Traveller's cheque, money order and bank draft

A traveller's cheque is a cheque of a fixed amount paid in advance that enables the person who purchased and signed the cheque to make a payment to a third party. Traveller's cheques can be issued in various currencies.

A money order is a prepaid negotiable instrument whereby the amount and payment to a third party are guaranteed by the issuer. Unlike a traveller's cheque, a money order specifies the name of the payee.

A bank draft (also known as a “cashier's cheque”) is a commercial instrument whereby a person instructs another person to pay a specific sum of money on demand or on a certain date to a third party. The bank draft is made payable to the order of the payee or the bearer.

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