The use of personal checks as a means of payment has decreased with the appearance of more comfortable ones, such as credit cards and online banking, but above all due to the inconveniences that make it difficult to collect.
Ways to Write Checks
A check can be issued:
Bearer: Any person who presents this type of bank check has the right to cash it. Be very careful: if you lose it and anyone collects it, you cannot claim anything.
Registered: In this case, only the person or company whose name appears on the check may collect it.
However, there is the possibility of transferring the collection right to a third party through what is called the “endorsement”. To endorse a check, the payee writes on the document the name of another person, who becomes the new payee, and signs it. Nominal checks may include the clausula “to order”, which expressly allows its endorsement or the clause “not to order” that prevents its transmission by endorsement.
Cross Check: We cross a bank check when we draw two parallel diagonal lines on its front. In this way, it can only be collected at a certain bank, so that it in turn collects it from the drawee. Checks can be “crossed” either by the drawer or by the holder.
Note: If you are a customer of the entity that must pay it (drawn), you will normally be able to cash a cash cross-check.
Check “to be credited to account”: If a check has the expression “credited to account” it means that the money cannot be withdrawn in cash, but will have to be deposited into a bank account. This is done to reduce the risk in case of loss or theft.
Cross checks and credit checks make it easy to identify who collects them.
Elements of a check
The following items are required on a check and the lack of any of them would invalidate it.
- The specific denomination of “check” inserted in the document (in the language used to write it).
- The mandate to pay a certain amount of money in euros or in foreign currency.
- The name of the drawee, always a bank.
- The issue date.
- The drawer’s signature.
In addition, there are two natural requirements whose omission is provided by law in the following terms:
Place of payment: if it is not specified, the place of payment of the check will be considered the one that appears next to the name of the drawee. If multiple locations have been designated, the check will be payable at the first location. In the absence of these indications, the check will be paid at the place of issue.
Place of issue: if it is not indicated on the check, it will be considered issued at the place that appears next to the name of the drawer.
Tips for operating with checks
To pay by check:
It is not advisable to fill in the check until it is delivered or used.
Never write “blank” checks, that is, signed by you but without specifying the amount to pay. It is an extremely risky practice since someone else could put the amount they want and you would be obliged to pay them.
For greater security, the amount to be paid is written twice: once in numbers and once in letters. In both cases, the amount is surrounded by symbols or lines so that nobody can write additional numbers or words.
For example, if you write € 50.00, someone could add a 9 in front and convert the amount to be paid to € 950.00. To prevent these, write # 50.00 # €.
Please note that a check is payable on demand, that is, at the time of presentation, even if you enter a future issue date.
If you want to have proof of who has cashed the check, extend it by name and cross-check or to credit the account.
Always have the necessary funds in your account to cover the amount of the check.
To cash by check:
If you get paid by check, make sure none of the essentials are missing.
If you want to cash the check-in cash, to avoid commissions, present it at the same branch that appears as drawn. Normally, you will not have to pay commissions if you pay it in an account of the same entity.
Please note that if you enter a check from another account in your account, the value date will be the business day after the operation.
If you do not know the person or company that writes the check well, it may be better to demand a certified check or other means of payment.
So, this was a detailed guide about a check. I hope that you got some valuable information. We have written a detailed guide on how to write check that you should read.