Types of Cheques Flashcards
What are the types of cheques that exist?
Acronym: CCSC
- Crossed Cheque
- Certified Cheque
- Stale Cheque
- Cashiers Cheque
What is a crossed cheque?
A crossed cheque is one which has two parallel lines drawn from left to right on the face of it. These lines indicate that the cheque should not be cashed over the counter but be paid directly into the payee’s bank account. If information is written within the parallel lines it is considered a special crossed cheque if not it is referred to as a general crossed cheque.
What is a certified cheque?
It is a cheque that proves that the party issuing the cheque has enough funds in their account for the cheque to be cashed on submission to the bank. For a check to be a certified cheque the party issuing the cheque will have to take the cheque to the bank for it to be certified.
What is a stale cheque?
By law, any cheque that is not cashed within six months of it being issued can no longer be accepted or cashed by a bank. A stale cheque is a cheque that has not been cashed after 6 or more months of it being issued.
What is a cashier’s cheque? Subsequently, what is a traveler’s cheque?
A cashier’s cheque is a cheque issued by a bank on its own funds, to a person specified on the cheque.
A traveler’s cheque is a type of cashier’s cheque, bought by travelers or tourist in which the value of the cheque’s match the units of that of a foreign country. The buyer of the cheque signs the cheque once at the bank and once when issuing it to a third party.
