Travelers Checks Again

American Express still sells them, but I doubt any merchants would accept them these days. Also unlikely a bank overseas will cash them for you unless you are an account holder. In addition pre-paid debit cards can now only be used within the USA to thwart the activities of drug cartels laundering money.

Best to open a bank account, and use the an ATM card to access cash at a machine. Bring a couple hundred dollars cash hidden in a money belt or hotel room safe as a backup.

I think you would have problems cashing them anywhere including most banks in Europe ,maybe AE offices but Travellers Cheques are all but obsolete in Europe now.

I’m so sorry this happened to you.
Someone must have copied the numbers and then knew about the sale of the card and stole your money. Did you report it to the police?
And Traveler Checks are no longer accepted by businesses or banks, though a US bank may still unload them on customers.

I'm am one of America's unbanked and am prohibited from opening a bank account because of a dispute with my previous credit union which committed illegalities. In fact a law was passed to prohibit their activity.

As for not boarding the plane after all my money was stolen - you cannot live in Europe for ten days with the $250 I had in my pocket. The money stolen was to pay for dental services in Hungary (so yes all my travel costs and apartment were paid for but the whole purpose of the trip was for medical services that I cannot afford in the United States).

Another alternative, perhaps safer: A standard ATM/debit card where money is advanced from your chequing account when you demand it rather than riding around on a card in your pocket.

So, please avoid giving me advice on the pre-paid cards. Poor Americans have few choices (we are true lower 2nd-3rd world citizens).

Please respond if you know of a place in the countries I listed where travelers checks can actually be cashed.

Thanks!

Please respond if you know of a place in the countries I listed where
travelers checks can actually be cashed.

http://tinyurl.com/yc76cy27

Perhaps another option would be to get more than one prepaid card from different institutions. That way if one is compromised you still have the other. How many years has it been? After I believe 7 you can usually start getting back into banking which would make this much easier for you.

Thank-you Michael. When I looked up Berlin American Express itself did not list their own office! Clearly travelers checks are on the way out but one can't open a bank account in Europe (at least not online without giving ones SSN) and I don't want to travel with large sums of money (which is actually what a German friend of mine in Berlin actually advised).

Kirt

7 years: I didn't go bankrupt. I am forbidden from opening a bank account because my former credit union entered my name in a database for that purpose (American capitalism at it's best). It's a dispute over about $400 ironically. Three years ago I attempted to open a bank account and could not.

Perhaps another option would be to get more than one prepaid card from
different institutions

prepaid cards can't be used overseas.

In Germany, the only place that will cash travelers checks are the money exchanges, also known as Reise Bank. You will pay a high fee and get the worst rate possible. Usually about 20 cents more per euro. Regular banks will not cash them. I believe Spain is the same way.

I wonder whether you would be able to open an account at a brokerage like Schwab, where others have reported that you can leave the money in a cash account and get a no-fee ATM card that gives you access to ATMs in Europe (and elsewhere, I assume). I hope I have that right; I don't have a Schwab account myself.

....So, please avoid giving me advice on the pre-paid cards. .....

Please remember this is a public conversation with many people reading and a few responding. While you may not like getting advice about pre-paid cards is this exactly the reason that we constantly advise people not to use pre-paid cards. They are considered gift cards and are outside of regular bank regulations and thus have much less protection - as you found out. You are safer carrying cash than a pre-paid card. This conversation is of more value to someone who is thinking about pre-paid cards than yourself. Sorry you had a bad experience but wish you had spent time on this site prior to your bad experience. Perhaps we could have helped you earlier.

To specifically answer your question. Know of nowhere that travelers checks are accepted. The issue is fraud - with a computer and a color printer anyone can print traveler's checks. There is no standard.

I think your only option is to take cash and exchange it in Europe - not the best idea financially due to a poorer exchange rate, and somewhat stressful to carry a lot of cash around, but I don't see another option. I would carry it in a few different places (a money belt is best, I think).

You can take up to $10,000 out of the US.

I am a merchant in the US, and I don't take any travelers checks. As stated above, too easy to counterfeit.

Taking cash is probably your only option.

And you can take up to €10,000 (or equivalent) into or out of the EU without having to declare it.
If you have have more on you, you are legal if you declare it.
Official rules from the EU website are here: https://ec.europa.eu/taxation_customs/individuals/cash-controls_en

Kirt-There is no "list" that prohibits someone from opening a bank account. You were more than likely reported as someone a bank took a loss on, which weighs into the decision a bank may make on opening your account. Have you tried going to a local community bank and explaining your situation? They may open an account for you under certain agreements (no overdraft). My bank does not even sell Travelers Cheques anymore. Looks like cash is your only option at this point. BUT look into my suggestions so you can possibly avoid this situation again. Also look into your agreement with the pre-paid card to see if you have any dispute rights.

