Travellers Cheques?

Question

Im going on holiday on Monday, how do i get travellers cheques and what are they? I know im a dumb *** but my parents normally sort it out for me..thank u!

Answer 1

Do you have a debit card (with a Visa logo on it?)

Honestly, I would just use it instead...no matter where you go. Travelers Checks are a pain in the booty and just aren't worth the trouble anymore. They used to be a convenient way to travel abroad (or anywhere) without carrying a lot of cash...but they just aren't as convenient now that there are so many other options. If you don't have a debit card, I would use your cash to buy prepaid Visa cards or something similar.

They are basically just a paper check that is "registered" with the insuer in case they get lost - so they sound safer than cash...but really, I would prefer to carry around one piece of plastic (credit card) and a little bit of cash.

If you choose to go the check route, I have attached a link.

Answer 2

Traveller’s cheques are not entirely good news though – there are some significant disadvantages.

The first is that you will almost always be charged twice for their use. Sometimes a company will offer fee-free deals, allowing you to buy cheques without charge, but usually you’ll have to pay a percent or two when you buy.

You will also be charged when you exchange the cheques for cash. The bank, or whatever, will generally levy a per-cheque fee. The same fees will not exist if you take cash, although there is often a charge for buying foreign currency.

The second principal disadvantage is that you will be tying up your money for a long time when it might be serving you better in an interest-earning account.

This is not so significant for short holidays, but for an extended trip, when you might be taking a lot of money, it becomes more so.

Traveler's cheques do not expire so unused cheques can be kept by the purchaser to spend at any time in the future.

The purchaser of a supply of traveler's cheques effectively gives an interest-free loan to the issuer, which is why it is common for banks to sell them "commission free" to their customers.

The commission, where it is charged, is usually 1% of the total face value sold.