How do Travelers Cheque works: Smart Use May Save Travel Money
Traveler’s checks are financial drafts that are usually issued by banks or major financial institutions. Although many people prefer to sue debit cards or travel cards when they are going abroad for work or pleasure, the traveler’s check is also very much in demand and used extensively. In fact there are few advantages of this instrument which makes them the best option in many situations. This form of payment is accepted all over the world.
How do the traveler’s cheques work?
- The traveler’s checks are actually pore-printed checks which has a variable value.
- Usually they are available in 20, 50 or 100 units of the selected currency.
- The checks can be issued in various currencies but mainly in US/Canadian dollars, Sterling Pounds and Yen.
How to buy a traveler’s cheque?
- The traveler’s checks can be bought directly from the bank and the commission rate is usually 1 – 2%. You can also get it from specialized banking agencies like Thomas Cook and American Express.
- At the time of purchase you are supposed to sign each check in the box provided for this purpose.
- You must count the number of traveler’s checks, the check numbers, the date and time of purchase as you will need all these details in case of theft and/or loss.
How to encash atraveler’s cheque?
- You can change the traveler’s checks into the local currency in an international bank and at all major hotels in the city.
- For this you need to provide a proof of identity and counter sign each of the checks and give it to the person who is making the change. He will then compare your signature to the one made at the time of purchasing.
- Most of the banks charge a very nominal amount for the change.
How to use a traveler’s cheque?
- One may use the traveler’s checks directly for making payments at some of the hotels, restaurants and travel agencies.
- If it gets stolen you must contact the issuing company without any delay.
- You will get a list of numbers at the time of purchase and you can easily get them on the website of the agency which issued the traveler’s checks (henceforth TC).
- You will be asked to provide the check number, the date of purchase, the place of purchase and your identity papers.
- You will either get new checks or get the money back when you return.
The benefits of using Traveler’s checks
- The most important advantage of TC is that it is virtually impossible to use a check that has been stolen.
- This is because the checks are signed when you are purchasing it and they are countersigned when you are exchanging at the vendor or at the bank.
- The thieves do not find the checks as attractive as the credit or debit cards as there is a possibility of replicating the original signature without any hesitation.
- The TC also allows the traveler’s take advantage of the attractive rates of exchange that may prevail at a certain point of time. This is because you can get the checks issued in any currency desired by you.
- A person can first investigate about the prevailing exchange rates of various currencies and then purchase the check in that relevant currency.
- In this way one can lock in a very attractive rate that will not change even during the trip. This freedom is not possible when you are carrying a debit or credit card during your foreign trip.
How to replace a traveler’s cheque?
- As discussed earlier, replacing a lost or stolen traveler’s check is much easier than replacing a lost or stolen credit/debit card.
- You just need to contact the local bank and report the stolen or misplaced check numbers. The numbers are cancelled instantly and replacement checks are issued.
- Generally a traveler will get the new checks in less than 24 hours.
How to use a traveler’s cheque smartly?
- Another lesser known advantage is that it is possible for a couple of people to combine their funds into a single set of checks.
- This is very useful for the couples as they can combine their travel money in the form of traveler’s checks.
- Though this arrangement many not be ideal for everyone, it is an excellent strategy when you want to control your expenditure.
So, apply for your turkey visa application form and don’t forget to change your cash for travelerscheque, this will help you a long way in your holiday. Adios!