Promissory note issued by a financial institution and sold to a holder, who can transfer it to a third party. The interested person can request it from the bank for a predetermined amount in the currency of the country to which they are traveling. The traveler’s check is guaranteed against loss or theft: the first holder signs it upon receipt and must sign it again upon transfer, preventing fraudulent use. When cashed, the bank is obliged to verify the signature to increase the security of the process. The issuing institution charges a commission, but mainly profits from the float, i.e., the period of time between issuance and cashing.
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