Play your cards right to get best holiday cash deal

According to modern legend, growing numbers of sophisticated, wealthy Irish travellers are racking up thousands of airmiles and Louis Vuitton hand luggage sales in their quest to find the one inhabitable place on the globe that doesn't have a shamrock-themed pub lurking.

But even the comfortably-off enjoy bargain-hunting as something of a hobby - waiting for no-frills airlines to announce seat sales and thumbing through Lonely Planet guides for haggling tips.

The next step is to make sure that, once on holiday, you do not let the sun melt your brain and forget how to manage your daily cashflow without being ripped off by financial institutions or mugged by tourist-spotting thieves.

Play your cards right

Irish ATM cards can be used overseas at most holes-in-the-wall as long as either the Cirrus, Maestro, Link or Plus logos are displayed on the reverse.

Under cross-border regulations in place since July 2002, it must cost the same to make withdrawals in euro-zone countries as it would from an ATM in Ireland.

This means National Irish Bank (NIB) Freebank customers and those who qualify for free transaction banking at Ulster Bank and Permanent TSB pay nothing at all. Standard customers of the Republic's two biggest banks, AIB and Bank of Ireland, pay 20 cents and 28 cents per transaction respectively.

Outside the euro-zone, charges vary from 1 per cent to 3.5 per cent of the value of the transaction.

Withdrawals are subject to minimum fees, meaning tourists may be tempted to take out substantial wads of notes each time they visit an ATM. It makes little sense to withdraw just $50 a time if you're going to be charged a minimum of over €3 each time.

Shop around for cash

The euro has taken some of the fun but also a lot of the hassle and the expense out of travelling to the majority of our nearest neighbours, but venture outside to some more exotic locations - plus a few traditional package holiday hotspots - and the spectre of the bureau de change queue still awaits.

Fexco Bureau de Change says that the rise in Irish people travelling abroad has resulted in a dramatic increase in demand for ever more diverse currencies.

The loss of 10 currencies at the advent of the euro has helped currencies like the Maltese lira, the Thai baht and the Croatian kuna creep into the top 10 most popular currencies ordered at its outlets.

Most people order more than just small change for taxis, beach towels and key deposits, according to Fexco, changing an average of about €700 before they go.

The rates on offer won't vary too much, but they do vary. Traditionally, travellers who leave it to the last minute to convert their cash at airports and seaports risk getting a bad deal.

Outlets selling foreign currency are obliged to display clearly the rate of commission they charge.

The most common rate is 1 per cent; however, Fexco and Thomas Cook both charge 2 per cent. First Rate, the bureau de change group owned by Bank of Ireland, is more expensive again, selling notes at a commission rate of 2.25 per cent.

Remember bureaux de change only stock the most popular currencies on site and you may have to wait a couple of days before they get your order in.

Timing is everything

The foreign currency markets are constantly in flux, which is why you sometimes hear people enigmatically suggest that "now is a very bad time to be going to the US/the UK/Australia" and they're not talking about the weather at this time of year.

Few people will abandon their holiday plans on the whims of a currency's fortunes, yet a currency that is strong against the euro means travellers' spending power could be seriously curtailed.

A "weak" foreign currency will mean good rates, so it was a happy event for Irish people intending to brave US customs for their 2004 holiday that the dollar went through a mini-crisis at the start of the year and has yet to recover.

Savvy holidaymakers are increasingly ready to pounce on a good rate, it seems. According to Fexco, people are buying their US dollars now even if they do not plan to cross the Atlantic until later in the year.

Fexco describes this as "an emerging trend".

Avoid travellers' cheques

"Travellers' cheques are becoming a bit outdated," says Ms Anne Costelloe, director of Fexco Bureau de Change.

"Less than 5 per cent of our sales are travellers' cheques and I think that's the trend. For short-haul, long weekends to Prague, people just aren't bothering with travellers' cheques," she says.

Inside the euro zone, travellers' cheques are awkward, expensive and, given the new rules on ATM withdrawals, unnecessary. Outside the euro zone, they are a safe, but inconvenient back-up to your cash and plastic.

"If people are going on long-haul trips to Australia and backpacking around, they might take travellers' cheques," says Ms Costelloe.

"In the States, you can spend them like money, especially the American Express ones; you can walk into some shops and they will treat them like cash."

But almost everywhere else travellers will have to locate a bank or a bureau de change to change them back into cash.

Commission is charged when the cheques are bought and often when they are cashed in, although encashment commission can be avoided by cashing in Thomas Cook cheques at Thomas Cook outlets and American Express cheques at American Express outlets.

Flash your plastic

If you have not already got a credit card but you're planning your dream itinerary for a round-the-world trip, now is the time to apply for one.

Credit cards are a must for all independent travellers, who may find booking accommodation or transport in advance impossible without quoting a 16-digit number and expiry date.

If you cannot get approval for a credit card in your own right - for example, if you are a student with no income of your own - ask a family member if you can be a named person on their credit card account. This will also save on €40 Government stamp duty.

When you are using your credit card to make purchases outside the euro zone, you will be charged a non-euro-zone purchases fee.

Most credit card providers charge 1.75 per cent of the value of the transaction for this, except Ulster Bank, which charges 2 per cent, and MBNA-provided cards, which charge 2.65 per cent.

Load up your credit card

If you top up your credit card account it can be used abroad at ATMs without incurring penal cash advance fees.

Cash advance fees are usually 1.5 per cent of the value of the amount, or 2 per cent in the case of Ulster Bank credit cards. However, Ulster Bank has no minimum fee, while the others charge €1.90 - €2.54.

EBS, NIB and Permanent TSB do not charge cash advance fees on their credit cards. However neither NIB nor Permanent TSB (in common with MBNA, Tesco and Ulster Bank) offer any interest-free period on cash, meaning cardholders will be charged interest of 10.9-17.9 per cent from the second they grab their cash from the ATM.

Transferring money from your current account to your credit card account is one way to avoid these fees.

The only real advantage of using a loaded-up credit card over an ATM card is that if you do hold a credit card that offers a 56-day interest-free period on cash (AIB, American Express, Bank of Ireland, Barclays and EBS), you may be able to manage your cashflow better - in other words, by paying off some holiday costs the following month when your bank balance has been boosted by your next pay cheque.

Cardholders will still be charged a currency conversion fee, however.

You will also need to memorise your credit card PIN in order to withdraw cash.

Be safety conscious

This involves following some very basic and obvious rules that most of us already know. However, on occasion, we decide that we're adults now and we will take risks if that's what we feel like doing.

For example, leaving piles of cash stashed in a drawer in your apartment or hotel room rather than taking it to the beach makes little sense if it's a minimum-security complex with nosafety deposit boxes and windows that are easily prised open.

If you return to find the bulk of your holiday budget has gone AWOL, don't be surprised if your travel insurance provider says this counts as leaving your money unattended and fails to cough up.

If you are bringing travellers' cheques, make sure to keep the receipt showing the cheque numbers in a separate location than the cheques themselves.

The "dos and don'ts" of card safety are simple and effective if put into practice.

Firstly, don't reveal your PIN to anyone and don't write your PIN down on a piece of paper that you keep in your wallet next to the card.

Do make sure you know the numbers you need to dial for cancelling lost or stolen cards. If you discover a loss or theft, report it immediately, as otherwise you could be liable for any fraudulent transactions.

Do check your bank and card statements when you get home.

But remember, if your current account balance seems to have dipped alarmingly low while your credit card bill seems extraordinarily high, it might not necessarily have been the work of international fraudsters.

Sometimes we can overspend all by ourselves without any help from unauthorised parties.

Welcome to the post-holiday comedown.