When it Comes to Cash, Leave Home Without It

What a bummer. You’re on summer vacation, having fun in the sun. But then you run out of money. What to do?

Fortunately, with the boom in automated teller networks, getting cash on the road these days is easy for domestic trips, and it’s getting easier for foreign excursions. Accordingly, in many cases you don’t need to carry much money anymore while traveling, making you less vulnerable to pickpockets or your own carelessness.

Although getting cash may be a snap, fees, service charges and foreign exchange rates can vary depending on which method of cash procurement you use.

For domestic trips, the cheapest and fastest way to get cash is through your automated teller machine card. With the growth of regional and national ATM networks, you can get cash from automated teller machines virtually anywhere in the nation, not just from the ATMs offered by your local bank. In most cases, you’ll be charged for using such a non-local ATM, but it shouldn’t be more than $1 per transaction.

The two biggest ATM networks, Cirrus and Plus, each have more than 30,000 machines worldwide. That means that if your bank belongs to one or both--and most do--you can get cash from any ATM in the network.

“That’s great coverage,” says John F. Love, publisher of Bank Network News, a Chicago newsletter that follows ATMs. “I don’t travel with money anymore. I get money when I need it, as opposed to when I leave. I feel much safer that way.”

Better yet, Cirrus and Plus are eventually expected to honor one another’s cards. “It’ll mean that virtually every ATM in the country can be accessed by a card issued by a member of either Plus or Cirrus,” Love says.

Another way to get cash is through a cash advance on your credit card. You can do this either by presenting it at a bank or thrift, or by using your credit card like an ATM card in an automated teller machine that will accept it.

But this is more expensive than an ATM withdrawal. The normal transaction fee for a cash advance is 1% to 2%; for a $200 advance, that’s as much as $4, compared to $1 for using your ATM card.

Moreover, with a credit card you are borrowing money and will owe interest. Many card issuers begin charging interest immediately with cash advances, and the interest rate can be higher than the already high rates (18.5% is the national average) on normal card purchases, says 100 Highest Yields, a North Palm Beach, Fla., newsletter.

To use your credit card at an ATM, look on its back to see which networks it belongs to. (You may need a personal identification number to access the account; check with the card issuing bank.) To get a cash advance at a bank or thrift, find a branch that has the logo of your card (Visa or MasterCard, for instance) in the window. You will most likely be asked for picture identification, such as a driver’s license or passport.

Another way to get cash is by wire through Western Union or some other service. But this can run you even more in fees and charges, Love says.

What about foreign trips?

You can use your ATM or credit cards in much the same way. Also, banks in major markets will accept Visa and MasterCard for cash advances, Love says.

ATM networks such as Cirrus and Plus are busy adding foreign ATMs to their networks. Cirrus has ATMs in Canada, France, Mexico and Japan, and by year-end expects to have them in Spain, Belgium, Germany, Great Britain, Hong Kong, Singapore, Malaysia, Chile and Venezuela, among others, spokeswoman Kim Ross says. Instructions are in English, she adds.

Outside major cities, the availability of foreign ATMs accessible to American cards isn’t anywhere near what it is domestically, Love says. So check in advance with your financial institution on the availability of ATMs in the countries you are visiting.

One advantage of ATMs in foreign countries, Love says, is that they will dispense cash in the local currency of the country you are visiting--and at the current exchange rate. By contrast, banks, hotels, airport foreign-exchange counters or other services often charge extra fees or they exchange money at a rate unfavorable to you.

Another tip for handling money in a foreign country: In advance, get enough of that country’s currency to cover your immediate cash needs until you can get to a bank or ATM there, suggests Frances B. Smith, director of the Consumer Credit Institute of the American Financial Services Assn., a trade group. Airport currency exchanges are often crowded, and the rates may not be the best, she says.

GETTING CASH

It pays to find out before you leave on a trip the rules and costs governing getting cash with your ATM or credit cards. Here’s a list of key questions to ask your card issuer, courtesy of 100 Highest Yields:

FOR ATM CARDS:

* On what regional and national ATM networks is my card accepted?

* How do I go about finding the nearest ATM? Is there a toll-free phone number I can call?

* What’s the withdrawal limit on my ATM card for each use? For each day?

Are there any charges for making a cash withdrawal? Is the charge different from a regional ATM versus a national one?

FOR CREDIT CARDS

* How much cash can I withdraw on my credit card at any one time? In any one day?

* What’s the rate on a cash advance?

* Do you begin charging interest from the date of the advance or from the date of billing?

* Is there a cash advance fee? How much is it?