Answer:
I hate answering a question with 'that depends', but it does in this case. For new accounts under Reg CC, a traveler's check has to be treated like a cashier's, teller's or certified check and get next-day availability if a new account hold is used under section 229.13(a). They don't have to be considered next-day items for any other purpose. For example, if a large-deposit hold is selected instead of a new account hold, traveler's checks don't get special treatment.
Except for new account holds under section 229.13(a), a traveler's check is treated like any other check. It's either local or non-local depending on the location of the branch at which it's deposited and the check processing district the check is handled by, based on its MICR line.
First published on BankersOnline.com 10/01/07
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