Normally, there will be only one card issued for each account, however group and commercial accounts can be created with sub-accounts. Each sub-account would be assigned some portion of the total account balance, and the debit card for that sub-account would have access to that portion of the total account balance.
Branches of an issuing bank will honor their own debit cards, usually, at full value. Non-issuing banks may honor some portion of another bank's debit card, depending on private agreements between the two banks.
Checks are typically only honored by banks within the system of issue. Therefore, checks are not especially useful for travellers.
In other systems, Local Debit Cards and are seldom honored directly. The account holder must present his card to a branch of the issuing bank for conversion to an account local to this system and would then be issued another debit card.
Traveller Debit Cards are honored in most systems where the bank has a branch or has a corresponding agreement with a local bank. This is much more convenient than having to obtain a local account and card.
An account holder can obtain a draft for a portion of his assets from his bank, take it to another system, present it to a branch bank there, and use it to create an account there. Branches of the same bank will typically honor a draft in full, after it is verified. However, because of travel times the verification process can take several weeks. In most cases, a portion of the draft will be honored immediately as a no interest loan during the verification period. Generally, holders of Traveller Accounts are given access to a larger portion of their assets during the waiting period.
Banks will often make private arrangments with banks in other systems prearranging the acceptance of Letters of Credit. The Letter of Credit will often list the banks which have made these prearrangments. In these cases, the Letter is automatically honored and an drafts and withdrawals up to the amount listed will be honored.
In cases where the bank in question does not have a prearranged agreement with the issuing bank, communcations between the two banks must take place before the Letter of Credit will be honored. During this period of time, no funds may be withdrawn and no checks will be honored.
The time it takes to get a Letter of Credit can be lengthy. This is not only because of the time it takes for communications between systems, but also because banks will usually only honor Letters of Credit though banks with which they have agreements. This may mean that documents will have to travel through several banks in multiple systems before a chain of agreements is established between the issuing and dispensing banks.
Banks and their branches arrange for the transfer of funds, both real and on paper, to balance their accounts. This isn't something the traveller need worry himself with, but it does mean that financial records and currency are constantly being transported between systems.
Outside the CSA the credit will occasionally be accepted by a nearby system, but usually will have to be exchanged for local currency. Exchange rates fluctuate over time and with location, but as a general rule, the further you are from the Confederation's border the less the Credit will be worth.
The Mark usually trades at approximately 1.25 marks to the credit.
Contact: Si Morris Alberson