Travellers Cheques

[Andy008]

How do these actually work ?

Thanks.

[spudqueen]

There are pre-paid for, so the person accepting the travellers cheque accepts it as cash as unlike a normal cheque it does not have to clear. There are two signature places on each cheque. You sign on one line when you receive them (it does tell you which line) then when you want to cash/spend one you sign on the other line in front of the person who is cashing it. Sometimes they ask for other id (I've always found a photo driving licence ok). If they are lost or stolen you should be able to get replacements really quickly. Just make a note of the numbers of the ones you spend and keep the piece of paper with all the numbers of the travellers cheques you've been issued with seperately from the cheques. I've travelled to the US five times now and have had no problem using US $ travellers cheques. If I've spend $60 on a meal and paid with a $100 travellers cheque then I've had $40 cash change - which is really useful.

[Buenchico]

Spudqueen's post refers to the USA, where travelers checks (to use their spellings) are widely accepted as cash. Anywhere else in the world you normally need to take the cheques to a bank (or bureau de change) to convert them to cash. They won't be accepted in shops and restaurants and only a few hotels take them for payment.

Unless you're travelling to somewhere where there are very few cash machines, travellers cheques are a very expensive way of taking money abroad. (You have to pay a fee when you purchase them). It makes far more sense to use your debit card at an ATM. Many people open a Nationwide FlexAccount specifically for their holiday funds, because there are no charges for using overseas ATMs. (Some other banks have similar accounts). Even if you use a card which incurs charges, these will be nowhere near as high as the commission charges on travellers cheques.

Chris

[BenDToy]

Totally agree with Chris. Travellers' Cheques are a throwback to the dark ages. People should be smarter nowadays with international banking systems and ATM cards. Wise up people and stop getting ripped off!

[spudqueen]

Ah, Buenchio and BenDToy, but if your cash card is stolen then you are up a certain creek without a paddle, with travellers cheques you can get an almost instant refund without disrupting your holiday.

[jno]

quite so, spudqueen. And don't forget that ATM machines will add a commission (for the currency conversion) when you take money out of your account, and you have to pay commission to use your credit card abroad... (though I believe there's a commission-free NatWest card for account holders). They'll get you whatever you do, and working out exactly how many cents you save by whichever method is tedious and time-consuming. You're generally best to go with the method you personally find most convenient.

[jno]

oops, sorry, repeated some of Chris's points there. It does depend where you go, too.

[ojread2]

How about a travellers cheque card?

Amex did do one (stops as of 31st October 07) but other cards are available and you can use them like Chip and Pin to pay for things. (We only had one refusal for using our AMEX one last year) Charge to withdraw from ATM's is �2 with no exchange rate charge either if you're loaded with the countries currency

hth
ojx