Travel on 'cash-only' basis - have you done it?
 

I have a couple of acquaintances who wish to venture to Amsterdam, and it is their first foray out of the country. These folks are "unsophisticated blue-collar" types, and are looking to me to guide them through the travel process, which I am happy to do.

The issue that gives me pause is that they do not use, or have, any credit or debit cards - operate on a cash or money order basis for their day-to-day expenses. They want to give me a set amount of cash as my means of arranging flights and a hotel for them. It seems that I will need to use my own credit card to make these arrangements, and reimburse myself, which is fine (I think). I am more concerned with their traveling with only cash, according to the budget they're setting for themselves (which should be adequate).

Does anyone do this? What pointers can you give me to pass on to them? I have been to Amsterdam before, and can give explicit instructions on transportation, museums, day-trips, etc. and the related costs. I can advise them to split their funds between them, use money belts, maybe apportion preset amounts into envelopes for various segments,ie. 'sights', 'meals', etc. The plane tickets would be in their names (and paid for), the hotel will take cash - are there any pitfalls to traveling only with cash that might not be obvious to me (I usually have a backup for my backup!)..? Thanks for your thoughts...

They shouldn't have any problem as long as they don't want to rent a car. But what happens if they have an emergency ? I would want a credit card for an emergency.

Even an "unsophisticated blue-collar" type needs a bank account for pete's sakes. Unless they feel comfortable walking around with loads of cash, tell them to open a checking account with a debit card and get most of their cash money using ATM's like everyone else.

It would seem that at the very last travelers checks would be a much better option than carrying around wads of cash. At least travelers checks can be replaced if stollen. Maybe your friends could apply for a credit card before their trip - really a much better option than trying to carry tons of cash around.

In this instance, travelers checks will be crucial. I travel with as much as $500 in cash but the bulk of my funds are kept in travelers checks (if I'm traveling on a cash basis, which I sometimes do).

Good rules of thumb are.....

1) money belt for the backup cash
2) split the "in-pocket" cash between two people
3) cash travelers checks at banks only to get best exchange rate
4) keep original record of travelers check numbers, receipt and contact number (for replacement if they're lost or stolen) in a completely separate place (e.g. second money belt or secure place inside luggage)
5) have backup copy of above info stored with backup of other documents (I take backup of drivers license, health insurance card and passport on foreign trips).

Best to check on whether they'll need the orginal credit card when checking in for flight - I don't think so but am not sure.

The above precautions are sort of a "suspenders and a belt" practice - a bit of overkill. I've only made three out of the country trips (Guatemala/Belize, Mexico and Ireland). never had problems on any of them and worked on a mostly cash basis everywhere I went.

In a large city like Amsterdam the typical large city precautions should be in effect as a sensible person would in any big city, even in the US.

If they are truly the "un-worldly" they should probably not be carrying that much money around in cash OR in travelers checks.

The best thing is probably prepaid debit cards. You can get these at AAA and other places. You deposit money and then they can access it as they need cash or use it as a credit card - but only up to the amount deposited. There is no need to have a bank account or credit card.

Yikes! I'd feel very uncomfortable traveling in a foreign country without that credit card for possible emergencies. I agree with the above post-at the very least-get the debit card.
Hopefully, they'll have enough time to acquire a credit/debit card before their departure date.

Sometimes the airline will ask at check-in for the credit card with which the tickets were paid. It doesn't happen very often, but it has happened to my husband twice.

Cash and Traveller's Checks will be fine. I do it every year this way. A money belt or neck pouch is a must.

To each there own. But I have never understood why some people deal only in cash. I hope these two people are tough enough to scare off thiefs. They need to get travelers checks.

Hi
As Carl Malden used to say, "Don't leave home without it" - AMEX TC's.

These folks are just old fashioned. It will cost them more, but they will feel comfortable.

Check about the tickets. Paper tickets will require only the passport, but e-tickets might need the credit card to which they were charged.

Yes, these comments are exactly what I'm hoping for... I will ask the airline about the proof-of-payment issue, and see about the prepaid debit card, or at least, travellers checks. That feels better than 'cash'. I haven't asked them yet if they can obtain a credit card, my husband just relayed this info to me this weekend.
We will have a trip meeting before too much gets committed - I just wanted to get my thoughts in order.
Thanks for all the suggestions.

