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What Is It Really -
Travelers Checks or Travellers Cheques?

"I used to think travelers checks were old hat -
but now I see they can still be useful!"

A travelers check, however you spell it, is one of the safer ways of carrying your money, although not necessarily the most convenient one.

Lets look at the positives.

They are safe - as long as you've copied the numbers of each check and stored it safely away with photocopies of your other important papers.

They're simple to get. You can purchase them at your bank, or in a specialized agency like American Express.

They make a great alternative to ATMs when the power goes out - and in some parts of the world, this does happen.

They're accepted in many countries and are simple to cash - just go to a bank, change office or to the Amex office. Remember, there are fewer of them in small towns so make sure you cash enough money when you do. They are also useful if your town doesn't have ATM machines - many towns will have a small bank or change office but no ATM.

Replacing lost or stolen checks is simple - just advise the issuer (the bank or agency that sold them to you) of their loss and they'll simply be replaced.

They also come in several major currencies. If most of your trip is in Europe, get checks in Euros; in Australia, make that Australian dollars and so on. But if you're traveling in the developing world, make sure your travelers checks are in US dollars. They're still the easiest to cash.

There are also disadvantages to carrying travelers checks.

Remember those interminable stretches at the bank, painstakingly signing each individual check, until your signature started to look like an illegible squiggle?

Not to mention the price - the standard 1% commission is hefty. As opposed to an ATM machine or hole-in-the-wall, you actually have to go to a bank or change office to cash a check. If you're stuck on a weekend with no money, that could be a problem.

If you lose your checks - despite what the issuers say (24-hour refund?) - it may take a few days before your replacement checks arrive, especially if you're not in an urban center.

While they were once the gold standard for travel money, they've been dethroned by the credit card and the ATM machine.

Your best bet?

A mixture. Take some checks, by all means. Also take prepaid credit cards (or regular ones), and a bit of cash. And if you run out of money on the road, make sure you're prepared to receive a money transfer overseas. You'll be more than prepared by spreading around the risk a bit.