Minding your money while on vacation

By Liz Fleming

It was a horrible moment.

Standing in front of the one and only ATM machine in the tiny airport on the south sea island of Tahiti, I was confounded by the message on the screen.

"Unrecognizable card."

What?!

My faithful ATM card had always been able to provide me with quick cash wherever I went - from Paris to Reykjavik and I'd been assured there was no need to get local currency until I arrived in Tahiti.

"Let me try mine," offered an American tourist behind me.

The same distressing message on the screen, later repeated for all the North American tourists lined up behind us, led to a horrible conclusion.  ATMs in Tahiti didn't accept cards from our part of the world.

In my wallet, I had about $50 in small U.S. bills - all I thought I'd need for tips and other small essentials until I got local currency from an ATM.  A new plan was obviously required and my hotel was more than happy to help.

"We can provide you with a cash advance on your credit card," the desk clerk purred, "for a fee."

It was a solution, but a pricey one.  Not only did my friends at VISA instantly begin charging interest on my cash advance - a normal procedure for credit card companies - but the hotel also levied a five percent charge for handling the transaction. Ouch!

That expensive little lesson has taught me always to ensure that the countries I'm traveling to will have accessible ATMs, and that I should always have a back-up plan in mind. 

Money Matters on the Road: Some Valuable Tips:

n While travelers' cheques are far less common than they were a decade ago, they could have saved me time and trouble in my Tahitian situation.  Advertised as being accepted everywhere, these days, retailers and restaurants only accept travelers' cheques grudgingly.  While it's not a bad idea to have some on hand for emergencies such as the one I've just described, you're best to cash them at your hotel, so you can venture confidently into shops and cafés with cold hard cash in hand.  Note: always be sure to store your list of travelers' cheque numbers in a separate spot.

n Before leaving home, be sure that you know the PIN number for your credit card or you may not be able to use it to access a cash advance in a crisis.

n Always carry either a small amount of local money (obtained through a currency exchange shop or bank at home) or an emergency fund of U.S. cash, in case currency exchange counters are closed when you arrive at your destination or you're unable to find an ATM right away. If you're certain that the ATMs at your destination are compatible with North American cards (check with your local bank to be sure), use them to access the bulk of your vacation funds and you'll pay the lowest possible exchange rate.

n ATMs in many countries operate only with four-digit PINs, so if yours is longer, change it before you go.  Note: if you use an acronym to remember your PIN, don't forget that the letters on the keys may be entirely different.  Be sure to memorize the numerical sequence as well.