Travlers checks in Mexico?

[Zib]

Does anyone use Travelers Checks in Mexico anymore? We used them last year but only cashed them at the resorts where we stayed. Do any merchants cash them anymore? How about the banks? It seems credit cards are pretty vulnerable anymore so we only used them at our resort check out the past few years. I don't like paying the ATM fees and getting to a Santander bank for ATM is a little inconvenient for us altho I guess we can take the bus to one somewhere.

 

[Phydeaux]

Good old fashioned travelers checks. Yup, still using them every year, however, apparently we should consider ourselves fortunate that our resort cashes them for us. Seems fewer places are doing so.

Will continue to use them, until our resort stops cashing them. Very convenient, and low risk. No, the exchange rate isn't that of a bank. However, the convenience of cashing any amount we want - any time we want - where we want is well worth the few pennies we lose on conversion.

 

[IngridN]

Interesting...MIL tried to get travelers checks before her annual trek out here to visit us and was told by her bank that they were no longer available. She used them last year. I was surprised and quizzed her thinking she misunderstood and that they had to be special ordered or something, but she said they told her that travelers checks are no longer made. Please post if you are able to get them and I'll let her know as she really likes using them. Thanks.

Ingrid

 

[Phydeaux]

Interesting...MIL tried to get travelers checks before her annual trek out here to visit us and was told by her bank that they were no longer available. She used them last year. I was surprised and quizzed her thinking she misunderstood and that they had to be special ordered or something, but she said they told her that travelers checks are no longer made. Please post if you are able to get them and I'll let her know as she really likes using them. Thanks.

Ingrid

Try a different bank.

 

[bellesgirl]

Does anyone use Travelers Checks in Mexico anymore? We used them last year but only cashed them at the resorts where we stayed. Do any merchants cash them anymore? How about the banks? It seems credit cards are pretty vulnerable anymore so we only used them at our resort check out the past few years. I don't like paying the ATM fees and getting to a Santander bank for ATM is a little inconvenient for us altho I guess we can take the bus to one somewhere.

You might want to compare the cost of the exchange rate you get on the travelers checks vs. the ATM fees. I think you will find the ATM wins. Also, there are many debit cards that charge low or no ATM fees. We have a Schwab account and there are no fees on the debit card and no foreign exchange fees. Same with our Capital One debit card.

 

[Zephyr88]

Travelers checks, formerly the traditional prescription for safe money, are no longer in general use. The American Express offices are long gone.

Carry what cash you can not afford to lose in a money belt. And have a credit card or ATM card for back up.

 

[Monica]

We only use ATM anymore

We bank w/ a bank that is also in Mexico, BBVA. No exchange fees for us. And the best rate as it's what the value of peso vs USD is at the time.

 

[Phydeaux]

Travelers checks, formerly the traditional prescription for safe money, are no longer in general use.

So what is our bank providing us, and our resort cashing?

 

[Passepartout]

So what is our bank providing us, and our resort cashing?

The belief that travelers' checks are a 'safe' and secure way to carry funds. Period. A perception not borne out in practice. You pay to get 'em. (maybe not directly, but in the bank's service charges) You have to find a place to cash 'em (they are not universally accepted)- usually taking time from your vacation. You are stuck with whatever rate the entity cashing them chooses to pay, not the official bank-to-bank rate you get using a debit card at an ATM.

In short, traveler's checks are not worth the costs in actual dollars and cents and in inconvenience.

Jim

 

[Phydeaux]

The belief that travelers' checks are a 'safe' and secure way to carry funds. Period. A perception not borne out in practice. You pay to get 'em. (maybe not directly, but in the bank's service charges) You have to find a place to cash 'em (they are not universally accepted)- usually taking time from your vacation. You are stuck with whatever rate the entity cashing them chooses to pay, not the official bank-to-bank rate you get using a debit card at an ATM.

In short, traveler's checks are not worth the costs in actual dollars and cents and in inconvenience.

Jim

I disagree with all of your points.

First, are they safe/secure? Please explain how they are not. Have you been burned? Please, share.

Next, "you pay to get 'em". No we don't. Not a cent.

Third, "You have to find a place to cash 'em (they are not universally accepted)- usually taking time from your vacation. You are stuck with whatever rate the entity cashing them chooses to pay, not the official bank-to-bank rate you get using a debit card at an ATM.

