Outlook Money
A cheque is a written order instructing a bank to pay a certain amount to a person or organisation. Despite digital payments, cheques remain important in business, legal, and personal transactions.
A blank cheque has no amount written on it, but it is signed. The recipient fills in the amount as agreed. These cheques are risky and should only be given to trusted individuals.
Anybody can cash a bearer check by bringing it to the bank. While it is easy to use and quick, it is susceptible to theft or loss.
A crossed cheque has two parallel lines and is payable only into the payee's account. This provides extra security and reduces the risk of fraud.
Only the designated person's account can be credited with an account payee check that is marked as account payee only. It cannot be encashed by a third party.
An order cheque is payable only to the person named on it or someone authorised by them. The bank verifies the individual before payment, which makes it safer than a bearer cheque.
The validity of a check is three months from the date of issuance. It goes stale and is rejected by the bank if it is presented beyond this time.
A future date is written on a post-dated check. The bank will clear it on that date or later. It is commonly used for loan repayments and instalments.
An ante-dated cheque has a past date within the three-month validity period. A banker's cheque is issued by the bank and cannot bounce, making it ideal for large transactions. Traveller's cheques are used for secure international payments.