James Fargo, president of American Express on trip to Europe carried traditional letters of credit that wealthy people used to get cash while travelling.
However he found out that many of the smaller European banks wouldn’t accept them, even though he was the president of American Express. Incensed, he returned home and told an America Express employee, Marcellas Berry to create a solution to his problem.
1n 1891, American Express was the first company to develop a large scale Travelers Cheque system. Marcellas Berry combined the money order with an ordinary chequebook. The result was the first travelers cheque.
American Express Travelers Cheque was born. Travelers Cheque established American Express as a truly international company.
In 1914, at the outbreak of the First World War, American Express offices in Europe were among the few companies to honor the letters of credit (issued by various banks) held by Americans in Europe, despite other financial institutions having refused to assist these stranded travelers.
Travelers Cheque by American Express
