What is more profitable: cash, credit cards or traveler's checks

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Attention! From 01.03.2013 years Sberbank has suspended all operations of American Express travelers cheques. In this regard, the information given in the example of road checks this article is no longer relevant.

Already much broken copies in the tourist spaces of the Internet on the subject of what is better to take with you when you travel abroad: cash, credit cards or traveler's checks. We, too, 've already dealt with in our pages this issue. In our previous articles, first of all, the question related to the safety and convenience in handling three major forms of money: cash, credit cards and traveller's cheques. That's what our rating:

That is more convenient to use?

  1. Cash. They are accepted almost everywhere, or exchange virtually everywhere.
  2. Plastic cards. They are accepted almost everywhere, plus they can pay for hotels and tickets via the Internet.
  3. Traveler's checks. Change is possible far not everywhere.

It was safer to use?

  1. Traveler's checks. Without you they have virtually no one can use. Even if you lose them or they get stolen, you can restore it for free.
  2. Plastic card. Pin-it protects your money ALMOST 100%, but very common card fraud. For example, you make a clone card and the stolen pin. In this case, you can lose everything you have in the account. There are many ways to steal your money.
  3. Cash. They are the easiest way you can steal or you can lose.

As for the profitability of a particular method, this was mentioned only in passing. Now we compare all three options in one country in exchange for one day to find out which of these methods is more profitable, or find that difference in benefit is so small that there is no big difference what to choose. We assume that it is possible to perform all three operations of an exchange in another country simultaneously, without taking into account the fluctuations of the dollar and the national currency by the day.

As a test of the country will be Thailand, and the intermediate currency is the dollar. Of course, taken for the experiment conditions do not guarantee that the same results are obtained in another country ( because of the terms of use of any of the three options of money from country to country change), but, as practice shows, the trend in most countries is the same.

Thus, the location of the experiment: Thailand. Time of experiment: August 26, 2012. We have on hand a plastic card MasterCard, cash currency (dollars of different denominations), traveler checks with par value of $ 100.

Here is a lot of calculations, but they are shown here only for the incredulous, those who decide to independently count all that we counted. The majority of readers will be enough to go straight to the results.

Cash withdrawal at ATM

Here it must be said: no matter what results are obtained below from the withdrawal of cash, a plastic card remains the undisputed leader in convenience and profitability with the direct calculations of her on the Internet (e.g., booking of hotels and tickets) and also in most cases when calculating her on the spot for goods or services. In such calculations, any additional fees not provided, and your card account will be charged exactly what you will see on the screen. Moreover, it is not depends on where you make payment via the Internet: at home or on the other side of the planet.

Removing the cash from debit cards at ATMs is fraught with losses for the convert in national currency (from ruble accounts they always go through an intermediate currency - dollars or euros), as well as additional commissions established in the country's banks. For example, in Thailand, each transaction will have to pay an additional 150 baht (currency of Thailand, the exchange rate).

So, we take out their credit card MasterCard one of the Russian banks 3000 baht (about 100 dollars) and 10,000 baht (about $ 300).

Remove 3000 baht:

Is displayed on the screen that a fee will be charged 150 baht, I agree, in the hands of the ATM spits out a 3000 baht. Statement of the Russian Bank later to see what was 3150 baht (just as it is written, THB) and the account charged 3271 rubles.

Total exchange rate (RUB/THB): 1,09

Remove the 10,000 baht:

From Bank statements to see that removed 10150 baht (just as it is written, THB) and the account charged 10542 ruble.

Total exchange rate (RUB/THB): 1,054

Course in the latter case, as expected, more profitable because the Board 150 baht is charged per transaction regardless of the amount, i.e. large sums to remove profitable.

The exchange of currency

For the calculation we change $ 100. One of the best courses in the exchange office on the street of Pattaya. As the source of course take the real exchange rate of currency sales in one of the Russian banks on the date of exchange, i.e. on 26 August.

Buy 100 dollars in a Russian Bank (virtual, because we are in Thailand) for 3200 rubles (rate of exactly 32 rubles per $1). $ 100 change in the exchange office at 3100 baht (exactly the rate of 31 baht per 1 us dollar). Ie it turns out that by means of dollars, we changed 3200 rubles to 3,100 baht.

Total exchange rate (RUB/THB): 1,0322

Changing traveller's cheques

Курс обмена дорожных чеков. Доказательство Repeatedly on pages of our forum had some discussion about the fact that traveler's checks sold in the savings Bank not the Central Bank rate and Bank rate. Our practice of buying traveler's checks shows that the sale of traveler's checks Sabrinka is the inland course, which is fully consistent with the exchange rate, as written in the article. As the sample attached a scan of the receipt on purchase of $ 500 in traveler's checks 29.02.2012 year in the savings Bank at the rate of 28.9503 fully consistent with the exchange rate. To check the exchange rate on a specified date can online.
If you have a VALID EXPERIENCE of buying traveler's checks (not consultation by telephone or cashiers), and it is contrary to our stated information, please write on this forum.

