traveler's check

noun
Updated on: 13 Oct 2017

Definition of traveler's check

:a draft purchased from a bank or express company and signed by the purchaser at the time of purchase and again at the time of cashing as a precaution against forgery

First Known Use of traveler's check

1891


Financial Definition of TRAVELER'S CHECK

traveler's check

What It Is

A traveler's check is a certified note issued by a bank that may be used by travelers as a risk-free substitute for paper currency.

How It Works

When individuals travel, particularly abroad, they often need cash to cover certain expenses. A traveler's check is a certified bank draft that travelers may use the same way they use regular paper currency. Traveler's checks may be used in place of cash for purposes other than travel. Banks typically charge a small fee and require that individuals order travelers' checks prior to when they will need them.

Why It Matters

Marked with a check number and printed on counterfeit-proof paper, a traveler's check is issued to an individual and must be endorsed by the bearer before a vendor. Because a traveler's check is issued to a specific person, it can be replaced by the issuer if it is lost or stolen. Traveler's checks have the added advantage of being easily converted into foreign currency. American Express is a large issuer of travelers' checks.

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TRAVELER'S CHECK Defined for English Language Learners

traveler's check

noun

Definition of traveler's check for English Language Learners

  • : a check that is paid for in advance and that may be exchanged for or used like cash


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