Travellers cheques -- useful or useless!!

[Stargazer]

Hi,

I was about to buy some travellers cheques when it occurred to me that perhaps they weren't a worthwhile option.:?:

My concern is this -- in reading previous threads there have been a number of posts which confirmed problems with using ATMs. Also in other posts members noted that they had been locked out of their credit cards for at least 24 hours (for a number of reasons). So I thought as a back up plan I would buy some travellers cheques to use as a last resort. But is this workable? My questions are:
1. would you consider using travellers cheques and if not, why?
2.do shops and hotels still accept travellers cheques and if so do they charge commission
3.if exchanging travellers cheques at a bank or AMEX office, do they charge commission
4.are there some countries/destinations that you have experienced difficulty using travellers cheques
5.any other thoughts .........

 

[v8Statesman]

I carry Euros, US$ and AU$ ($50). Had problems once with Aussie $100's. Cash is still king. (Well for me)


Sent from my Telstra iPhone using the Australian Frequent Flyer application.

 

[KitKat]

Never ever bought a TC.

I carry some cash usually AUD (usually too busy to change to destination currencies before leaving), and what leftover foreign currencies I have from previous visits to pay for incidentals, taxi, tips etc. Otherwise it is credit cards - for convenience (I am happy to pay for the convenience, as from my calculations, works out about the same if paid by cash in foreign currency). Oh yes, for the points..

Very easy to change AUD to local currency at most destinations. So not much point changing to USD etc if US is not your destination, except for places like Vietnam, Cambodia where USD is very commonly used (small denominations, new, clean bills).

I note that there are charges when you buy (sometimes there are discounts/incentives), convert, sell back TCs... everyone taking a cut along the way. You may need to show ID when cashing in your TCs as well (painful to lug around the passport all the time)

My game plan
- some cash
- ATM card(s)
- at least 2 credit cards
- small amount of destination currencies
- not to keep all in same spot
- best if your companion has separate accounts/non-supps cards - just in case if your account gets disabled and the supplementary cards do as well

 

[Blackadder]

Have used TC's in the past and wouldn't hesitate to do so again, they are a safe alternative to carrying cash around although not as flexible as having a credit card/money card.

 

[Robert K]

If going to taiwan, I wouldn't carry AU$. Only place to exchange is airport/ forex booths (good luck finding them. And the only bank that exchanges AU$ is the taiwan bank. (better luck finding these)

I'm sure some other smaller countries would be in the same position.

 

[Heleigh]

I use cash as back up to having no use of when card fail.

I have not use TC for a very long time but when I did (Amex or Diners) if report straight away they would replace them - never lost or had stolen so never put them to the test.

As for charges when exchanging I think most places did and you had to have ID (when on day tirps I prefer carry on my person a credit card, hotel key card and approx equivalent to A$20 - $50 every thing else is lock in room / hotel safe).

I would ask the company what the fee structure is and will they replace lost/stolen.

 

[drron]

If travelling in the USA TCs are widely accepted.The only place that wouldnt accept them from me was Borders-and look what happened to them!
If you think the exchange rate is going to fall you can lockin the rate before you go.If needing large amounts-eg if you have to satisfy mrsdrron's need for retail therapy then somewhat safer carrying TCs.
Actually I have been asked much more frequently for ID with my CC than with TCs.Drivers licence surfices anyway.

 

[Cynicor]

Last used a TC in Japan 9 years ago. Had some on hand for no real reason I think, but they were not hard to cash.

I would never travel with them now, as I've never had a problem with cash or card acceptance. The only times my card has been rejected are in some Japanese ATMs but there are always working ATMs nearby and merchants are much more happy to accept cards than they used to be.

One thing to remember- if your card doesn't seem to be working, try a machine from a different company, and make sure it had the cirrus sign etc on it. It may just be that machine, or that company.

 

[RB]

As posted on another current thread, I used TCs in Alaska in 2010 as they were widely used where we went. As a backup in 2012 we are taking TCs to Sri Lanka as they are apparently widely used but only cashed in banks. It may seem an outdated to use TCs but it pays to know what works where you are going. As DrRon says they are also a way of locking in exchange rates.

