Traveler’s checks are very secure and can be easily replaced if they are lost or stolen. They can often be replaced as quickly as the following day. Keeping a list of the traveler’s check serial numbers is the best way to protect them. When cash is stolen, there is no way to recover it. Stolen credit or debit cards may take some time to be replaced, and they may only be sent to the cardholder’s permanent address. The person whose name is on the traveler’s checks is the only one who can cash them, giving them another plus in the safety category.
Anyone who has traveler’s checks will most likely need to find a bank or other place in which to cash them. Not very many businesses accept traveler’s checks as payment. Using traveler’s checks adds another step in purchasing items, as they usually necessitate a trip to a bank or other place to cash them. There is also no way to automatically track purchases, whereas credit and debit cards provide a list of itemized transactions in case any need to be disputed or recorded.
Traveler’s checks often have a higher exchange rate than the rates using credit or debit cards.
There is an initial fee for purchasing traveler’s checks, unless they are purchased by an American Express cardholder or a member of the American Automobile Association. There may also be additional fees from the place that cashes the traveler’s checks, including a check cashing fee and commissions. Some places will not charge any fees for cashing traveler’s checks, such as a branch of the bank where the traveler’s checks were originally issued, but these places may not always be in convenient locations. Credit and debit card companies may also charge foreign transaction fees.
Traveler’s checks are ideal for backup money if there are no ATMs immediately available.
Instead of actual paper checks, some companies offer traveler’s checks in the form of a traveler’s check card. The card is similar to the paper traveler's checks but is more widely accepted at businesses for buying things and can be used at ATMs to withdraw cash. The exchange rates are lower using a traveler’s check card over paper traveler’s checks, but there are still a number of fees, such as any transaction fees, activation fees and even charges for adding more money onto the card.
