Traveler’s Checks: How to Reclaim Your Money

Traveler’s checks used to be the ideal way to get money and pay while traveling internationally. But today, many Swiss banks no longer offer them – and options for redeeming traveler’s checks for money are dwindling. This guide explains how to cash unneeded traveler’s checks in Switzerland and reclaim your money.

1. What are traveler’s checks?

A traveler’s check is a type of check for a fixed amount of money which is guaranteed by a financial services provider and can be cashed in local currency or used to pay directly at some merchants. Traveler’s checks can only be cash by you. You must sign when you purchase traveler’s checks, and then sign again and show identification when you cash them or use them to pay.

Financial service provider Swiss Bankers issued traveler’s checks between 1975 and 2013. Banks and travel companies (like Swiss federal railway company SBB/CFF) also offered traveler’s checks. Today, traveler’s checks are no longer offered by any Swiss service provider.

2. What are the advantages of traveler’s checks?

The advantages of traveler’s checks are that only you can cash them or use them for payments, and you can get reimbursed if they are lost or stolen. This makes them a secure alternative to carrying cash or credit cards. Another unique advantage is that traveler’s checks can be used in locations with poor power and telecommunications infrastructures. But a sharp decline in the use of traveler’s checks has led many service providers to stop offering them. The number of merchants and financial service providers which accept or cash traveler’s checks has also shrunk.   

The Swiss market for traveler’s checks was dominated by Swiss Travelers Cheques issued by Swiss Bankers and denominated by the Swiss franc, and by American Express Travelers Cheques denominated by the US dollar. Other traveler’s checks issuers included Mastercard, Visa, and Thomas Cook, among others.

3. How long do traveler’s checks remain valid?

Theoretically, traveler’s checks never expire. However, it is becoming increasingly difficult to redeem them. Because using traveler’s checks or reclaiming your money will likely become even more difficult, you should consider cashing them as soon as possible.

Whether a service provider can cash a traveler’s check largely depends on which currency it is issued in. Checks from Swiss Bankers in Swiss francs and checks from American Express in US dollars can be redeemed at some Swiss banks.

4. Which Swiss banks cash Swiss-franc traveler’s checks?

Some banks will cash traveler’s checks denominated by Swiss francs at the counter. Many banks only provide this service if you have an account with them. Some banks will cash lower amounts (typically up to 2000 francs) even if you do not have an account with them. The following banks will cash traveler’s checks at the till:

• Banque Cantonale de Fribourg (No charge)
• Bank Cler (No charge)
• Basler Kantonalbank (No charge)
• Berner Kantonalbank (Only traveler’s checks which you purchased at BEKB, with a receipt. No charge.)
• Credit Suisse (Only for account holders. 10-franc fee.)
• Luzerner Kantonalbank (Only for account holders. No charge.)
• Migros Bank (No charge)
• Raiffeisen (Only for account holders. 25-franc fee.)
• UBS (Only for account holders. No Charge.)
• Valiant (Only for account holders. 5-franc fee per traveler’s check.)

Fees at Raiffeisen banks may vary between individual banks. Some Swiss banks – like PostFinance and the Zürcher Kantonalbank – do not redeem traveler’s checks at all.

Many service providers state that they will pass on any third-party costs associated with redeeming traveler’s checks to you as the bearer. This could happen if, for example, Swiss Bankers were to instate administrative fees in the future. That is not currently an issue.

5. Where else can I cash traveler’s checks in Swiss francs?

You can redeem Swiss Bankers traveler’s checks directly with Swiss Bankers free of charge. This applies to Swiss-franc traveler’s checks with both the Swiss Bankers design and the American Express design (but not to US dollar traveler’s checks from American Express).

To cash a traveler’s check, you must contact Swiss Bankers and send in your checks by mail. The checks will be cashed and the money will be deposited to your Swiss bank account free of charge.

6. Which banks redeem US dollar traveler’s checks?

Here too, many Swiss banks will only redeem American Express traveler’s checks in US dollars if you have an account with them. These Swiss banks redeem traveler’s checks in dollars:

• Banque Cantonale de Fribourg (No charge)
• Basler Kantonalbank (No charge.)
• Berner Kantonalbank (Only traveler’s checks which you purchased at BEKB, with a receipt. No charge.)
• Credit Suisse (Only for account holders. 10-franc fee.)
• Luzerner Kantonalbank (Only for account holders. No charge.)
• Migros Bank (Only for account holders.)
• Raiffeisen (Only for account holders; 25-franc fee.)
• UBS (Only for account holders. 5-franc fee.)
• Valiant (Only for account holders. 5-franc fee per traveler’s check.)