 

[mr mink]

Kitkat's "game plan" below is generally endorsed. I personally have not bought a TC for goodness knows how long - possibly took some to West Africa 7-8 years ago but if big denoms some banks there get nervous and require proof of purchase etc. From other threads you are likely doing Europe only so you can notionally do TCs if you want the notional security, but credit cards are smaller and you can have multiples and in different places etc as Kitkat says and so diversify the risk so to speak. On my last Euro trip had 3 CCs in lost wallet so just took up with the 4th, concealed elsewhere in my main travel bag (where I also had my Aus bank ATM card), after cancelling the others of course.

Never ever bought a TC.
My game plan
- some cash
- ATM card(s)
- at least 2 credit cards
- small amount of destination currencies
- not to keep all in same spot
- best if your companion has separate accounts/non-supps cards - just in case if your account gets disabled and the supplementary cards do as well

 

[zig]

Concur with drron's expierience in the USA. I had some TCs (bought many years ago) that I used in the USA this year without any problem - widely accepted in shops without any ID requirement or fees. However frustratingly I was asked for photo ID regularly when using CC and US currency travel card. So I think it depends where you are travelling. I would certainly use them again in the USA.

 

[UP4014]

If off to North America travellers cheques are good, I use them all the time there. Pay the fee when you buy them and no fees to cash them, I bought some last year and I think it cost me AUD60 to buy USD6500. These days AMEX even has USD500 cheques.

I try hard not to use ATM's in foreign countries, too many potential issues.

 

[Stargazer]

I try hard not to use ATM's in foreign countries, too many potential issues

.

I would be interested in getting your experience using ATM's. What problems did you run into?

 

[Moopere]

Its a good question this, and one I've asked myself many times. Along with others here I usually carry a little bit of foreign currency, usually left overs from previous trips, but honestly, I probably couldn't pay a single day at a hotel with this ... its usually just a small fistful of low denominations, enough for lunch and some water. If all my cards were to fail me I'd be in a spot of bother - yet I can't really see myself taking a few thousand in notes + several thousand in cheques + cards ...

If things really got hairy, the cards failed and I couldn't or didn't want to come back to Australia, I'd probably have to ring home and get some money wired over to wherever I was.

 

[Stephen65]

I haven't used TCs since the late 90s. I usually take three credit cards: one amex and one visa/MC carried with me, the third visa/MC as a backup hidden in my luggage. The visa/MCs each have access to separate bank accounts via ATM to allow me to withdraw cash funds. As a backup I will also take a few hundred dollars in cash and depending where I am going this could be in AUD, USD, euros or GBP.

 

[Stargazer]

If all my cards were to fail me I'd be in a spot of bother

As this will be my first trip overseas my concern is that for some reason or other, my cards could fail:evil: (other posts have confirmed difficulties with their cards). So it seems reasonable to take some travellers cheques as an absolute backup.

 

[UP4014]

.I would be interested in getting your experience using ATM's. What problems did you run into?

Having my card swallowed in a country I don't speak the lingo plus over the top usage charges I think it was $5.50 per transaction.

 

[UP4014]

As this will be my first trip overseas my concern is that for some reason or other, my cards could fail:evil: (other posts have confirmed difficulties with their cards). So it seems reasonable to take some travellers cheques as an absolute backup.

My last trip state side I took a couple of cards, used only for car rental and a couple of hotels, reminder cash and travellers cheques. (about $10K)

People say what if I loose it, well what if I loose my card. AMEX replace straight away. While I've have a card stop working a piece of paper you sign doesn't.

 

[straitman]

As this will be my first trip overseas my concern is that for some reason or other, my cards could fail:evil: (other posts have confirmed difficulties with their cards). So it seems reasonable to take some travellers cheques as an absolute backup.

This why you take several unrelated cards and store some of them in separate locations.

 

[Stargazer]

This why you take several unrelated cards and store some of them in separate locations.

Yes I do understand the importance of what you are saying. Picked that up in previous threads. I guess I am looking at the worst possible case scenario which is probably not realistic.