Traveler’s Checks Next to Extinct

Traveler’s checks are on their way to extinction. They are nice to have if you have a habit of losing things or are traveling to a destination with a high crime threat, or to a very remote area, but travel professionals insist on ATMs, which are virtually everywhere these days, with most accepting a variety of cards.

In a recent press article, American Express said its sales of traveler’s checks were up 2 percent in 2004 over the previous year, but didn’t have 2005 figures. Visa said it doesn’t release traveler’s check sales figures “for competitive business reasons,” but AAA, perhaps the largest purveyor of Visa traveler’s checks, indicated that its sales were flat.

What seems to be replacing traveler’s checks are electronic check/money cards, which both American Express and Visa sell. The money cards look like credit or ATM cards but are pre-loaded with a set amount of money that can be drawn upon by any establishment that accepts credit cards. The prepaid electronic money cards carry the same security as traveler’s checks -if lost they are replaceable within 24 hours- and they are not linked to your bank account.

Travel professionals say the best thing to do is to carry what  is called a “diversified wallet,” meaning a combination of credit cards, debit cards, local currency and traveler’s checks/check card. If a power failure occurs and ATMs aren’t operable, traveler’s checks remain an option. A supply of cash is always recommended too.