Sorry, but unfortunately, some of the supposed "safety net" of traveler's checks sometimes turns out to be a lot of "hype"...for example, that thing about "Don't leave home without them..." there have been numerous reports from people who have "mislaid" or had traveler's checks stolen and the company balked at replacing them unless the "victim" could prove they had not been negligent in leaving the checks out, unguarded, etc., etc.
I would urge these travelers to get some sort of card, pre-paid or otherwise that could be replaced easily if lost or stolen.
The other issue with traveler's checks is, of course, exchanging them..unless they are in Euros in the first place..and then there's the "acceptance" issue and the alternative of finding a bank for exchanges, etc., etc.
None of this is good for first-time travelers, much less for third and fourth-time travelers...
Not sure how you'll convince them that like the dixie cup and the piece of string being replaced by the telephone, cards are practical, practicable, and will ultimately save them money. Good luck!

I did Amsterdam 5 days on cash-only last summer. But I did have an ATM card, plus $500USD, plus $500 travelers checks which I didn't use. I changed US cash into Euro at the airport to pay for my hotel upon arrival.

I know some people are afraid of carrying a "wad of cash" but it has not been a problem for me. I would suggest keeping it split up in different places (i.e., between the 2 people, in money belt or neck pouch, locked in suitcase, your shoe, whatever!)

And good idea about making sure the plane ticket is in order; I too have heard where you need to show the card that was used for the purchase, although this has not happened to me.

**These guys do have passports, non?**

"These guys" WILL have a passport before I commit any dollars on their behalf. That (besides being a necessity) will be an indication of how serious they are.
Bootman, you made me laugh - dixie cup and piece of string! I hear ya...

Travelnut: I hate to be suspicious, but something smells bad. Why don't they have credit cards? A pet dog can get a card now without trying, or so it seems, unless said dog has terrible credit. I would be concerned that once they start relying on your making credit card reservations or purchases for them, their cash may not keep up with the credit. Or they may find a way to leave room service, etc. "on the card," thus extending credit that you didn't approve. Good luck collecting the overage from them. I might do this for close family, but not an acquaintance. Just a (perhaps paranoid) thought.

I second JANIS suggestion earlier. Get a pre-paid CC, which are sold by AAA, and other places. They don't have to have any credit history, if that's the problem. They will be able to use it as a credit card and/or ATM card with a pin# up to the deposited limit.
It is very doable to do it just with cash, as European hotels are not as demanding of CC at check-in, but they still will have to leave deposits everytime they check-in and collect whatever is left upon check-out. It's just easier with a card. Everything else should be easy, well, except as somebody said, no car rental, unless they have a HUGE deposit in cash available.
Good Luck!

Sorry, but while people are certainly free to make their own choices about things like credit cards, I would suggest that they must also take full responsibility for those choices. That means not putting the extra burdens upon you that such a mode of operation entails or placing you at risk to accommodate things for them at any point before or during the trip. Trust your gut on this one; it's already talking to you.

Travelnut, I think you're right about waiting until they have passports, which will also indicate just how serious they are.

This isn't in your original question, but there might be a way around using your own charge card, like to purchase tickets with cash from an airport or travel agent. And/or send a money order by a mail service in advance for a hotel deposit, time allowing. Just a couple thoughts. Interesting situation!

If you have a bank account you get an ATM card?? do these people stick money under their mattress? - I would not bring that kind of money in checks or cash, travellers checks can be replaced - but not instantly and not withuout hassle. I would get two atm cards and bring both in differnt places. - If you get a atm/debit card with a visa logo - more power to you. But I would at the very least get an ATM card - or if they don't have a bank account then get those pre-paid cards - you might even be able to use it to book a hotel.
I have to say - I know alot of blue collar people - even older unsofisticated ones, and they all have bank accounts. I would worry about the overages also, especially if they don't understand what costs extra in a hotel(phone, minibar,etc)

Good luck

When we went to Italy we used cash more than anything because it was a cheaper fee from the ATM as opposed to the exchange charges from the bank and credit card company (usually 3% total).

And most of our hotels wanted cash only so we would take large amounts of cash out of the ATM often. Just put it in your moneybelt or travel pants (I have a cool pair of ex-officio travel pants that have the inside zipper, not bulky at all).

