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A traveler's cheque (also traveller's cheque, travellers cheque, traveller's
check or traveler's check) is a preprinted, fixed-amount cheque designed to
allow the person signing it to make an unconditional payment to someone else
as a result of having paid the issuer for that privilege. Traveler's cheques
are available in several currencies such as U.S. dollars, Canadian dollars,
Pounds sterling, Japanese yen, Chinese Yuan and Euro; denominations usually
being 20, 50, or 100 (x100 for Yen) of whatever currency, and are usually
sold in pads of five or ten cheques, e.g., 5 x €20 for €100. Traveler's
cheques do not expire, so unused cheques can be kept by the purchaser to
spend at any time in the future. The purchaser of a supply of traveler's
cheques effectively gives an interest-free loan to the issuer, which is why
it is common for banks to sell them "commission free" to their customers.
The commission, where it is charged, is usually 1-2% of the total face value
sold.
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