In the age of digital banking and global ATMs, the debate between carrying traveler's checks and relying on debit or credit cards for international travel has tilted in favor of plastic. While traveler's checks were once the gold standard for secure travel funds, the convenience and widespread acceptance of debit and credit cards have made them the preferred choice for modern travelers.
During my inaugural journey abroad, I was compelled to convert $200 in traveler's checks to compensate a mountaineering guide unfamiliar with American Express. The bank's service fee was a steep $8. Conversely, withdrawing $200 from my checking account via an ATM with my debit card incurred a mere $1 fee upon my return. That experience marked the end of my reliance on traveler's checks.
Now, I ensure I have both a debit card and a credit card tucked away in separate, secure spots when I travel. The risk of theft, while it hasn't occurred to me yet, is mitigated by the liability policies of banks and credit card companies, which often offer zero or limited liability for unauthorized transactions. It's crucial to verify the specific terms with your financial institution.
Occasionally, an ATM may reject one of my cards, but typically the other card functions without issue. Credit cards can offer less hassle in such situations, as they often come with zero liability for theft. However, stolen debit cards can temporarily block access to your funds until the dispute is resolved.
For longer voyages, managing credit card bills can be a challenge, unlike with debit cards. A strategy I employ is to use the credit card sparingly until the final weeks of the trip, ensuring I return home before the bill arrives.
An often-overlooked advantage of using credit and debit cards is the favorable exchange rates they provide compared to traveler's checks. Moreover, cash withdrawn from local ATMs is universally accepted, a claim even American Express Traveler's Checks cannot guarantee.
While I hold no grudge against American Express, and acknowledge that there are times when carrying multiple forms of currency is wise, the ubiquity of ATMs has shifted my preference. My current stance is clear: Traveler's checks should be left at home. Instead, consider an American Express credit card or other bank cards for your travel needs.
In conclusion, the evolution of travel money has favored the convenience and security of debit and credit cards. With better exchange rates, widespread acceptance, and protective liability policies, they offer a compelling alternative to the once-popular traveler's checks. As the financial landscape continues to evolve, travelers are increasingly opting for the plastic in their wallets over paper checks.
Flipping Houses - Four Strategies
Which of these four strategies will you use for flipping houses for a profit?
New Ideas For Creative Real Estate Investing
A look at creative real estate investing from new angles.
Three Real Estate Investing Secrets
Some real estate investing secrets to help reduce you risks and increase your profits.
