Your best bet is an ATM* card with 4 digit pin code (*a.k.a. Minibank, MAC, Cashpoint, or whatever it’s called in the country you’re in). You get the best exchange rate, and the transaction costs only 1%.

If you get travellers cheques, you pay the transaction fee to go from dollars to cheques at your bank (2%?), then again in the transaction fee to convert cheques to local currency + the less-than-stellar exchange rate which allows the money-changers to make even more profit. Exception would be if your bank doesn’t charge you to issue travl cheques, and if you take Amex cheques to an Amex office (or Thomas Cook to Thomas Cook) which don’t charge fees to convert back to local currency. Then if you’ve got any leftover cash or cheques, you pay again to convert them back to the original currency once you’re back home.

Lots of hassle, costly, and not much benefit IMHO.

The only possible advantage leftover from all of this is replacement in case they’re lost or stolen, but I think the burden of proof for this is much greater than in the good ‘ol days. Travel insurance from credit card membership (check your credit card benefits) might offer emergency cash advance and basic emergency reimbursement—thus removing even the last(?) shred of reason to use trav’l cheques.

The last poster is absolutely right. Get and use an ATM card. That way you can’t go over your credit limit (because it’s just taking $$ out of your account). Also, yes— you typically get the best exchange rate with ATM machines. I recommend contacting your bank to see if they have any branch ATMs where you are going, or what bank’s ATMs they may have a "deal" with so there is only a minimal charge.

When I was doing it, I think it cost me like a buck fifty to withdraw from an ATM. That will add up fast if you only withdraw small amounts, but let’s say you withdraw $100 (or Euros or whatever) each time— then it’s only a small amount proportionally.

Definitely the best way to go.

I took traveler’s checks with me and never used them. Seriously, you try to use those in stores or something and people give you the "evil eye" or just won’t accept them. I’m not sure what the deal is, but that’s the way it goes.

A couple of weeks ago, a friend from Manchester was visiting me in Mexico City. He brought travellers checks which were fine at first, but one saturday he ran out of money, so we went to cash his travellers checks. The banks wouldn’t take them, and the exchange house (office, whatever) couldn’t exchange them because their system was down. Needless to say, not many offices open on saturday, much less on sunday, so he was stuck for a couple of days.

I cannot point out how blessing it is to have ATM’s all over the world, and they don’t close on sundays, holidays, not even christmas eve. They might run out of money, so you just go find another one.

Good advice here! Couple more points about ATMs.
You may want to shop around for a bank that does not slap any extra fees when you take cash overseas. Many don’t.
If you get an ATM card with a VISA/MC logo, you can use it for payments wherever credit cards are accepted, without running risk of going over the limit, etc.
Call your bank before your trip and ask to put a note on your account that you are going abroad. Otherwise the bank may suddenly block your card thinking that it has got stolen.

too true ..no traveller cheques…just a hassle to cash them and the rate is unpredictable
i use a pin atm and my cashpassport//but mostly my credit card whichi pay off immediately with my savings