Gift cheque: This is another banking instrument introduced for gifting money to the loved ones instead of hard cash. If you are a writer in the United States, you will use check in all circumstances. When two parallel lines, with or without any words, are drawn generally, on the left hand top corner of the cheque. The drawer and the payee can be the same person. In fact, checks are now somewhat uncommon. The other objective of crossing is that large amount of money is transferred from one person or place to another, without any risk of cash involved in payment.
Mobile Cheque Deposit You may have heard recently about a new way to deposit your cheques. A cheque with a such a crossing can only be paid into an account at that bank. For example, if John Smith writes a cheque to Jane Doe, she can endorse the cheque on the back and give it to you in payment of a debt. Cheque can be used as a verb meaning withdraw. But even as is growing exponentially, there are certain aspects of banking that need to be taken care of in a traditional way. The center of the check features a line to specify the payee, who is the recipient of the money, and the amount to pay.
A cancelled cheque is considered to be proof that you actually hold an account with the bank. A stale cheque is not honoured by the bank. Modern checks, as we know them today, became popular in the 20th century. Check usage surged in the 1950s, as the check process became automated and machines were able to sort and clear checks. The payment of such a cheque can be obtained at the counter of the bank. How Cheques are Processed All cheques must be processed — or cleared and settled — through the payments system. The cheque transactions are one of the safest ways of conducting business.
Payment of such cheques is not made on the counter of the bank. Cheque Cashed By a Different Individual Counter-Signed Cheques Some banks allow cheques to be cashed by someone other than the person named on the front of the cheque if it is counter-signed. Such a cheque is payable to the person specified therein as the payee, or to any one else to whom it is endorsed transferred. Note : All Types of Cheque are valid for three month from the date of issue or written on cheque. In addition, occasionally, a cheque with a stop payment may still be cashed if incomplete or incorrect information is given to your bank regarding the amount or date of the cheque, or the name of the person to whom the cheque was written. Post Dated Cheque Cheque bearing the date which is yet to come in future is called Post Dated Cheque.
No other person can get the payment of an order cheque. Phrases That Use Check Here are a few popular phrases that use the spelling check in both American and British English. Check, which is actually the older of the two spellings, is standard in American English. It has to be revalidated before presenting to the bank. Introduction of cheques has provided many advantages and facilities in every field of life.
The use of checks allows two or more parties to make a monetary transaction without actually exchanging currency. The effect of these types of crossing is that, it will be collected by the particular bank only. For a lost cheque, bank should be immediately informed to stop the payment. All financial information is also securely encrypted. Nobody ordinary signs a blank cheque. The practice of crossing a cheque seems to have originated in England, when cheques were likely to be stolen by robbers who often robbed mail carried in slowly moving coaches.
Although cheque is going to be still the mainstay of banking transactions, it leaves a good amount of paper usage. In legal terms a check is a bill of exchange or a document, guaranteeing a certain amount of money, where the drawee is a bank. Check Out — remove a book from a library for loan. Consumers can reduce the number of bounced checks they write by tracking their balances more carefully, using an ironclad system of recording every single debit and deposit on a check register as soon as it occurs, or by keeping close tabs on their checking account using online banking. In some cases, businesses collect a list of customers who have bounced checks, and they ban them from writing checks at that facility again. However, such cheques are risky, this is because if such cheques are lost, the finder of the cheque can collect payment from the bank.
If you need help deciding whether to use cheque or check, you can refer back to this article for a reminder. I need to go to the doctor for a checkup. Also Read : Anti Dated Cheque Cheque bearing the date earlier than the date of presentation for payment is known as anti dated cheque. Meaning of Cheque — Different Types of Cheque : Cheque is a negotiable instrument used to make payment in day to day business transaction minimizing the risk and possibility of loss. It contains instruction in writing given bt the account holder to his bank for payment of money from his account. Section 6, of Negotiable Instrument Act 1881 defines a cheque as - A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
With the boom of internet and online marketing, anything and everything under the sun is just a few clicks away. The name and, often, contact information of the drawer — the person writing the check — can be found at the top of the check. With the passage of time, crossing of cheques came to have legal recognition. Bearer Cheque When the words or bearer appearing on the face of the cheque are not cancelled, the cheque is called a bearer cheque. It is not a safe method of payment. Definition of Cheque — What is a Cheque? Also Read: Mutilated Cheque When cheque gets torn into two or more pieces and presented in bank for payment. If the cross cheque is of the same branch or of local branch, then the inconvenience is not so much as compared to the out-station cross cheque, in which mail process involves and the efficiency of the other branch in releasing payments.
One should never sign a cancelled cheque. A post dated cheque cannot be honoured earlier than the date on the cheque. Cheque is always drawn on a specified banker. If the account stays negative, the bank may charge an extended overdraft fee. But I found the policy was not good. It may be a Bearer cheque or Order cheque.