Several cash options needed when heading for winter sun

Getting away from this year's grey, wet Irish winter is proving irresistible. Tour operators say late December and early January flights are nearly fully booked with only a few seats left to the most popular destinations over the Christmas holiday period. Whatever about finding bargains, let alone full-price destinations, anyone travelling to popular European sun or snow resorts up to December 31st will still need to keep in mind that purchases within the EU will only be available in the currency of that country. The start of the switch-over to the euro begins on January 1st, 1999, when a limited number of non-cash transactions will be able to be conducted in the euro, but mainly between businesses. Bank sources say that while credit card purchases should theoretically be possible with the euro (especially if you have a euro-denominated card), it will take some time before all but the largest retailers provide dual pricing of goods and the in-store technology to process the transaction. A spokesman for Bank of Ireland advises customers who open new euro accounts and who want to pay for hotel bills, airline tickets, car rental etc to make sure they can b e accommodated before they go on holiday.

Since it may be some time before we are all spending euros in France, Spain or Italy on holiday (the deadline for the full introduction of the new currency is January 1st, 2002), anyone going abroad this winter will still need to consider all the associated currency methods and costs. Taking cash with you is advisable, but too much puts it at greater risk of loss or theft, and too little could find you shorthanded in an emergency - which can include landing in France or Italy on a bank or national holiday when banks and many shops are closed. The equivalent of a couple of hundred pounds is probably sufficient for most families to see them into the first few days of a holiday and to cover unexpected emergencies.

Once checked in at the beachfront hotel or apartment in Tenerife or Tunis, or at the chalet in Zoll or Zermatt, you will hopefully have brought one or a combination of the following money options: traveller's cheques, ATM card, credit card and Eurocheques.

It is especially important to bring traveller's cheques or credit cards to closed currency destinations - of which popular Tunisia, Morocco and Turkey are included.

The advent of the euro is going to make the unpopular Eurocheque and card redundant. The idea was a good one - you simply wrote out a cheque in the currency of the state and with the accompanying card as proof of identity, the bill was paid or the cash secured from the local bank. But various factors counted against them. The credit limit on the cheques - the equivalent of about £140 - was found to be insufficient. Then there was the cost - a minimum of 1.6 per cent of the value plus £1 per cheque, regardless of its value. Many retailers and banks in France and Italy refused to cash them, insisting you used your card at an ATM (only if you remembered to bring the PIN number). As one bank source put it: "they were a source of huge annoyance to a lot of people". The arrival of the Cirrus and Plus signs on international ATM machines means you can withdraw funds directly from your current account in the currency of the country you are visiting - without needing a new PIN. The service is worldwide.

This facility also means you don't have to withdraw cash with a credit card - an expensive transaction at the best of times since interest is charged immediately and you still must pay exchange transaction fees and commissions. The Visa Travel Money card, an electronic purse card, is a travel version of the Cirrus and Plus service in that you fill up the card before you go and can withdraw funds from ATMs in your holiday destination. The card is issued in dollars, sterling or from next January in euros and while it is cheaper to withdraw funds with the card rather than by credit card, if you have an ATM card it may be a little superfluous.

Credit cards still rank high for usefulness and convenience when abroad since they are so widely accepted and can be replaced quickly if lost or stolen. You will rarely need to produce any other ID to use them either.

The same applies to traveller's cheques, but to avoid poor foreign exchange rates at bureaux de change you should try and buy your cheques in the local currency. If in doubt, buy US dollar cheques. The well known and popular European sun and snow resorts are well equipped with ATM machines and most retailers and restaurants will accept credit cards - though usage is lower in Germany and Austria, for example. Don't expect wide credit card acceptance on tiny Greek islands either.

Some popular non-European sun destinations like Tunisia and Morocco have "closed" currencies and you will not be able to withdraw money using your ATM card or, in many cases, with your credit card. Your punts, pounds, dollars etc are convertible at hotels and banks, but you will only be able to re-convert a proportion of the local currency when you leave, so only convert smaller amounts as you need it. It may be easier to rely on your credit card for many purchases. International telecom cards may not be usable in these countries either. Security is something you always need to be conscious of, whatever the holiday destination.

The most common safety tips are: don't leave your cards, cash unattended, not even for a moment on the beach or in a restaurant or shop; don't let your cards out of your sight; always request that the "black" be destroyed if the retailer is still using the old-fashioned metal credit card machine; don't give your number out over the telephone or on an Internet site that isn't absolutely secure; if your cards or traveller's cheques are lost or stolen cancel them quickly or you may be liable for a portion or all of any illegal purchases; always keep the numbers of your traveller's cheques separate from the cheques so that you can cancel them if they are lost or stolen; always keep your passport in a separate wallet from traveller's cheques or Eurocheques and cards.