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Do you have to have a bank account in order to buy a traveller cheque? Or can you exchange them wit h cash?

2007-10-06 11:31:19 · 5 answers · asked by Anonymous in Business & Finance Personal Finance

5 answers

Traveler's checks are used pretty much the same as money, except they focus on people using them when traveling. I don't believe you need a bank account to obtain, you would buy them at either a bank or a post office and pay either with cash, check or credit/debit card.

They are preferred by many over money because, if you lose them or they get stolen, you can get that money back. With the checks, you receive a booklet containing the checks' numbers, using those, you are able to go to a local bank and get that money back. Like a check, they must be endorsed by the person who has purchased the checks. So, if lost, they cannot be used by another person.

However, that benefit is covered by credit cards and the use of traveler's checks has declined since you get similar protection with cards.

2007-10-06 11:37:18 · answer #1 · answered by Joy M 7 · 0 0

A traveler cheque allows you to travel anywhere, and cash these cheques after signing in front of the person or identity you want to pay or change for cash, avoiding the fact of loosing yr money. It is only cashable, by you, as you hv to show normally a identification card (passport). The traveller´s cheque is issued by a international entity, (banks, or Thomas cook), accepted in the financial business.
Also if you loose them, you may call the bank or the issuer and cancel the payment, as you will get a codification os the traveller cheque. Was quite popular before the Credit cards, took place in the "payments systems".
Normally you should hv a bank account, however I believe in certainly countries you may buy them on a Thomas cook agencies or similar, without needing an account.
Also when you buy the travelers cheques, the co missions fees are lower, but you should look for the exchange rates applied.
(hope I helped)

2007-10-06 18:44:21 · answer #2 · answered by Anonymous · 0 0

You can exchange them with cash and pay a 2.5% fee. Some banks with limit on the traveler's check that sell to non-bank customers.

2007-10-06 19:35:41 · answer #3 · answered by Anonymous · 0 0

A traveler's check is An internationally redeemable draft purchased in various denominations from a bank or traveler's aid company and payable only upon the purchaser's endorsement against the original signature on the draft.

2007-10-06 18:37:02 · answer #4 · answered by Anonymous · 1 0

The answers before me are accurate. Travelers cheques are basically currency issued by a private company instead of a government. They are not LEGAL currency, but they are as reliable, sometimes more reliable, as government backed currency. The companies that issue them are more reliable than some governments.

2007-10-06 21:54:16 · answer #5 · answered by STEVEN F 7 · 0 0

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