A traveler's cheque is a pre-printed, 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.
As a traveler's cheque can be replaced if stolen or lost, they are often used by people on vacation in the room of cash. The use of credit cards has rendered them less important than they previously were. There are few places that don't accept credit cards but do accept traveler's cheques. In fact, many places now don't accept the latter.
Traveler's cheques are available in several currencies such as USD, CAD, GBP, JPY, and EUR and are usually sold in pads of ten cheques. Traveler's (or traveller's) cheques do not expire so unused cheques can be kept by the purchaser spending at any time in the future. The purchaser of a supply of traveller's cheques effectively gives an interest-free loan to the issuer. Banks use commission free to their customers. The commission, where it is charged, is usually one to two percentages of the total face value.
Source: Wikipedia: Traveler's cheque
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