Money

Currency

The basic unit of currency is the koruna (plural, koruny) or crown, abbreviated Kc. Each koruna is divided into 100 haléru or hellers. At this writing, the koruna remains volatile after speculation in the currency forced the central bank to let it float in May 1997. In this guide, I quote the koruna at about $0.0476 in U.S. dollars: US$1 buys 21Kc, and UK£1 buys 42Kc. Even though the Czech Republic is now a member state of the European Union, it has not accepted the euro as its currency -- yet. That will be a long political process of negotiations, which may last another 5 years. You will see prices listed in euros in Prague's hotels and restaurants anyway, so European visitors can easily and quickly compare. At this writing, 1 euro buys 28.7Kc. These rates may vary substantially when you arrive, as the koruna often gyrates wildly in the open economy.

For up-to-the-minute currency conversion, go to www.xe.com/ucc.

Changing Money

You'll avoid lines at airport ATMs by exchanging at least some money -- just enough to cover airport incidentals and transportation to your hotel -- before you leave home (though don't expect the exchange rate to be ideal). You can exchange money at your local American Express or Thomas Cook office or at your bank. American Express also dispenses traveler's checks and foreign currency via www.americanexpress.com or tel. 800/807-6233, but they'll charge a $15 order fee and additional shipping costs.

In the Czech Republic, hundreds of new storefront shops provide exchange services; but, if possible, use credit cards or bank cards at ATMs. In both cases, rates are better and the commissions are lower. If you must exchange at a storefront shop, beware of fees, which can go as high as 10% of the transaction.

Chequepoint has outlets in heavily touristed areas and keeps long hours, sometimes all night, but their business practices are sometimes questionable. Central Prague locations are Zelezná 2, Václavské nám. 48 and 28. ríjna 13 (open 24 hr.).

If you can't use your credit card at an ATM, stick to larger banks to make your trades; there's usually a 1% to 3% commission. Komercní banka is the largest Czech commercial bank, with branches throughout the city and in most towns, and its ATMs are connected to the PLUS and Cirrus systems accepting Visa and MasterCard. Its main office is at Na Príkope 33, Praha 1 (tel. 222-432-111). The branches are usually open Monday to Friday from 8am to 6pm, but the ATMs are accessible 24 hours. Zivnostenská banka (UniCredit), Na Príkope 20, Praha 1 (tel. 224-121-111), has Prague's most beautiful bank lobby and is open Monday to Friday from 9am to 5pm; the change bureau, on the street level, is open Monday to Friday from 10am to 9pm and Saturday from 3 to 7pm. You can find Citibank locations at 28. ríjna 11, Praha 1, open Monday to Friday 8am to 8pm and Saturday 10am to 2pm (tel. 233-063-232); and at Rytírská 24, Praha 1, open Monday, Tuesday, and Thursday 9am to 6pm, Wednesday and Friday 9am to 5pm (tel. 233-062-355).

Tips: A Warning About Currency Trading -- Black-marketers who thrived during communism by trading the once-fixed soft currency on the street have all but vanished. Still, during violent rate fluctuations and shortages of major currencies, the urchins known as veksláci may pop up. Don't trade with them. They may rip you off on rates or give you bogus bank notes.

ATMs

The easiest and best way to get cash away from home is from an ATM. The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be 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. For international withdrawal fees, ask your bank.

You can use your credit card to receive cash advances at ATMs. Keep in mind that credit card companies protect themselves from theft by limiting maximum withdrawals outside their home country, so call your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Centrally located machines are in Old Town, at the bank Ceská sporitelna; at the corner of Rytírská and Havelský trh (between Wenceslas Sq. and Old Town Sq.); and at Komercní banka at Na Príkope 3-5 and 33 (as you exit the Mustek metro station and next to the Powder Tower). In Malá Strana, ATMs are on Mostecká, the small street linking Charles Bridge with Malostranské námestí.

Traveler's Checks

Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Given the fees you'll pay for ATM use at banks other than your own, however, you might be better off with traveler's checks if you're withdrawing money often.

You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7282; Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. AAA members can obtain Visa checks at a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378. MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you.

Foreign currency traveler's checks are useful if you're traveling to one country, or to the euro zone; they're accepted at locations where dollar checks may not be, such as bed-and-breakfasts, and they minimize the currency conversions you'll have to perform while you're on the go. American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks. You'll pay the rate of exchange at the time of your purchase (so it's a good idea to monitor the rate before you buy), and most companies charge a transaction fee per order (and a shipping fee if you order online).

If you do choose to carry traveler's checks, keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can also withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you don't know yours, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information.

Keep in mind that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or U.S. dollars). But credit cards still may be the smart way to go when you factor in things like exorbitant ATM fees and the higher exchange rates and service fees you'll pay with traveler's checks.

American Express, MasterCard, and Visa are widely accepted in central Prague, but shopkeepers outside the city center still seem mystified by plastic. The credit card companies bill at a favorable rate of exchange and save you money by eliminating commissions. You can get cash advances on your MasterCard, Visa, or American Express card from Komercní banka, at its main branch, Na Príkope 33, Praha 1 (tel. 222-432-111); or at almost any of its branches, which now have 24-hour ATMs.

The American Express branch at Václavské nám. 56, Praha 1, provides the lost/stolen card service on tel. 222-800-237.