Traveler’s checks are widely accepted and can be replaced if lost or stolen. They are purchased from financial institutions and require a signature and serial number. They were invented in 1891 and were popular for travel, but have declined in popularity due to credit cards and ATMs.
A traveler’s check is a check issued by a financial institution that can be used as a form of payment. Travelers checks are most often used by travelers because they are widely accepted as payment in many parts of the world, but can be replaced if lost or stolen by the issuing financial institution. Travelers checks are issued in a variety of currency denominations such as the US dollar, the euro, the Japanese yen, the Canadian dollar, the Australian dollar and the British pound.
A customer should be able to purchase traveler’s checks from most major financial institutions. At the time of purchase, the customer will be required to sign each individual traveler’s cheque. Signature is one of the security features of traveler’s checks as the user will be required to countersign the check upon redemption. If the signatures do not match, the check will not be accepted.
At the time of purchase, the customer should be provided with a list of the serial numbers of the checks purchased. In the event of lost or stolen checks, most banks will require the customer to provide the serial numbers of the missing checks. This allows the bank to verify the validity of the claim and checks.
While traveler’s checks can be replaced if lost or stolen, you are advised to treat them with the same care as you would cash. The user must keep track of used checks as they are redeemed. The customer must also keep the traveler check purchase contract and the list of serial numbers separately from the checks themselves.
Using a travelers check is a fairly straightforward process. The customer simply provides the traveler’s check to the merchant as payment. The customer will then have to sign the travelers check in the presence of the merchant. Once the merchant verifies that both signatures on the check match, any applicable changes are returned to the customer and the transaction is completed.
Travelers checks were first issued in the late 1700s by the London Credit Exchange Company, and British travel agency founder Thomas Cook issued notes similar to travelers checks in 1874, but the modern traveler check was invented in 1891 by an employee of the American. Squeeze. The then president of American Express, JC Fargo, was frustrated when he couldn’t cash checks during a trip to Europe and tried to find a solution. Marcellus F. Barry came up with the idea of the countersignature feature on the check to assure merchants and users that the check was genuine. The idea quickly gained popularity and was an instant financial success for American Express.
Over time other companies have offered their own versions of travelers checks and as advanced transportation has made travel easier and less expensive for the masses, travelers checks have been the preferred form of money for travellers. However, the increased use of credit cards, debit cards, and the prevalence of automatic teller machines (ATMs) around the world have led to a decline in the popularity of traveler’s checks today.
Protect your devices with Threat Protection by NordVPN
