What Is The Cheque Check Difference?
- cassyhedeeniic21
- Feb 1, 2023
- 1 min read
Cheque is a paper document that orders a bank (or credit union) to pay a specified amount of money from the drawer’s transaction banking account to the payee. It is usually preprinted with the drawer’s name and account number, as well as the payee’s name, date, and amount of money to be paid.
A cheque can be crossed, which restricts its use so that only the person named on it may receive it. This can be done by crossing out the word ‘or bearer’, or by writing the word ‘Account Payee’ instead of ‘or bearer’.
Some banks allow their customers to counter-sign cheques. This can help avoid fraud.
There is a limit to the amount of time that federally regulated financial institutions can place a hold on money you deposit by cheque. The maximum time period is 4 to 8 days, depending on the amount and the way it was deposited.
During this time, your money may be unavailable or inaccessible. Your financial institution may also charge you interest on the money it holds.
In the United Kingdom, for example, many utilities charge lower prices to their customers who make payments by direct debit than those who pay using cheques. This is because the cheques are costly to process and are often discarded before they clear, leaving no paper trail.
Checks have been in decline over the past decade in both point of sale transactions and third party payments such as bill payments. This is largely due to the rise in popularity of electronic payment methods such as credit cards and debit cards.
SITES WE SUPPORT
SOCIAL LINKS
Comments