Money

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

ATMs

Nationwide, the easiest and best way to get cash away from home is from an ATM (automated teller machine), sometimes referred to as a "cash machine" or "cashpoint." ATMs are everywhere in Hawaii -- at banks, supermarkets, Long's Drugs, and Honolulu International Airport, and in some resorts and shopping centers. The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the country; you can find them even in remote regions. Go to your bank card's website to find ATM locations at your destination. Be sure you know your daily withdrawal limit before you depart.

Note: Many banks impose a fee every time you use a card at another bank's ATM, and that fee is often higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. Visitors from outside the U.S. should also find out whether their bank assesses a 1% to 3% fee on charges incurred abroad.

Credit Cards & Debit Cards

Credit cards are the most widely used form of payment in the United States: Visa (Barclaycard in Britain), MasterCard (EuroCard in Europe, Access in Britain, Chargex in Canada), American Express, Diners Club, and Discover. They also provide a convenient record of all your expenses and offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, but high fees make credit card cash advances a pricey way to get cash.

It's highly recommended that you travel with at least one major credit card. You must have a credit card to rent a car, and hotels and airlines usually require a credit card imprint as a deposit against expenses.

ATM cards with major credit card backing, known as "debit cards," are now a commonly acceptable form of payment in most stores and restaurants. Debit cards draw money directly from your checking account. Some stores enable you to receive cash back on your debit card purchases as well. The same is true at most U.S. post offices.

Traveler's Checks

Though credit cards and debit cards are more often used, traveler's checks are still widely accepted in the U.S. Foreign visitors should make sure that traveler's checks are denominated in U.S. dollars; foreign-currency checks are often difficult to exchange.

You can buy traveler's checks at most banks. Most are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233; tel. 800/221-7282 for card holders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee.); Visa (tel. 800/732-1322 -- AAA members can obtain Visa checks for a $9.95 fee for checks up to $1,500 at most AAA offices or by calling tel. 866/339-3378); and MasterCard (tel. 800/223-9920).

Be sure to keep a copy of the traveler's checks serial numbers separate from your checks in case they are stolen or lost. You'll get a refund faster if you know the numbers.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit ($300), sets a maximum balance ($2,750), and has a one-time issuance fee of $14.95. You can withdraw money from an ATM ($2.50 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.

Why Oahu Is More Expensive

No, it's not your imagination -- Oahu is more expensive than the other islands. That's the result of the Hawaii State Legislature passing a bill allowing the City and County of Honolulu (which is the entire island of Oahu) to add an additional .05% tax on to the state general excise tax of 4%. Everything you buy on Oahu will have this tax, and so will your hotel bill. The funds from this additional tax are earmarked for mass transit for Oahu.