Traveler’s Checks Definition

A traveler’s check is a financial instrument that can be used in place of cash. They were originally introduced by American Express in 1891 and have since been popular with vacationers, especially those travelling to foreign countries. Traveler’s checks offer the bearer a safe way to transport large amounts of currency in a variety of unpredictable environments.

Traveler’s checks can be purchased and cashed at most banks; if they are stolen or lost a traveler’s check can be canceled and replaced. Although American Express still issues most traveler’s checks, in recent years other financial institutions have issued traveler’s checks.