traveler's letter of credit

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Traveler's Letter of Credit

Definition:
A "traveler's letter of credit" is a financial document that guarantees payment to a traveler when they are in a different country. It acts like cash but is safer because it can be replaced if lost or stolen. This document helps travelers access money from their bank or a financial institution while abroad.

Usage Instructions:

• Who uses it? Travelers, especially those going to foreign countries.
• When to use it? Before traveling, to ensure you have secure access to funds while away from home.

Example:

• Simple Example: "Before her trip to Europe, Maria obtained a traveler’s letter of credit to ensure she could safely access money while traveling."

Advanced Usage:

• A traveler might prefer a traveler’s letter of credit over carrying large amounts of cash, as it can be used in various countries and is often accepted at banks or certain businesses.

Word Variants:

• Letter of Credit: A general term for any letter that guarantees payment, not just for travelers.

Different Meaning:

• A "letter of credit" can also refer to a document in business transactions that ensures payment for goods or services, not just related to travel.

Synonyms:

• Traveler's checks: Similar to a traveler’s letter of credit but are pre-printed checks that can be used like cash.
• Cash equivalent: Money that can be easily converted into cash.

Related Idioms and Phrasal Verbs:

• "Cash in hand": Referring to money that is readily available, which a traveler’s letter of credit provides in a secure form.
• "Travel light": To carry minimal items while traveling, which can include not carrying much cash by using a traveler’s letter of credit instead.

Academic

Noun

1. a letter of credit given to a traveler

Synonyms

• traveller's letter of credit