Travellers’ Cheques

Travellers’ Cheques

Travellers’ cheques are a form of prepaid financial instrument that can be used as a substitute for cash while travelling. They were first introduced in the early 20th century as a safer and more convenient alternative to carrying large amounts of cash. Travellers’ cheques are typically issued by banks or other financial institutions and can be purchased in various denominations, usually in the currency of the country where they will be used. Travellers’ cheques are designed to be used by the person whose name appears on the cheque, and they must be signed in the presence of the vendor at the time of purchase. When the traveller wants to use the cheque, they must sign it again in the presence of the vendor, who will then verify their signature against the one on the cheque. The vendor will then provide the traveller with the local currency equivalent of the cheque, minus any fees or commissions. One of the main advantages of travellers’ cheques is that they are widely accepted around the world, making them a convenient and reliable form of payment for travellers. They are also relatively secure, as they can be replaced if lost or stolen, and they are not tied to a specific bank account, which can help to protect against fraud. However, travellers’ cheques are not as widely used as they once were, as many travellers now prefer to use credit or debit cards, which are more widely accepted and offer better exchange rates. In addition, travellers’ cheques can be subject to fees and commissions, which can make them more expensive than other forms of payment.

prepaid, financial instrument, currency, signature, security

— Kevin Martinez

CITATION : "Kevin Martinez. 'Travellers’ Cheques.' Design+Encyclopedia. https://design-encyclopedia.com/?E=402815 (Accessed on July 01, 2025)"