Traveler's cheque facts for kids

A traveler's cheque is like a special kind of pre-paid money that people used to take with them when they traveled. It's a piece of paper with a set amount of money printed on it, like $50 or $100. When you bought one, you would sign it. Then, when you wanted to use it, you would sign it again in front of someone, like a bank teller. This made it a safe way to carry money because if it got lost or stolen, you could usually get a replacement if you had your receipt.

What Are Traveler's Cheques?

A traveler's cheque is a preprinted cheque for a specific amount of money. Imagine it as a gift card, but for travel. You buy them before your trip. They come in different amounts, like $20, $50, or $100.

How Did They Work?

When you bought a traveler's cheque, you had to sign it right away. This first signature was like registering it to you. When you wanted to use it, for example, to pay for something or get cash, you would sign it a second time. This second signature had to match the first one. This two-signature system made them very secure. Only the person who bought them could use them.

Why Were They Safe?

One of the best things about traveler's cheques was their safety. If your cheques were lost or stolen, you could report it. As long as you had your receipt from buying them, the company would usually replace them. This was much safer than carrying a lot of cash, which you can't get back if it's lost.

Who Used Traveler's Cheques?

Many people used traveler's cheques for their holidays or business trips. They were especially popular before credit cards and debit cards became common everywhere.

American Express and Cheques

One of the biggest companies that made traveler's cheques was American Express. They were a very important part of their business for many years.

The Shift to Cards

Over time, new ways to pay while traveling became popular. Since about 2005, American Express started offering "American Express Travelers Cheque Cards." These cards work more like a regular credit or debit card. You can use them in stores and at ATMs, making them easier to use than paper cheques. Today, traveler's cheques are not used as much because of these newer, more convenient payment methods.

Images for kids

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  Obverse and reverse side of traveller's cheque of National Bank of Poland (nominal value: 1000 Polish złoty); sold in April 1989 in Budapest (Hungary), for use during travel to Poland only, never used.