Buyer Beware
Many merchants are afraid of Travelers Checks due to the amount of fraud they potentially represent, but some consumers may now become as leery of them as some merchants have been. Travelers Checks are safer than cash right? Well maybe not, or at least not for one California woman.
The woman went to a Bank of America branch in Berkeley, CA and emptied her account of her life savings ($10,000) before heading on a trip to the Bahamas and then moving to New York. When she got to the Bahamas, she discovered the checks, which were in her luggage, were gone. Upon reporting the loss to Visa, Visa claimed the checks weren't issued by them, but by InterPayment Services Limited, a company licensed by Visa to issue Visa Travelers Cheques.
She attempted reimbursement from that company. But InterPayment claimed she was negligent, and therefore couldn't get her money back.
Now she's suing B of A and Visa for fraud and misrepresentation, claiming she was promised that the checks would be replaced if lost or stolen. InterPayment cites the receipt which states that Visa and B of A would replace the checks as long as "(the holder has) safeguarded without negligence all cheques as a prudent person would safeguard a like amount of cash." Interpayment Services Limited claimed she was negligent in packing her checks in her luggage. As a footnote, the reason the travelers checks were put in the luggage was that she was having some difficulty getting them accepted.
Her lawyers argue, "Visa promotes its Travelers Cheques as a preferred alternative to cash precisely because if they are lost or stolen they can easily be refunded. What's the purpose of travelers checks, then?" Good question.
For your information, we know of only two Check Guarantee companies who will Guarantee travelers checks for merchants. TeleCheck, Inc., will guarantee American Express Travelers Checks, and CrossCheck, Inc., will guarantee any major travelers check.
