I think the best thing to use while in Europe (Spain etc) is a visa card. This is the one card that is widely used all over Europe, and most all shops accept visa, over other cards. If you are going to take travelers checks, you will most likely have to change them in the bank, or at the hotel exchange office, as most shops prefer cards.
Debit and credit are accepted. You could take some euro's, as in the market places, they ask for cash, if you want a bargain!( then you can barter) But, you can get cash off your card, in the local currency(euro's) from the bank machine, so don't feel you have to take a lot of cash. Visa is the way to go!
Happy holiday.
The easy way to avoid all the fees and charges associated with credit and debit cards is to carry cash euros. If you want to use travelers checks, have them denominated in euros to avoid bad exchange rates and get American Express checks which you can cash commission free at their offices. Changing money can be very expensive, unless you have cash.
If you're worried about security, carry a money belt.
The days of traveling abroad with travelers checks is over for me. If you are a planner and feel better with several types of money options, then take a few checks with you. Cash (which I never spent), my ATM card and no travelers checks.
The difficulty with these checks is when it comes time to cash them. I have received several emails from people who have gone to banks only to find that they don't cash them. In some cases they didn't even know what they are!
This makes the travelers check one of the most inconvenient forms of managing your money while traveling. And 99.9% of them support Visa/Plus, Cirrus, MAC and other popular systems. Itself if you have any doubts.
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