Fees at Raiffeisen banks may vary between individual cooperatives. Some bank, including Bank Cler, PostFinance, and the Zürcher Kantonalbank, do not redeem traveler’s checks in US dollars.

For dollar traveler’s checks too, service providers state that you have to carry third-party charges. This could happen if, for example, American Express were to begin charging administrative fees in the future.

7. Are there alternatives for cashing travelers checks in US dollars?

In Switzerland, financial services provider Travelex is an alternative for cashing American Express traveler’s checks. The downside is that Travelex charges a fee equal to 10 percent of your checks’ face value. You pay a 5-franc currency exchange commission on top – but this only applies once for all your traveler’s checks combined.

Travelex has three branches in the transit area of Zurich Airport (only accessible to travelers) and one branch in a part of the airport which is open to the general public. You can also cash traveler's checks at the Travelex branch in Basel's main train station (Badischer Bahnhof). Travelex converts the money and pays it out in Swiss francs – even if your traveler’s checks are denominated by US dollars.

American Express traveler's checks denominated by US dollars can also be redeemed online free of charge via the American Express website. Traveler's checks denominated by Australian dollars, British pounds, Canadian dollars, euros and Japanese yen can also be redeemed online, but the money is paid out in US dollars with a 2.5 percent exchange markup. Total online redemptions are limited to 1000 US dollars' worth of traveler's checks.

Alternatively, you can also cash American Express traveler's checks outside of Switzerland (when traveling or on holiday, for example). You can easily find places which cash traveler's checks using the American Express Traveler's Cheque Exchange Locator.

8. Where can I cash traveler’s checks from other issuers?

Most of the traveler’s checks sold in Switzerland were issued either by Swiss Bankers or American Express. But if you have traveler’s checks from other issuers like Thomas Cook, Visa, or Mastercard, you can cash these at Travelex offices in Zurich Airport. You pay a fee equal to 10 percent of the transaction plus a 5-franc currency exchange commission.

UBS customers can cash other traveler’s checks such as American Express checks in British pounds, Canadian dollars, or Australian dollars, and Citicorp traveler’s checks in US dollars. UBS charges a 5-franc fee per traveler’s check.

Raiffeisen lets you return Thomas Cook traveler’s checks in US dollars or British pounds if you have an account with them. The downside is that you pay a high 25-franc fee. The fee may be even higher depending on which Raiffeisen bank you use.

9. What are the best alternatives to travelers checks?

Credit cards, debit cards and prepaid cards are all possible alternatives to traveler’s checks.

Cards from neobanks like Neon, Revolut and Wise are particularly favorable for travelers because they have very low foreign transaction fees, or none at all. They also have very low currency exchange costs and favorable conditions for cash withdrawals at ATMs. You can find more information in the guide to neobanks in Switzerland.

You can also use conventional Swiss payment cards. Just note that many Swiss debit and credit cards use unfavorable exchange rates.

Debit cards are a good option for making cash withdrawals both in Switzerland and abroad. Using credit cards to get cash, on the other hand, is not recommended because Swiss credit cards have high cash advance fees. Refer to the guide to cash withdrawals for more information.

Credit cards, for their part, are more widely accepted than debit cards, and may be required for certain kinds of purchases (like hotel or rental car bookings). Many credit cards also provide travel benefits like airport lounge access, travel insurance, rental car collision damage waivers, and concierge services. You can find out more about when using a credit card makes sense here.

In terms of security, cards are only as secure as traveler's checks if you take specific security measures. Because many payment cards display all information necessary for online transactions on the card itself, it is important to set up 2-factor authentication for each online transaction. Many cards can be used to make PIN-free NFC transactions up to a certain limit, and you have to be able to disable this feature if you want optimum protection from theft. The same applies to the magnetic strip, which can be used to make PIN-free transactions in some cases, and is also prone to skimming. Some neobanks and card issuers give you the option of disabling these features.

More on this topic:
A guide to using checks in Switzerland
Compare Swiss credit cards now
Reka checks in Switzerland FAQ