Alternative forms of payment: traveler's checks
 

I scanned the recent PayPal thread with some interest. I'm interested in the issue of vendors abroad (France, specifically) who do not take credit cards. One vendor is asking for me to send traveler's checks to make a deposit on a six-day visit. I've spoken to the VISA traveler check people, and it sounds like as long as I send the checks in the proper fashion (signed twice, written to the vendor) and send it by registered mail to France, that VISA will reimburse me for lost or stolen traveler's checks. I would need to notify VISA within 48 hours of discovering a seeming loss of the checks, which is, of course, iffy, when one doesn't know how long for sure the mail would take.

Have others been asked to use traveler's checks? A friend wondered if some of these vendors may ask for traveler's checks to possibly avoid taxes in France. Any thoughts?

They don't have a credit card machine and they want their money guaranteed--a deposit at that. Itisn't our job to collect the taxes too. I assume you can pay the rest from the ATM. Be sure to up your daily limit if need be.

I haven't done that, but I probably would if I really had to. I just never have, as anyone I needed to pay for a deposit was willing to take a cashier's check in USD from me (at a rate I checked and knew was decent), or a personal check for an estimated amount in USD (only for a hotel room for one night).

I think it would be okay to do that. YOu should have no more problem than me mailing a cashier's check to France. I just mailed it US Global Priority Mail which was fairly cheap and quick.

Lots of small owners won't take credit cards as it is expensive. Paypal has some kind of fee, also, although I don't know what it is (I thought it was close to a credit card). I don't see why one could be avoiding taxes any more by travelers checks vs. many other kinds of payment. My cashier's check written on my bank was just to an apt. agency, the French govt. had no knowledge of that if they didn't declare all their income. I don't know exactly how a system would work that would mean one could avoid taxes more if you didn't take Paypal vs. other forms of payment. But lots of small businesses do not take credit cards.

FYI, the postal service's Global Priority Mail gets to European capitals in 3 days, for $5 (Flat-rate Envelope - small). I use it all the time.

Thanks for the thoughtful feedback and counsel.Yes, Gretchen, I anticipated the notion that I would be asked to pay for the rest of the stay in cash, and my daily withdrawal limit from the ATM seems to allow for me to do it that way. The alternative would be to buy more traveler's checks in advance (in euros) and use those for the balance. I don't actually have to pay for the checks, as I'll be using my AAA card. The exchange rate may perhaps be higher this way, but it's probably not that big a deal, and who knows what the rate would be in August anyway.
Robespierre, thanks too for the tip on the mailing service and time frame. That's very helpful.

I suspect you will not get a lot of answers reflecting current experience, as travelers' checks are no longer frequently used.

My vague recollection is that you pay a fee to obtain the checks, and the merchant pays a fee to cash them. I recall reading that some merchants do want to be reimbursed for their costs of cashing the checks, but I personally have not experienced that.

You don't say if you are sending a dollar or euro denominated check. If euro, I would check to see what the currency exchange rate applied is.

Perhaps an economic solution would be to send them the check, but ask them not to negotiate it. When you get there, you can get euro from an ATM at a good rate, pay them, and take back the check.

I have used travelers checks denominated in Euros for this purpose. You can send them insured as well if you are concerned about loss. Purchasing these through AAA is not a bad approach but they do have something like a $1500 limit every 3 months from each credit or debit card. Much better to use debit card because if you purchase the euros with your credit card, the bank fees (not AAA) get heavy quickly.

I too have noticed that many vendors actually don't like traveler's checks. I had some trouble a couple of years ago using them in southern France. Funny how this summer, I'm being asked for them!
AAA requires me to pay for them strictly in US cash, so their purchase doesn't affect my credity card in any way.