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Can You Purchase Traveler's Cheques with A Credit Card?
July 1, 2025
Quick Answer
While it may be possible, purchasing traveler's cheques with a credit card is almost always treated as a cash advance, which incurs steep fees and immediate interest.
Should You Purchase Traveler's Cheques With A Credit Card?
Let's weigh the key advantages and disadvantages of this payment method.
Advantages
- You can earn credit card rewards, such as points, miles, or cashback on the transaction.
- Payment is deferred to your credit card's billing cycle, providing short-term flexibility.
- It provides the convenience of purchasing without needing to have the cash on hand immediately.
Disadvantages
- Most credit card issuers process the purchase as a cash advance, which comes with a significant fee.
- Cash advances typically carry a higher annual percentage rate (APR) than standard purchases, with interest accruing immediately.
- The amount you can purchase may be restricted by your card's cash advance limit, which is often lower than your overall credit limit.
How to Purchase Traveler's Cheques With A Credit Card
Purchasing traveler’s cheques with a credit card can be a convenient way to secure funds for your trip. Follow these general steps to navigate the process smoothly and avoid unexpected fees.
- Find an Issuer: Locate a financial institution that both issues traveler’s cheques and accepts credit cards for payment. Major banks and currency exchange services are your best bet for this service.
- Check Card Policies: Before proceeding, contact your credit card provider to understand their rules. These purchases are often treated as cash advances, which typically come with higher fees and immediate interest accrual.
- Choose the Right Card: To minimize costs, select a card with the most favorable terms for cash advances. You can use resources like Kudos' explore cards tool to compare different credit card features and find a suitable match.
- Complete the Purchase: Visit the issuer with your credit card and a valid government-issued ID. Be prepared to specify the currency and the denominations you need for your cheques.
- Keep Detailed Records: Securely store your purchase receipt and a separate list of the cheque serial numbers. This information is crucial if your traveler's cheques are lost or stolen.
Impact On Your Credit Score
Using a credit card to buy traveler's cheques can influence your credit score in a few ways. It's important to consider the following potential impacts before making the purchase.
- Cash Advance Classification. Most card issuers categorize traveler's cheque purchases as cash advances, not standard purchases. These transactions often carry higher interest rates and fees, which can increase your balance and debt load.
- Credit Utilization Ratio. A large purchase of traveler's cheques will increase your credit utilization ratio. A higher ratio can negatively affect your credit score, as it may suggest financial strain to lenders.
- Hard Inquiry. In some cases, a request for a large cash advance might trigger a hard inquiry on your credit report. This can cause a temporary dip in your credit score for a short period.
Alternative Ways To Purchase Traveler's Cheques
Direct Purchase with Cash or Debit
The most direct alternative is purchasing traveler’s cheques with physical cash or a debit card. Most major banks, credit unions, and currency exchange offices that issue traveler's cheques will accept these payment methods. By visiting a branch in person, you can complete the transaction without relying on a line of credit. This approach is straightforward and allows you to use funds directly from your bank account, providing a clear record of the purchase on your statement.
Ordering Through Your Bank
Many financial institutions allow customers to order traveler’s cheques in advance, either online or by phone. In this scenario, the payment is typically debited directly from your checking or savings account rather than being charged to a credit card. After placing the order, the cheques can be mailed to your address or made available for pickup at your local branch. This method offers convenience while still avoiding the use of credit for the purchase.
Choose the Right Card to Purchase Traveler's Cheques
Finding the perfect credit card for purchasing traveler's cheques can be a challenge, as benefits and fees vary widely. Instead of sifting through endless options, let an AI-powered tool do the heavy lifting. With a database of nearly 3,000 cards, Kudos can help you find your credit card match based on your unique spending habits and preferences, ensuring you get the best value for your next trip.
For those wanting to maximize their credit card rewards, Kudos is the ultimate free shopping assistant for online purchases. We're also giving you $20 back on your first qualifying purchase—just sign-up for free with code "GET20" and buy from a Boost merchant.
Frequently Asked Questions
Will buying traveler's cheques with a credit card count as a cash advance?
Yes, most issuers treat this as a cash advance, which usually comes with higher fees and immediate interest accrual.
Are there extra fees for using a credit card?
Yes, you'll likely face cash advance fees from your card provider on top of the standard purchase fee.
Do I earn rewards on this purchase?
Typically, no. Cash advance transactions are almost always excluded from earning credit card rewards, points, or cashback.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
