Personal Finance

Why use travelers checks?

Travelers checks are one of the popular methods used by travelers’ to handle currency while traveling on the road. It is an internationally redeemable draft which can be purchased in various denominations. Travelers checks are issued by banks or traveler’s aid companies as a much better way to handle the currency. Traveler’s checks are considered same as cash and are accepted by almost all establishments all over the world.

There are several people who think why to use travelers checks when you have cash in your hand. There are many advantages of using travelers check instead of liquid cash. Let us try to find the answer for the question “why use travelers checks?”

If you are a travel enthusiast who frequently visits other countries or places, then it is better for you to use travelers checks. This is because as travelers check is a replaceable cash substitute, you can travel without the fear of losing your money from theft. The world wide acceptance of travelers check is another noted advantage.

If you are purchasing travelers check you have to follow some simple tips to keep your financial instruments safe with you. The first thing you have to check is to keep a record of the check numbers in a safe place so that if they are stolen or lost, you can replace it by verifying the lost numbers. Also when you cash a travelers check, you have to sign it in front of the recipient with necessary proof like passport or driving license.

There are many financial institutions which offer dual signature checks. Dual signature checks are those in which two parties sign the check so that either of them can use it. Travelers check allows one to travel anywhere and carry as much money with him\her to cover the expenses incurred during the journey. It also reduces the worries in keeping money with you as you can replace any lost or stolen check by noting the lost check number. So it is very important to keep the receipts of the travelers check in a safe place.

Although most of the establishments will accept travelers check, before making any purchasing, it is better to check whether the shop will accept travelers check. If the shop accepts travelers check, fill the check after you have completed your purchase. Sign the check in front of the clerk and present your identification card if any clarification is required. Using travelers check is a simple process, there is no complications.

But the main problem of travelers check comes when certain shops do not accept it. Also nowadays, as the credit cards and debit cards of most of the financial institutions are offering facilities to purchase anything using their cards, the use of travelers check has gone down a bit.