Traveler’s Check

Traveler’s Checks

Traveler’s checks are prepaid paper instruments issued in fixed denominations that function like cash for purchases or redemption abroad. They were designed to provide a secure way to carry money overseas because they can be canceled and replaced if lost or stolen. Use has declined sharply with the rise of credit/debit cards and prepaid travel cards.

How they work

• Issued in set amounts and often available in multiple currencies.
• Require a dual-signature system: sign when purchased and again when cashed to prevent unauthorized use.
• Each check has a unique serial number that the issuer can use to cancel and replace a lost or stolen check.
• Not linked to a bank account and contain no personal financial data, reducing identity-theft risk.
• They do not expire.

Brief history

Traveler’s checks were developed in the late 19th century to make cashless travel safer and easier. American Express popularized the product, which remained widely used until modern electronic payments and global ATM networks became common.

Where to buy

Issuers are limited today. Major options historically include:

• American Express (online and certain locations)
• Visa (through some banks)
• AAA (in some markets; also offers prepaid Visa cards)

Purchase typically involves a fee, and availability varies by country and branch.

How to cash or use them

• Many banks will deposit traveler’s checks into accounts.
• Some hotels, resorts, currency exchanges and merchants will cash them, often free to guests.
• Issuers such as American Express may offer online redemption into a bank account.
  Acceptance is increasingly limited compared with cards and cash.

Pros and cons

Pros:
* Replaceable if lost or stolen.
Not tied to a bank account.
No expiration.
* Historically accepted in many tourist areas.

Cons:
* Fewer places accept them now.
Purchase fees apply.
Must present the physical check to use it.
* Cumbersome compared with cards and mobile payments.

Modern alternatives

• Credit cards: broad acceptance, purchase protections, and fraud liability safeguards.
• Debit cards with low or no foreign transaction fees: convenient for cash withdrawals.
• Prepaid travel cards: not linked to a bank account, reloadable, and usable at ATMs and merchant terminals.

When choosing a travel card, look for: low ATM and conversion fees, emergency cash support, zero-liability or fraud protection, and wide network acceptance.

Practical tips

• If you keep traveler’s checks, record serial numbers and issuer contact details separately.
• Compare purchase and ATM fees for cards before travel.
• Carry a small amount of local cash for immediate expenses and places that don’t accept cards.
• Consider a mix of payment methods (one credit card, one debit/prepaid card, and limited cash) for redundancy.

Bottom line

Traveler’s checks offer secure, replaceable funds for travel but are largely obsolete for most travelers due to limited acceptance and fees. Credit and prepaid travel cards generally provide greater convenience, broader acceptance, and comparable security for modern international travel.