Traveler’s checks offer consumers a relatively secure way to pay for expenses when on a trip away from home. These checks are printed with a set value and can be used as a cash equivalent when signed. As with any payment form, traveler’s checks have their own pros and cons. Consider the following advantages and disadvantages of traveler’s checks to help you determine if this payment form is right for you and your upcoming vacation or business trip.
Pros of Traveler’s Checks
* Traveler’s checks are readily accepted in many locations and by many merchants.
* Lost or stolen traveler’s checks are replaced free of charge, often quickly.
* The set value of your traveler’s checks helps you to maintain a budget on your trip.
* Many times it is possible to exchange traveler’s checks for cash again at the hotel where you are staying.
* This form of currency is not computer-dependent. You can still make purchases even when systems are not cooperating.
Cons of Traveler’s Checks
* All vendors do not accept traveler’s checks, so you may still have to carry cash or a credit card for those purchases.
* Traveler’s checks require a transaction fee or activation fee; it isn’t simply trading cash for traveler’s checks.
* You need to pay attention to the remaining value on your traveler’s checks as well as tracking the check numbers.
* Using a credit card or debit card can be more beneficial in regards to exchange rates in the destinations where the value of the US dollar is down.
* It may be difficult to find locations to trade back your traveler’s checks for cash.
Use the information above to determine whether traveler’s checks would be advantageous for your next vacation or business trip.