Foreign Perspectives

Aren’t debit cards the same as credit cards? No, they are very different and have different characteristics when you’re trying to use them overseas which aren’t always apparent.

The first key difference is that they are directly linked to your bank account and this makes them a little more risky to take abroad (it’s much safer to take credit cards and a cash card).

Debit cards for international use come in four versions although not all are available in every country. These are Visa, Visa Electon, Mastercard and Maestro.

Cards branded Visa and Mastercard can be used where-ever the equivalent credit card can be used and, aside from the link to your bank account, are processed in the same manner as a credit card (press the “credit” button if prompted on an ATM or till).

Cards branded Visa Electron and Maestro are supposed to be electronic use only which means that you cannot use them in one of the old-style carbon copy type machines. In practical terms, almost all “civilised” countries use online terminals these days but this does not apply everywhere so it’s best to have a credit card as a backup. Maestro is a little more limited in that it can’t be used when you’re not at the point of sale therefore you can’t use it to guarantee hotel reservations. You can’t use either of these cards to hire a car.

Note that acceptance of cards is neither universal nor universally practical. If you are travelling to countries off the tourist routes you can find that cards aren’t accepted or are only accepted in widely dispersed locations. For example, in India I found that using cards simply wasn’t practical. Cards branded Visa Electon and Maestro are much less widely accepted than those branded Mastercard and Visa.

Bank charges on debit cards come in several basic forms. First, they charge transaction fees when you use the card to get cash. Typically these fees are around 2% with a minimum charge of £2/$2 per transaction therefore it’s best to withdraw amounts of £100/$100 to minimise this charge. In most cases, there is no transaction charge when you buy things using the card so it’s better to do that instead of withdrawing cash. Second, they usually apply a foreign currency charge which is typically around 3% (no minimum). And, of course, there may be an annual fee for having the card. Some card issuers charge a transaction fee on overseas purchases too: if this applies to your bank, use a credit card to make purchases instead or if you can’t do that, withdraw cash and use that for purchases.

Despite all that, it’s still usually cheaper to get cash on a card than to buy travellers cheques as your cost will typically be around 5% max compared to the 7% or so for travellers cheques.

Downsides are basically those charges but, if you’re careful, you can minimise them. For those living in the UK, some pre-paid cards eliminate all charges and if you’re in the American military a USAA card works in much the same way as do some American issued CapitalOne cards. If your bank is a member of the Global Alliance (Bank of America, Bank of Nova Scotia, Barclays, BNP, Deutschebank and Westpac) then you can withdraw cash from one of the other member banks ATMs without the transaction charge (you still get charged the foreign exchange fee).

I’m going to work my way through the various ways you can take money abroad over the next few weeks or so in the travel money series. I’ve already covered cash, travellers cheques and credit cards and will be covering cash cards and prepaid cards in future episodes.

It was both windy and raining heavily yesterday which always seems to bring out the worst of fashion, doesn’t it?

Gone are the nice looking clothes and in their place are all kinds of really awful anoraks, wellington boots, and iffy umbrellas. Hairstyles are, of course, are history at least for the day though some seem to take days to recover after a windy day.

Still, on the whole it’s not as if anyone is actually looking at what you’re wearing on a windy day as they’re all racing to get out of the wind and rain.

However, even inside it doesn’t always get much better as even in heated rooms it somehow seems colder when it’s windy outside and, of course, there are all the wet clothes, umbrellas and windswept hair to contend with too.

The best place to do this is in a technology shop because the majority of people aren’t on solid ground in respect of knowledge of the product.

This lack of knowledge makes it difficult for them to place a value on the products being sold. Added to this is the fast changing nature of the products which often leads to illogical pricing whereby better products can cost less than inferior ones.

I saw a great example of this in PC World (always an excellent hunting ground for this type of thing) at the weekend. A couple were in to buy a netbook for their daughter. The netbook cost £239 but they were talked into paying over £600 for it and that wasn’t even counting the software that they were subsequently talked into as well. All of this stemmed from the “small” payments of £25 a month and the potential to get another “free” laptop at the end of two years. Of course, by that time, they could have bought at least three laptops with the money.

The other problem that’s particularly noticeable in the netbook market niche is that a large PC shop can have anything up to around 20 different netbooks ranging from £170 through to around £370 with seemingly little to distinguish them. I question whether a normal customer would be able to tell whether having an N270 was any different than having an N455 or N550 and in reality few people would notice the difference in processing power. Even the battery life is a very iffy means of distinguishing between models as one shop can have a netbook with a 4 hour battery life at the same price as another shop with the same model but an 8 hour battery life.

The fast moving prices also creates anomalies with newer and better models quite often costing less than the older model even when discounted. Thus the “massive discounts” that were previously available on the Sony 300 and 600 readers barely brought them down to the price of the much improved 350 and 650 models.

So, lots and lots of ways that you can be ripped off!

If you think that you’re just joining the gym to get fit, think again.

For a start there’s a clear pecking order dividing those who run on the running machines from those who walk on them, those who stick to those from those who use the cross-training machines, the divide from those who stick to that group from those that use the strength machines and then there’s the gulf between those who use machines and those who use the free weights. And that’s before you even consider those who only go to the exercise classes.

Then there’s the fashion parade that you get in some gyms. Thankfully there’s not much competition with the men’s fashion but the women certainly make up for any lack of fashion sense in the men with some clearly joining because it’s the fashionable thing to do rather than with any sense of getting fit.

But don’t let all this put you off… it’ll not be long before you find your own niche in the gym whether that be amongst those there to get fit or with the fashionistas.

When the school that our little guys go to was built it had a street running alongside the school wall so when the number of cars bringing kids increased, it was easy for the kids to get dropped off at the school gate and then go down that street.

Times have moved on somewhat since then though. That street and the one parallel to it where my granny lived have been demolished and replaced with a new housing development. Unfortunately, one of the aspects of the new development is that it’s built more in a courtyard style so neither of those two streets exist and instead there remains only the original street leading down to the school entrance which now is effectively a cul-de-sac.

Net effect? You’d have thought that it would have been obvious to the designers of the new development that creating a cul-de-sac where there previously was a way out was going to create problems and so it has. Every morning and afternoon that street is jammed with traffic going down to the end and attempting to turn.

What’s now happened is that the police have been called in to ensure that the school entrance isn’t blocked with cars and that nobody is parking over the new driveways. What should have happened is that the original exit street should have been preserved.

It’s about to get worse though as there are a couple of new housing developments just adjacent to that cul-de-sac and they’re all coming with little lay-bys for the residents. Naturally, they consider the lay-bys as theirs and don’t want the parents parking in them. The snag is that by the time those developments are complete that will leave nowhere to park at all for anyone but the residents. Somehow I suspect that’s going to cause major friction in the years to come.