Hi there. I've read up on the conversations extolling the various merits of ATM's, Travellers Cheques, credit cards, etc.

I am familiar with the various fees charged by the banks for both credit card and ATM usage (great resource here by the way http://flyerguide.com/wiki/index.php...reign_Exchange.

However, on our upcoming trip to Peru, Chile, and Argentina, there are a few hotels with cash price/credit card price, and some that do not take credit at all. I don't know if I will be able to withdraw money quickly enough to pay in the most cost-efficient manner.

Here are some specific issues I am not clear on

I have heard reference to people cashing personal checks at american express travel offices. I assume they would pay in foreign currency. Do they give you an accurate (and low or fee-free) rate of exchange?

I know that cashing of travellers cheques @ banks is not efficient, but does the cashing of these cheques at american express travel offices give you a better rate of exchange?

How useful is having US Dollars? Are they welcome (and receive a good rate) at many places and preferred by locals to travellers cheques? I don't know that I would feel comfortable carrying a thousand dollars in cash for very long.

Has anyone used ACH transfers to pay for tours/lodging/etc?

Thanks much

Here's the way I look at this: You're going to get hit somewhere in the chain of transactions with a fee. It may be your home bank charging you to pay with your credit card or withdraw from an ATM in a foreign country. It may the foreign bank charging you a commission to change your dollars into the local currency. It may the bank who sells you traveler's checks charging you a fee. It may be the foreign bank cashing your traveler's checks charging you a fee. It may be the foreign business who lets you pay in dollars but gives you a lower rate than a bank would. You can't avoid them. At some point, you pay for the privilege of engaging in these transactions, which all involve currency exchanges. I do pay attention to them and if a fee looks outrageous, I don't pay or exchange that way, but I also don't worry about it too much because I know they are unavoidable.

I pay for what I can with a credit card and use it to withdraw local currency as needed. I do pay a small fee for that privilege, but that's the way it is.

Most American Express offices in Latin America focus on travel and tours. They will replace lost or stolen checks, but I know of none that will cash AMEX traveler's checks for you.

Very few banks in Chile cash traveler's checks. You need to go to a casa de cambio (exchange house). Many banks in Peru do cash traveler's checks. I'm not so up on Argentina these days. Very few businesses accept payment in traveler's checks.

I don't find Peru and Chile to be one of those "everybody takes dollars" places. A hotel or tour operator might accept payment of your bill in dollars, but will give you a slightly less favorable rate. If you stop and think about it, that's fair. They have to go to the trouble of going to the bank and changing your money. Regular businesses on the street will expect payment in local currency.

A small in addition/claification to the great information above - You credit cards when you can for restarants, etc. BUT your *bank debit card* at the ATM. Most accounts using a credit card at an ATM is billed as a "cash advance" at a higher interest rate.

You can request your home bank to increase the daily amount you are allowed to withdraw from an ATM during your trip.

I never spend USD directly in a foreign country (except perhaps the hotel bill if they accept USD at a fair rate). I have not been the places you're going but in Mexico easy enough to go to a casa de cambio & change TC or cash to peso.

Thanks for the nice input. Appreciate you both taking the time

One thing I find is in addition for using my Bank ATM (Washington Mutual) for cash withdrawals I use it as a Credit Card at higher end hotels (IE Quinta Real). You get the best exchange rate with no fees as you would have on a regular CC.
Also I Always use the local currency in any country out of respect 7 also to get the best pricing.

I searched for best money arrangements for my trips in India, Middle East and Europe and ended up opening an eTrade bank account. It's just like a normal FDIC insured bank account (but with a much higher interest rate!) and they give you an ATM card. What's so great about them is that they reimburse all ATM withdrawal fees anywhere in the world! So you don't pay ATM fees and get an interbank forex rate abroad. This way I didn't have to carry large amounts of local cash around and was able to use 99% of local ATMs. Sweet!