Travelers often debate forms of "money" they will carry to pay for daily expenses and purchases. The options are cash, cash-access or debit cards for automated teller machines, credit/debit cards and travelers checks. Most travelers will want to use a combination of these to realize the best foreign exchange rates, convenience and protection from loss or theft. Consider the choice of each form of money.

CASH

Small-denomination U.S. bills are highly desired by the peoples of countries with weak or undeveloped economies, soft currencies, high inflation and political instability or oppression. You can bargain for reduced rates on almost everything with your greenbacks. Dollars are also useful almost everywhere in the world to cover small expenses immediately upon entering a country, such as taxi and porters, but consider how thrilled you would be to accept a British pound in lieu of American currency as a tip. Savvy travelers often purchase from their banks small amounts of foreign currency in advance of departure to meet these entry expenses. Expensive but thoughtful.

U.S. cash is recognized and convertible to foreign currency abroad — but usually at exchange rates less attractive than those for travelers checks and with similar commission fees. Also, cash, if lost or stolen, cannot be replaced and is not protected by insurance carriers. Banks will offer the most favorable retail rate of exchange for dollars.

ATMS

Getting foreign currency through automated teller machines is the most costeffective and convenient means of supporting daily travel. The biggest advantage is the highly favorable wholesale rate of exchange, converted in amounts of $1 million or more at preferential interbank rates. Because of this, you will usually receive a conversion rate 2 percent to 5 percent better than exchanging at a money-change bureau or even at the bank's own counter.

ATMs can be accessed for instant cash, frequently 24 hours daily, by charge/credit cards and bank debit cards that belong to an ATM network. Before departure, review the terms and conditions and fees of using your cards. They will vary greatly and will affect your choice of which card to use. Ensure that your personal identification number is four digits only, as many foreign ATMs do not accept longer PINs and their keypads are numbered, not lettered.

Your bank card allows withdrawals from your primary bank account — usually checking — with an immediate debit registered and a per-use fee levied. Your charge/credit card processes a transaction as an instant cash advance loan and the issuing bank will likely impose a 3 percent fee plus substantial interest.

Bank debit cards issued in the U.S. normally work on either the vast Cirrus or Plus ATM networks, easily identified by their distinctive logos on cards and ATMs. There are two major networks used by American travelers abroad: Visa/Plus (www.visa.com/pd/atm), with 1 million locations in more than 160 countries worldwide and MasterCard-Diners Club/Cirrus (www.mastercard.com /card holderservices/atm), with more than 835,000 locations in 210 countries. American Express (www.americanexpress .com/expresscash) also is popular but with many fewer locations. If you don't have access to the Internet, call your bank or charge/credit card issuer before departure to obtain a listing of its ATM locations and toll-free locator numbers.

CHARGE/CREDIT CARDS

When the dollar is advancing against foreign currencies, using a charge/credit card for major purchases and expenses abroad can be a smart decision. The rate of exchange that applies is not the prevailing one at the time of transaction but the one when the bill arrives in the U.S. from the vendor and is processed through your card company. However, if the dollar has weakened during that time period, typically 10 to 60 days, the purchaser loses.

Advantages to a charge/credit card include the buyer-protection assurance offered by many cards, a wholesale currency conversion rate increased by only 1 percent and terms allowing payment in full of charges on billing statement, without interest, weeks and even months after the original purchase. Pluses include automatic credit for frequent-flier mileage if applicable, protection against unauthorized charges and fairly swift replacement. The most recognized charge card around the globe is American Express; the most widely accepted credit cards (with revolving payment terms) are MasterCard and Visa. The negative is that most card issuers now impose an additional 2 percent fee for foreign currency conversions. Check with your issuing bank to determine its additional fees when cards are used overseas. Even with these extra charges, using a card is a good deal — safer than cash and less costly than travelers checks.

TRAVELERS CHECKS

Although travelers checks are safe and replaceable, you are normally charged a 2 percent to 3 percent commission to purchase them and an average of 8 percent service fee when converting to foreign currency. These costs, often concealed in small print and overlooked by clients, can add up to a hefty bite out of your cash.

Converting checks at hotels and at airport money changers will cost you 3 percent to 8 percent or more above the usual exchange rate. Some exchange bureaus, particularly in Europe, levy a fixed charge per transaction, whether the conversion involves $10 or $100. Restaurants and stores may penalize you 10 percent for paying with travelers checks. Always investigate the exact fees, commissions and surcharges involved in your transaction. The best exchange rates and lowest fees are available through the check issuer's service office or a bank.

Bottom line? Most experts agree that using plastic is still the cheapest way to make purchases abroad, especially considering the hefty charges on travelers checks and money exchanges.

Irene Croft Jr. of Kailua, Kona, is a travel writer and 40-year veteran globetrotter. Her column is published in this section every other week.