Travellers cheques -- useful or useless!!

[lovestotravel]

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

This, exactly what I do!

 

[rhjames]

I haven't used them for years. When I arrive in a country, I immediately get cash from an ATM, using a debit card, with only a couple of thousand dollars in the account. I top this up as required with internet banking. I withdraw at least $500 at a time at a bank ATM (where possible) (depending on the country) to minimise fees. (I never get cash with a credit card). I try to pay most things with cash (to avoid card fees), except for large hotel bills.

I usually have a buffer of a few hundred US$ or Euro (depending on where I am) in a zipped up inside pocket in a leg of my pants (and a spare credit card).

Travellers cheques cost money (is it 2%?), and are a lot less convenient for converting to cash.

I've never had a problem with ATM.

 

[Stephen65]

If you distribute three CCs from different issuers amongst yourself, your luggage and your travelling companion the chances that all three cards will be stolen or somehow rendered inaccessible at the same time are virtually zero. Plus you keep a supply of cash for cash transactions and emergencies.

Another good tip I read recently is not to carry photocopies of your passport with you but instead to scan your passport and then email the image file to yourself. Then if you ever lose your passport you can either print the image out or email it to the local consulate.

 

[Muriel]

Travellers cheques can be useful but only in certain places. The main problem we have found is in cashing them. However having said that, if you lose them - they are easily replaced. We found that the best place to buy them is at the post office where they do not charge commission. Provided you keep your original receipt, they will cash them in again (if you really want to).Here is our experience.

In 2008 we purchased American Express travellers cheques and stupidly misplaced them even before we left home. BUT only discovered this the day before we were leaving for our 6 month world trip. A quick call to Amex and we were given the choice of them being replaced in Hong Kong where we were spending a few days, or London. In Hong Kong, they were replaced without fuss.

However in many places overseas - with the exception of America, it it difficult to find an Amex office - where they cash them without having to pay commission. Since 9/11, we were told that Amex had withdrawn their services from many places and replaced them with agencies - which charge commission! In Edinburgh for example, the only Amex office is at the airport. In Paris, no Amex offices and banks wouldn't even look at them! We had to change them at a change bureaux: for extortionate fees. There was an Amex office in Florence. We found that ome businesses won't take them either - too much trouble.

We did a 5 month trip in 2010 but used a debit card, credit cards (have more than one in case anything goes wrong. Many places don't accept Amex now because of the high commissions) and cash. That worked perfectly for us. Hope this helps. We would NOT take travellers cheques ever again.

 

[Rocket88]

I used travellers cheaques first time i went OS, all kept in a money belt around my waist. That was the last time i used either almost 30 years ago. Diving down the front of your pants and fumbling around trying to get yr TC's out of yr money belt in a public place like a money exchange is not my idea of fun and adventure. I usually take cash with a few credit cards for backup divided and stashed into two wallets .

I have a overseas bank account in the city i commonly use as my base as well so I just transfer some money before i go and that means i don't have to to pay expensive international credit card ATM fees, although there are some minor fees on the transfer if you don't use a major bank .Exchange rates can be a problem tho. I have also got a 28 degrees card too and they appear to be to good so far. I would never touch a Travelex card ever again though.

The other thing is i have usually pre-paid all my major expenses such as airfares and hotels so the only money i need are for minor expenses and incidentals .

 

[dave39]

I haven't used traveller's cheques since around 1995. I have always filled up my credit card with extra cash and used ATMs to withdraw money - never had any problem except when I had a 6 digit PIN on one of the cards and this was no good in New Zealand and we could do nothing to change it in NZ. Fortunately we had another card with a 4 digit PIN. Apparently 4 digit PINs are the normal for o'seas ATMs. So the first thing we do when arriving in a foreign airport is head for the nearest ATM and take cash out for a couple of day's spending. Beware of the old lady scam - you 'accidently' bump into an old lady, actually she bumps in to you and while you apologise (assuming you have manners) someone picks your pocket! This has happened to three of our travelling friends in Athens, Rome and Spain - same trick.

Dave

 

[afflinesman]

The first thing to do is confirm how easy it is to exchange TCs at your destination.
In addition to security, known exchange rate and no ongoing fees at ATMs, the big benefit I found was TCs helped me to budget my spending money.
While I was happy to spend as much as I needed to, it was a great bonus to find we had an extra couple of thousand after 6 weeks in the US so we upgraded our hotel and had a few more shopping trips. A great way to end a holiday.

 

[Dougo]

....However in many places overseas - with the exception of America, it it difficult to find an Amex office - where they cash them without having to pay commission. Since 9/11, we were told that Amex had withdrawn their services from many places and replaced them with agencies - which charge commission! In Edinburgh for example, the only Amex office is at the airport. In Paris, no Amex offices and banks wouldn't even look at them! We had to change them at a change bureaux: for extortionate fees. There was an Amex office in Florence. We found that ome businesses won't take them either - too much trouble..

