How to Accept Traveler's Checks

An individual who is traveling and does not want to carry a lot of cash will often use a traveler's check to make purchases. By doing so, his money is protected from loss or theft. When he purchases the traveler's check, he must sign it in the presence of a representative of the bank where it is purchased. There is also a protocol that must be followed when he uses the check as legal tender. If you accept the check and neglect to ensure that the proper protocol is followed, you risk the possibility of not receiving payment for the items purchased with the check.

Things You'll Need

• Bank account

Instructions

Payment by Traveler's Check

1. Advise the customer of the total amount that is due for his transaction.

2. Tell the individual the name he must make the check out to and have him enter that name on the "Pay To The Order Of" line.

3. Ask the customer to provide his signature in the designated area on the lower left-hand side of the traveler's check. The signature must be completed in your presence. If the customer has already signed the check, have him sign it again on the back.

4. Compare the second signature that was done in your presence to the original signature in the top left-hand corner of the check. Make sure the signatures match. If the signatures don't match, do not accept the traveler's check. Do not accept a photo ID as verification, only matching signatures.

5. Check the traveler's check for embedded security features, such as a watermark or a holographic thread. If you don't see any security features or if you have any doubts about the authenticity of the check, contact the customer service number on the front or back of the check before accepting it.

6. Provide the customer with any change that is due from the check. For example, if his traveler's check is in the amount of $50 and his purchase is $25, you will give him $25 in cash.

7. Take the traveler's check to your bank to cash it or to have it deposited into your bank account.

References

• American Express: Frequently Asked Questions
• The Convenience of AAA Traveler's Checks
• Spotting Fake Traveler's Checks