Are traveler’s checks still worth carrying in 2025, or have digital payments made them obsolete?
Once a trusted way to pay abroad, traveler’s checks promised peace of mind for anyone worried about carrying large amounts of cash. But today, they’re a rare sight in airports and hotels, replaced by cards, apps, and even cryptocurrency.
To understand why traveler’s checks faded from the spotlight, it helps to look back at their origins. First introduced in the late 19th century, they gave travelers a secure way to spend money internationally without the risks of theft or counterfeit bills. For decades, especially in the 1980s and 1990s, they were a staple of international travel.
Key Takeaways
- Traveler’s checks are rarely accepted today and have been replaced by digital payment options.
- Credit cards, prepaid travel cards, and digital wallets are safer, easier, and more convenient for international trips.
- Always carry more than one payment method to protect yourself if a card is lost, stolen, or declined.
The History and Purpose of Traveler’s Checks
Traveler’s checks were introduced in the late 1800s as a safer alternative to carrying large amounts of cash abroad. Companies like American Express popularized them, offering a prepaid check system that travelers could sign at purchase and again when cashing. This double-signature process made them hard to forge and easy to replace if lost or stolen.
For decades, traveler’s checks were a trusted tool for international trips. They were widely accepted by banks, hotels, and shops, and they helped travelers avoid complicated currency exchanges. The main appeal was simple: security and peace of mind while spending money in unfamiliar places.
By the 1980s and 1990s, traveler’s checks had become nearly essential for overseas travel. But as credit cards and digital banking grew more reliable and globally accepted, the once-dominant traveler’s check began to fade.
The Decline of Traveler’s Checks
The fall of traveler’s checks began in the late 1990s as credit and debit cards gained global acceptance. Banks and card issuers started offering fraud protection and zero-liability policies, giving travelers the same security that once made traveler’s checks appealing.
By the early 2000s, digital payment systems and online banking made it easier to manage money abroad without extra paperwork. At the same time, the number of businesses willing to accept traveler’s checks shrank, turning what was once a universal payment method into a hassle.
Today, finding a bank or hotel that still accepts traveler’s checks is rare. Their decline comes down to three main factors:
- Reduced acceptance worldwide.
- More convenient and secure alternatives like credit cards and digital wallets.
- Extra effort required to buy and cash checks compared to swiping a card or tapping a phone.
Traveler’s checks haven’t disappeared completely, but for most travelers, they’re now more of a backup option than a primary way to pay.
Modern Alternatives to Traveler’s Checks
Traveler’s checks are no longer the go-to option for international trips, but travelers today have plenty of safer and more convenient choices. Here are the most practical alternatives to consider:
Credit and Debit Cards
Credit and debit cards are now the most common way to pay abroad. They’re accepted almost everywhere, from hotels to restaurants, and many credit cards also offer rewards like cash back, airline miles, or travel points. Look for cards with fraud protection and no foreign transaction fees, and let your bank know your travel plans to avoid unexpected holds.
See also: Best Debit Cards for International Travel of 2025
Prepaid Travel Cards
Prepaid travel cards work like debit cards but must be loaded with funds in advance. They help travelers stick to a budget, lock in exchange rates, and avoid overspending. On the downside, they may come with reload fees or weaker exchange rates than credit cards. They’re best used as a supplement to, not a replacement for, a primary card.
Digital Wallets and Mobile Payments
Digital wallets like Apple Pay and Google Pay let travelers store card details securely on their phones. Payments are quick, easy, and protected with encryption and tokenization, which makes them harder to hack than traditional card swipes. Acceptance varies by country, so check ahead of time to make sure merchants at your destination support mobile payments.
Peer-to-Peer Payment Apps
Apps such as PayPal, Venmo, or Wise make it easier to split bills, send money, or cover group expenses while traveling. They’re especially handy for families or friends traveling together. Just be aware of fees, transfer limits, and whether the service supports international use before relying on them abroad.
Cryptocurrency
Some travelers are turning to cryptocurrency for international payments. It can offer lower fees and added privacy, but it also comes with major downsides: price volatility, limited merchant acceptance, and the risk of losing access if you misplace your digital wallet. Crypto may be useful for tech-savvy travelers but should only be used alongside more reliable payment methods.
Practical Tips for Travelers
The way you pay while traveling can make the difference between a smooth trip and unnecessary stress. These tips can help you choose wisely and avoid common money pitfalls abroad.
How to Choose the Best Payment Method
Not every destination or trip calls for the same payment approach. Keep these factors in mind:
- Destination: Some countries lean heavily on cash, while others are card-friendly. Research before you go.
- Length of stay: Longer trips usually require more than one way to access money.
- Personal comfort: Pick methods that fit your habits, whether you value rewards, budgeting control, or simplicity.
Why Backup Options Are Essential
Even the best cards can get lost, stolen, or declined. Protect yourself by:
- Carrying a mix: Keep at least one credit card, one debit card, and some local currency. A prepaid travel card or digital wallet adds another layer of safety.
- Separating funds: Store cards in different places—such as one in your wallet and one in a secure bag—so you’re never left without access to money.
Smart Currency Exchange Tips
Managing currency well can save both money and frustration:
- Avoid airport kiosks: Rates at airports and hotels are often the worst. Local banks or trusted exchange services typically offer better value.
- Check fees first: Look at both exchange rates and transaction fees before converting. In many cases, using an ATM for local currency is cheaper—just watch for any extra charges from your bank.
See also: Where to Exchange Currency: Low Fee Options
Final Thoughts
Traveler’s checks were once the gold standard for carrying money abroad, but their time has largely passed. Today’s travelers have more reliable choices that offer better security, wider acceptance, and easier access to funds.
The key is not just picking one method but building a mix that fits your trip. A credit card with no foreign transaction fees, a backup debit or prepaid travel card, and some local cash can give you both flexibility and peace of mind.
In the end, the lesson from the traveler’s check era still applies: plan ahead, protect your money, and always keep a backup. With the right setup, you can focus less on payments and more on enjoying your travels.
Frequently Asked Questions
Do banks still issue traveler’s checks in 2025?
Yes, a few banks and companies like American Express still issue traveler’s checks, but availability is limited. Most travelers find modern alternatives easier and more widely accepted.
Are traveler’s checks safer than carrying cash?
Traveler’s checks are safer than cash because they can be replaced if lost or stolen. However, credit cards and digital wallets now offer similar protections with far more convenience.
What is the best payment method in countries with limited card acceptance?
In destinations where cards aren’t common, cash is still king. Pairing cash with a prepaid travel card or debit card for ATM withdrawals is usually the best approach.
How much cash should I carry when traveling abroad?
It depends on your destination and comfort level. Many experts recommend carrying enough local currency for a day or two of expenses while relying on cards or digital wallets for the rest.
Can traveler’s checks still be exchanged for local currency?
In some countries, yes, but it can be inconvenient. Fewer banks and exchange offices accept them, and fees may be higher than using an ATM or card.
