The short answer is no
Travelers checks are effectively a relic of a different era. If you show up at a foreign storefront with one, you will likely be met with confusion or a flat refusal. Most merchants simply do not accept them anymore. They were designed for a time before instant digital verification, but today, your access to funds is much more efficient.
How your cards work abroad
When you travel, you rely on the same payment networks you use at home. Most travel rewards cards work seamlessly across borders. When you swipe or tap, the bank handles the currency conversion for you. You don't need to carry paper backups because your card is accepted at millions of locations. If you are worried about building up your credit profile while prepping for a trip, you might look into cards for building credit, but for daily travel expenses, a standard rewards card is usually the standard tool.
The mechanics of spending overseas
When you use a card, you are essentially borrowing money for a few weeks until your bill is due. The cost of that borrowing, if you don't pay the full balance, is determined by the annual percentage rate (APR), which is the yearly interest cost you pay for carrying a balance. This is different from the money you keep in a bank account, where you might earn an annual percentage yield (APY), which is the interest you collect on your savings over a year. Managing your cash flow across these accounts is part of the work, much like how you might manage a balance transfer card if you have high-interest debt to clear before your trip.
What to look for in a travel card
Since you aren't using travelers checks, your card is your lifeline. Look for cards that do not charge foreign transaction fees. These are extra costs that some banks add just for the privilege of converting your currency. Over a two-week vacation, those small charges add up quickly. You should also consider if your card offers trip cancellation or medical coverage, which works differently than standard insurance you might buy for a home or vehicle.
Common traps to avoid
- Using the wrong ATM: Some machines charge high fees for withdrawals. Use your debit card from a Banking & Savings account that reimburses ATM fees if possible.
- Dynamic currency conversion: If a merchant asks if you want to pay in your home currency or the local currency, always choose the local one. The merchant’s own conversion rate is almost always terrible.
- Ignoring your bank: Let your bank know you are traveling. If they see a sudden flurry of charges in a different country, they might flag your account for fraud and lock your card.
If you run a small business, you might be tempted to use business cards for personal travel, but be careful with how you track those expenses. Keep your finances clean to avoid issues later. If your credit limit is low, you might be tempted to apply for new lines of credit, but avoid doing this right before a major trip, as the inquiry can temporarily ding your score. Whether you are focused on saving for a house via mortgages or planning for the future with investing, keeping your daily travel spending simple with one or two solid cards is the best path.