Travelers cheque

A travelers cheque is known by many names. It is called as traveler's cheque, traveler's check, travelers cheque etc It is known by different names in different countries. It is preprinted cheque for a fixed amount which is used to make payment to some one else. Usually the amount mentioned in the cheque will be prepaid by the person making payment through check to the bank or the issuer.

The major benefits of travelers cheque is it can easily be replaced in case they are lost or stolen. They are called travelers cheque because they are generally used by the travelers during travel to avoid loss of money.

It eliminates the need to carry cash or get acash advance With the popularity of credit cards, travelers cheque has become less important. But even today there are places where only travelers cheque is accepted. Travelers cheques can be availed in several currencies like U.S dollars, Pound Sterling, Japanese Yen and Euro.

More Glossary Terms Explained here