No, we cash them in the lobby of our resort. It's very convenient since it's a short walk from our villa, it takes very little time, and we are more than happy with the exchange rate because it nearly matches that of the area banks, as already explained, above.

Fourth, they're not an "inconvenience" at all, or we wouldn't choose to use them, year after year, as we plan to again in a few months. We could also choose to use an ATM, but we don't. We've experienced many power outages over our years of travel to Mexico, brought on by as little as a thunderstorm. Do we want to trust our CASH to a machine, that relies on local power supply? Nope. Ask anyone that was there during Wilma if they wish they would have brought more cash

Hey, whatever works for you is cool. Travelers checks still work just fine for us. Till they phase them out, like everything else that used to make sense....

 

[sjsharkie]

I'll weigh in here. I sort of understand where both of you are coming from (Passepartout and Phydeaux)

1. I believe travelers checks are safer than carrying cash. The simple fact is that there are ways that you can get your money back if you lose them -- that simply isn't true with cash. That being said, I also think that there are other ways that are pretty low risk such as using your ATM to withdraw the cash you need or using your credit card where accepted.

2. You pay to get 'em. Sometimes but not always a fee is charged. Sometimes your bank will absorb the fee but that's part of the perks of being a customer of the bank -- I'm assuming the bank makes money off of you in other ways like simply the float on the money you have with them in an account. I think that is what Passepartout was referring to when saying that you pay to get them -- it just might be an indirect cost.

3. I think the rates offered when cashing them are often not as good as using your local bank rates through ATMs -- even when including any surcharges. Most times they will beat any local bank or resort exchange rate. If they aren't, you may want to consider another bank if you travel internationally on a regular basis. This is where I think travelers checks' biggest drawback is.

Finally, convenience is in the eye of the beholder. I prefer using ATMs when I travel. My parents still use travelers checks. To each his own.

One cannot deny that the travelers check is dying. Fewer vendors are accepting them, and it just is impossible to use in certain countries nowadays without paying huge fees to exchange.

-ryan

 

[ilene13]

We use travelers checks when we travel. I do not want to use plastic when we are in another country-- too vulnerable.
1. The banks where we live no longer carry them. The AAA does. They have American Express Travelers checks. There are NO fees to get them.
2. They are not as archaic as some of you think. I am currently in Aruba and when I went to get them last week they were sold out of the $500 checks. So obviously there are people using them.
3. In Mexico I cash them at the front desk of our resort. I have never had a problem as we are not charged any fees. We exchanged into 2 different Mexican resorts within the past year and I did not have any problems changing them there either.

I do not always agree with Lee, but he is absolutely right on with this issue!

 

[Carta]

You might want to compare the cost of the exchange rate you get on the travelers checks vs. the ATM fees. I think you will find the ATM wins. Also, there are many debit cards that charge low or no ATM fees. We have a Schwab account and there are no fees on the debit card and no foreign exchange fees. Same with our Capital One debit card.

ATM ... No muss; no fuss....I usually take some CASH; but if i run out....ATM.......For the most part, I use cc...JMO

ps....Remember to call ur bank or credit union b4 going...U may have to sign a form when using ATM card internationally...(SECURITY) And they will tell u the cost for ATM use; if any

 

[pittle]

ilene13 - I am surprised that a resort would cash a $500 Travelers Check for just cash. When we are in Mexico, they seldom will exchange more than $200 USD (not $100 bills) for Pesos per day. We use the ATM machines and generally just get smaller Peso bills at the front desk for daily tips.

At the Buganvilias, they have a Scotia Bank ATM in the small area across from the Gift Shop. This one does not let you get as many Pesos per day as the Bancomer or Banamex ones at Mega or the banks, but is convenient. The total cost for 6000 Pesos was about $13, but you get the current rate of exchange and even with the charge, it is a better rate than most place would give us, including the resort.

 

[Passepartout]

I tried, but if some people want to pay the exchange difference to the resort instead of the preferential bank rate, whatever I say won't stop them.

As was said by Ryan, and even Phydeaux above. Whatever works for you.