Traveler's checks again buy a virtual (because we are in Thailand) in the savings Bank at the exchange rate on the same August 26.

Buy checks in denominations of 100 and 500 dollars, since the exchange of checks for baht there is a fixed Commission, which will affect the rate.

Replaceable traveler's checks $100

Buy a check in rubles at the rate of 31.80+0,45% Commission, i.e. pay for the check 3194 ruble. Change the check in the Bank Pattaya at the rate 31,07 (the rate is higher than cash!) – the fee of 33 baht per check. Get hands on 3074 baht. Ie it turns out that through a traveler's check denomination of $ 100 we changed 3194 3074 ruble to baht.

Total exchange rate (RUB/THB): 1,0391

Changing traveler's cheque is $500

Buy a check in rubles at the rate of 31.80+0,45% Commission, i.e. pay for check 15971 ruble. Change the check in the Bank Pattaya at the rate 31,07 (the rate is higher than cash!) – the fee of 33 baht per check. Get hands on 15502 baht. Ie it turns out that through a traveler's check denomination of $ 500, we changed 15971 ruble 15502 baht.

Total exchange rate (RUB/THB): 1,0302

The result

The final table

    Spent rubles Received baht Course Course in terms of
if you exchange 1000 baht*
1 Check $ 500 15971 15502 1,030254 1030,254
2 Cash dollars 3200 3100 1,032258 1032,258
3 Check $ 100 3194 3074 1,039037 1039,037
4 ATM 10,000 baht 10542 10000 1,0542 1054,2
5 ATM 3000 baht 3271 3000 1,090333 1090,333
* how many rubles we get 1000 baht

It's time to take stock. In the table all options, participated in the experiment, sorted by the degree of profitability. Separately it is necessary to explain the results in the last column "Rate in terms of the exchange 1000 baht". This figure is calculated and shows how much we need to spend rubles to get 1000 baht. Thus, for instance, in the exchange through cash dollars to 1000 baht, we will have to spend 1032 of the ruble.

As you can see, the most profitable option exchange - the use of 500-dollar traveler's checks. But currency is not far behind, and, even outpacing the profitability of the most popular 100 dollar checks. Honestly, a $ 500 traveler's checks in Russia is hard to find in stock, they are almost there and need to be booked in advance.

Cash withdrawal from ATM in large amounts is also quite profitable, but the small amount it is better not to remove from a fixed one-time fee. If not for this Board at 150 baht, cash would be left far behind other candidates. That is why the payment for goods and services by credit card directly, in the absence of a fee at the point of sale, will be the perfect option for profitability. And payment of goods or services on the Internet (booking hotels and tickets) and even more so would be the best option.

In General, among all tested variants, the difference in losses in the exchange are not so significant, and the exchange of small amounts (by such I mean the amount of up to $ 300) you can safely use any convenient option for you, giving, of course, the preference is more profitable :-).

Comments / recent posts on the topic on the forum
admin 26 July, 2013

Without problems can buy cheques in almost any country and any foreign currency in banks. Russia is no exception: any citizen can buy checks. Just in case I will remind that now the savings Bank stopped selling the cheques they need to buy only from other banks. ...
9 September, 2013
from 1st August 2013. sale of traveller's cheques of American Express in Russia terminated....alas... ...
admin 9 September, 2013

I already know the problem :( :( :( :( . What kind of country we have, 19th century :roll:. The reason for the termination of sales is low demand. And how can he be high if they are just impossible to buy. Used to somehow the BEAC can be beneficial to buy, however I had to order them in advance, and large checks did not exist. And as the savings stopped sales of the like have no place at all was at a reasonable price to purchase. ...
Adaund 17 October, 2013

what does it mean? What are the implications of that are so "bad"? Explain, please, very interesting ...
admin October 17, 2013

As well, what is the consequence? Now they are not even in Russia to buy. ...
Kira777 30 August, 2017
Don'T know about others, but I have most of the money on the card. Beach valuables and money do not take. For all the negativity was not. ...
nausla 31 August, 2017

About the beach a little weird, not everywhere there are lockers.
I take Himachal from the smartphone on the neck where I put my money.
Also, try to leave at least one guard from the things. ...
kamneedoff 21 April, 2018
If going to the beach not one, not see a problem. If one, in the package (if you swim)...)) If just to sunbathe, then the problem of preservation, too, disappears... ...
Eric December 3, 2018
tell me please I have inherited travellers cheques American Express 200€ where I can change and what documents are needed if there is one signature ...
admin 3 December, 2018

Well, in Russia most likely anywhere else because we have more checks the entrance for many years. Therefore try to cash them abroad. If they can't, give to relatives/acquaintances who go, maybe they'll try it. Theoretically, nothing but a passport to exchange them is not necessary, but about the signature of course the question may arise that in the passport and on the receipt signatures are different. Try your best formal question to American Express to write https://www.aetclocator.com/TCLocator/search.do?lang=ru There is also a contact form and email. ...