I haven't bothered with TC since 2008 and usually always take cash in the currency I need, a couple of different CC and debit cards and also load up my CC with cash before I go.

In 2006 initally got 500 Euro in AMEX TC and was told it was fee free to change them in an AMEX office ... which it was in Venice (the bank in Venice wanted 12 1/2% to change the TC !!) and one other place (forget which one) but not in Vienna where the AMEX office wanted a commission.

I had 100 Euro left over and went to change it in Glasgow in 2008 and couldn't without losing quite a bit of it due to the UK FOREX regs and that office's conversion rates. The guy explained to me about the "new" set up with AMEX and the commissions etc. So I decided to leave it til I got to Europe.

I found an AMEX office in Paris and exchanged the last TC and lost around 5 Euro in commission ... had my TC been for a higher amount it would have been a higher % commission.

Bottom line - TCs may be OK in America but not really widely accepted elsewhere.

If you are going to take them, look up where the AMEX offices are on the internet before you go ... but as someone else said, they are really franchises that charge a commission.

I guess my biggest bugbear when I had the TCs was wasting time going to the AMEX offices or standing in queues in banks instead of out seeing the sites which was afterall my objective in going overseas.

 

[mr mink]

Re: Travellers cheques -- useful or useless!! - ATM "danger"

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.

I had to use an ATM card (sparingly) in West Africa for extra cash 3 or 4 years ago. I almost made it an unofficial rule to only use the ATM (in Africa anyway) when the bank was actually open after an event in Dakar in Senegal when the ATM inside the bank (during business hours) swallowed my card/(mange ma carte, en Francais). I think this was down to the fact that a (Commonwealth) card with a six digit PIN entry was not compatible with the standard four digit PIN and the machine went into shutdown mode on digit 5 or 6. I think in Europe/USA 4 digit PINs might be the default so if you have a six digit PIN you might be better off amending it (temporarily) to a four digit PIN to avoid such potential issues - bank can likely help. I would however also join the almost universal chorus of support in this forum for the 28 Degrees (GE) card for fee free local cash withdrawals (just put it into credit first). Particularly useful if you are out of the (single currency) Eurozone, as in Central Europe for me earlier this year, in Czech, Bosnia, Croatia, Serbia, Hungary with different local currencies in each -- very useful to draw out smallish amounts in each country for essentials, while using cards for hotels and so on. That way you do not have to keep visiting cantors/currency exchange booths to change yesterday's zlotys to forints/local money.

 

[CaptBob]

I have converted to the Travel Card, now available at most banks. You preload the currency of your choice at a fixed rate. They are accepted at retailers and ATM's. You get two password protected Cards ( One is a back up in case of loss) . I also carry some US$ and Euros wherever I go.....cash always works ....everywhere. My next trip is to India, and I will take a card loaded with US $$$, and convert to Rupees as required.

 

[John in Melbourne]

I've used Amex TCs for years but in some countries, e.g. Germany, it is becoming harder to cash them. Deutsche Bank (big German bank) did in the past but no longer. They referred me to a local exchange office, which charged a commission. Also, Amex offices are becoming harder to find (in Germany). The upside is security of TCs, as other people have mentioned.
Nowadays, I prefer my Westpac autoteller card and cash, which I've always taken with me. With cards, though, you should make sure your bank knows your travel destinations, so they won't lock your card, thinking it might've been stolen.

 

[11sjw]

For mine the "Lock in the exchange rate" benefit is the biggest feature of TC's. Purchased some US$ and Yen prior to the crash in 2008. More through dumb luck than good management but boy did it save us some money in the end.

Would I use them again? Depending on the length of time travelling and the destination(s). My wife and I have linked accounts so if my cards go missing hers are back ups and vice versa.

The 28 Degrees card is great for accessing cash and providing credit. Ensure you have one of these regardless of whether or not you purchase TC's.

 

[oz_mark]

For mine the "Lock in the exchange rate" benefit is the biggest feature of TC's. Purchased some US$ and Yen prior to the crash in 2008. More through dumb luck than good management but boy did it save us some money in the end.

I had that happen once when I could only get hold of US dollar TC's. Dollar collapsed while I was overseas and when I cashed in the remaining TC's on return I got more back than I had paid in the first place!

