traveler's letter of credit
- noun
- /ˈtrævələrz ˈlɛtər əv ˈkrɛdɪt/
- Archaic
:
carta de crédito del viajero
- Before international ATMs were common, many tourists relied on a traveler's letter of credit to access funds abroad.
Examples
-
The bank issued him a traveler's letter of credit before his business trip to Asia.
-
A traveler's letter of credit provides security for both the traveler and the institutions they deal with overseas.
-
I obtained a traveler's letter of credit before my trip.
-
Have you ever used a traveler's letter of credit?
-
The bank issued a traveler's letter of credit to ensure he could make payments during his trip to Europe.
-
Before traveling to Japan, she arranged for a traveler's letter of credit to access cash without hassle.
-
Many travelers find that having a traveler's letter of credit makes it easier to manage expenses abroad.
Synonyms
1
5.5
A bank document that promises to pay a seller if a buyer meets certain conditions
Surface Forms
Morphology
traveler + letter + of + credit
The components are compositionally meaningful—'traveler's' (for someone travelling), 'letter' (a document) and 'credit' (financial)—so learners can infer it is a travel-related financial document. However, 'letter of credit' is a specialized banking term whose precise function as a bank guarantee to obtain funds or make payments abroad is technical and not fully predictable for a B1 learner, so partial inference rather than full understanding is likely.
Etymology
The compound traveler's letter of credit comes from the image of a traveler carrying a letter from their bank that promises credit, or money, abroad. The paper shows the bank will pay, so the traveler can use it to get cash. That's why it means 'a bank-issued guarantee that lets a person obtain funds while traveling'.