Will prices really be different for cash and cards?
I think the question relates to the discussion here: http://clarkhoward.com/liveweb/shownotes/2010/10/05/19449/ It was always the case that merchants could discount purchases made with cash.  What wasn't allowed is allowing the merchant to charge extra for credit card transactions (presumably to cover the fees the merchants pay).  These fees usually carry a flat fee per transaction, plus around 2% of the purchase price.  What also wasn't allowed was them to refuse any credit transactions.  People could charge a pack of gum, even if the fees put that transaction in the red. What's allowed according to this new development is different levels of discounting for different credit cards. Somewhat related to this discussion is another development that happened this summer: merchants now have the ability to refuse credit card transactions of less than $10. Here's my feeling on all of this.  I think we'll see merchants imposing minimum credit transaction amounts before we see them monkeying at the 1-2% level on pricing for different types of credit cards.  My feeling is that they'd be wise not to change anything, even though they can.  Refusing transactions (or charging more for others) is going to come as a unpleasant shock to enough people that they may take their business elsewhere. There are many gas stations where I live that already have different prices if you pay for cash vs. credit.  In addition, some small businesses are doing this as well.  My wife bought a birthday cake from a bakery.  If you paid with cash, you saved 5%. I would say minimal price differences.  Stores will need to remain competative, and the difference (if any) will likely be to cover the cost of the transaction that Visa and other card companies charge them. My guess would be for small merchants there could be a small difference. For large merchants, the cash is also at a cost equivalent to the card fees. Check for my other answer at  How do credit card companies make profit?
"The rate for ""checks and transfers"" is set by each bank multiple times during the day based on the market. It is as opposed to the rate for ""cash/banknotes"", also set by each bank, and the ""representative rate"" (שער היציג) set by the Bank of Israel. These rates can be found on the websites of most banks. Here is Bank Hapoalim and Bank Leumi. The question is which bank's rate will be used. It might be the bank that issued your card, El Al's bank, or the credit card company (ie Poalim for Isracard or Leumi for CAL). You will need to call El Al to verify, but since these are market rates, they shouldn't be too different." If it's always the same person, you could open a joint account.  Then fees are avoided altogether.  How fast the funds are available depends on what you deposit.  Cash is immediate. "You can find lots of answers to this question by googling.  I found at least five pages about this in 30 seconds. Most of these pages seem to say that if you must convert cash, converting it in the destination country is probably better, because you are essentially buying a product (in this case, dollars), and it will cheaper where the supply is greater.  There are more dollars in the USA than there are in Portugal, so you may be able to get them cheaper there.  (Some of those pages mention caveats if you're trying to exchange some little-known currency, which people might not accept, but this isn't an issue if you're converting euros.) Some of those pages specifically recommend against airport currency exchanges; since they have a ""captive audience"" of people who want to convert money right away, they face less competition and may offer worse rates.  Of course, the downside of doing the exchange in the USA is that you'll be less familiar with where to do it.  I did find some people saying that, for this reason, it's better to do it in your own country where you can shop around at leisure to find the best rate.  That said, if you take your time shopping around, shifts in the underlying exchange rate in the interim could erase any savings you find. It's worth noting, though, that the main message from all these pages is the same: don't exchange cash at all if you can possibly avoid it.  Use a credit card or ATM card to do the exchange.  The exchange rate is usually better, and you also avoid the risks associated with carrying cash." They should not be able to tell the difference between a regular card and a secured card. The issue for a vendor is can they put a lock on the account equal to the transaction you are about to do. For a rental car company they don't have an exact idea of what your charges will be: it is based on many options some of which you don't decide until the day you return the car.   Because a secured card generally is on the small end (max measured in hundreds or at most $1,000) they might not be able to put a lock of sufficient size on the card. "One study found that, while people using gift certificates bought no more items than those who used cash, they tended to spend more per item. In ""Study 3"" the paper ""Monopoly money: The effect of payment coupling and form on spending behavior"", sets up a case where shoppers are given $50 in cash and $50 in gift certificates (the leftover of which can be exchanged for cash). They were asked to choose different brands and types of items to buy. They study found that There was no difference in the number of items purchased as a   function of payment form for scrip However means across all product categories show that   participants spent more per item when they were given [the gift certificate]" Credits are expensive, so it's a great advantage to pay in cash. Obviously, it's even more an