Home Finance The different types of check

The different types of check

by Paul Petersen

Checks are a much safer and more reliable method of payment than paying in cash. Paying by check means transferring money from one bank account to another or to a natural person. However, there are several types of check, ranging from cashier’s checks to regular checks.

Cashier’s checks:

Cashier’s checks are mostly used to pay large sums of money, such as paying for a new car or a house. The cashier’s check is actually a cashier’s check issued by the bank itself. The beneficiary of this type of check will obviously be the creditor of the holder of the bank account. At the same time, the bank will debit the agreed amount from the bank account in question.

Whoever will benefit from this type of check will be absolutely sure to be paid afterwards because the bank’s reputation is at stake. But this guarantee has to be paid for and using a cashier’s check has a fairly significant cost, it is indeed necessary to count in the 7 to 15 € for an issue of these checks. But despite this expensive price, cashier’s checks remain very present on the market.

It should be noted that the cashier’s check is valid for 1 year and 8 days from the time it is issued. But those who accept cashier’s checks as a form of payment should be wary, however. Admittedly, it is the safest type of check, but it is also the preferred target of counterfeiters and other crooks of all kinds.

Like cashier’s checks, classic checks are also widely used. The classic check is the regular payment check that individuals usually use to pay their bills. You can order checks online as well as from your bank.

In other words, it is the check, the front of which has two parallel lines that the bank sends to its customers in the form of a logbook called a “checkbook”. Beneficiaries of a traditional check cannot exchange them directly for cash at the counter.

What are the benefits?

To fully benefit from them, they must first endorse them, that is to say sign on the back of the check. Only then will they be able to remit them to their bank so that they can be credited with the amount written on them.

Of course, you can get uncrossed checks after a personal request to the bank. This type of check can immediately be used as a means of payment to other people. However, these checks are rare because their use is often subject to numerous frauds.

It is the same for the certified check. This check bears the visa of a bank which certifies that when the latter is affixed, the bank account of the issuer of the check is indeed credited with the amount written on the check. The use of this sum by the account holder while waiting for the check to be presented by its beneficiary.

It may therefore be that by the time you present this check, the amount in the issuer’s bank account may no longer be sufficient. This lack of guarantee means that this type of check is not used much. To rectify the situation, the banks have decided to issue the so-called “certified” checks.

This registration guarantees the beneficiary of this type of check that the amount written on the check actually exists but that in addition, it will be reserved for him for a period of eight days after the date of issue of the check. After this period, the certified check will lose all its value and will only be considered as a standard check.

It also happens that the ordinary payment check turns into a guarantee check. This is the check that service providers often ask their customers for. By taking this guarantee check, the service provider agrees not to cash it before a specified period provided that the customer respects all his promises. The problem with this type of check is that it is not recognized by law which considers it to be just an ordinary payment check.