Define: Circular Notes

Circular notes, also known as traveler’s cheques, are a form of prepaid financial instrument issued by banks or financial institutions. They are used as a safe and convenient alternative to carrying cash while traveling.

Circular notes are purchased from a bank or financial institution for a specific amount. The purchaser signs the notes upon receipt and can then use them as a form of payment at various establishments or exchange them for local currency at banks or currency exchange offices.

Circular notes are generally accepted at a wide range of establishments, including hotels, restaurants, and shops, both domestically and internationally. However, it is advisable to check with the specific establishment or country beforehand to ensure acceptance.

Yes, most issuers of circular notes provide a replacement service in case of loss or theft. It is important to report the loss or theft immediately to the issuing bank or financial institution and provide any necessary documentation to initiate the replacement process.

Yes, there may be fees associated with purchasing circular notes, such as issuance fees or commission charges. Additionally, some banks or financial institutions may charge a fee for cashing or exchanging circular notes for local currency.

Circular notes are primarily designed for in-person transactions. While some online merchants may accept them, it is not as common as using traditional payment methods like credit or debit cards.

Circular notes typically do not have an expiration date. However, some issuers may impose a validity period, after which the notes may no longer be accepted. It is important to check the terms and conditions provided by the issuing bank or financial institution.

Yes, most issuers allow for a refund of unused circular notes. However, there may be certain conditions or fees associated with the refund process. It is advisable to check the terms and conditions provided by the issuing bank or financial institution.

Circular notes are considered a secure form of payment as they require the purchaser’s signature for activation and can be replaced if lost or stolen. However, it is important to take necessary precautions, such as keeping them in a safe place and not sharing the signature with anyone, to ensure their security.