advantage to pay in cash for a house or a car, of course if you can afford it. But, as annoying as it could be, there are some services, where you're out of option to pay in cash, or even to pay by bank transfer. One of the most prominent examples, Google Play (OK, as I've learned, there are prepaid cards. But Groundspeak, for example, has none.). With the further expansion of Internet and E-Economy there will be more cases like that, where paying in cash is no more an option. Booking of hotels or hostels is already mentioned. There are some that provide no other booking option that giving your credit card number. However, even if the do, for example bank transfer of, say, 20% as reservation fee, please note that international money transfer can be very expensive, and credit card is usually given only for security in case you don't come, and if you do come and pay in cash, no money is taken = no expensive fee for international money transfer and/or disadvantaging currency exchange rate. "The fee structures are different for PIN-based transactions versus ""credit"" style transactions. Usually there is a fixed fee (around $0.50) for PIN-based transactions and a varying fixed fee plus a percentage for credit transactions (something like $0.35 + 2.5%). There are also value limits for PIN-based transactions... I believe that you cannot exceed $400 in most places. The signature feature of credit transactions isn't there to protect you, it signifies your agreement to comply with the contract you and the credit card issuer, protecting the merchant from some types of chargeback. Some merchants waive the signature for low dollar value transactions to increase convenience and speed up the lines. All of your other questions are answered elsewhere on this site." If his ATM card is operational and (assuming it is Visa/Mastercard), he can use it at grocery stores and get cashback. Typically, there is no charge for this service. The percentage fee often depends on the type of card. Amex and rewards cards like aeroplan cards often charge 2.5-4% whereas cashback cards will charge less. That's why most places (specifically in Canada which is where I'm from) don't take Amex because they charge way too much. You know what? Pay cash, but ask for a discount. And something fairly hefty. Don't be afraid to bargain. The discount will be worth more than the interest you'd get on the same amount of money. And if the salesman doesn't give you a decent discount, ask to speak to the manager. And if that doesn't work, try another store. Good luck with it! I am a carsalesman. Lets get one thing straight, we are not allowed to give people a better deal just because they pay cash, regardless of what some people say. That can be seen a discrimination as not all people are fortunate enough to have cash available. if anything, finance is better for the dealership, as we get finance commission and the finance company DOES pay us the total amount immidiatly Essentially speaking, when you purchase goods worth $100 using your card, the store has to pay about $2 for the transaction to the company that operates that stores' credit card terminal.  If you withdraw cash from an ATM, you might be charged a fee for such a transaction. However, the ATM operator doesn't pay the credit processor such a transaction fee - thus, it is classified as a cash transaction.  Additionally, performing cash advances off a CC is a rather good indicator of a bad financial health of the user, which increase the risk of default, and in some institutions is a factor contributing to their internal creditworthiness assessment. The cost to the store is small. They may have to pay a slightly greater fee because the transaction is now bigger. They do need additional cash on hand. Even though the majority of transactions are electronic (credit/debit) or check, the local grocery store still seems to have significant cash on hand. This is seen as a customer service. If there is a 2% fee the $50 advance costs them $1 for the minority of customers that take advantage of it. After more than 10 years of doing this they have figured this into the cost of groceries. Of course the credit card company could also waive the fee to store. My credit card online statement does tell me how much cash back was received. The line says date, store, amount ($40.00 cash over and $123.45 purchases) $163.45 total. Therefore the credit card company knows that cash back was used. Your chief problem seems to be that you're mixing Visa (credit cards) and Step2 (a European Automated Clearing House). Credit cards are primarily an American concept, but do work worldwide especially in travel&tourism industry. The Credit Card companies are financial institutions themselves and operate similar to international banks They're typically acting as intermediaries between the customer's bank and the retailer's bank, so this works even if those two banks have no existing agreements.  This is expensive, though. Step2 is a cheaper European system which eliminates the middle man. It allows the consumer's bank to directly pay the retailer's bank. VISA is not a member of Step2. One other consideration is that by paying off your mortgage early versus, for example, investing that capital in a mutual fund is that you are reducing your net liquidity to some degree. That is, if you find yourself needing an emergency infusion of cash it is easier to sell a stock/fund than to sell your house or get a equity loan.  I suppose if you were planning to need a lot of cash to start a business or invest in real estate, then maybe it would make sense to keep your cash more liquid. However, in your situation I agree with Joe. Pay it off. It feels REALLY good to write that last check!