When requested, an explanation of the service, details of the exchange rate and an explanation of the charges on foreign transactions will be made available. The exchange rates applied upon conversion to a foreign currency and the corresponding charges are provided for to reflect the requirements of the Cross-Border Credit Transfer. In making cross-border payments where a number of agent banks are necessarily involved, customers are warned on the delay and the differing exchange rates applicable to credit and cheque payments.
Likewise, in foreign cheques, there is always an estimated time for negotiation which usually takes longer especially if the cheque is sent by post which should accompany the acknowledgement or receipt. Deposits with banks are normally covered by their home country even if the deposit transactions are made in the UK branch. However such banks can electively chose to use the UK scheme of protection if they wish.
In the use of traveler’s cheques which is easier and more universal to use and obtain and make payments at the same time acquire foreign cash such as American or Canadian usually involves a total cost of 1% of the total amount. This is payable when you purchase the traveler’s cheques. There is no commission charge for using traveler’s cheques as cash in retail outlets and motels provided that the traveler’s cheques are in the appropriate currency for each country. Reasonable amounts of change are always given by the retail outlets and can be used also to obtain cash.
Traveler’s checks are thereby handled like cash disbursement and should be treated with care. Cancellations should be done immediately upon notice of loss to prevent negotiation of the traveler’s cheque. Using a credit card and ATM’s cards (automatic teller machines) to obtain cash in the other countries like the USA or Canada could involve a total cost of up to 4. 75% of the amount for visitors from Britain and Ireland. Debits cards though attract a lower charge of 2%.