Are there any disadvantages to using travellers' cheques?

Some people see travellers' cheques as an outdated way to spend money abroad, especially now prepaid cards – which work in a similar way to travellers' cheques – are so readily available. The only notable disadvantage to using travellers' cheques, however, is the potential for them to be an inconvenient – and in some cases unexpectedly costly - payment method. While in some countries, such as the United States, you may find it easy to spend your travellers' cheques, in others you may have to queue up at a local bank or bureau de change to have them exchanged.

It’s also important to be aware that if you are planning to exchange travellers' cheques in one currency for cash in a different local currency – for example by swapping a US dollars travellers' cheque for money in a South American destination – you may be charged a foreign exchange rate and commission on these transactions. More.

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