Ways to curb USD slide
 

In an effort to protect my USD against a further decline against the Euro, I started looking at various ways to buy Euros for my upcoming trip. I found out that AmEx allows me to buy Euros at todays rate (plus 3.5% = 1.35 R.O.E)on a Travel Card. It's basically a self loaded credit card - similar to buying Travellers Checks - and functions like a credit card or ATM card without the International charges for use. I can even use my M/C that gives me mileage to buy it.
Before I take a 2000 Euro plunge - has anyone used this method or can ssee any problems with it.

Be sure to check and see what charges are incurred for buying "cash" with a credit card. I think they will treat it like a cash advance and that's usually expensive.

I don't think this is the same as buying cash with a credit card. If that is the exchange rate you are guaranteed, I guess the main thoughts are: how are you going to feel if the dollar gains vs. the euro? Mainly, be sure to check all fees for using that card. Some of those prepaid cards have a large fee to initiate them and then maybe a fee to cash them out if you don't use them up or an ongoing fee, stuff like that. Also, I think some still have an ATM fee, not sure if that is what you are calling "international charges" or not. I don't know what you mean by that term as the +3.5 pct is sort of the type of charge credit cards asses for foreign currency transactions, so that's what you are paying for, I think (although higher than any other I've seen--you are betting on the USD declining more).

Good comments. I'll check with M/C as to how they view this.
There doesn't appear to be any transaction fees (I guess that's what I meant by International fees - fees that M/C or Visa charge you for using their cards in Europe.

I have seen comments on Fodors before that there are high fees on "preloaded travel cards" but never paid attention to the details. And as said above be sure it does not count as a "cash advance" on your credit card.

I think the point about the risks associated with locking in at today's exchange rate that Christina makes in her post is a very important thing to consider. This is a two-edged sword and while in hindsight it would have been a great move to make a year ago for a trip happening now, there is simply no way to know how such a technique will work going forward. I'm heading to the Eurozone later this week and I'm happy to be staying in a hotel room I prepaid some time ago, but I'm not willing to pre-pay for late February. Just my two cents worth.