Cash and insurance or cash card?

freddieD

I have a fair amount of cash in US dollars to take on my holiday in Mexico. I have not found an insurance company that would cover me for that amount and if I ask for 'special' insurance, they will probably want a high premium to cover me for the money.


What is the alternative? I already bought one of those cash cards for some of the money but I paid in sterling as I understand they want you to change the currency to get one of those cards (they make their money in the exchange).


I do not want to lose money in transactions changing currencies and want to keep most of the money in US dollars until I need it. But an inflated insurance premium could cost me more than I lose in commisions for putting the cash in a card or something else.


Traveller's cheques? They told me at the money exchange place that they are old fashioned.


I exchanged the money from Sterling to dollars before the Pound collapsed. Or what if I get a cash card back in Sterling and make a profit! But then I would have to exchange my Sterling to pesos over there.



Any ideas?



Thanks

eDicky

You did well to exchange at the right time, but unfortunately you did it with cash, not knowing about Revolut perhaps. You could probably still make some profit changing it back to cash sterling, but a lot will be lost in the exchange rate given for doing so.

I know nothing of insurance, but can't imagine how a loss of cash can be proven to an insurance company.

Although USD is widely accepted in Mexico, the national currency is the peso. Can you see any problem in converting sterling directly to pesos? Apart from it being more bulky to carry than $100 bills, that is.

In your situation now, I would personally invest in a good money belt/pouch and go with the cash USD and the intention to stay mindful and alert. But I don't know your own travel plans and experience, of course.

freddieD

Hi,

I already had ne of those pre-paid cash cards (Eurochange cash passport) in multi-currency but my money in it is in dollars. I called them and they told me I can load the card with cash if I go to the money exchange shop where I got the card.

I am mindful I will not lose on exchange rates so this would be loading dollars in a dollars card and I believe they do not charge you for withdrawing money or making payments although the cash dispensers at the other end could charge for dispensing the money.

I wonder what experience people have in a place like Mexico with these cash cards

eDicky

freddieD wrote: »

Hi,

I already had ne of those pre-paid cash cards (Eurochange cash passport) in multi-currency but my money in it is in dollars. I called them and they told me I can load the card with cash if I go to the money exchange shop where I got the card.

I am mindful I will not lose on exchange rates so this would be loading dollars in a dollars card and I believe they do not charge you for withdrawing money or making payments although the cash dispensers at the other end could charge for dispensing the money.

I wonder what experience people have in a place like Mexico with these cash cards

I've never heard of this particular card before, but I see that there are fees for withdrawing cash and a hefty 5.75% 'Foreign exchange fee', which will presumably apply if you withdraw or purchase in pesos, etc etc:

https://www.multicurrencycashpassport.com/fees-limits/

It will be recognised as a credit card by merchants, who may well require a surcharge. But where you can pay in dollars at least you escape the exchange fee. It would be interesting to know if the shop where you obtained it will allow you to load your cash dollars without fee, perhaps a receipt showing that you bought them there would help. Overall it's probably one of the worst choices of card.

Voyager2002

Firstly, how much cash are we talking about? With a bit of trouble one can find travel insurance policies that cover cash up to the value of 500 pounds: are talking about much more than this?

Secondly, how great is the risk of theft? In other words, are you staying in a modern hotel with a safe, or sleeping in dormitories? Will you be staying in one place, or travelling around, perhaps using local buses?

In your situation I think that I would be looking at ways to safeguard myself from theft (perhaps on the Lonely Planet website). FWIW I used to travel around West Africa carrying thousands of dollars in cash (as part of my job, but I was personally liable for the money) and the only theft that I ever suffered was in my own home after I returned from one such trip.

freddieD

Hello,

Yes, I would expect that they should not charge me for loading the card in dollars but I did not buy the dollars in the same shop. I will call them again to ask. I can see the main cost is withdrawing money but I would not withdraw in pesos, I would withdraw the money in dollars then pay in dollars where they will take them and exchange to pesos where they will give a good rate. So it is only the fee at the cash dispenser. After all, they have to make money somewhow.

As for insurance, yes it is a few thousand dollars so the insurance companies will not cover me for that and, if I ask them to give me a special policy to cover the cash, its cost will be a lot more than the fees to handle the money with the card. Plus the usual excess of £150 for a maximum of £300 cash in some cases is silly. I guess the cards people have worked it out.

One possibility is to put some of the dollars in the card and only use them when I know the charges will be minimal and take the rest (carefully) in cash for when it is better to use cash.