Stymied by the bills

December 3, 2007 2:30 AM

Money hassle: A client paid me in traveler's checks. But my online bank won't deposit them into my account! What are my options?

An occasional client paid me for consultancy work in traveler's checks drawn on a Japanese bank -- Bank of Tokyo-Mitsubishi, to be exact. The checks are in US dollars, and for small denominations (less than a thousand each). They're signed and cosigned as required.

Until recently, my online bank gladly deposited checks of this ilk, no hassle, no delay. But they've changed their policy, and are turning me down. Problem is, I do almost all of my banking through these people. I haven't had an account at a bricks-and-mortar style bank for a long time.

Is it possible to walk into a local US bank and cash US dollar-denominated traveler's checks, even without an account? If not, what other strategies can you think of for converting these checks into cash?

posted by Gordion Knott to work & money (9 comments total)

If not, what other strategies can you think of for converting these checks into cash?

Open a free local account? Having a local bank can be really convenient for a variety of reasons. This is but one of many.
posted by grouse at 2:34 AM on December 3, 2007

Also, if they are Amex traveler's cheques, you should be able to cash them at any Amex travel office.
posted by grouse at 2:38 AM on December 3, 2007

I shouldn't have said "any." But that web site will tell you if it is true for any travel office.
posted by grouse at 2:39 AM on December 3, 2007

Wow, they must be doing fantastic business to be able to turn down money so easily. Good for them. Me, I'd let them know of your unhappiness with their new policy in the only way that banks really care about: close your account and let them know why.
posted by Civil_Disobedient at 3:28 AM on December 3, 2007

Which bank is this?
posted by oaf at 4:28 AM on December 3, 2007

You could always open a free checking account in a US bank, deposit the checks, and move the money into your online bank as soon as it clears. Might take you as much as half an hour total, but it'll work.
posted by Tomorrowful at 5:18 AM on December 3, 2007

I'm not totally sure if you're dealing with USAA or some bank where you scan checks to deposit them or how you deposit money normally. If it's a scan-to-deposit situation, you may want to ask them if they'll take the checks "in person" and then mail them, registered/insured mail if you're nervous. I've been doing this with big checks to my online bank for years now and it works fine. It may be that they've been seeing fraud with the digital imagery, but I'd bet they'd have a backup plan because, as C_D says, it's a crazy policy to just not take your cloent's money. Otherwise I concur, local bank.
posted by jessamyn at 5:49 AM on December 3, 2007

Bank of Tokyo-Mitsubishi has branches in most major US cities. Your profile doesn't say where you are, but if you live near one, you can always walk in and demand they give you cash since the checks are drawn on that bank.
posted by jeffamaphone at 10:41 AM on December 3, 2007

And by "most major US cities" I mean "some US cities."
posted by jeffamaphone at 10:42 AM on December 3, 2007