TRAVELLERS CHEQUES

When is the best time to use traveller's cheques?

Traveller’s 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 traveller’s checks is their security. If your traveller’s 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 traveller’s 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 traveller’s cheques can often be replaced as quickly as the following day. Not only that but only the person with their name on the traveller’s cheques cash them so they are useless to thieves.

How convenient are traveller’s cheques?

However, if you want to cash traveller’s 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 traveller’s 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 traveller’s cheques

There is often a fee for purchasing traveller’s cheques and sometimes there are charges from the merchants who cash traveller’s cheques. However, if you are an American Express member then the fee should be waved when purchasing traveller’s cheques. If you cash your traveller’s cheques from a branch of the same bank from which your traveller’s 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.

Traveller’s cheque alternatives

There are some companies who now offer traveller’s 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 traveller’s 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.