If Travellers Cheques are so useless, why do the banks still sell them?

We just returned from Italy and used ATMs the whole time. We used machines at train stations as we got to a new city if we needed more euros. I've never in my life had a card chewed, but on this trip I would have had my hasband's as backup and worst case scenario, could have gotten a cash advance on the credit card.

I wouldn't want to waste my time going to a bank. Using the ATM, I knew I was getting the best exchange rate. Just notify your bank/credit card in advance of your plans.

I get TC's free from Wells Fargo. If you find an American Express office in Europe, you can cash them there. But who wants to waste time on vacation to find an American Express office anyway?! Better things to do in Europe. When I go to Milan this fall, I may get a few TC's for emergencies. Rick Steves said in his Italy book, there is an American Express office near the Duomo. That should be easy to find. But I'll mostly use CC, and cash.
Happy Travels!

I stopped using Travellers Cheques many years ago when a Barclays branch charged me 5 GBP to cash one.

I stopped using Travellers Cheques many years ago when a Barclays branch charged me 5 GBP to cash one.

They have fallen out of fashion throughout most of central Europe and the countries to the west but in other areas of the globe they are still a better option.

If you're travelling in some of the more remote parts of the world they are a much better option than plastic.

Banks will continue to sell them as long as customers demand them. My mom still only travels with travelers checks and credit cards. She pays more and has to find a bank to change them. I think she's crazy but she isn't interested in doing anything different.

Speaking of credit cards, my mom always takes her Diner's Club card which is very rarely accepted. I would swear it's her way of getting credit for volunteering to pay then not actually paying because the place doesn't take Diner's Club, LOL! Especially since I know she has an American Express and doesn't pull that out unless pressed. For some reason she never carries a MC or Visa which are much more widely accepted.

She's never been left homeless, so I guess she'll stick with what works for her.

You mention going to a major bank like Llyods or Barclays in the Uk, what do you do in other countries where there is no Llyods or Barclays? Do you travel to other countries?

I don't use travellers checks anymore, , haven't for over 15 years. I like using the ATMs. I haven't found my card to be "eaten" by any machine here , ever, so I don't anticipate, nor has it happened yet, that it would be anymore likely to happen while away. I am a cautious person though, so I do carry two ATM cards , to two different banks, so if it did happen I would have back up. Plus I never allow myself to go penniless before restocking with cash, so even if it did happen I imagine I could survive for a few days while getting it cleared up.

Banks will continue selling them because I imagine in some cases they are useful. Like if you need lots of cash, say for an apartment rental, it is easier to go to a bank and cash some for thousands of euros, rather then trying to withdraw a huge amount of money like that all in one go( most banks have limits on ATM daily withdrawal allowances)

Traveler's checks are still offered for the same reason Zubaz and fanny packs are still sold. There is some obscure niche that needs to be filled.
I've never had ATM problems. But here in the US about 15 yrs ago when I had last used traveler's checks I had problems cashing them for many various reasons...never again.

T checks are more expensive to use - high fees, lower exchange rates - and inconvenient. And if you've ever lost them or had them stolen, that's a major pain in the *** too.

It is inconvenient to have your ATM card eaten but to minimize potential problems, you should be taking 3 - a spare for your main account and another ATM card from a separate back-up account in case there's some problem with your main account.

Banks sell TCs because they make a lot of money on them. Not only do they charge you fees on both sides of the transaction but they get to use your money interest free from the time you buy them until the time you use them. They just love it when you put those unused TCs away so you can use them on your next trip.

In my 45+ years and numerous trips to Europe, I've never had an ATM card eaten by a machine. My parents took TC with them one year to Europe, and they were hot under the collar when they went to cash them. They got a dismal return on their investment. On the other hand, my ATM card worked just fine.

I think there is some confusion here. I always buy Travellers Cheques in the currency of the country I am going to which is why I cant see why there would be a problem. I will be taking just Euros for the France portion of our journey but UK travellers cheques that I purchase at my local bank here in Canada for my UK trip. There is never a big difference in the exchange rate between cheques and actual cash in hand. I am just wondering if peoples bad experiences with travellers cheques is because they are trying to take US Dollars into a foreign bank? rather than just take travellers cheques in the denomination of that country?

Pete, no confusion on my part, I always took the proper currency ( its not like anyone wanted my Canadian dollars, LOL ) .
The fact is , unless you are dining/shopping high end, which I am not, the little cafes, street venders and bistros will often just flat out refuse to take TC's. They prefer cash, will accept Visa, but mostly reject TCs.

I had no problems finding and using ATMs in Novgorod, Smolensk (not to mention St. Petersburg), Tirana, Durres, Skopje, Sofia, and Pristina... OK, I had to look a little harder in Smolensk... No unexpected fees or withdraws showed up on my bank statement, and my card returned to me, unscathed, everytime. If you still worry about losing your card, I guess TCs are a secure option. But with ATMs showing up even in some of the darkest corners of Europe's periphery, I can't imagine the average traveler from North America would ever find themselves in an ATM-less destination anywhere on the continent.

I think TC are much maligned because they have always been promoted(and maybe were)a primary source of travel cash. Times have changed, the ATM has taken over, CC transactions much more common, but I am willing to concede TC a niche. If you are able to get TC free (as many Credit Union customers do) there is certainly no penalty in taking some as backup...you can always bring them home and cash them in at no cost. Even if you need to use them, if you use a bank or AE office, the exchange rate is not much worse than getting Euros in the US, you have no risk in losing them, and in an emergency, 5-8% may seem cheap. As for machines eating cards, has not happened to me, but a strike in Paris once did prevent the ATMs from being serviced and phone lines out in the CT shut down the ATMs. Also for no reason specific locations could not process one or the other of my CC, so having a backup never hurts.

When we were getting ready for our trip, which we just returned from, I went to the bank to let them know that we would be using our ATM cards outside of the country. Funny, that when I looked to one side of the counter, there was a sign that said that as of XX date, they would no longer sell travelers checks! So maybe they are starting to fall out of fashion with the banks too.

Another selling point for AMEX TC was that they were easily replaceable even on the remotest island beach...remember the commercials???

I took a trip to San Diego and left my TC in the car parked at the airport at home. Obviously I had to get them replaced. It was NOT and easy task. Amex people were NOT friendly. I had to GO and find the office to get them replaced because they weren't delivered to me on a silver platter as I sipped a fruity drink on the beach!

When I called AMEX from San Diego to get replacements I was treated like a CRIMINAL. I was told I would be put in jail IMMEDIATELY if the old TC were cashed. I was put on hold for very long periods of 20-30 minutes. I had to make several phone calls and faxes from my hotel. It was not a fun or easy thing to accomplish, but I did eventually get replacement TCs.

I really couldn't believe that I was treated so badly...and I was an AMEX card holder at the time. That information made NO difference in the way they treated me.

Perhaps the AMEX TC commercial was exaggerating a bit when the guy's TC were delivered to him on the silver platter at the beach??? Perhaps the real treatment is another reason TC are not widely used/accepted anymore.

Even if the TCs are "free" from your bank, CU etc you have to consider the exchange rate if you get them in foreign denominations. Your will probably pay a premium on the official rate when you buy them and get a discount on the rate when you cash them in. Your best chance of getting the official bank rate for currency conversion is at the ATM.

My mother wanted to give me a gift of money for my trip so she went to the bank to get traveler's checks. Besides the rule that I had to be there in person, they talked her out of using them for travel. They told her no one used them any more and to use ATM's and CC's.