We had a bad year for transactions - 4 trips, of those

Mallorca : No problems
Sailing Ionian Islands : Total nightmare : Credit card not accepted anywhere, only 3 ATM machines on 15 islands, tow machines didn't accept cards.
Sicily : No problems
The Abacos, Bahamas : Credit cards accepted everywhere, No ATMs worked, had to beg at the counter for a cash advance.

The exchange rates given by HSBC were insulting but I think that was more a reflection of Gordon Brown's printing press than their internal policies.

We are the poormen of the world.