This subject is one of those perennial ones on any travel site. People who will avoid bank ATM fees or international exchange fees, will happily accept whatever rate their resort chooses to give them and call the inability to use them at restaurants, department stores, and at the grocery check out, convenience.

I will say no more on this subject.

 

[rpennisi]

... Same with our Capital One debit card.

This is no longer the case with the Capital One debit/atm card. As of August 2012, they started to charge 3% foreign exchange fees. It has occurred to us in Mexico and Europe. However, you still get the good exchange rate.
Their VISA credit card still has no foreign exchange fees.

 

[Phydeaux]

I tried, but if some people want to pay the exchange difference to the resort instead of the preferential bank rate, whatever I say won't stop them.

As was said by Ryan, and even Phydeaux above. Whatever works for you.

This subject is one of those perennial ones on any travel site. People who will avoid bank ATM fees or international exchange fees, will happily accept whatever rate their resort chooses to give them and call the inability to use them at restaurants, department stores, and at the grocery check out, convenience.

I will say no more on this subject.

Aww, why so sore? If one didn't know better, they'd get the impression you have a thing against travelers checks, but that can't be so. It's only an object...

First, the exchange rate my resort offers is only a few pesos less than the bank. If it were a large margin against our favor, obviously we wouldn't have chosen to use them all these years, now would we? Have you ever paid slightly more for something for conveneince sake? How about piece of mind? Safety and security?? No??? :hysterical:

As far as avoiding ATM fees, that has nothing to do with our choice of using TC's. None whatsoever. It's obvious you've never met someone that was in another country when there were problems, and they needed access to cash. I referenced Wilma. I have. I've also had my credit card frozen while a long way from home with my family. Fortunately for us, we had enough cash on hand to eat, fill our gas tank, and fly back home. Some people don't want to rely on a piece of plastic when they're in another country. Again, talk to someone that has been away when the $hit hit the fan, and ask how that debit card worked for them. Talk to more people, but listen to what they have to say. Cash is still king.

Last, we have absolutley no desire to use our travlelers checks at any of the establishments you referenced. We just cash them when we want pesos. Easy as pie.

In short, traveler's checks are not worth the costs in actual dollars and cents and in inconvenience.[/U].


Jim, statements like the one above undermine your credibilty. I know you're smarter than that. Now turn that frown upside down

 

[Passepartout]

I'm not sore and have no axe to grind with any form of imaginary currency one chooses to carry from one place to another, whether it's some kind of plastic or travelers checks or wampum. If one chooses to accept what their resort offers as an exchange- by your own admission, 'a few pesos less than bank rate', who am I to disagree?

If anyone should have misgivings about using ATMs in Mexico, it's me. I have received no cash from a bank ATM when requesting a withdrawal and when I reported it to MY bank, their response was to shut off my card. It could have ruined a vacation, but with adequate fall-backs, it didn't.

What I do to fund my day-to-day cash needs when I travel will have no effect on yours and vice-versa. If your way makes you happy, by all means, keep it up. It is just that it is not the lowest cost, most flexible way of getting those funds when you travel.

Jim

 

[Zephyr88]

Most Banks now issue Travel Cards

Most banks and credit unions no longer issue Travelers Checks. Instead, they offer Travel Cards. The Travel Card does not have your name on it, and works like a credit card or debit card. You "load" it with pesos or what ever currency you want. It can then be used to make a Point of Sale purchase (like a debit or credit card purchase) or to withdraw money from an ATM. The card may cost you, and fees may be applied depending on how and where it is used.

A few banks still make Travelers Checks available for older travelers that feel most comfortable with them.

 

[ilene13]

:zzz:

ilene13 - I am surprised that a resort would cash a $500 Travelers Check for just cash. When we are in Mexico, they seldom will exchange more than $200 USD (not $100 bills) for Pesos per day. We use the ATM machines and generally just get smaller Peso bills at the front desk for daily tips.

At the Buganvilias, they have a Scotia Bank ATM in the small area across from the Gift Shop. This one does not let you get as many Pesos per day as the Bancomer or Banamex ones at Mega or the banks, but is convenient. The total cost for 6000 Pesos was about $13, but you get the current rate of exchange and even with the charge, it is a better rate than most place would give us, including the resort.

I use the $500 travelers checks in Aruba. If I cash them, I do so at the casinos but I usually use them to pay the bill at the timeshare at the end of 2 weeks.

