By Lisa Wade McCormick
ConsumerAffairs.com
January 22, 2007
Did you know American Express Travelers Cheques are more popular than cash -- or a traditional bank account -- in some parts of the world?
"They're very popular in Russia and Mexico," says Rob Sherman, director of Public Affairs and Communication for American Express Travelers Cheques and Prepaid Services. "In those countries, they're used instead of making cash deposits in a bank."
Even in the United States, he says, some people prefer Travelers Cheques to cash -- or to having their own bank account.
But those consumers should consider what happened to Mark of Coffeyville, Kansas. When his house burned down, taking his Travelers Cheques with it, American Express was none too eager to replace them.
Consumers in the U.S. and other countries with a stable banking system should also consider that, while it's true the Cheques never expire, neither do they earn interest. Even the most basic bank savings account pays a few percent interest, and the deposit is insured by government agencies, so that there is virtually no possibility of loss.
