People looking to pick up a few pesos, pounds, or euros before traveling abroad are now able to do so through community banks.
Last week the Independent Community Bankers of America announced that it was teaming up with Travelex Group, a Canadian company, to offer foreign travelers checks and currency services to customers of the associations members.
We provide an opportunity at no risk and no cost to the bank, and really make it convenient to the customers, said Dan Clancy, the trade groups director of services.
Using their banks Web site or the banker groups site, customers can order the currency or foreign travelers checks for delivery overnight if needed directly to their homes. Two-day shipment for purchases from $200 to $500 costs $8 and is free for amounts from $500 to $1,500. Next-day delivery is $12 for all amounts, and an exchange fee is factored into all the currency rates.
Less tech-savvy customers may go directly to their bank.
The exchange fees are split between Travelex and the bank association, but Mr. Clancy said his groups cut is very small. Though the service does not generate income for the participating banks, it helps retain customers who might otherwise go to larger banks that offer currency services, he said.
Travelex already offers the service directly to about 100 large financial institutions and several thousand travel agents and travel services, said Tom Tucker, its senior vice president of sales and development. The Toronto company started the online component of the currency service a year ago, and soon after brought the concept to Mr. Clancys group, which had been offering U.S. dollar-denominated travelers check services through Travelex for the past two decades.
The travelers check program has been an outstanding service, Mr. Tucker said, and its a natural fit with Mr. Clancys group since most of the smaller banks do not offer foreign banknotes.
Before inking the deal with Travelex, the Independent Community Bankers of America did a survey. It found that more than half of the 143 respondents did not offer currency services, and of those 81% referred customers to large commercial banks.
Most members said that they did not provide the service, because it was not feasible or cost-effective, Mr. Clancy said.
The association aims to enroll 100 banks this year and to have about 1,000 members in the program eventually.
Mr. Tucker is a little more ambitious.
He said that about 2,400 of the banker groups members are involved in the domestic travelers check program and that he hopes most of them will add foreign currency services.
