With the existence of credit and debit cards that can be used virtually anywhere in the world, it’s probably rare for you to hear travelers’ cheque. It may even sound ancient. But back at the time, it’s the safest ways to bring money during travels. Even now, some people still use travelers’ cheque, and certain merchants do accept them. Although clearly the number has decreased over the decades.
Travelers’ cheque is quite similar to ordinary cheques in which they are issued by or purchased from a bank. The bank would charge you for the cheque issuance or purchase. However often times, when you have a certain amount of balance in your account, you won’t be charged for the issuance of travelers’ cheque.
Travelers’ cheques are generally safer than cash. It would also give you a peace of mind because when lost, a travelers’ cheque can be reissued, while the lost cheque will get cancelled. The process of getting a cash from travelers’ cheque also takes time, especially compared to the ease of access that modern “plastic money” offered today. Because of this hassle, getting your travelers’ cheque stolen is much slimmer. Travelers’ cheque gives a sense of safety even in today’s largely infrequent usage.
A signature that matched what’s written on the travelers’ cheque will be needed in order to use the travelers’ cheque, whether it’s using the cheque to purchase goods or services, or to exchange the cheque for cash.
Travelers’ cheque is handy as a budgeting tool. One of the economical benefits travelers’ cheques offer is that they can be a form of budgeting for travelers. Travelers cheque are pre-paid. It could mean no excessive spending, especially for those who knew themselves to be an impulsive buyer. It can be an extremely useful tool to get your travel finance under control. For those who love budgeting, you’d likely love travelers’ cheque a lot.
The travelers’ cheque has existed since the 70s. The first company to issue some form of travelers’ cheque is London Credit Exchange Company. In the 80s, an American Express Company’s president, James C. Fargo said that the travelers’ cheque can be the solution to taking money overseas. Travelers’ cheque today is generally available in major currencies; US dollars, Japanese yen, British pound sterling, European euro, and Canadian dollars.
Another major benefits that made the travelers’ cheque very popular back in the day is that travelers’ cheque would never expire. If you still have some considerable leftover money in your cheque, you’re free to use it again in the future, any time.
Today, despite the lack of convenience as well as the readily available, easier alternatives, travelers’ cheque might provide an essential backup for your travel funds, just in case something happened. Some people are prepared for their travelers’ cheque where ATMs are very far and few. There’s also a major safety concern where your whole life’s savings may be in danger. Travels to especially dangerous places may benefit from travelers’ cheque. Travelers’ cheques today is not convenient for your primary source of money, but always having them on-hand truly may save you some trouble.