TeachMeFinance.com - explain traveler's check
traveler's check -- a type of check designed especially for business or vacation travelers. The traveler pays for the checks in advance. Thus the check is an order from the issuing company to pay on demand. Traveler's checks are issued in various fixed denominations, may be cashed almost anywhere in the world, and are insured against loss, theft, or destruction.
Traveler's check or cheque -- A check for a specified amount issued by a banker and payable by any correspondent of the banker. The traveler purchases a number of these checks for, say, $50 each and indorses each as he presents it for payment. These checks are largely used in place of letters of credit.
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