Traveller's Cheques - Good Or Bad?

Traveller’s cheques used to be the only way to take money safely abroad, before everyone had credit cards. Still, nowadays many holidaymakers can choose to use traveller's cheques as a way of carrying cash when they go on holiday.

The traveller’s cheque is a pre-printed document of a fixed monetary value; they are typically purchased at outlets such as post offices or bureau de change offices before a trip begins. Usually a commission charge is added.

Pros

•    They can be used as effectively as cash in many countries. Usually banks or large hotels will change traveller’s cheques into the local currency if required.

•    One of their key advantages is they can guard against crime – if they are stolen or mislaid, they can be cancelled and replaced. Each comes with a serial number – noting this down with the name of the issuing bank and keeping it somewhere safe can be important should the worst happen.

•    If the exchange rate is favourable, they may be a good option because once they have been paid for, their value stays the same. This can be helpful in the current financial climate when currency values have been very variable.

Cons

•    They are not as immediate as other methods such as credit cards, which also usually come with their own form of insurance.

•    Those travelling to remote, rural destinations may also decide they are not the most sensible choice as the cheques may not be recognised anywhere, apart from banks in major towns and cities.

•    If a large number have been purchased for a long trip, the sheer bulk may cause the problem of keeping them physically safe. It can be helpful to keep a note of the serial numbers and the issuing bank in the case.

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