If the pre paid card is one like those travel cards issued by AAA or Travelex then, yes they do work in foreign countries.

The prepaid card you can buy off the rack at your local Safeway cannot.

They are different things.

Unfortunately, the costs make it prohibitive to use the pre paid travel cards for most of us. If you are unfortunately in the situation like this, they are usually safer than carrying bundles of cash and the fees are just an unavoidable cost.

But no, avoid traveller checks. You can easily get them. Not so easily cash them.

I agree with Letizia. Something is odd here. Just after my earlier posting I swung by our credit union for cash and to alert them that we were leaving the country on Sunday. I asked my account manager if there was a black list of customers maintained by banks and credit unions. He was unaware of any such list. But deposits of over $10,000 have to be reported and suspicious deposits might get a second look. They do run credit checks on new members and so that could trigger a denial if bank fraud was reported, or perhaps some other illegal activity but a bankruptcy would not - at least at my credit union. A recent bankruptcy could put additional restrictions on how the account is used but rarely a denial. But being poor has nothing to due with account denial but dishonesty does.

My CU haven't sold traveler's checks in ten to fifteen years. However, they do sell pre-paid debit cards but admits they do get some good fees from these cards. Replaces the fees they used to get from traveler's checks. He believe the conveniences of the pre-paid card off sets the fees. We both kind of smiled at that. Since I have been a customer there for 25 years I can do that.

I was curious, so I took to Google. The "database" referred to earlier is likely a service called Chex Systems.

https://www.consumerfinance.gov/ask-cfpb/when-can-i-be-denied-a-checking-account-based-on-my-past-banking-history-en-1113/
https://www.chexsystems.com/

Two important factoids:
- "Our current practice is to retain record of reported information for a period of five years from the report date unless the source of the information requests its removal or ChexSystems becomes obligated to remove it under applicable law or policy."
- "The source of the information is under no obligation to remove an accurate report of account mishandling, even after payment of monies owed. However, the source of information is obligated to update the report with a paid in full or settled in full date when applicable."

Seems like the path of least resistance is to work with the credit union, pay off the $400 that's of dispute, and work with them to remove the negative report for good. Otherwise, you will end up losing much more than $400 by being blacklisted for another (?) years and trying to use really inefficient work-arounds that will rip you off even more (i.e. travelers checks, pre-paid cards, and expensive cash exchange bureaus).

"Seems like the path of least resistance is to work with the credit union, pay off the $400 that's of dispute,"

Agnes, that was my first reaction also, but I tend to agree with Kaeleku that the OP is not looking for solutions to their banking issues.
I feel that there may be some other deeper reason that they are unable to get a bank account because settling the $400 dispute seems the easiest and best solution. He/she is looking for someone to tell them what they want to hear - that they will be able to cash travelers checks in Europe, even though I think they know that it's not true. Those days are gone.

Agnes- yes ChexSystems is one, but it is only information, a tool used by Financial Institution on the decision making process. Just because you have been reported does not automatically exclude you from opening a bank account. Now if several different banks have reported you all for the same thing, well that is a different story.

I don't know anything about banking regulations, so I'm assuming it is impossible for OP to get an account right now. Also assuming no credit card access.
This is a rough situation because travelers checks won't be accepted very easily if at all. Prepaid cards also might not work overseas.

So what to do in this situation? This might be the rare time where bringing cash is ideal. In dollars or euros (you can get euros at AAA, just pay for them in cash). Whether you buy euros ahead or change dollars there you will have high rates but this is still the best option, I think.
Perhaps there are wire-services where you can ask a trusted friend to send money to you? I'm sure this is super-expensive, but is at least a last-resort type option.

but we use Capitol One CC and draw a cash advance.

This is really unsound advice. You get hit with an upfront fee (at least 3%), an ATM fee (if using a different bank), a really high APR (20%-25%), and no grace period (interest accrues immediately). Basically you're not taking out your own money, but borrowing money from the credit card company instead as a short-term loan at their preferred rates. I don't know of anyone who would recommend this option unless it was a true emergency.

I agree with Agnes but that is your decision so you pay higher fees for that convenience. Capital One has debit cards. Open a dedicated account. The probability of your debit account being drained is very low compared to the fraud potential of pre-paid cards. We have used debit cards - carefully - for fifteen years or more and never had a problem. The risk for using a debit card is very, very low.

