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Travelers cheques

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
edited January 2023 in General Chat
How do they work? Do all countries accept them? Is this the best thing to use when taking money abroad?
Post edited by JustV on

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Basically they are blank cheques to the value of X amount, you take them to a bank or where ever and they will give you the X amount minus a fee.

    The reason people like them is that if you get them stolen then normally you get your money back, unlike with cash.

    To my mind they are now a bit useless because you can always just withdraw money from a cash point (in virtually every country in the world) for about the same cost.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    bongbudda wrote:
    To my mind they are now a bit useless because you can always just withdraw money from a cash point (in virtually every country in the world) for about the same cost.

    if you withdraw money from a cash point, you get charged a conversion fee (usually about 2.5%), plus quite often a one off admin fee, so the more times you withdraw, the more you get charged. UK banks also tend to have quite shitty exchange rates.

    travellers cheques are a good idea if you get them from a place which doesn't charge comission. the post office do them commision free on everything except sterling cheques (and usually has good rates!), so if you're going to europe, you can get euro cheques, and if you're going outside europe, US dollars are pretty much universally accepted, both avoiding commission, and getting a preferential exchange rate. US dollars are a good bet, really, as they are so weak at the moment.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I went traveling for months and I found by far the best option was just using my debit card in machines, the charges were minimal and the exchange rate though not great were totally reasonable.

    Of course if you are forever taking £10 out then its not worth it, but I found it easier and comparably expencive to the travelers cheques I also took.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Cash points are generally the cheapest way to get money abroad.

    However, not all countries have reliable networks, especially in the developing world.

    I'd use AMEX US dollar traveller's cheques. In fact I need to order some from the bank soon :chin:
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I wouldn't use AMEX travellers cheques, because AMEX are not very popular on the continent, mostly because they rip off the banks.

    It depends on where you are going.

    Travellers cheques will typically cost you about £2 to convert into cash. It will typically cost you about £2 (that's what my bank charged me) to withdraw E50.

    In developing nations travellers cheques would be slightly better, as ATM networks are fledgling at best, but in Europe or the US just use your debit card in the ATMs. It's about the same price, and travellers cheques are a lot of hassle for the miniscule savings you make.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote:
    I wouldn't use AMEX travellers cheques, because AMEX are not very popular on the continent, mostly because they rip off the banks.
    The two choices I know are AMEX and Thomas Cook. I was told that AMEX would get favourable rates because they are well known (this is for Uganda). Whether they are 'popular' with the banks is not really your concern though, as a punter.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    i'd still stick to traveller's cheques.

    if they get stolen, you can have them replaced in about 24 hours.

    if your debit card gets stolen = pretty much fucked. in theory you can go to the police, contact your bank, etc, but my cousin got mugged and his cards stolen and the police/bank were about as useful as a wet fart.

    yes, i might be paranoid, but it's kept me safe thus far.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yeah, I'd go with US dollar travellers cheques from a fairly well known brand. American Express ones are good because even if some places themselves don't take them then there are often American Express branches in even the most unexpected of places.

    Otherwise if I wasn't going to do that I would take a mastercard or visa credit card, not a debit card. In an emergency you can get an emergency card replacement for a mastercard or visa in 24hrs, whereas if you had a bank card you'd be shafted.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    If you are going traveling for a long time then I think a mixture is by far the best option, have a credit card on you just in case, a debit card for most times and travelers cheques as well.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    you can normally exchange both Thomas Cook and Amex travellers cheques at local outlets comission free and you should find an agent in most major towns in developing countries (if not try and locate a western union office) - you can also use travellers cheques for payment in major hotels etc - but if your stuck for cash late at night then your a bit buggered because you have to plan in advance where your going to cash stuff up and you could end up carrying around large wodges of cash inbetween places where you can cash things up.

    Don't however get an AMEX card - they are really unpopular and nowhere takes them even in the US.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kentish wrote:
    Whether they are 'popular' with the banks is not really your concern though, as a punter.

    It is when banks refuse to cash AMEX cheques, which the big banks in France all do (or did).

    There are pros and cons. Taking some t-cheques would be a good idea, as would keeping one card in the room/hotel safe, but don't take too many because the exchange rates and the banks' commisions are quite steep.
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