We have been asked to send a deposit on rental in the USA for a three night stay in a bungalow. We then have to make the final payment 20 days before arrival, with a separate cheque for damage insurance. What would be the easiest (and most economical) way to do this?

All our other reservations have been held with a credit card so this is proving a bit of a problem.

Thanks

How about using Paypal?

It is the easiest way to transfer money across the pond.

If your host isn't interested in PayPal, you might find that this is one of the few remaining situations where Travelers Checks come in handy. Or you might check out both options, choosing whichever gives you the better net exchange rate (i.e., total cost including fees).

Thanks gb944 and Anonymous for your advice. I have emailed and asked if they would accept PayPal.

Not sure how Travellers cheques work. We have used them in the past ourselves but have not sent them off as payment. Would this be just like sending cash?

No, it would be just like sending a check. Remember, travelers checks are laid out like checks and have a "payable to" line.