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

Traveler's checks are a safe way to carry currency when traveling overseas. They can be cashed in at most banks in most countries, and they never expire. However, they are impractical to use, as you have to carry around multiple cheques, fill them out beforehand, and get them signed during purchase. Additionally, they are less widely accepted these days, and there are handling, commission, and cashing-in fees.

In Vietnam, there is no information on whether traveler's checks are accepted. However, Vietnam has reopened its international borders and is accessible to incoming travelers without restrictions. The country has a tropical climate, and the culture is conservative. It is important to dress modestly when visiting religious or cultural places. Additionally, displaying open affection is rare in Southeast Asia, and it is not recommended for LGBTQ+ couples.

How do traveller's cheques work?

Traveller's cheques are paper documents that can be exchanged for local currency or used to buy goods and services abroad. They are typically used by people travelling in foreign countries and are considered a safe alternative to carrying cash. Traveller's cheques are purchased for set amounts and can be bought from banks, credit unions and travel-related service organisations. They are available in set denominations, such as $20 and $50.

Traveller's cheques feature unique serial numbers, which means they can be replaced if lost or stolen. They also operate via a dual signature system, which provides extra security and ensures that only the purchaser is able to use them. The first signature is made when purchasing the cheques, and the second signature is added when making purchases.

When using traveller's cheques, they can be exchanged for local currency at financial institutions or hotels. They can also be used like cash to pay for goods and services at participating merchants, such as hotels, restaurants and stores. However, it is important to note that there may be fewer merchants accepting traveller's cheques compared to the past. Fees may also apply when purchasing, exchanging or depositing unused traveller's cheques.

With the increasing popularity of credit cards and prepaid debit cards, traveller's cheques are not as common as they used to be. Modern alternatives, such as credit cards, prepaid cards and mobile wallets, may offer more convenience and benefits for travellers.

Where can you use them?

Traveler's checks are a form of payment issued by financial institutions. They are paper cheques, generally used by people when travelling to foreign countries. Traveler's checks can be purchased for set amounts and can be used to buy goods or services or be exchanged for cash.

The use of traveler's checks has decreased over the years due to the rising popularity of credit cards and prepaid debit cards. However, they can still be useful in certain situations. Here are some places where you can use traveler's checks in Vietnam:

• Banks: Major banks used to accept traveler's checks and provide cash in exchange. However, with the increasing use of credit and debit cards, it may be more difficult to find banks that accept traveler's checks. It is recommended to contact the banks in Vietnam beforehand to inquire about their policies.
• Hotels: Many hotels used to accept traveler's checks and provide cash or apply the amount directly to your hotel bill. It is advisable to contact the hotels in Vietnam beforehand to confirm if they still offer this service.
• Resorts: Similar to hotels, some resorts may accept traveler's checks and provide cash or apply the amount as payment for your stay. It is best to contact the resorts directly to inquire about their policies regarding traveler's checks.
• Retailers: In the past, some retailers used to accept traveler's checks as a form of payment. However, with the shift towards electronic payments, it is less common to find retailers that accept traveler's checks. It is recommended to inquire with specific retailers in Vietnam about their payment methods.
• Currency exchange offices: Currency exchange offices or bureaux de change are specialized businesses that deal with foreign currencies. They may accept traveler's checks and provide you with the local currency, Vietnamese Dong, in exchange. It is worth contacting or visiting these offices to inquire about their services.

It is important to note that traveler's checks may come with certain fees, such as purchase fees or fees for cashing them. Additionally, the availability and acceptance of traveler's checks may vary across different countries and regions. Therefore, it is always a good idea to contact the specific institutions or businesses beforehand to confirm if they accept traveler's checks and to understand their policies and procedures.

Are they a good idea?

Traveler's checks are paper documents that can be used as a traditional paper check or cash. They are intended to aid tourists and are typically used by people on vacation in foreign countries. They can be a good idea in some circumstances, but they also come with some disadvantages.

Pros of Traveler's Checks

• They keep your money safe. If something happens to your traveler's checks, they can usually be replaced within 24 hours.
• They don't expire. You can use them or redeem them at any time in the future.
• They protect your identity. Traveler's checks are not linked to your bank account or line of credit and do not contain personally identifiable information, eliminating the risk of identity theft.

Cons of Traveler's Checks

• They aren't as widely accepted as they once were. You may find that few shops or hotels accept traveler's checks as payment, especially outside major tourist regions.
• They can be hard to get. There are a limited number of issuers, and the paperwork involved in obtaining them can be time-consuming.
• You may have to pay a fee. Unless you're getting them from your bank, you'll likely have to pay a fee of 1% to 3% to purchase a traveler's check.

Alternatives to Traveler's Checks

• Prepaid travel card: You can load the card with money from your bank account and then use it like a debit card at an ATM or a credit card at stores and restaurants.
• Debit card: You can use your debit card to get local currency at ATMs and also to make purchases. However, watch out for fees, including out-of-network ATM fees and international ATM fees.
• Credit card: Credit cards can offer fraud protection and rewards, but there may be fees involved with using your card overseas, called foreign transaction fees.

How much do they cost?

The cost of traveller's cheques varies depending on the amount purchased, where you purchase them from, and whether you are a customer of the bank or not.

In general, traveller's cheques cost between 1-3% of the purchase amount. For example, purchasing traveller's cheques from a bank may be free for customers with certain accounts, whereas non-bank customers may be charged 1-3% of the purchase amount, or around $10-$30 per $1,000.

American Express offers traveller's cheques with a 2% service charge and a minimum order of $100-$250. Visa offers traveller's cheques with a service charge of between 1.5-2%.

What replaced them?

Traveler's checks have been largely replaced by credit cards and prepaid debit cards. These offer a more modern and convenient way to pay for things and access money while travelling.

Credit cards and prepaid debit cards are widely accepted, and credit cards also offer fraud protection. Prepaid cards are not linked to your bank account, so if your card is lost or stolen, nobody can drain your account.

However, there are still some benefits to traveller's checks. They can be replaced if lost or stolen, and they are widely accepted around the world.

Frequently asked questions