What to do with USD (cash)

[muzzie]

G'day

Just got a simple query, I am hoping someone can help me with.

I am flying to the US early next year, and as a present my old man, sent me a few thousand USD dollars in cash. which is awsome.

But I am wondering if there is a way to get travellers cheques by paying in USD.

I am told that for Cash passports, all payments should be made in AUD
but is this the same for travellers cheques? It is not really worth changing the money to AUD then Back to USD to put them on a card.

Or is there another alternative? I do not wish to carry a large amount of cash with me.

 

[Mal]

Welcome.

I cannot think of any way to get $US traveller's cheques by using $US notes in Australia.

As the $US is not really accepted in Australia, I cannot think of any way for you to do what you want to do - unless you transfer to $A and the back to $US

 

[one9]

Welcome.

I cannot think of any way to get $US traveller's cheques by using $US notes in Australia.

As the $US is not really accepted in Australia, I cannot think of any way for you to do what you want to do - unless you transfer to $A and the back to $US

Research some US issued prepaid Visa/Mastercards or travel cards on the Internet.

Then take the USD cash to the US and buy one of these type cards to use over there at the start of your stay.

 

[harvyk]

I certainly know what you mean with not wanting to carry large amounts of cash on you.

Whilst it's not advisable to carry large amounts of cash on you, you'll probably be fine if you both split the money up (I never carry all my money in my wallet incase it gets lost or stolen) and after landing I'd suggest you find a bank to put the money into, or use that money for hotels or upfront expenses if you don't want a local bank account.

The other thing you could do is take a punt on exchange rates and convert the US$ into AU$ and hope the AU$ rate keeps going up (the experts keep telling us it is, some have even tipped AU$1 = US$1.10 before it changes direction)... It may mean that you get a few extra dollars in your pocket even after covering the exchange rate costs. - BTW for this I take no responsiblity if exchange rates do an about turn...

 

[penegal]

From a legal point of view you can carry up to $10K cash (or cash equivilents) to most places without having to make a decleration as to why you have it. However I understand that most people wouldn't dream of carrying that much cash with them.

As Mal says, USD is rarely accepted in Australia. Generally TCs and Cash Card products are meant to be purchased in the 'local' reference currency (eg. AUD).

This means operators may request that you buy AUD with your USD, before they sell you USD TCs. (eg. Cash USD -> AUD -> USD TCs). This process results in a significant FX loss to you (can be up to 10%). Plus you also have to pay comission to buy the TCs ontop of this.


However I have annecdotal evidence (allbeit about 6 years old) that some CBD outlets will take your foreign currency and issue TCs in the same foreign currency (without first changing it to AUD). I understand that this process is possible on the AMEX POS, but whether they will do it or not is another matter eintirely.

I have no idea if this practice is still the case anywhere. I suggest that you enquire at different FX outlets and banks to see if they will do this for you. (I could easily be wrong, but it's worth asking).


Alternatively one9's idea of using US-based pre-paid cards may work for you, although you will need to carry the cash for your first flight sector into the USA.

 

[muzzie]

thanks to everyone for the advice.

I did not realise, I can open an account/recieve a debit card in the US, while traveling, Which I do think might be my best option, if they can send me a card within a week, (not staying in any US city for longer than a week)
I guess, I will discuss it with some banks while over there.

Even though carrying the initial amount with me for the first few days would be better than carrying money with me for my part of my stay.. (approx. 5 weeks)

Alternatively I could buy the $500 over the counter prepaid visa cards, upon arrival, just to reduce the amount I am carrying.

May also check out AMEX POS here in sydney.

Worst Case Scenario,
I carry the money with me until it runs out.
I loose approximately 5-10% converting USD>>AUD>>>USD TC

Thanks again for everyones input.

 

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Welcome to AFF muzzie!