Some people think that traveler's checks aren't necessary anymore, but they really can be useful in a variety of situations. My ATM card wouldn't work on Easter Island, where most restaurants did not accept credit cards and wanted to be paid in pesos. Luckily, our hotel cashed my traveler's checks and gave me the pesos I needed. On Dominica, my purse was stolen. But because I had traveler's checks stashed away in my luggage, the vacation wasn't ruined. I always travel with what I call the "trusty four": American dollars (lots of ones and fives divided up and hidden in several locations), traveler's checks, an ATM card, and a credit card.