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Traveler’s checks: Are they still used today?
4 alternatives that are widely accepted around the world.
If you’re planning a trip, you might have thought about using traveler’s checks while on your adventure. These are checks that you purchase at the bank and use like cash.
Once you’ve purchased traveler’s checks, you sign them. You can exchange the checks for cash at merchants that accept them, but you need to provide ID and match the signature. Unlike cash or personal checks, if you lose a traveler’s check, the issuer can cancel uncashed checks and issue you new ones.
Today you have fewer opportunities to use traveler’s checks: They’re no longer widely accepted at stores and hotels either in the US or worldwide. Still, they could be helpful in a few specific situations.
Using and buying traveler’s checks
Years ago, many businesses accepted traveler’s checks — and they were as good as cash.
That’s not true these days: Take a traveler’s check to a store, and you’ll probably get a puzzled look. Their acceptance is declining, bowing to newer, more convenient options like credit and debit cards. Worse, many banks won’t even accept them.
If you take traveler’s checks on a trip, don’t plan on using them as currency. And know exactly where you’ll cash them once you get to your destination.
If you haven’t used your traveler’s check by the end of your trip, you can exchange it at a participating bank in your home country. You can also donate it or save it for your next trip.
Where to get a traveler’s check
Over the years, many consumers have had difficulty using and cashing traveler’s checks. Now, many banks — including giants like Chase, Wells Fargo and Bank of America — no longer offer traveler’s checks.
But traveler’s checks aren’t yet obsolete. You can still find them from such companies as American Express, AAA and Visa. Typically, when buying them, you’ll pay a 1% to 2% fee on the amount of your checks.
How to buy a traveler’s check
Go to a bank or visit the website of a traveler’s check issuer.
Select the amount of currency to purchase. If you’re buying a foreign currency, check the exchange rate.
Submit payment to the issuing bank or company.
Pay any applicable fees
Make a note of the serial numbers on your traveler’s checks, and sign each one.
How to cash a traveler’s check
Go to a bank or currency exchange that accepts traveler’s checks.
Countersign your check in front of the clerk. Usually, the signature line is the lower right corner of the check.
Show your photo ID to the clerk.
Receive your cash.
3 ways traveler’s checks are useful
Traveler’s checks aren’t as popular as they once were. However, you’ll find a instances where it might be helpful to carry them.
1. You’re going to a place where there aren’t many ATMs
One reason traveler’s checks aren’t used much anymore is because ATMs are widespread. Instead of walking into a bank to exchange a check, you can insert your card and get cash in seconds.
Of course, that’s an issue if you’re going somewhere that doesn’t have many ATMs. In that case, traveler’s checks could be useful. Just make sure there’s a bank or currency exchange that will cash your checks.
2. Safety is a big concern.
If you’re worried about credit card fraud, using plastic can be an unsavory option. For example, you may be worried that ATMs are tampered with or not affiliated with a bank.
traveler’s checks may make you less susceptible to fraud. To cash your check, you must produce a signature that matches the one you used when you got the check. This makes it extremely likely that the person cashing your check will be you — and you only.
3. You want a fallback option.
If nothing else, traveler’s checks can be useful backup. If you happen to lose your cards or your money is stolen, you can cash a check.
3 things to do if your traveler’s check is lost or stolen
If you lose your traveler’s check or they’re stolen, you’re not out of luck. As long as you comply with your issuer’s terms, your traveler’s check will be replaced.
Here’s what to do: 1. Call the customer service phone number provided by your issuer. 2. Provide proof that the check is yours — submit the check number, proof of purchase and your identification. 3. If required by your issuer, report your stolen check to the police along with evidence.
After you’ve reported your missing check, your provider will void it and issue you a new check.
4 alternatives to traveler’s checks
Today, these options are considered to be superior to travelers checks when exploring abroad:
1. Credit cards
Credit cards can be incredibly convenient if they’re widely accepted at your destination.
Though they’re useful for purchases, credit cards are almost always poor options at ATMs. Most of them have cash advance fees and charge higher APRs for cash withdrawals.
Our pick for a travel credit card American Express® Gold Card
Rose Gold is back. You can now choose between Gold or Rose Gold.
Earn 60,000 Membership Rewards® Points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
Earn 4X Membership Rewards® Points at Restaurants, including takeout and delivery, and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
$120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
Get up to 12 complimentary months of an Uber Eats Pass subscription when you enroll with your Gold Card by 12/31/21.
Debit cards are just as convenient as credit cards, and they don’t have cash advance interest. However, they usually have foreign transaction fees. Many card providers also charge you a fee if you use an out-of-network ATM.
Fortunately, you can apply for debit card services that are light on fees:
The Charles Schwab High-Yield Investor Checking Account charges no foreign transaction or ATM fees. If you’re assessed a fee at an out-of-network ATM, Charles Schwab reimburses you.
Capital One 360 charges no foreign transaction or ATM fees. However, it won’t reimburse you if an ATM company charges a fee.
Discover Cashback Checking charges no fees when you use an Allpoint or MoneyPass ATM. It also comes with no foreign transaction fees. However, you won’t be reimbursed if an ATM company charges a fee.
A prepaid travel card is a card that you load money onto ahead of time. Otherwise, it functions similar to a debit card. Many of these cards have activation fees and cash withdrawal, but most come with fraud protection that can help protect you if the card is stolen.
We like prepaid cards because you’ll be able to lock an exchange rate in ahead of time, so you know exactly how much your US dollars will be worth after touching down. Also, this payment method is widely accepted around the globe. For example, the Mastercard Prepaid Travel Card, is accepted anywhere that accepts Mastercard.
The best way to get foreign currency is to exchange US dollars for whatever you need via your local bank or credit union, since exchange rates are reasonable and fees are low. But you can also withdraw cash from an ATM with a travel debit card.
Kevin Joey Chen is a credit cards, banking and investments writer whose work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com. He's passionate about helping you get your finances in order by expertly navigating cutting-edge financial tools — including credit cards, apps and budgeting software.
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Thanks for getting in touch with finder. I hope all is well with you. :)
To encash your traveler’s check, you would need to find a bank or currency exchange that accepts your check. Once you found one, you need to present your check, present valid ID and sign the needed document.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
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Hey, I have traveler’s cheque issued by Thomas Cook Agency, how can I withdraw it?
Hi Ivan,
Thanks for getting in touch with finder. I hope all is well with you. :)
To encash your traveler’s check, you would need to find a bank or currency exchange that accepts your check. Once you found one, you need to present your check, present valid ID and sign the needed document.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua