In an era dominated by digital wallets and contactless payments, the debate between traveler’s checks and bank checks might seem outdated. Yet, for certain travelers and financial transactions, these traditional instruments still hold relevance. So, when should you opt for a traveler’s check over a bank check—or vice versa? Let's delve into the pros, cons, and current usage statistics to help you make an informed decision.
Traveler’s Checks: A Secure Travel Companion?
What Are They?
Traveler’s checks are prepaid, fixed-amount checks issued by financial institutions, designed to be a safe alternative to carrying cash while traveling. They can be used to purchase goods or services or exchanged for local currency in many countries .
Pros:
Security: If lost or stolen, traveler’s checks can be replaced, providing peace of mind compared to carrying large amounts of cash .
Acceptance: While not as widely accepted as they once were, traveler’s checks are still accepted in many places, particularly in smaller businesses and rural areas .
No Expiry: They do not have an expiry date, allowing for flexible use over time .
Cons:
Limited Acceptance: Many modern retailers and establishments no longer accept traveler’s checks, favoring digital payments instead.
Fees: Purchasing traveler’s checks may involve service fees, and exchanging them for local currency can incur additional charges .
Inconvenience: Using traveler’s checks requires identification and sometimes additional verification steps, making transactions slower .
Bank Checks: The Traditional Payment Method
What Are They?
Bank checks, or personal checks, are written orders directing a bank to pay a specific amount from the writer's account to the person named on the check.
Pros:
Widely Used for Large Transactions: Bank checks are commonly used for significant payments, such as rent or utilities.
Record Keeping: They provide a paper trail, which can be useful for budgeting and record-keeping purposes.
Cons:
Declining Usage: In 2023, consumers used checks for only 3% of payments, indicating a significant decline in their use .
Fraud Risk: Check fraud is on the rise. In 2024, check deposit fraud increased by 31% in value, with the average loss per fraudulent check rising by 14% .
Processing Time: Bank checks can take several days to clear, delaying the availability of funds.
Frequently Asked Questions
Are Traveler’s Checks Still Accepted?
While their usage has declined, traveler’s checks are still accepted in certain locations, especially in areas with limited digital payment infrastructure. However, it's advisable to check acceptance in your destination country before relying solely on them.
Are Bank Checks Safe?
Bank checks carry a risk of fraud, which has been increasing in recent years. It's essential to monitor your bank statements regularly and report any unauthorized transactions promptly.
Which Is Better for International Travel?
For international travel, traveler’s checks offer more security than cash and can be replaced if lost. However, their limited acceptance and associated fees make them less convenient than modern alternatives like travel credit cards or prepaid travel cards.
End Note
In 2025, both traveler’s checks and bank checks have their niches but are largely overshadowed by digital payment methods. Traveler’s checks may be suitable for travelers seeking a secure, albeit less convenient, payment method in areas with limited digital infrastructure. Bank checks remain relevant for specific large transactions but come with increased fraud risks and declining usage.
For most people, embracing digital payment solutions offers greater convenience, security, and acceptance worldwide. However, understanding the pros and cons of each traditional method ensures you're prepared for situations where digital options may not be available.