 

[Zephyr88]

Alternatives to Traveler's Cheques

From USA Today Travel Tips:

"Through the 1990s, traveler’s cheques, also known as traveler’s checks, were the standard way to carry money when traveling internationally. Safer than cash because they can be tracked and replaced, traveler’s cheques are available in many different currencies. Today, however, they are rarely used. Travel guru Rick Steves points out that they are costly and cumbersome, and cashing them requires a trip to the local bank or exchange office. Instead, choose a mix of cards and cash.

Credit Cards

Credit cards are the best choice for big purchases such as airline tickets, as well as for reservations such as train tickets or a rental car, suggests Rick Steves. Some cards provide valuable services such as free rental car insurance, and many card issuers give reward points or other perks for purchases made on the card. Make sure you understand your bank’s international transaction fees, suggests Ed Perkins of SmarterTravel.com in an article for "USA Today." The MasterCard and Visa networks automatically add a 1 percent surcharge, but many banks tack on additional conversion fees. Merchants sometimes offer to convert charges into U.S. dollars, but Perkins recommends declining this offer. The merchant’s exchange rate is typically higher than any savings provided by the bank.

Debit Cards

Steves stresses that cash is still king in much of the world. Rather than exchanging money or loading up on local currency before leaving home, he recommends using a debit card to access cash at local ATMs. He points out that debit card issuers charge a wide range of ATM fees that might include a flat rate, a percentage of the total amount or both. Check your bank’s transaction fees before leaving home.

Prepaid Travel Cards

Prepaid travel cards, branded with major credit card logos such as MasterCard or Visa, are arguably the most direct replacement for traveler’s cheques. Available at banks and retail stores, prepaid cards allow you to load a designated amount of money onto the card and then use it as a debit or credit card. Most cards today are reloadable with cash or through a link to your bank account. Some cards provide such perks as card replacement and zero liability in the event of theft. The downside is that many cards have hefty fees such as an activation fee and a cash withdrawal fee, points out BankRate.com. International exchange rates might be high. Check with your card issuer for a full list of fees.

Carrying Cash

Steves notes that vendors generally prefer cash, and some refuse to accept cards at all. Carrying cash allows you to haggle at street markets, request a small discount at some shops and cope with merchants who do not know how to accept an American-style card with a magnetic stripe instead of a chip-and-PIN system. However, he suggests carrying American dollars only as an emergency backup. When merchants accept dollars, they typically add a private markup that could be as high as 20 percent. Use local currency whenever possible."​

 

[ilene13]

Most banks and credit unions no longer issue Travelers Checks. Instead, they offer Travel Cards. The Travel Card does not have your name on it, and works like a credit card or debit card. You "load" it with pesos or what ever currency you want. It can then be used to make a Point of Sale purchase (like a debit or credit card purchase) or to withdraw money from an ATM. The card may cost you, and fees may be applied depending on how and where it is used.

A few banks still make Travelers Checks available for older travelers that feel most comfortable with them.

I do not how old you are but I resent the comment about travelers checks are for older travelers that feel most comfortable with them. I just like them as I do not want to charge things while on vacation. I use a platinum AMEX card when traveling but not all places accept it, so cash is my best bet.
Also my bank eliminated the travel card about 3 years ago. So since we travel fairly often I will use travelers checks as opposed to carrying a lot of cash!

 

[bellesgirl]

This is no longer the case with the Capital One debit/atm card. As of August 2012, they started to charge 3% foreign exchange fees. It has occurred to us in Mexico and Europe. However, you still get the good exchange rate.
Their VISA credit card still has no foreign exchange fees.

I think that was only true with new debit accounts. I checked my statement from August 2013 when we were in the UK and we got the bank rate according to xe.com (no fees at all). A friend tried to open a new Cap One checking account a year ago and was told they no longer offer this type of no foreign fee account. Of course, this could also change on existing accounts. I will check before we travel outside the US.

 

[Zephyr88]

I resent the comment about travelers checks are for older travelers that feel most comfortable with them.

No offense intended. I was thinking of my wonderful parents when I wrote that. They too still prefer to use traveler's checks.

 

[persia]

Wow, I learned something, I really didn't think traveller's cheques still existed.