Answers to Frequently Asked Questions

What are traveller’s cheques?

Travellers cheques are currency denominated cheques, often US dollars, sterling or Euros, issued to an individual for use as a safe way of taking travel money abroad. They can be converted to local currency, or on some occasions used as direct payment. Traveller’s cheques are signed by you at pick up and when redeemed, alongside valid ID to ensure security of your cash while abroad.

Do you get the same currency exchange rate as cash on traveller’s cheques?

Traveller’s cheques will often be offered at a slightly different currency exchange rate to cash. If you decide to take travellers cheques with you, instead of buying currency then you will need to compare currency exchange rates at different providers.

Will I be charged commission when I buy travellers cheques?

Commission and fees are one of the main disadvantages of using traveller’s cheques rather than buying foreign 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 a good currency exchange rate. However, when you redeem your cheques for cash in your destination country, you will often be charged commission as well as a further foreign exchange rate, if your travellers cheques are not local currency.

For example, you may chose to buy dollar denominated cheques in the UK for a trip to Peru, with the plan to convert your traveller’s cheques to cash as needed while keeping the rest of your travel money safe. When you visit local banks or Bureau de changes to convert your traveller’s cheques to Nuevo Sol (Peru’s local currency) you will be charged their dollar to Nuevo Sol currency exchange rate and can also be charged commission.

Do people still use traveller’s cheques?

Yes. Using traveller’s cheques as travel money is still one of the safest ways to take your money abroad. What is common now though is for people to take a selection of different currency formats with them such as; travel cards, foreign currency in cash, traveller’s cheques and UK debit or credit cards. At The Currency Exchange Site we prefer currency cards to traveller’s cheques, as they increase the flexibility of your travel money 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 Travel Money Currency Cards FAQs.

It is best to get travellers cheques in the local currency of your destination country, but if you are travelling to several different countries it is best to get a major currency denominated cheque, such as Euro, pound or dollar.

Where can I use traveller’s cheques?

You can use your traveller’s cheque at hotels, and some shops and restaurants 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.

Are traveller’s cheques the safest way to take foreign currency abroad?

Traveller’s cheques have typically been regarded as the safest way to take foreign currency abroad. However, with the rise of credit and debit card usage, as well as travel money cards to access foreign currency whilst abroad, the safety advantage of traveller’s cheques has been eroded. Cards, including travel money cards, are generally CHIP and PIN protected, will be replaced if lost and your foreign currency is protected from fraud.

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

Your travel money provider will provide you with all the information you need before your travel just in case your cheques are lost or stolen. In general, cheques can be stopped and even replaced within 24 hours, if you contact your operator with your cheque’s security number. So when you buy your traveller’s cheques make a note of the serial number and keep this separate from your travel cash. Then in the case of theft or loss your travel money will be protected and replaced quickly.

Are traveller’s cheques cheaper than using cards aboard?

As with all methods of buying foreign currency, you need to make sure you shop around to get the cheapest options – both at home and abroad. Traveller’s cheques can be cheaper than using credit and debit cards abroad, but you need to make sure you get a good foreign exchange rate on your currency when you buy cheques and when you convert them to cash, as well as low commission fees. Another card option is a travel money card, where you load foreign currency onto a prepaid card, which will give you a better deal on currency exchange than credit and debit cards. The initial loading fees and exchange rate will form the bulk of charges, with no commission for foreign currency payments.

For more information on travel cards, please have a look at our Travel Money Currency Cards FAQs.

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