Kaeleku's analysis above is brilliant. It may not apply to the OP, but it sure applies to a lot of people.

I do have sympathy for Kirt. When I was young I bounced a lot of checks. Just out of stupidity, not fraud. But it can play hell with your life. All my fault, of course. And all better now.

It takes time and effort, but it's probably better spent fixing your banking problems. How much did a drained prepaid card cost? And flight changes, etc.

Agnes, our CC doesn't charge the 3% fee or charges when we withdraw from an ATM. As for the interest, we simply pay off the advance early, while we are traveling, and the cost is minimal. It is also a better alternative to carry wads of cash.

Several of the responses are vicious and based on incorrect assumptions. I'm completely shoocked.

Several of the responses are vicious

Agree. It's a shame someone decided to politicize your woes. I truly hope you find a solution and can head across the pond and enjoy Europe.

These are the cash advance fees on a Capital One Platinum credit card:

Cash Advance APR 25.90%
Cash advance transactions will begin accruing interest charges immediately.
This APR will vary with the market based on the Prime Rate.

Cash Advance Fee $10 or 3%
Either $10 or 3% of the amount of each cash advance, whichever is greater. This may apply to cash advances, ATM transactions and/or cash convenience checks.

Well, one can characterize posts as vicious if you want, but there are some truths (maybe painful truths) in there.

Prepaid debit cards are generally not usable outside the USA. You may have found the rare unicorn that works overseas (I know of one that does, or at least used to), but that doesn't change the fact that prepaid cards are inherently insecure and worst of all, when you run into trouble with them, they generally do not provide much help or recourse. Generalizations, yes, but still largely true.

As pointed out above, there's no such thing as a true "bank blacklist" that prevents one from opening any bank account. There's Chex systems - one of several sneaky and below-the-radar quasi-credit-reporting agencies (CRAs) that have Big Data on all of us (including all of you, too) and that sounds like a factor here for the OP. Unfortunately, unlike the bigger, more well-known CRAs (Transunion, Experian, and everyone's favorite now, Equifax), the little stealth CRAs like Chex (Chex is just one of them, there are at least 4 or 5 that I know of) are not regulated much, and consumers have very limited recourse if one of them blackballs you. But that's not to say that one bad mark from one bank will forever block you from having any kind of bank account or credit card...there are lots of ways to get beyond a red X on a Chex report...simply waiting a few years should do it (I believe after 5 years things roll off the basic Chex report which most banks use), or even with some "issues" one can always work with a local bank or credit union to establish (or re-establish) a relationship. Even with terrible credit (or no credit history) you can get a "secured" account or credit card (deposit some $ in their bank, you get a limited credit card...eventually, the restrictions can be loosened as your credit improves).

I have a strong feeling there's more to the story here that the OP would rather not share (can't blame anyone for that). You can scoff at Rick's advice but travelers checks are indeed an anachronism. Going forward, it's not going to get any easier...something to consider (start working towards fixing this now, considering trends in the world). I wish the OP luck, I think s/he is going to need it if they want to travel internationally.

"Several of the responses are vicious and based on incorrect assumptions."

It's very true that there are some assumptions being made (correctly or incorrectly) based on limited information in the post. However, I've read all of the responses and I don't think any of them can be described as vicious. An OP may not always get only the positive responses they desired, but that does not necessarily mean that any negative comments are meanly meant. Most of the responses here have been trying to be helpful and honest in answering the original question about travelers checks.

acraven - thanks! I didn't think of the Schwab account. That's very helpful.

Ms. Jo -

In Germany, the only place that will cash travelers checks are the money exchanges, also known as Reise Bank. You will pay a high fee and get the worst rate possible. Usually about 20 cents more per euro. Regular banks will not cash them. I believe Spain is the same way.

Thank-you. That was helpful. A friend in Berlin also confirmed this.

However when you say "Usually about 20 cents more per euro" do you mean that given a rate of 0.85 euro /$ that they are cashing the travelers checks at something like 0.65/$ ? On their website they clearly say that they cash American Express travelers checks but do not give the exchange fee or the exchange rate that they will cash them at.

Thanks!

They don't post the exchange rate because it changes rate every minute or so. A little like the stock market. And you know their fee will be high since they don't post it. And remember you will pay a fee to buy the traveler's checks so you need to add that into your cost.

