Why Rick Steves Warns Against Using Traveler's Checks For Your European Journey

Ah, traveler's checks. While a relic of the past for many, there was a time when most folks wouldn't think of heading out on a big trip without purchasing a pile of these protected notes. The company American Express captured it all perfectly with their unforgettable slogan: "Don't leave home without them." The TV commercials featured travelers losing their cash or falling victim to theft and scams while abroad. Once they realized the extent of their misfortune, they all regretted not purchasing American Express. While certainly playing on peoples' fears, this ingenious ad campaign was more than enough to convince many to buy the product it was pushing.

Some people still use traveler's checks, and for good reason: They are a cheap and simple way to insure your money, and one more way to make you feel safer while traveling. If they're lost or stolen, they're replaceable, and customers can only redeem them by going to a bank or hotel and matching the signature on the check. While this may seem quaint by today's standards of identity confirmation, it acts as a basic barrier to fraud.

That said, perhaps it's time to walk away from traveler's checks for good, at least according to European travel guru Rick Steves. In his list of "50 Thrifty Travel Tips," Steves encourages tourists to use ATMs over traveler's checks, as he considers them "cheaper and faster." though his advice comes with a few caveats.

Introduced in London in 1967, ATMs completely changed our relationship with cash, especially when we travel. Despite the fact that they go back over 50 years, they weren't really widespread in Europe until the 1980s and '90s, making traveler's checks a much more convenient choice. Now, however, they're everywhere, and a quick, easy, and safe way to access your funds.

Perhaps the best thing about using ATMs when journeying abroad is that they usually offer a more favorable exchange rate than you'll get from buying notes from a bank or exchange bureau. They also offer unrivaled convenience, as you'll never be far from an ATM in any European city or town. You can access the cash you need on your own schedule.

However, there is a downside that Rick Steves addresses in his list of tips: the dreaded transaction fees. These often aren't listed on your statement, so try to familiarize yourself with the ins and outs of these charges before you head out on your trip, and as Steves suggests, you can take the sting out of these fees "by making fewer and larger withdrawals." He also suggests stashing your cash in a money belt, as Europe is home to some of the worst destinations on the globe when it comes to pickpockets. However, if you do fall victim to theft while traveling, here is what to do. 

One of the hard, unmovable truths about travel is that it requires money. There is no way around this, and like any other aspect of planning a trip, budgeting is essential — especially when traveling solo. And while using credit cards can get you a good exchange rate, according to Steves, some of the best deals to be had are cash-only, such as craft shops and bed & breakfasts.

If you do need to change some money, avoid exchange bureaus and stick to actual banks. This is especially true at airports, where the rate is guaranteed to be unfavorable. Another good option is a prepaid travel card. These allow you to load up the cards in many different currencies at decent rates, access your account from your phone, and even get a number of free ATM withdrawals. For more travel wisdom from Rick Steves, here are some clever little things he does on every trip.