John Cletheroe's
USA and Canada Holiday Hints


Money Arrangements for a US/Canadian Holiday - Traveller's Cheques

General Comments

We would very strongly advise travellers from the UK to take US Dollar and/or Canadian Dollar travellers' cheques for the bulk of their cash requirements. Take US Dollar traveller's cheques for the USA and Canadian Dollar traveller's cheques for Canada.

American Express travellers cheques offer the advantages of being instantly recognisable and offering a backup service should you be unfortunate enough to lose your travellers cheques.

Traveller's cheques can be used in the USA and Canada as cash in most circumstances - you don't need to visit a bank or pay any commission charges when using traveller's cheques.

Purchasing Traveller's Cheques in Britain

This information is for visitors to the USA or Canada from Britain. It may not apply in every detail for visitors from other countries.

It is difficult to give any specific advice as to the least expensive sources of travellers' cheques and US cash in this document since the market is very changeable. The best bet is to shop round the travel agents, banks and building societies, not forgetting (at least in Britain) the Post Office. Consider both the rate of exchange and the commission charge. With a bit of shopping around you should be able to obtain a commission rate as low as 1% (as at May-98).

In the UK, when paying for traveller's cheques by means of a normal cheque there may be an additional fee (typically an extra 1%) if the amount exceeds your cheque guarantee card limit.

Payment for traveller's cheques in the UK by means of a credit card invokes a commission charge; this was 2% in May 1998 according to a Cooperative Bank leaflet relating to the use of their Visa Gold Card.

Payment for traveller's cheques by means of a debit card may possibly be a slightly less expensive option but I haven't researched it.

Probably the best method of paying for traveller's cheques in the UK is by means of a Building Society cheque, which will involve no extra cost.

If you live in a country where they operate, then a Credit Union may offer the least expensive method of obtaining traveller's cheques.

To avoid establishments in the USA and Canada having to give you large amounts of change and also to avoid you having to carry large sums of cash, we feel that it's best to get $50 travellers' cheques.

Using Traveller's Cheques in the USA or Canada

In both the USA and Canada travellers' cheques in the appropriate currency for each country (US Dollar travellers cheques in the USA, Canadian Dollar travellers cheques in Canada) are treated as cash in most retail outlets such as shops, restaurants, petrol stations, motels, etc., with reasonable amounts of change being given without any problems.

No commission charge is ever made when using a traveller's cheque to make a payment in the USA or Canada.

Most motels are also quite happy to cash traveller's cheques for you, both when paying for your accommodation and often additionally as a separate transaction in order to provide you with cash. Occasionally some form of identification (ID) is required when cashing a traveller's cheque, for which your passport is ideal. A driving licence from outside the USA and Canada might not be accepted as a form of ID unless it includes a photograph.

Some fast food restaurants will take traveller's cheques, some won't. Non-fast-food restaurants normally will take them.

According to a booklet entitled "Summer Holiday Money" published by Visa in the UK and obtained in Mar-96, there is a commission charge for changing a traveller's cheque in a US or Canadian bank of up to 3%, so that option is best ignored.


Money

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Most recently modified 24-Oct-02