American Express Money Orders and Traveller's Checks

Fargo became president of American Express after Wells retired in 1868. Fargo died in 1881 and was succeeded as president by his brother, James Fargo, who further expanded the business. He guided the introduction of the money order in 1882 and the traveler’s check in 1891.


Most money orders could be issued and redeemed only in banks or post offices, which distinguished them as exceptionally reliable draft notes—or certificates negotiable as money—for a variety of personal and business transactions.


The American Express traveler’s check was a draft note purchased from a bank or directly from American Express. It could be redeemed for goods or services in many businesses around the world.


The American Express traveler’s check was an immediate success with travelers who found that the checks were easier to redeem than letters of credit from banks, which were commonly used overseas instead of cash. In addition, travelers preferred American Express traveler’s checks because the company would reimburse them if the checks were lost or stolen.


Traveler’s checks provided a substantial infusion of revenue to the company, and helped establish the American Express brand name among American travelers.