• Traveler's checks are pre-printed for a fixed amount. They are usually bought at banks or from institutions such as American Express or AAA. Traveler's checks can be used the same way as cash but are protected against loss or theft. They have historically been good choices for people who travel--hence, the name--but with the rise of credit cards, debit cards, and ATMs, the use of traveler's checks has dwindled. There are still a great many benefits to using traveler's checks over cash and cards, however.
  
  

Ease of Use

• Unlike some credit cards, commercial businesses that take cash usually accept traveler's checks. You have to sign traveler's checks before you can use them, and identification may be required, but you should be able to use them almost anywhere. Also, traveler's checks purchased in American dollars can often also be used in other countries--although you may not get the best exchange rate.
  
  

Different Currencies

• Many banks will let you purchase traveler's checks in different currencies. There may be a fee for this service, but if you are going to travel to another country, already having the correct currency before you land is a big benefit.
  
  

Keep Track Easily

• Traveler's checks are issued in sequence and sport identification numbers, which makes it easy for you to keep track of which ones you have used and to spot any missing ones quickly. In fact, it is highly recommended that you keep a list of your traveler's checks at all times. If something happens and you need to get them replaced, you will need to know the serial numbers.
  
  

Different Denominations

• Most sellers of traveler's checks will let you choose what kinds of denominations you want. You can pick how many of each denomination you want to buy, large or small. The larger the denominations you take, the fewer you will have to carry. If you use them for travel, however, keep in mind that many places won't want to handle traveler's checks in large denominations, such as $100s. Also, you may have difficulty cashing the larger ones outside of major cities. Make sure you get plenty of smaller ones.
  
  

ATM-Proof

• If you have traveler's checks, you never need to worry about finding an ATM, the right kind of ATM (that doesn't charge a fee), or worry whether the ATM will be working. You will also never have to worry about whether or not your card will be accepted or if the computer connection will work in different countries.
  
  

Theft-Proof

• By far the main benefit of traveler's checks is the protection against theft. If your checks are stolen (or lost), the issuing institution will replace your checks for no additional fee. You must, though, have a list of the serial numbers of your stolen checks handy and be ready to give them to your bank, so maintaining a correct list is essential.