to you to decide whether 1175 Euros for an unknown length of vacation, at an unknown destination is "huge". :biggrin:
> 
> ...


Eclectic12, where in any country that uses the Euro would it be difficult to find a bank or ATM where you could get cash? I certainly don't know of anywhere, even what would pass for 'off the beaten path' in Europe is never that far off the beaten path. So why would anyone need to leave home with 1175 Euros in cash?

The woman in the article is going on a vacation somewhere and this was her 'spending money' for when she was there. People do this all the time, that you aren't perhaps aware of it doesn't change anything. The woman refers to 'saving up for a long time' in the article I linked. In the following article it is made clear if is for a vacation and that the amount represents a month's income for her. So you decide if in fact that for her the amount is 'huge' or not. 

It may not be a huge amount to you or I but I will bet you dollars to donuts that she does not have another 1000 GBP to go and buy Euros a second time. She basically says so in this article. https://www.independent.co.uk/news/...a-breach-foreign-exchange-money-a9275736.html

I will also bet that if she does not get this resolved before her vacation date, she will have a real problem in terms of not having any spending money for her vacation.


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## Longtimeago (Aug 8, 2018)

Re travellers cheques Eclectic12, perhaps your bank no longer offers them but American Express Travellers Cheques are still available. https://td.intelliresponse.com/rewa...rocess=true&midPoint=true&ourRating=&comment=

https://www.americanexpress.com/ca/en/travel/travelers-cheques/

It is becoming increasingly difficult for people to buy them or find somewhere that will accept them but they do still exist and some people do still buy them.

The prepaid cards you refer to as having replaced them are in fact just another dumb way to handle your funds while travelling. Their costs are often as high as 6-7% on the exchange. Far better to just use a normal debit or credit card.


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## bgc_fan (Apr 5, 2009)

ian said:


> I really do not know what a an 'average' tourist destination is. Last winter we were a month in Thailand and a month in Australia. Credit cards were no issue in Bangkok...for the two days we were there. In other places we stayed often the requirement was for cash. On Ko Lanta it was the equiv. of $800 cad cash for our stay.


Pretty much my experience in Thailand. The thing about Thailand is that there are ATM charges of approximately $8-9 CAD to use it on top of any bank charges. As far as I know, there is no way around it.

That being the case, ATM withdrawals isn't the most efficient way to get cash. Actually, the best from my POV is to bring in CAD and exchange at the Superrich foreign exchange booths. The rate is roughly 1% from what I gather.


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## jargey3000 (Jan 25, 2011)

Eclectic12 said:


> Two were mentioned with only one having an amount mentioned. It was 1,000 GBP, which using an online calculator should be about 1175 Euros.
> 
> I leave it to you to decide whether 1175 Euros for an unknown length of vacation, at an unknown destination is "huge". :biggrin:
> 
> ...


how much is that...in real money?


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## ian (Jun 18, 2016)

bgc_fan.....we do exactly that. We take $1200-1500 cash and exchange in Bangkok prior to heading south. Yes, the exchange rate is far better than we can get at the exchange store where we live, and even more so than the exchange rate that our bank offers. 

There is, to our knowledge, no way of avoiding the ATM fee. The fee is deducted from your cash vs tacked on to your bank debit. We typically withdraw 20,000 bhat, just under $900 cad. Some banks will allow up to 30,000 but we have not done this.....yet. We also keep some smaller CAD bills on hand (20's or 50's) just in case we are at the end of a trip and only need a small amount of bhat to see us through the day or get us to the airport.


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