travelers checks vs. debit cards

julie,
First reason: very few places in Italy accept travelers checks.
Second: if you buy travelers checks in euro in the US you are paying at least a 5% premium on the conversion, the ATM will charge you a 1% premium.

If you confirm with the hotels that they'll take your travelers checks, then that's a great way to pay your hotel bills.

A problem with travelers checks is that lots of places no longer accept them. They want cash in Euros. They don't want the hassle of dealing with the checks, and they don't want credit cards since they have to pay about 3% off the top to the card company. As long as business is good they have the luxury of having things their way.

So if you take travelers checks you may have to go locate an open bank to convert them to cash, and you may pay a fee for the service. It's just easier to get cash from ATMs that are located everywhere and open 24 hours/day (as long as you don't need more than the ATM daily limit). Also, compared to the debit card, you'll pay a higher fee to convert the dollars the checks produce to euros.

As others have said, most places won't take them. Many places do take debit cards directly but plan on using them to get money from ATMs rather than use them for actual purchasing. Sometimes Italians will choose not to sell you an item rather than take the debit card.

That being said, your ATM/debit card will get you a fair, decent rate from ATM machines. Traveler's checks are frankly a nightmare. I gave up on them entirely after I got into a bind, had to cash one, and ended up paying a 20% commission rate (no kidding). If you want to bring them as an emergency backup in case other funds get lost, that's an idea, but don't plan on using them.

Rule of thumb: Use credit cards for major purchases and use debit cards to get cash from ATMs for everything else. Be sure to call Customer Service and tell your card companies when you will be in Europe. If you don't, a computer may block your card for what it recognizes as unusual--and therefore possibly fraudulent--use. If possible, bring two debit cards linked to different accounts. This will both increase your daily withdrawal limit and give you a backup if one card doesn't work. To read what Rick says on this subject, go here.

Very few hotels will take travelers checks. It is not considered a cash equivalent. The reason is that many Italian banks will not accept 3rd party checks...ie. a check you've signed over to a hotel. They also charge signficant commissions, and lastly, you could end up spemding a great deal of time trying to get them cashed at a bank that would really prefer not to deal with you.

travelers cheques are a thing of the past. It's amazing that you can still get them as most places don't want to take them (to much of a hassle) Use your ATM card as you would use it here. It's the best and very easy!!!!

The big issue with TCs is fraud. When TCs were accepted it was far easier to print a fake TC than a fake US 50. The result is that no one wants them. Some banks may reluctantly cash them for a substantial fee because they are better able to detect fraud but the local merchant wants nothing to do with TCs. And you are mistaken if you think the fees for ATMs withdraws are high the fees you paid for TCs. The reason that ATM cards are preferred is because IT IS THE CHEAPEST WAY TO OBTAIN FOREIGN CURRENCY. Repeat after me , IT IS THE......

Julie,

I normally use credit cards to pay Hotel bills and other large purchases, where these are accepted (many smaller Hotels will reserve with a credit card, but require payment in cash). For most other expenses, cash from ATM's is the best option. I'd recommend taking at least two ATM cards, in case there are any "problems" with one of them. Note that funds must be in a chequing account with a four number PIN.

As Rick has said in his books, "I've cashed my last Traveller's Cheque"!!!

Happy travels!

julie,
just returned from Greece/Italy trip. We only brought $200 with us and used our ATM card or Visa for everything else. Traveler checks are becoming quite passe. I'm not even sure if most people still them? Make sure you have a fairly high daily limit you can pull out from the ATMs because many hotels require cash payment and, even if they don't, they will often give you a discount if you do. Have a good trip.

Traveler's cks just aren't used anymore. AAA no longer sells them to its members--this has to tell you something. Found this out when I went to Budapest, Prague, and England earlier this year. I had never used a debit or ATM card, but ordered one from my bank that can also be used as a credit card (tho I don't--rather use my regular cr.card). Trust me--it was so easy. I would rather charge big expenses than use the debit as you get a bit more time to pay.... Just calculate approx. how much you will need for your stay in each country, go to the ATM when you arrive and get that amount. The way I did it is that whatever amount I had extra, I paid on my hotel bill, then charged the balance. If I needed a few more $$ in local currency to get to the airport, etc., the hotel added that amount to my bill and charged it (they gave me the extra). I went to 3 countries and my ATM charges were $15 total. My bank charges a flat $5 fee per withdrawal. My credit card co. charges a 3% transaction fee per charge. It is so much easier than carrying all those TCs. Try it--you'll like it. Just be sure to try not to make many withdrawals--better to overestimate than under as you can apply to your hotel bill as I stated. Be careful with your PIN # if you do use the debit as a charge card as anyone can access your bank account with it. I perfer to use my credit card. Have fun!