Traveler's Checks: Are They Still Useful In Canada?

Traveler's checks are a secure and convenient way to carry money while traveling. They are issued by select banks and can be cashed or redeemed overseas with eligible banks or merchants. While they are not as common as they once were, traveler's checks are still a credible option for some people, especially those headed to less-developed areas where ATMs and credit cards are not widely accepted. In Canada, traveler's checks can be cashed at major banks, currency exchange offices, and some hotels or tourist information centers. However, it is always recommended to call ahead and verify that the establishment accepts them.

Where to get travellers cheques in Canada

Traveller's cheques are a safe, cashless method of payment that can save you from the stress and risk of carrying large amounts of money while travelling. They are printed cheques that allow payment from one person to another across currencies. You can get traveller's cheques in Canada from financial institutions like American Express or Visa. Some local banks also offer traveller's cheques, but most of them scrapped the service a long time ago.

American Express

American Express Travellers Cheques are no longer sold in Canada as of 31 August 2018. If you have any outstanding American Express travellers cheques, you can visit their travellers cheque website or contact +1-800-221-7282.

Visa

Visa offers travellers cheques that provide convenience and security while you travel. If your cheques are lost or stolen, they can be replaced or refunded subject to certain terms and conditions. You can contact Visa about travellers cheques by calling their toll-free number: 1-800-645-6556.

Local Banks

Some local banks in Canada may still offer traveller's cheques. However, it is recommended that you contact your bank directly to inquire about the availability of this service, as most banks have discontinued offering traveller's cheques.

How to get a good exchange rate

• Using your debit card at an overseas ATM is a convenient way to exchange money. Your card provider will automatically convert your CAD to the local currency. If the ATM gives you the option of paying in Canadian dollars, avoid this so-called "dynamic currency conversion" as it will come with a big exchange rate markup. Choose to pay with the local currency instead.
• Know the foreign transaction fee on your card, or consider a debit card with no foreign transaction fees.
• Check the fine print to find out the fee for using an ATM outside your bank's network, the currency conversion rate, and whether there are any daily or transaction limits on how much you can withdraw.
• Online money transfer services and currency exchange providers offer plenty of options for travellers who want to get the best exchange rate. For example, you can send an international transfer to your overseas bank account or mobile wallet, or collect the cash in person from a branch when you reach your destination.
• Apps like Wise are also worth considering. The Wise Travel Card lets you hold more than 40 currencies, make withdrawals at three million ATMs in 175 countries, and get the mid-market rate when you exchange currencies.
• Many credit cards charge foreign transaction fees of 2-3%, so using a card with no foreign transaction fees can lead to big savings.
• When using your credit card in a store or restaurant, choose to pay in local currency to avoid extra fees.
• If you need cash before you leave Canada, you can buy foreign currency from your financial institution over the phone or online. Exchange rates at banks are slightly better than elsewhere.
• If you need cash in an emergency, there are foreign exchange desks at airports and hotels, but fees tend to be very high.

Security measures and safety tips

Traveler's checks are a secure way to carry money while traveling abroad. They are prepaid checks available in major currencies, such as US dollars, euros, or British pounds, and can be purchased from banks, travel agencies, or companies like American Express and Visa. Here are some security measures and safety tips to keep in mind when using traveler's checks:

• Keep Them Safe: Treat your traveler's checks like cash and keep them in a secure place, such as a money belt or a hotel safe.
• Separate the Checks from the Receipt: When you buy traveler's checks, you need to sign each check in front of the issuer and keep the receipt separately. The receipt includes important information such as check numbers and a toll-free number to call in case of loss or theft.
• Sign the Checks Only When Using Them: Do not countersign the checks until you want to use them. When you want to use a traveler's check, sign the check at the bottom in the presence of the person accepting it.
• Keep a Record of Check Numbers and Emergency Contacts: Write down the check serial numbers and emergency contact numbers for your destinations, and keep this information separate from your checks.
• Report Loss or Theft Immediately: If your checks are lost or stolen, notify the police and contact the issuing bank immediately. They can be replaced or refunded, subject to certain terms and conditions.
• Be Wary of Scams: Do not accept traveler's checks from unknown third parties or unsolicited sources. Report their receipt to the police immediately.
• Do Not Encash Checks for Unknown Third Parties: This could be a scam, and you may be held liable if the checks are fraudulent.
• Use Them Only as Intended: Do not use the checks for any illegal or prohibited activities.
• Be Aware of Limitations: Traveler's checks might not be accepted everywhere, especially with the rising popularity of credit and debit cards. Before your trip, research the places you plan to visit and the payment methods they accept.
• Carry Alternative Payment Methods: Always carry an alternative form of payment, such as a credit card or cash, in case traveler's checks are not accepted.
• Be Prepared for Fees: Cashing traveler's checks might incur fees, especially at currency exchange offices or hotels. Research the fees charged by different institutions before your trip.
• Verify the Transaction: When cashing a traveler's check, remember to sign each check in front of the person accepting it and keep the receipt and any unused checks in a safe place. Verify the transaction receipt to ensure the amount and currency received match your expectations.
• Keep Your Cash Secure: After cashing your traveler's checks, store the cash securely, such as in a travel pouch or wallet with anti-theft features.
• Choose Reputable Institutions: Some banks might refuse to cash checks from lesser-known issuers. It is advisable to carry traveler's checks from reputable institutions.

How to cash travellers cheques in Canada

Traveller's cheques are no longer sold in Canada as of August 31st, 2018. However, if you have outstanding traveller's cheques, you can visit the American Express Traveller's Cheque website or contact their toll-free number in Canada at 1-800-221-7282.

If you have Visa traveller's cheques, you can contact the issuing bank or Visa directly to see if they will convert it to a Canadian cheque in your name.

If you are looking to exchange your Canadian money for a different currency, you can do so at foreign exchange desks at airports and hotels, although fees tend to be very high. You can also order foreign currency from your financial institution over the phone or online, or from a number of websites that will ship it to your home within a few days.

Pros and cons of travellers cheques

Traveller's cheques are a medium of exchange that can be used in place of hard currency when travelling abroad. They are available in several currencies, such as US dollars, Canadian dollars, pounds sterling, Japanese yen, Chinese yuan and euros, and are pre-printed, fixed-amount cheques.

Pros of Traveller's Cheques:

• They are insured against theft and loss. If a traveller loses a cheque, the original bank can cancel it and issue a replacement, usually within 24 hours.
• They are easy to cancel or replace. If your wallet is stolen, you can receive replacement cheques as long as you have the serial numbers of the missing ones.
• They are indirectly accepted everywhere. You can convert your cheque into cash, and then have enough local currency to buy whatever you need.
• They may carry lower fees than credit cards.
• They do not expire, so whatever amount you don't use can be exchanged for US dollars at your local bank when you return home.
• They are safe and allow you to carry a large amount of money while travelling.
• They can get a refund after you lose and report the issue to your issuer.
• They are branded and offered by major financial institutions such as American Express and Visa, which means they are readily acceptable globally.
• They can sometimes access better conversion rates.

Cons of Traveller's Cheques:

• They have become outdated and most hotels, banks and individuals will decline them.
• They are not accepted everywhere. Many smaller towns may not have services that can convert cheques into money.
• It can be challenging to keep track of all the serial numbers of each cheque in the event that you need to cancel or replace them.
• They typically carry less competitive exchange rates than what credit cards offer.
• They are not ideal in all circumstances.
• It may be hard to determine the best amount for each stop, so consider requesting traveller's cheques in the smallest denominations possible.

Frequently asked questions