But they definitely need a credit card for emergencies even if they don't use it.

FYI, the Amex office is on Damrak (the road if you walk straight down from Centraal Station), and is a little hard to see. They have very limited hours on weekends, but are very helpful (especially for Goild Card members--which I assume these people actually wouldn't be, I guess).

I have a co-worker who has given up credit cards. It was through a program at her church about living a simply lifestyle. She did close out all her credit cards after paying them off and only has a checking account. I don't know if she has an ATM card. When she travels, she pays in cash. Her travel agent will accept cash or checks. She recently went on a cruise and had no problems checking in at the airport or at the cruise ship check in.

I'm with Flyboy. These acquaintances are putting far too much pressure on you to take care of their finances. They would end up being my enemies rather than acquaintances if I didn't get repaid. I have been a group escort for many years, and some people simply expect too much from the leader. I have loaned only to friends, and even then they have a way of forgetting. I paid, but they waited until they got paid or until the "10th of next month" before they "remembered" they owed me. Loaning money creates enemies rather than stronger friendships.
I would clue them in about tipping. Though guide books often say tips are included, one is expected to tip hotel maids, concierges, the one who carries your bags, cabs, etc. I have often overtipped to take care of those in my group too tight to leave anything. In spite of what I have just said, most of my clients have been wonderful, appreciative people. Good luck with yours.
Boots

I don't want anyone to worry about any undue financial exposure or unreasonable 'pressure' being a concern... I'm a Taurus, it ain't gonna happen.
You are offering your 'worst cases' and good solid ideas, which are making me think. For instance, I could reserve them a hotel online, and they pay cash for the room - but I forgot the hotel would like to 'see' the card at check-in. See, that's a good reminder for me.
I've been looking into the AAA / visa Travelmoney thing, or just a debit/ATM card. I haven't talked to them at all about this stuff, so don't know if they do/don't have a checking acct. I just wanted to have some suggestions for the discussion about 'how it's going to work'. You've all been great, thanks a bunch.

If there is not a place in Heaven reserved for folks who would take something like this on . . there sure should be!

Rich

Your acquaintances are, presumably, adults. Unless they hide their money in mayonnaise jars out in the back yard, they should have bank accounts. Tell them to get a debit card with a Visa logo.

They want you to be their guide......fine. But "blue-collar" or not, they should not expect you to hold their hands and babysit them through the entire first-time-outside-the-US process.

Those of us who travel have had to learn many things on our own (including fiscal responsibility and having to deal with emergency situations), even though some may have had a more experienced person to help us along a little (as my hubby and I did when we first began traveling). I don't see why your acquaintances can't be expected to participate in the process more in depth. The skills they learn on this trip will instill confidence, and might facilitate future travels for them.

Since you're asking questions, it seems you are slightly reluctant about some things. Listen to your gut. ALWAYS CYA, ALWAYS.

ncgrrl,

don't take this the wrong way but your co-worker giving credit cards to "live a simpler life" somehow contradicts the fact the she was going on a cruise in the first place. I would not call cruising "a simple life" . Why not give up the cruising and hold on to the cc for an emergency, you don't have USE it. I just thought that was kind of funny.

I've travelled to many parts of the world - including many parts of the US -on a "cash only" basis. Indeed, I've generally used credit cards only when travelling on the business of a company I don't own.

It's almost totally painless. Sometimes you're asked for ID. Passports or driving licences. Hotels want some kind of payment in advance: Cash. Use a travel agent to secure the reservation. Car hire companies want quite large deposits, sometimes. But Holland is one country where you'd be mad to hire a car. If you can't get where you want to be by train, bike from the nearest station.

No airline asks to see a credit card if you've gone to their office and bought the ticket in cash. Western Europe has no serious customs controls on cash movements: none of this "declare it if you're carrying more than $10,000" nonsense.

The only issue is security. That's the one - the only - case for travellers' cheques. Otherwise, moneybelts etc. And the good sense to use a bank at home capable of getting cash to you quickly in an emergency. Which really means HSBC or Citibank, though NatWest used to be handy when they had a US operation.

Travelnut didn't ask whether his friends' request was wise. He just wanted to know if it was possible. It's more than possible. It's a complete doddle.