Travelers Cheques are cheques issued by financial institution that can be used as a form of payment. These are mostly used by people who areÂ travellingÂ as it can be easily replaced by the issuing financial institution if lost or stolen. They are widely accepted all around the world. These are issued in various denominations such asÂ US Dollar, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, and British Pound.
At the time of purchase, the cheques are required to be signed as for the security purpose. The user has to again sign the cheque at the point of redemption so as to match both the signatures. At the time of purchase of cheques, the customer should be provided with the listing of the cheques purchased.
When using a cheque as the mode of the payment, customer provides the cheque to the merchant. He signs the cheque in presence of the merchant. Once the merchant verifies both the signatures, the applicable change is given back and theÂ transaction is completed.