Before the age of digital payments, traveler’s checks were considered one of the safest and most convenient ways to carry money while traveling, especially abroad. Though their popularity has waned with the rise of credit cards and mobile wallets, traveler’s checks do still exist and are issued by a limited number of banks and credit unions.
Whether you’re curious about their modern use or holding onto a few from a past trip, understanding traveler’s checks can help you make informed financial decisions on your next journey.
Key Points
• Traveler’s checks provide a secure method for carrying money while traveling.
• They are being replaced by more convenient options like credit cards, debit cards, and mobile wallets.
• Prepaid debit cards offer security but have fixed spending limits.
• Credit cards provide rewards and robust fraud protection.
• Mobile wallets are secure and convenient but not accepted everywhere.
Traveler’s Checks Defined
Traveler’s checks are paper checks you can purchase at a bank or credit union then carry when you travel abroad in a place of cash. Unlike cash, however, travelers checks are secured by the issuing financial institution, which means that the issuer will replace the funds if the checks are lost or stolen at any point at home or abroad.
Issuers print checks in varying denominations, such as $10, $20, or $50, and they are available in a range of currencies. Depending on where you buy traveler’s checks, you may be charged a fee in the range of 1% to 3% of the total purchase amount.
You can use travelers checks just like cash to pay merchants for goods and services, as long as they accept traveler’s checks. Typically, any change due back to you will be given in local currency. You may also be able to get the checks converted into cash in the local currency at some banks, hotels, and currency exchange offices, though you may need to pay a fee.
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How Do Traveler’s Checks Work?
Traveler’s checks operate somewhat like regular checks but are pre-paid and come with built-in fraud protection. Here’s a step-by-step explanation of how they work:
• Purchase: You buy traveler’s checks at some banks and other financial institutions. You’ll need to pay the amount of the checks plus possibly a fee.
• Sign on purchase: Upon receiving the checks, you may be asked to sign each one in the upper left-hand corner in front of a witness (usually the seller). If not, you’ll want to sign them as soon as possible afterward.
• Use: When you’re ready to spend a check or cash it in, you sign it again in the presence of the merchant or bank. The signatures must match to validate the check. These checks have no expiration date.
• Lost or stolen checks: If you lose your checks or they are stolen, the issuing company typically offers a refund or replacement, sometimes within 24 hours, depending on your location and the provider.
Where Can I Get a Traveler’s Check?
While traveler’s checks still exist and people still use them, they are getting increasingly hard to come by. American Express — which issued traveler’s checks for over a century — no longer offers new checks (though they will honor previously issued checks). However, some financial services companies — including Visa —- still issue traveler’s checks, which are sold through various partner banks.
If you’re interested in buying traveler’s checks, you will likely need to contact several banks and credit unions to find one that still offers them.
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Pros and Cons of Traveler’s Checks
Traveler’s checks offer a mix of benefits and drawbacks. For some, they are a nostalgic or extra-safe backup option. For others, they may seem outdated compared to more modern financial tools.
Pros of Traveler’s Checks
• They keep your money safe. Unlike cash, which cannot be replaced if lost, traveler’s checks allow travelers to get their money back in the event of theft or loss.
• They don’t expire. If you bought traveler’s checks and did not end up using all of them on your trip, you can use them where they are accepted, or redeem them with the issuer, at any time in the future.
• They protect your identity. Traveler’s checks are not linked to your bank account or personal line of credit and do not contain personally identifiable information, thus eliminating risk of identity theft.
Cons of Traveler’s Checks
• They can be hard to get. There are a limited number of issuers today, and the paperwork involved in obtaining them can be time-consuming.
• They aren’t as widely accepted as they once were. Before you leave for your trip, it’s wise to find exchange locations and check with local merchants to confirm they’ll accept a traveler’s check as payment.
• You may have to pay a fee. Unless you’re getting them from the financial institution where you have an account, you’ll likely have to pay a fee to purchase a traveler’s check.
| Pros of Traveler’s Checks | Cons of Traveler’s Checks |
|---|
| Secure | Can be hard to obtain |
| No expiration | Not as widely accepted anymore |
| Protects your identity | May involve fees |
Do I Need Traveler’s Checks When Going Abroad?
Generally, no. Modern travelers often find credit cards, debit cards, and mobile wallets to be more convenient, widely accepted, and cost-effective. However, there are exceptions. You might consider traveler’s checks if:
• You’re visiting a remote or unstable country where card services may be unreliable.
• You prefer to avoid carrying a lot of cash and want a secure backup.
• You are traveling to regions with limited ATM access.
• You have concerns about card fraud or identity theft and want a paper-based fallback.
Still, for the majority of travelers, modern financial tools usually make traveler’s checks unnecessary.
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4 Alternatives to Traveler’s Checks
Traveler’s checks are no longer the only secure option for carrying money while abroad. Here are four modern, practical alternatives:
1. Prepaid Debit Card
A prepaid travel card is the modern-day version of a traveler’s check. You can load the card with a set amount of money from your bank account before you travel, then use it to get local currency, shop, dine, and more while you’re abroad.
Like traveler’s checks, prepaid cards are not linked to your bank account, which prevents anybody from draining your checking account if the card gets lost or stolen — and you can’t go into debt. On the downside, these cards limit you to a pre-set spending amount. And if you lose your card, there’s no way to get your money back.
2. Credit Card
Using a credit card is a convenient and secure way to pay for goods and services while you travel. These cards come with robust fraud protections that safeguard your money if your card gets stolen or lost while overseas. And many cards also offer spending rewards, such as points, miles, or cash back. However, there may be fees involved with using your card overseas, called foreign transaction fees.
