You Plan to Pay with: Traveler’s Checks

Pro:

Some peace of mind. Only your signature makes them valid, and they can be replaced if they’re lost.

Cons:

Some merchants won’t accept them or will charge a fee for taking them.

You might get stuck with checks for large amounts that shopkeepers won’t break, or be left with tons of change after a small purchase.

At the end of the trip, you might have some remaining checks and either need to convert them to cash or find a local retailer who accepts them.

The Bottom Line: Traveler’s checks are outdated. You’re better off charging or using ATMs, unless you want to use checks to pay for steep bills, say, for lodging.

Tip: Keep a list of your check numbers in a separate location from your wallet. As you use each check, make a note of it on your list. Should you lose them, you can call the issuer and give an exact record of how much you’re owed.