 

[pearler47]

Given that our estimable banks are hell bent on reaping fees from travel cards (particularly watch cards where your travel card is in one currency and you convert to another e.g. US dollar card to Thai Baht)), I think Traveller's Cheques, if commission free, are a good source of travel dollars. Combine with some cash and a card that does not charge for cash withdrawals, and you are well on your way. You cannot avoid overseas bank ATM fees in many places. In Thailand Krung Thai Bank lets you withdraw B 20,000 per transaction for B150. The other banks limit is half that. You do pay tax on TCs but it is less than ATM fees and you often receive a better conversion rate. Interesting that this fee harvest from our wonderful banks is a relatively recent development. Must be to support CEO bonuses.

 

[Travelmonkey]

I wonder if travellers cheques aren't a little antiquated these days as many young sales assistants whether it be here or overseas haven't even seen them before or know what they are. The last time I used them was 20 years ago and I had a situation where the assistant didn't know what they were so I imagine it would be 10 times worse now. You would always have to change them at a bank/hotel or FX booth.

I have more recently travelled using the Travelex Cash Passport & the ANZ Travel Card and both were fine. I have used them in the US & in UK/Europe and in Hong Kong. I had no problems with the ATM's except with one ATM in Venice at lunchtime on a Sunday! I think you may find the article in the SMH today (02/12/11) helpful. It seems to have information on what is available and advice on other parts of the world where ATM's may not be so readily available. One thing I did find inaccurate was the ANZ cards, though they do have an expiry date, they don't take your money that is left on the card other than the inactivity fees. I had a card with GBP on it and when we returned the exchange rate had changed that it would have been stupid to cash it in so I waited for it to go back down to the rate I purchased it at. It never did and in fact the exchange rate went even higher so I decided to use it on my latest trip to France and use the GBP against the Euro for better use of exchange rates and my card had expired. I rang ANZ and they reissued the card with no problems and no additional fees and off we went! We also use a credit card as a back up (which was required on the toll booths in France).

Good luck deciding what is best for your own travels!

 

[serfty]

... Travelex Cash Passport & ANZ Travel Card ...

While they seem to be reliable, those products are costly to use. For me their only use would be to lock in a FOREX rate - and even then unlikely due to their silly overage margins and fees.

e.g. The current AUD/USD cross rate is USD100:AUD97.7.

To purchase a USD100 ANZ Travel Card today would cost AUD112.45 - that's a $14.70 margin or 15% (USD500 is AUD528.25 - $30 or 8%).

For USD the Travelex Cash Passport costs AUD505.20 so it's somewhat better at $7.50 or 3.5%.

The 28° Mastercard is close to cross rates and a far better utility for overseas cash than the Travelex Cash Passport & ANZ Travel Card products.

 

[coco50]

If travelling anywhere I always travel with some amount of the local currency (Euros, USD GBP) and my 28Degrees Credit card which I pay out in full every month. There are no forex transaction fees. Just whatever the exchange rate is at the time so I suppose that I have 5 bob each way. The currency that I have bought I have acquired at a good rate (like a forward contract) while the credit card operates at a rate like a spot rate. It was brilliant when I was in the US in May and the going rate was A$1 = US$1.07. I just hammered the credit card and held the USD that I had bought at A$1 = US$ 1.04. I have never used traveller's cheques and never will. In fact I don't even have a domestic cheque account. The downsides of the CC are that you are using a spot rate and thus you are vulnerable to currency fluctuations and if you lose your card then you have to cancel it and call home for another one.

 

[Travelmonkey]

Thanks for that. I'd never heard of the 28° Mastercard. It looks like a good option. I personally like the locking in the exchange rate for easier & more reliable conversions whilst OS and I have heard some scary rates banks charge on ATM transactions on debit/credit cards and reliability has been dodgy in the past. If the 28° Mastercard is widely accepted in ATM's then that sounds like a good option to me.

 

[serfty]

Thanks for that. I'd never heard of the 28° Mastercard. It looks like a good option. ... If the 28° Mastercard is widely accepted in ATM's then that sounds like a good option to me.

It's quite accepted.

There is a very thorough thread on it. See here: http://www.australianfrequentflyer..../28-wizard-mastercard-cash-advances-6960.html

 

[Stargazer]

This thread is getting ever more interesting and informative.

To purchase a USD100 ANZ Travel Card today would cost AUD112.45 - that's a $14.70 margin or 15% (USD500 is AUD528.25 - $30 or 8%

I had been thinking about an ANZ travel card but thanks to the advice given I will now steer clear of it.

I had a look at the AMEX web site on travellers cheques -- in particular maps per city showing the location of where travellers cheques can be cashed. Some cities are well covered while others you would be wasting a lot of time trying to find an agent, bank or AMEX office. And of course as a number of people have pointed out its difficult to know in advance what conversion fees will be applied. So I guess the old AMEX adage "dont' leave home without them" is no longer relevant.