And unless it’s an emergency, you’ll likely want to avoid using your credit card for getting cash at an ATM. When you request a cash advance from a credit card, you can get hit with a fee (often 3% to 5% of the advance amount), as well as interest, which can run as high as 29%. You may also pay an ATM fee of several dollars.
3. Debit Card
Another alternative to traveler’s checks is your debit card, which you can use to get local currency at ATMs and also to make purchases while traveling. Unlike a credit card, you’re spending your own money when you pay by debit card, so you can’t run up debt.
Like a credit card, however, you may get hit with a foreign transaction fee when you pay something overseas using your debit card. You may also have to pay out-of-network ATM fees every time you withdraw cash. However, some banks have partnerships with banks in other countries that allow travelers to make fee-free withdrawals. Before you travel, it’s a good idea to check to see if your bank has this kind of arrangement.
4. Mobile Wallet
Mobile wallets like Apple Pay, Google Pay, and Samsung Wallet are becoming more accepted around the world. You can link your credit and debit cards and pay directly from your phone without needing a physical wallet. This method of payment is not only convenient, it’s also highly secure, since digital wallets use encryption and tokenization to protect your data.
Just keep in mind that not all merchants accept mobile wallets, especially in rural areas, so you may not want to rely on this as your only payment option when you travel.
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How to Keep Your Money Safe While Traveling
Regardless of your preferred payment method, keeping your money safe while traveling is essential. Here are a few tips:
• Keep your money hidden: Consider using a money belt or a neck pouch (both are flat pouches that fit under your clothes) to keep your money and other valuables close and secure.
• Don’t keep all your funds in one place: Consider dividing your money and cards and keeping them in separate places, with some readily accessible and others more hidden.
• Notify your bank: Let your bank and credit card issuer know about your upcoming travel dates and destinations. This can help prevent your credit or debit card from being flagged for potential fraud and subsequently blocked.
• Use hotel safes: Store passports, extra cash, and backup cards in the hotel safe when not needed.
• Have a backup: Keep at least one additional method of payment (e.g., an extra card or a few traveler’s checks) in case your main option fails.
Recommended: How to Keep Your Bank Account Safe Online
What Can I Do With Old Traveler’s Checks?
If you still have old traveler’s checks from past trips, don’t throw them away — they may still be redeemable. Here’s what you can do:
• Bring them to the issuing bank: Institutions like American Express still honor old traveler’s checks. You may even be able to redeem them online.
• Deposit them into your bank account: Many banks accept traveler’s checks as deposits, though processing may take longer.
• Exchange them for cash at participating banks: If you’re abroad, you might be able to cash an old traveler’s check at a bank that still partners with the issuer.
• Sell or donate as a collectible: Older unused checks may hold value for collectors, especially if they feature historical branding or designs.
Keep in mind that in order to redeem old traveler’s checks, you’ll need to provide identification and possibly documentation proving you were the original purchaser.
The Takeaway
Traveler’s checks were once the gold standard of secure travel funds, but the rise of digital banking has made them largely obsolete. Still, they retain some usefulness as a secure backup for international travelers, especially in less developed regions or for those who prefer not to rely on digital methods.
For most modern travelers, credit cards, debit cards, prepaid cards, and mobile wallets offer more convenience, better exchange rates, and broad acceptance. However, understanding traveler’s checks — and knowing how to use or redeem them — can still come in handy.
Ultimately, the best approach is a balanced one: carry multiple forms of payment, stay aware of local customs and banking norms, and prioritize security. Whether you’re heading off the beaten path or to a major city, having a thoughtful plan for managing your money can make your travels smoother, safer, and more enjoyable.
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FAQ
How does a traveler’s check work?
A traveler’s check is a prepaid, fixed-amount paper check used as a secure alternative to cash while traveling. You purchase it from a financial institution, sign it when issued, and sign it again when spending it or cashing it, allowing merchants or banks to verify your identity. If lost or stolen, traveler’s checks can usually be replaced quickly. However, traveler’s checks are not as widely issued and accepted as they once were. They have largely been replaced by prepaid debit cards and credit cards.
Why are traveler’s checks not used anymore?
Traveler’s checks have largely fallen out of favor due to the convenience and widespread use of credit cards, debit cards, and digital wallets, which are accepted almost everywhere and offer strong fraud protection. ATMs are now globally accessible, making it easy to withdraw local currency as needed. Additionally, it’s hard to find banks that still issue traveler’s checks, and many merchants no longer accept them as payment.
Can you cash traveler’s checks?
Yes, you can still cash traveler’s checks, though it might take some effort. Some major banks will cash them for account holders, especially if they issued the checks. Some currency exchange offices and hotels may also accept them. You’ll need valid identification, and you’ll usually sign the check in front of the cashier. However, because these checks are less common now, it’s best to call ahead and confirm if a location will accept or cash them.
Do financial institutions still carry traveler’s checks?
Some financial institutions still offer traveler’s checks, but their availability is limited. American Express no longer issues travelers checks. However, Visa still offers them through participating banks. You may need to call around to find a bank in your area that offers these checks. Those that do may also require advance notice or only provide them to account holders. As the travel industry shifts toward digital and card-based payment methods, traveler’s checks are now less commonly sold or promoted.
What can I do with old traveler’s checks?
If you have old traveler’s checks, you can generally still cash or deposit them, as they typically don’t expire. Visit a bank — preferably one that issued the checks or one with international banking services — and present valid identification. You can also contact the issuing company (e.g., American Express) for assistance or to process a refund. You may be able to deposit them into your bank account (though check with your bank first). They retain their original value if unused.
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