Best Places To Exchange Traveler's Checks

Traveler's checks are paper documents that can be used as a form of payment when travelling, especially in foreign countries. They are typically used as an alternative to hard currency and can be exchanged for local currency or used to purchase goods and services. Traveler's checks are usually obtained from banks or financial institutions and are available in set denominations. They are a safe option for travellers as they can be easily replaced if lost or stolen. However, with the increasing popularity of credit and debit cards, traveler's checks have become less common and may not be accepted by all merchants. When deciding where to exchange traveler's checks, it is important to consider the associated fees, exchange rates, and the availability of locations that accept them.

Where to buy traveller's cheques

Traveller's cheques are becoming less common, and many banks no longer offer them. However, they can still be purchased from some banks, credit unions, travel agencies and companies such as American Express, Visa and AAA.

In the US, they are available from American Express locations and the American Express website (account required), as well as Citibank and several other banks for Visa cheques.

Traveller's cheques are also available from Lloyds Bank in the UK, and Travelex offers encashment services for its cheques.

How to cash traveller's cheques

Traveller's cheques are becoming less common, but they can still be cashed in certain places. Here's how to cash them:

• Sign the cheques: Follow the issuer's instructions on where to sign, and remember to only sign once.
• Keep a record: Keep evidence of your traveller's cheque purchase in a safe place. In the event that the cheques are lost or stolen, you will need to provide proof of purchase along with the cheque numbers to get a refund.
• Complete the payee and date fields: Once you have confirmed that the payee or bank will accept traveller's cheques, fill out the relevant fields.
• Sign the cheque again: You will need to sign the cheque again in front of the merchant to ensure that the signature matches the original. You may also need to show identification.
• Contact the issuer if the cheques are lost or stolen: If your traveller's cheques are lost or stolen, contact the issuer immediately. They may be able to provide replacement cheques, and they will need to know which cheques to cancel.
• Cashing options: There are several options for cashing traveller's cheques:

• Your local post office: They may charge a poor exchange rate and fees, but this is usually a quick and simple solution. Remember to take your proof of identification, such as a driver's licence or passport.
• Your local bank: Some banks allow account holders to deposit traveller's cheques into their personal bank accounts. Again, you will need to present photographic ID.
• Hotels: Hotels often accept traveller's cheques and can provide this service to guests at no additional charge.
• Online redemption: Some issuers, such as American Express, provide a service to redeem traveller's cheques online and deposit the funds into your bank account.
• Encashment forms: If your traveller's cheques are issued by certain companies, such as Travelex or Thomas Cook, you may need to complete an encashment form and provide proof of identification.

It is recommended to contact the issuer of your traveller's cheques directly for guidance on how to redeem them.

Pros and cons of traveller's cheques

Traveller's cheques are a medium of exchange designed for the express purpose of foreign travel. They are typically paper documents that can be exchanged for local currency or used to buy goods and services abroad. They are available in set denominations, usually $20-$50, and can be purchased from companies like American Express, Visa, and AAA.

Pros of traveller's cheques:

• They are easy to carry.
• They typically don't expire, so you can save them for future use or exchange them for your local currency when you return home.
• They can be replaced if lost or stolen, as long as you have the serial numbers of the missing cheques.
• They are indirectly accepted everywhere. They can be exchanged for cash, which can then be used to buy whatever you need.
• They may carry lower fees than credit cards.

Cons of traveller's cheques:

• They may be harder to find and are no longer widely accepted. In much of Europe and Asia, traveller's cheques cannot be easily cashed, even at the banks that issued them.
• They might be costly. There may be fees to purchase and exchange them, and they typically carry less competitive exchange rates than what credit cards offer.
• They are inconvenient. You must keep track of all the serial numbers in case you need to cancel or replace them, and you must have the physical cheque to use it.
• They may not be accepted everywhere, and even if they are, you might have to queue at a local bank or bureau de change to have them exchanged.

Where to exchange traveller's cheques:

If you want to exchange your traveller's cheques for cash, some hotels, resorts, and currency traders will do this for local currency. Many banks will also deposit them into your account, and American Express provides a service to redeem traveller's cheques that they issue online.

Alternatives to traveller's cheques

While traveller's cheques were once the standard way to carry money when travelling internationally, they are now rarely used. There are now many alternatives to traveller's cheques that you may find more convenient. Here are some options to consider:

• Credit cards are a good choice for large purchases such as plane tickets or hotel reservations. They can also be useful for making online bookings. Some credit cards offer benefits such as protection from unauthorised charges and the ability to track your purchases through a mobile app. It is important to be aware of foreign transaction fees, which can vary between 1-3% of your purchase.
• Debit cards are useful if you are visiting a country that favours cash transactions. You can use a debit card at an ATM to withdraw cash in the local currency once you arrive at your destination. As with credit cards, you should check for foreign transaction fees and ATM fees.
• Prepaid cards are similar to debit cards, but they are not linked to your bank account. This means that if your prepaid card is lost or stolen, your bank account cannot be drained. You can load money onto a prepaid card before your trip and use it in place of a credit or debit card. However, prepaid cards can be expensive, with fees for activation, cash withdrawals, and international exchange.
• Mobile wallets are a digital version of your physical wallet, allowing you to make quick and easy payments using your phone or mobile device. Mobile wallets typically use advanced technology to prevent your actual account numbers from being stored.

History of traveller's cheques

Traveller's cheques were first issued on 1 January 1772 by the London Credit Exchange Company for use in 90 European cities. However, the product gained widespread popularity in 1891 when American Express developed a large-scale international traveller's cheque system. This was in response to an incident where the company's president, James C. Fargo, was unable to get his cheques cashed during a trip to Europe. An employee, Marcellus F. Berry, believed that the solution was a cheque with the signature of the bearer, and thus the traveller's cheque was born.

Traveller's cheques became one of the main ways that people took money on holiday, particularly in foreign countries, from the 1850s to the 1990s. They were generally used as an alternative to carrying large amounts of cash and were available in smaller denominations for travellers of more modest means. They were also a safeguard in countries with fluctuating exchange rates and, unlike cash, could be replaced if lost or stolen.

However, since the 1990s, their use has been in decline due to the rise of more convenient alternatives such as credit and debit cards, and the wider availability of ATMs. Traveller's cheques are now harder to cash, even at the banks that issued them, and many businesses no longer accept them due to security concerns. As a result, they have become less attractive to travellers. American Express stopped issuing new traveller's cheques, although existing ones remain valid and can be redeemed.

Frequently asked questions