Why buy travellers cheques?
When is the best time to use traveller's cheques?
Travellerís cheques are used less commonly these days than they were in the past. However, people often find them useful when going abroad to more remote locations where ATMs and credit card machines are likely to be scarce. The advantage of travellerís checks is their security. If your travellerís cheques are stolen they can be replaced by the issuer.
Who provides traveller's cheques?
Almost all credit card companies and banks have their own brand of travellerís cheques but that does not mean that every brand will be acceptable to merchants in the countries you are travelling to. There is the advantage of safety in that travellerís cheques can often be replaced as quickly as the following day. Not only that but only the person with their name on the travellerís cheques cash them so they are useless to thieves.
How convenient are travellerís cheques?
However, if you want to cash travellerís cheques abroad it is likely that you will need to find a bank to carry out this sort of transaction. This can be problematic if you are in a remote location. These days many people consider travellerís cheques a hassle because of the convenience of credit cards and international currency cards which while being secure can also provide a list of itemised transactions which can be very useful.
There are fees and charges associated with travellerís cheques
There is often a fee for purchasing travellerís cheques and sometimes there are charges from the merchants who cash travellerís cheques. However, if you are an American Express member then the fee should be waved when purchasing travellerís cheques. If you cash your travellerís cheques from a branch of the same bank from which your travellerís cheques were issued there should also be no charge. It is also common for credit and debit card companies to charge fees for foreign transactions.
Travellerís cheque alternatives
There are some companies who now offer travellerís cheque cards. These cards can be used at ATMs to withdraw cash and they are also more commonly accepted among foreign merchants. The fees may also be cheaper than using paper travellerís cheques. However, many people do not opt for this method as there can be a lot of other charges such as fees for adding money to the card. It can also be more convenient to use a foreign exchange card or a normal credit or debit card.
Comparing travellers cheque service providers
A disadvantage of Travellers Cheques is that you could still incur charges at the local banks or Bureaux de Change. They may charge you a commission rate or offer a poor exchange rates. To avoid this, ensure that you check these before you exchange your money. Foreign exchange brokers are likely to offer you a better rate so make sure you do your research properly before you commit. If you are in any doubt then seek independent advice.
20 July 2012 16:00
A lot of people prefer the simplicity of a pre-paid currency card to taking foreign currency/travellers cheques abroad or using their normal credit and debit cards. There are several advantages of using a prepaid currency card.
27 June 2011
ďPrepaid cards are not only more secure for travellers but are a charge free method of paying for goods and services abroad."
13 June 2011
Which Way To Pay
When planning for a holiday people tend to have different solutions when it comes to their travel money.
16 August 2010
Which Way To Pay
Summer weather is never reliable in England, so for many the next few weeks will include a trip to hotter locations.
15 July 2010
Which Way To Pay
For anyone who is busy planning their trip abroad, foreign exchange will be near the top of the Ďto doí list. Finding a company that is offering good exchange rates is important Ė so let us look at who is offering the cheapest rates todayÖ