Posted in Finance, Accounting and Economics Terms, Total Reads: 322
A Euro check is an alternative to normal check and is used by the European Union and is available in many currencies of the world. So the Euro check can be basically issued by any of the 200000 banks across the Europe which carry the European union crest and these can also be encashed in any of these bank’s also. So it is a useful tool for European Residents and can be used as a replacement for travellers check. IT is sometimes often called as a Euro Cheque.
It is alternative to or a variant to a traveller’s check.
So let us check what a traveller’s check is, these are basically a medium used for exchange in case of hard currency. These types if check’s were first introduced in 1891 by the American Express Bank. These types of check’s are basically used by travellers who are travelling to a foreign location. This is basically a safe way to carry currency abroad, as the fear of loss of currency is reduced, as these check’s can only be exchanged by the person authorized to use the check as every check is authorized to be used by only one person.
Let us know understand and check the history of Euro Checks. These were first introduced in 1969 and had become immediately popular. From 1970 till 1990, these were more popular than traveller’s checks at that time and were used by foreign travellers in very ratio. But these were stopped as of 2002, meaning banks stopped issuing these types of checks, some of the reason for the same were:
a. Higher cost of processing
b. Growing incidence of euro check fraud
c. Newer ways to transact like ATM and Credit cards.