All about traveler’s checks, plus modern alternatives
If you’re getting ready to travel, you may want to think about how you’ll make purchases while you’re away.
Traveler’s checks used to be a popular choice, but modern alternatives may offer even more convenience. Learn about your options.
What you’ll learn:
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Traveler’s checks are paper documents that can be used to make purchases or exchanged for local currency when traveling abroad.
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Traveler’s checks have unique serial numbers, so they can be replaced if lost or stolen.
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Fees may apply when purchasing or exchanging traveler’s checks.
- There are modern alternatives to traveler’s checks you may find more convenient.
What is a traveler’s check?
A traveler’s check is a paper document used to make purchases while traveling, often in foreign countries. They’re usually available in set amounts, such as $20 or $50.
The checks—you may also see them referred to as “cheques”—are typically printed with a unique serial number. This number can help travelers get a refund if their checks are lost or stolen.
How do traveler’s checks work?
Traveler’s checks may be accepted by some hotels, restaurants and retail stores. But they may not be as widely accepted as they once were.
When you buy traveler’s checks, you might notice that each has a space for two signatures. This dual signature method helps merchants confirm that the person using the check is the original purchaser.
Here’s more about each signature:
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First signature: You may be asked to sign each of your traveler’s checks as part of the purchase. If not, you may want to sign them as soon as possible afterward.
- Second signature: You’ll typically be asked to sign traveler’s checks for the second time when you use them to make a purchase.
Pros and cons of traveler’s checks
Here are some advantages and disadvantages of using traveler’s checks.
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Pros |
Cons |
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They’re easy to carry. |
There may be fees for using them. |
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They typically don’t expire. |
They may not be accepted everywhere. |
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They can usually be replaced if lost or stolen. |
They might be harder to find than in the past. |
When to use a traveler’s check
You might consider using traveler’s checks in certain situations, such as when you:
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Don’t have a credit or debit card: If you don’t have either, you may find traveler’s checks to be an acceptable payment alternative.
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Can’t access an ATM: If you find yourself in a place without an ATM, you could use traveler’s checks at merchants that accept them instead.
- Want cash on hand: When you get to where you’re going, you might want to exchange some of your traveler’s checks for local currency. Some banks and financial institutions may provide this service.
Modern alternatives to traveler’s checks
Because traveler’s checks aren’t as common as they used to be, you may want to learn more about these alternatives.
Credit cards
You may know a lot about using a credit card close to home. But if you haven’t used one extensively while traveling, here are things to consider:
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Convenience: Carrying a credit card rather than traveler’s checks might be more convenient since credit cards may be more widely accepted.
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Security: Some card issuers may offer protection when your card is lost or stolen. For example, Capital One offers $0 liability for unauthorized charges.
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Rewards: If you have a travel rewards credit card, you could earn rewards on your purchases.
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Travel benefits: Some credit cards provide benefits like travel insurance and the ability to track your purchases on the go via a mobile app.
- Fees: Foreign transaction fees may apply when using a credit card abroad. These fees can vary between credit card companies, but they’re generally in the range of 1%-3% of your purchase. Some issuers, like Capital One, don’t charge foreign transaction fees. View important rates and disclosures.
Debit cards
Along with a credit card, a debit card may be a convenient payment method when traveling.
Here are some things to know about traveling with a debit card:
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Convenience: Bringing a debit card rather than traveler’s checks might be more convenient since debit cards may be more widely accepted.
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Security: Traveling with a debit card may be safer than carrying cash, which you can withdraw from an ATM once you arrive at your destination.
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ATM fees: You could be charged fees when you use a debit card at an ATM abroad. According to the Consumer Financial Protection Bureau (CFPB), some banks and credit unions don’t charge customers this fee. But they might charge you if you’re not a customer. That could be in addition to a fee charged by the ATM operator.
- Other fees: Some banks may also charge foreign transaction fees and currency conversion fees for using a debit card abroad. Capital One doesn’t charge additional fees for foreign transactions, but if you use an ATM that isn’t within the MoneyPass or Allpoint networks, you may be charged a fee from that ATM owner.
Prepaid cards
With a prepaid card, you don’t “borrow” money like you do with a credit card. And you don’t use money from your checking account, like with a debit card. Instead, you typically add money to a prepaid card before using it.
Here are some things to consider about traveling with a prepaid card:
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Convenience: Like credit cards and debit cards, prepaid cards are relatively easy to carry around when you’re traveling.
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Security: Once a prepaid card is registered, it can offer protection against loss, theft or fraud.
- Fees: You might be charged fees for using a prepaid card. The CFPB notes that if you get your prepaid card from a retailer, you should find a summary of fees on the card’s packaging. If you get your card from a different provider—online or over the phone, for example—the provider needs to share this information on paper or electronically.
Mobile wallets
You’ll probably have your phone with you while traveling, right? You could consider using a mobile wallet, which is a digital version of your physical wallet.
Here’s more information about traveling with a mobile wallet.
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Convenience: A mobile wallet may be easier to carry around than cash. And you can typically use one to store things like credit cards, debit cards, prepaid cards, boarding passes, hotel reservations, event tickets and other types of personal data.
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Security: A mobile wallet may offer enhanced security features like information encryption.
- Acceptance: Keep in mind that some merchants might not take mobile wallet payments.
Traveler’s checks FAQ
Learn more with these frequently asked questions about traveler’s checks.
Do traveler’s checks still exist?
Yes, traveler’s checks exist. But they may be less common than in the past.
Where can I get a traveler’s check?
You may be able to purchase traveler’s checks at some banks, credit unions and organizations that offer travel-related services.
Where can you cash in traveler’s checks?
Traveler’s checks work much like cash at any business that accepts them. You may also be able to exchange traveler’s checks for local currency at banks, exchange offices or some hotels.
What fees come with traveler’s checks?
There may be fees to buy traveler’s checks or exchange them for local currency. Plus, some financial institutions may charge a fee when you cash unused traveler’s checks or deposit them into an account.
Key takeaways: Are traveler’s checks still a good option?
Traveler’s checks can still be helpful when you’re on a trip. But modern options like credit cards, debit cards, prepaid cards and mobile wallets may offer more convenience.
If you’re traveling soon, you could consider a travel rewards credit card like Capital One Venture or Venture X. You could earn as much as 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Travel.
