Do Travelers Checks Expire & What to Do With Old Ones

Traveler’s checks, once a widespread and trusted method for carrying funds, served as a secure alternative to cash for individuals traveling. These paper instruments provided a sense of security against loss or theft. While their use has significantly declined with modern payment methods, many people still possess old traveler’s checks and wonder about their validity.

The Expiration Question

Traveler’s checks generally do not expire. This characteristic stems from their nature as a prepaid financial instrument, where the issuer holds the funds indefinitely, similar to a guaranteed payment. Unlike typical personal or business checks, which are generally considered “stale-dated” after six months, or government checks that may expire after one year, traveler’s checks retain their value. The funds associated with a traveler’s check remain available as long as the issuing institution remains in operation. This means that even if a traveler’s check has been held for many years, its face value is still valid. The issuer’s obligation to honor the check persists because the funds were paid upfront at the time of purchase.

Cashing Travelers Checks

Cashing traveler’s checks can be accomplished at various locations, though their acceptance has diminished. Many banks, especially those with international services, may still accept them for cashing or deposit into an account. Currency exchange offices and some hotels or resorts might also offer this service. It is advisable to contact the institution beforehand to confirm their policy on traveler’s checks.

The process involves a dual signature system for security. You signed the check at the time of purchase, and then you are required to countersign it in the presence of the cashier or merchant. You will also need to present a valid government-issued photo identification, such as a passport or driver’s license, to verify your identity. While not always strictly required for very old checks, having the original purchase receipt or a record of the check’s serial numbers can expedite the process and provide additional proof of ownership. Some institutions may charge a small fee for cashing traveler’s checks, which can vary depending on the location and whether you are an account holder.

Handling Old or Uncashed Checks

If you possess old or uncashed traveler’s checks, several avenues exist for redemption. The most direct approach is to contact the original issuing company. Many major issuers, such as American Express, still honor previously issued traveler’s checks and provide specific instructions for redemption. If the original issuer has undergone a merger or is no longer in business, their obligations typically transfer to a successor company.

For checks that have been held for an extended period and remain uncashed, the funds may eventually be turned over to a state’s unclaimed property division through a process known as escheatment. Each state has laws governing unclaimed property, and the dormancy period before traveler’s checks are escheated can vary, sometimes being as long as 15 years. This process ensures that forgotten funds are not lost permanently but are held by the state until the rightful owner or their heirs claim them. To reclaim funds from a state’s unclaimed property division, you typically need to provide proof of identity and ownership, which often includes the check’s serial numbers or purchase details.