Travellers cheques explained

Key takeaways

• Travellers cheques are no longer widely available to buy but if you have old cheques you can still redeem them.

• Travellers cheques used to be a popular way of spending abroad.

• If you have old cheques, you can exchange them at the post office or a bank.

What are travellers cheques?

Travellers cheques are a form of prepaid cheque designed to help tourists safeguard their travel funds. They come with a fixed value and can be used in various currencies across the globe.

Although these cheques were a staple for international travellers for decades, they’ve now largely been replaced with prepaid money cards and other forms of travel money.

How do travellers cheques work?

To use travellers cheques, you must sign each cheque upon receipt and then again in the presence of the cashier when making a purchase or cashing them. This two-signature system is a security measure to protect against fraud. It's also important to keep a record of each cheque's serial number, as this information is crucial for obtaining a refund if they are lost or stolen. The serial numbers of each cheque are usually found on the top right corner.

Where can you buy travellers cheques?

There are very few places in the UK where you can buy travellers cheques and all of the major banks and currency exchange companies have stopped issuing new travellers cheques.

Instead prepaid cards, travel money, or travel credit and debit cards are now the most popular options for spending money abroad.

Where can travellers cheques be used?

Travellers cheques aren’t accepted widely in the UK but you can redeem them at post fffices and most banks.

Around the world this changes, and in America they are still used but they are gradually being replaced with other payment forms.

What fees are there?

When using travellers cheques, you may encounter various fees, typically ranging from 2-3% in commission charges. Additionally, handling fees and cashing-in charges may apply. These fees can vary significantly depending on the provider, country of use, and the specific bank, retailer, or agent. It's always recommended to inquire about these fees beforehand to avoid surprises.

What to do with unused travellers cheques?

If you find yourself with unused travellers cheques after your trip, you have a couple of options. You can keep them for future travels, as they do not expire, or you can seek a refund at a post office or currency exchange office.

What are the alternatives?

For those looking for contemporary alternatives to travellers’ cheques, there are several options:

• Regular credit and debit cards are convenient but may come with overseas transaction fees and ATM charges.

• If instead you’d like to minimise any potential fees, a travel credit card is your best bet. You may also be able to benefit from rewards including travel discounts or cashback on your spending.

• Prepaid cards are topped-up with money in advance, so you can pay for your purchases with the balance. You simply top up the card when you’ve run out.

• For those needing to exchange currency, it's wise to shop around for the best exchange rates. With the MoneySuperMarket comparison tool, you can easily compare rates and find the most beneficial options tailored to your financial needs.

Compare travel money with MoneySuperMarket

Currency comparison is made easy with the MoneySuperMarket comparison tool. You can find the best euro rate or any foreign exchange rate by answering a few questions about your finances and we’ll provide you with a list of tailored options for you to benefit from.