Traveler Checks vs Prepaid Debit cards

retiranlovingit wrote:

I will be moving to EC the beginning of next year and not wanting to carry a lot of cash I was wandering what is better to carry for ease of use travelers checks or prepaid debit cards. I also will have a debit/Visa card linked to my bank here in the states.

In my experience... forget Travelers Checks. Debit cards (prepaid, or not) are going to incur fees. Are you possibly coming to Ecuador before you pack up and move here? If so, I would recommend you set up a bank account (savings is fine) at any of the major banks (Banco Pincincha, Banco Bolivariano, Banco Pacifico, etc.) and have someone wire money to the account. I came here with two accounts that I had already set up a couple of years earlier and had money wired to one of them to buy my CD for my 9-II visa, and periodically (when I call them) have $5K (or whatever amount) wired as necessary. That way I can use my account here without any fees, and have my IESS insurance direct debited from the account. I have also deposited personal checks from my US account into my Ecuador account, but it does take some time for the funds to clear and be available (for Banco Bolivariano, it's like 14 to 21 days).

If you have to decide between travelers checks and debit cards... forget travelers checks. Neither of the banks I have accounts with would accept a certified cashiers check, and travelers checks are simply not used here for daily business (other than possibly at large hotels for accommodations, and then probably only a US franchise hotel... Hilton, Raddison, etc. ).

Also be sure to keep account balances in mind (greater than $10K balance any time during the year will require a FBAR to be filled).

Good luck on the move and enjoy Ecuador.

My experience has been problematic with travelers checks.  The only place I could cash them, for a fee, was a money order spot on Ada Amazonas, next door to the immigrations offices.  Otherwise, rely on cash or a bank account.
I was visiting, so a bank account wasn't  a priority

In my experience travellers cheques are pretty much useless in Ecuador.
Few institutions and a fewer merchants will even deal with them. My advice,open a bank account in Ecuador soon as possible and transfer funds. Meanwhile use credit cards or cash.

I've lived in Ecuador for almost 6 years. ATMs are almost everywhere and the charges are minimal (my bank refunds all of them every month). Travelers' checks are a waste and there is no reason to open a local checking account. I keep two credit/debit cards, one with me and one stored in a safe place in case there should be a problem with one of them. I withdraw enough to keep a modest (like $600-1000) cash reserve then withdraw as needed from ATM. The main reason people us prepaiod debit cards is if they have bad credit and cannot get a regular one.

I do note, however, that you can get close to 6% in US dollars with an Ecuador CD as long as you don't feel nervous about safety.

I have to agree with the others. Travellers' cheques (sorry...I'm Canadian!) are completely useless almost everywhere now. It's quite easy to use ATM's with minimal fees. (I pay $2.50 once a month to get my spending money.) The only reason you would require a bank account here is so that utilities can be automatically taken out of your account, if they aren't included in your rent (this saves you from getting your bills every month from each utility and camping out at the bank to pay them), or if you are planning on coming down on an investment visa using a cash deposit. I also have "back up" bank cards in case something goes wrong with my usual ATM card.

I can remember my father using traveler's checks.

Haven't seen them used much since -- occasionally in a hotel or restaurant. I'd imagine trying to pass a traveler's check would be tough in Ecuador, and would get you some funny looks.

It just occurred to me that I have never used one -- once credit cards became the norm, I saw no reason for them.

FYI, I did have an issue at a few ATM machines that would not scan my Visa card.  Use a terminal that didn't work, move to one next to it that did.