If you are going to be away from urban or tourist centres or shopping in local markets and stalls, cash is a necessity - preferably in small denominations of local currency.

In countries that do not have the euro as their official currency, you will find that your euros will not be accepted; the same applies to British pounds and Canadian dollars, at least outside of major tourist hotels and restaurants.

As a general rule, US travellers' cheques are accepted in resorts - those issued by Visa are best, although in countries where the euro is used (Martinique, Guadeloupe, Curaçao, Saba, St Barts, St Martin/St Maarten and St Eustatius) you might be better off using cheques in euro denominations. Outside of hotels you may have trouble cashing any cheques at all, as they have become an obsolete method of payment.

If you are in doubt, though, or simply want some peace of mind, you can generally cash travellers' cheques in bureaux de change in city centres and airports, as well as in resorts. Remember, though, that unless you are willing to seek out an exchange office every day, you will still end up carrying a fair amount of cash on your person once you have cashed the cheques.

The usual fee for travellers' cheque sales is one or two percent, though this fee may be waived if you buy the cheques through your bank. It pays to get a range of denominations so that you're not stuck with more cash than you need. Some outlets offer better rates for cheques than for cash and most charge a commission. Keep the purchase agreement and a record of cheque serial numbers safe and separate from the cheques themselves. In the event that they're lost or stolen, you'll need to report the loss to the issuing company; refer to the list of phone numbers provided with the cheques; most companies claim to replace lost or stolen cheques within 24 hours