What's with the travelers checks haters?

Jason,

If you don't agree, take travelers checks. No one is forcing you to use an ATM. Your post isn't even asking for real answers, which you could get by reading the other threads. If you want to write an editorial, try a travel magazine with an op-ed page.

I don't know when the last time you you were in Europe but in Italy for sure almost no businesses will accept traveler's checks. It's hard to find a bank to cash them in and when they do there are exhorbitant fees attached.
Much easier to use ATM's than spend your time hunting up someone to cash in your checks.
My husband and I each have an ATM card with 5 free transactions a month so it's a good deal even with the euro translation rates.
I'm hearing much the same from friends about the state of traveler's checks in other countries.

This past month I saw signs too many times to count in Italy (merchants and hotels especially) that travelers checks were not accepted. Cash from ATMs is so much easier and I would guess that by the time you pay the check fees and factor in the higher exchange rates and time it would take to find someone to cash your checks, you'll come out ahead even with the ATM fees (but I have no hard data to prove this). So, in answer to your question, "Why are ATMs so popular?", it's because merchants don't want to fool with travelers checks; ATMs are all over the place; you get a good exchange rate through ATMs; and there's no wasted time finding and standing in line at American Express or banks trying to turn the checks into cash. My average time at an ATM was less than 90 seconds.

Thanks Jeff, that's what I was looking for. I think I'm going to go with the ATM option this trip. Cheers,

Sorry I misunderstood you Jason.

Here are some threads that go into the topic in-depth and set forth the pros and cons of using travelers checks vs. ATMS

www.ricksteves.com/plan/tips/moneytip.htm

http://www.ricksteves.com/graffiti/helpline/index.cfm/rurl/topic/1943/travelers-checks-yes-or-no.html

http://www.ricksteves.com/graffiti/helpline/index.cfm/rurl/topic/299/changing-cash-into-euros.html

http://www.ricksteves.com/graffiti/graffiti81.html

http://www.ricksteves.com/plan/tips/thrifty50.htm

FYI, you might want to check with your financial institution regarding their fees for ATM use out of country. Most are reasonable, but some are less so. If that is your situation you might want to consider a credit union. Mine charges $1 per transaction and 1% for the currency exchange (at the bank rate that day). These add up to a great savings over the traveler's check fees and exchange rates.

Just opened an account with Capitol One bank here in Houston, Texas. As long as you maintain $1,000 balance in your account ATM withdrawals are free worldwide. Their credit card also don't have any sevice fee for foreign charges.

Hope this helps.

Jason one tip. Let your financial institution know you are travelling and may have abnormal transactions. I learnt the hard way and had my card declined once. When I contacted my bank from overseas they told me they did it for security reasons. I was OK as I had another card but it could have runined my trip. I have read other posts from US travellers where this has been a problem.

Jason,

In this thread, http://www.ricksteves.com/graffiti/helpline/index.cfm/rurl/topic/2148/arriving-with-euros.html, a poster named Henry (second post from the bottom) sets forth the different rates one gets when converting money in different forms (ATM, credit, travelers checks, cash).

Jason- My husband and I just returned from amonth in Italy. We took some euros, our ATM, cards, and some Travellers checks, as well as credit cards. Now , I hear what everyone says, but , in the bigger cities ATM cards work fine , but when we were in Camucia , the newer part of Cortona, our ATM's did not work. They were not declined, but rather said "This card not valid for international transactions". They worked everywhere else in Italy ,but not in Tuscany. Tried everwhere, and talked to others that had the same problem. We took out those old Travellers checks that everyone says are so bad, and, the bank not only cashed them, but the rate was an astounding $1.34. Yes,there was a small fee, but very small and it saved us a lot of hassle in the end. We always take a little of everything.

Jane, I wonder if your card didn't belong to the network they were using. Did you try an ATM from a different bank to see if it would work?

I've used ATMs in Cortona (the old part up on the hill) and in many towns in Tuscany & Umbria. Even in the small town of Urbino in Le Marche, where I thought there would be no ATMs, there were several and my card worked.

I have heard that its advisable to take 2 cards with you (from different banks) so that if an ATM won't take one that you have another to try.

make sure you know what your limit is per day, my credit union ATM card only lets me take out $300 per day which doesn't go very far when 2 people are traveling. I take cash, exchange a wad of it at the airport, keep it in my money belt and spend cash as I go..

In response to the above, the other option is to ask your bank to increase your daily cash withdrawal limit for the period that you'll be overseas. I always do this and it works fine.

Jason, ask at your bank if they charge for ATM transactions overseas, if yes ask how much. We have used our ATM hundreds of times with no charges from either our bank or the bank of the ATM we used. We go to a small bank (not a nationwide bank), so if your banks charges are high, it might be worth your time to check several other places, you could open an account to use during your time. But he MOST IMPORTANT thing is your card has to be connected to a checking account, if its only connected to a savings account it will not work.

The reason for using ATMs as opposed to traveler's checks is the exchange rate. At the "ccambios" which you see everywhere they advertise that there is no "fee" but what they don't tell you is the exchange fee they charge is escessive. I and many others, including Rick and his people, have studied this carefull in all the European countries and at all the possible exchange places. Use an ATM card (debit card, check card) and not a credit card. Also look carefully at which card you choose. Some have quite reasonable fees, usually a percent, with a limit on how much you can get. In Italy for example it is usually around 350 E. Some have transaction fees so get all you can at one stop. In any event, there is no question that ATM cards are much cheaper than travelers checks. A final note, many/most/a lot of places in Europe no longer accept travelers checks at all. Oh yes, do not go INTO a bank and use a teller. Under their law the teller is allowed to charge an extra fee.

We just got back from Italy and wished we had planned to use ATM's rather than travelers checks. We had to go to banks and pay a fee after waiting in lines,usually.

We are not "Trav Check Haters". It is just that the world has changed. TCs used to be de rigeur for travelers. ATMs are simply more economical,less apt to be misused thru conterfeits or thefts by bank personnel and users in collusion and easier for record-keeping for the banks. THEY prefer the ATM system and it is now widespread

I've used my regular ATM card in Ireland, Spain, and China and have gotten good exchange rates and no extra fees charged (except for the $1.00/month "foreign fee" that my credit union charges for using machines outside my network).

Jason, I live in CALIForna and First Republic Bank
doesn't charge anything for the atm. They reimburse
all charges made by any other bank even the
currency exchange fee. I think they are in a lot of
states.
We have never been charged a fee by banks in
Europe.

I don't understand why some people give a sarcastic
answer when someone asks a question. Aren't we
all in the forums to get information?