Travel Money: Travellers Cheques Frequently Asked Questions

Answers to Frequently Asked Questions

What are traveller’s cheques?

Travellers cheques are currency denominated cheques, often in US dollars, sterling or Euros.They are, issued to an individual and were developed to allow people to carry large amounts of currency abroad safely.They can be converted to local currency, or on some occasions used as direct payment, especially in larger hotels. Traveller’s cheques are signed when they are purchased and again on redemption.You will also need to valid ID when redeeming your cheque to prove your identity which helps ensure security of your cash while abroad.

Which is the best denomination to use?

US Dollar travellers cheques have historically been the most common form of travellers cheques given the historic stability of the dollar. If you are travelling to the US (or South America) or Europe it makes sense to buy dollar or euro cheques, whereas if you are going further afield, and expect the pound to remain relatively stable in the currency markets, then pound travellers cheques are a good option.

Will I get the same exchange rate on my travellers cheques as my cash?

The currency exchange rate for travellers cheques will often differ slightly from the cash rate. You can compare the exchange rates using our comparison pages for travel money and travellers cheques.

What fees are associated with travellers cheques?

It is useful to bear in mind the fees associated with travellers cheques when you go abroad. Commission and fees are one of the main disadvantages of using traveller’s cheques rather than buying currency as cash to take as travel money.

Generally, you will not be charged commission on your cheques when you purchase them and are often given strong currency exchange rates. However, when you redeem your cheques for cash in your destination country, you will often be charged commission as well as a further currency exchange rate , if your traveller’s cheques are not local currency.

If I want to keep my money safe abroad, are travellers cheques the best option?

Yes and No. Travellers cheques as a form of travel money are one of the safest ways to take currency abroad, as long as you follow the instructions and note down the cheque serial numbers. Then if your cheques are lost or stolen these numbers allow the provider to confirm the cheques were issued and reimburse you. However, now there are also other ways of taking money abroad and keeping your money safe, namely foreign exchange currency cards. These protect your cash with CHIP and PIN, protecting you from theft and loss as well.

We recommend taking your holiday money in a range of formats to help keep it safe e.g. foreign currency in cash, traveller’s cheques or a foreign exchange currency card.At Travel Money we prefer currency cards to traveller’s cheques, as they increase the flexibility of access to your cash as you can withdraw your foreign currency cash at any ATM, at any time of the day and make transactions as you would with your UK debit or credit card. For more information on travel cards, please have a look at our Foreign Exchange Currency Cards FAQs.

How do I use travellers cheques?

When abroad you can use your traveller’s cheque at hotels, and some shops and restaurants as direct payment as well as converting them to local currency at banks or bureau de changes. Just remember to make sure your hotel, shop or restaurant accepts traveller’s cheques in place of cash.

What do I do if my traveller’s cheques are lost or stolen?

When you purchase your travellers cheques, your travel money provider will provide you with all the information you need in case your cheques are lost or stolen. Make sure you note down the serial number on your cheques and the telephone number to call. Keep this information separate from your travel money. These numbers will allow you to contact your travel money provider and stop and even replace, the cheques often within 24 hours.