20 cents more per euro should be the difference bet $1.18 per euro and $1.38 per euro or $20 for every €100. That’s a hefty fee.

BTW, US Customs and Border Protection requires a form if you take $10,000 or more out of the US.

https://help.cbp.gov/app/answers/detail/a_id/195/kw/CUSTOMS%20FORM%204790

They don't post the exchange rate because it changes rate every minute or so. A little like the stock market. And you know their fee will be high since they don't post it. And remember you will pay a fee to buy the traveler's checks so you need to add that into your cost.

Yes, I know. I've cashed lots of travelers checks prior to 2000.

As for the exchange rate, yes I know. I grew up there (partly). However on their website they could have explained their fees for cashing and posted the exchange rate they were exchanging at in a widget that updates. But they didn't.

20 cents more per euro should be the difference bet $1.18 per euro and $1.38 per euro or $20 for every €100. That’s a hefty fee.

Oh, US cents! As you note it would be 1/5 higher than it should be. So it is still technically possible to cash them but it is highway robbery.

Thanks!

That is exactly what I mean. Each euro you buy will end up costing you 20 cents more than if you used an ATM.

kirt,

I'm a bit late getting into the discussion, but had a few comments to add.....

Forget the idea of using Traveller's Cheques. They're an outdated remnant of the past, and even if they're easy to buy they won't be as easy to cash. You'll either spend an inordinate amount of your valuable holiday time getting to and from locations that will cash the cheques, or you'll get dreadful exchange rates.

A few thoughts.....

• is there any way you can rectify the problem with opening a bank account? Surely the prohibitions you have aren't a "lifetime sentence"? Perhaps you could look at the online financial institutions (Andrews Federal Credit Union?) operating in other states.
• if you have a willing friend or family member, perhaps they could obtain a companion card on their account, in your name? Depending on the financial institution, it may be possible to open a "sub account" of their account and use that specifically for your travels, and that would be designated as the "primary account" for access by your card. That way you wouldn't impact other parts of the account.
• are you able to get a credit card? If so, you could prepay a large amount on the card and then withdraw using "cash advances". While there would be a service charge for each withdrawal, there would be no interest charges since you wouldn't be "borrowing" money. Perhaps this would work for you - http://nationalpost.com/pmn/news-pmn/coming-soon-a-selfie-with-your-credit-card-application .
• have you checked your credit rating recently?
• I always travel with several hundred Euro, as that keeps me going for a few days so no urgency to get to an ATM.
• in an ideal situation, it's prudent to travel with at least two debit / ATM cards in case one malfunctions / gets eaten by the machine or whatever (I've had that happen). If you only have the option of one, that will have to do.

Have you looked at dental work in Mexico? I know people from this area that go there on a regular basis for dental work. One place to look at is Los Algodones, which is just outside Yuma. There's a large car park on the Arizona side, so you can just walk across the border.

I'm somewhat "grasping at straws" here but wanted to offer a few suggestions.

Ok this may sound simplistic , but can't you just take what American money you have and BEFORE leaving home go to a money exchange , have it it converted to euros and take them .

Yes , you will lose out a bit on exchange , and yes , you will have to travel with a large sum of cash , but , if you keep it in your money belt it's as safe as it can be ( keeping small amount out for each days use ) .
To me having to run around to find places to cash tc check would be a hassle and waste of time .

The other solution is to have a close friend or family member open a companion card for you , you pay them upfront in cash and they can then have a preset limit on what you can charge . I did something like this when my young daughter went to Europe .

Ok this may sound simplistic , but can't you just take what American money you have and BEFORE leaving home go to a money exchange , have it it converted to euros and take them .

Sure. As you noted you them lose considerably on the exchange rate. But the real problem is that it can get lost or stolen.

I‘ve done this in small amounts but stopped doing this on a trip to Austria at least nine years ago.

In the distant past I seem to remember Rick recommending this in small amounts in case one wanted to arrive with a small amount of local currency. However, in Europe this has been unnecessary for quite some time. But he has definitely not recommended this for at least ten years.

Incredibly a friend of mine in Berlin insists that he walks around with large sums of cash (which I did not notice visiting him in Berlin but he also didn't go to the ATM daily).

Hi,

The Am Ex office in Vienna is still on Karntnerstrasse where it has always been, the first time I saw it in 1971. The exchange outlets (Change, Wechsel in German, Cambio) will exchange the travellers checks but do note the rate. Very rarely I do see people using the Reisebank services when I've been there, ie when it used to sell phone cards. Since it does not anymore, I get the phone elsewhere in Germany.