A Traveler’s Cheque is used as a medium of transaction which is used as an alternative of hard currency in olden times. the name itself we can understand what is Travelers Cheque it is used by tourist or travelers who travels foreign countries as cash instead of hard cash for safety and convenience reason.
Definition Of Travelers Cheque: Travelers Cheque is issued by banks or other financial institutions, traveler’s cheque can’t be bounced because there are prepaid cheques which means the denomination in the cheque is what you pay for the issuer of the cheque which works as the currency of the country the traveler goes ( selected countries only ).
Where can I get the Traveler’s Cheque?
These cheques are issued by banks, post offices, and other financial institutions, Travelers cheque are only prepaid cheque that’s the reason why they can’t be bounced and also these cheques don’t have any expiration dates which can use when you want.
What If Your Traveler’s Cheque is Stolen or Lost?
Traveler’s cheque is very similar to the regular cheque which is most of us every cheque that is issued will have a unique serial number which is used identification by banks. The moment your cheque is stolen or lost you can visit the bank for a new cheque or hard cash.
Note: We should write down the unique serial number.
Do only banks accept Traveler’s cheque?
No, Traveler’s cheque is also accepted by some retailers in selected countries you go, we can exchange cheque for goods and any change you will get it in local currency.
As a part of the digital boom usage of Traveler’s Cheque is Declining as there are many alternatives like debit cards, credit cards Etc.
Countires That Accepts Travelers Cheques?
Travelers Cheques are only issued in US Dollar, Great Britain Pounds (GBP), Japanese Yen (JY), Australian Dollars (AUD), and Canadian Dollars (CAD) Currencies. which means we can only that cheque in a country with the currency we listed before.
What are the Four Parities In Travelers Cheque:
- ISSUER: A Bank or Financial institution that produces the cheque.
- AGENT: The Banks or any Third Party who sells the cheque.
- PURCHASER: The Person ( You ) who buys the cheque for the fixed amount.
- PAYEE: A Person or Merchant whom the cheque is handed over for goods.
Disadvantages Of Travelers Cheques:
- Banks or Financial Institution charges a commission fee for issuing the cheque which will be around 2% to 3%.
- Traveler’s cheques are rejected by merchants because it costs them time and money for the withdrawal of money to their account.
- it will be a headache if we lose our cheque because banks take more than a day for reissuing the cheque.
Thanks for Reading.