What are types of cheque?



Crossed Cheque These are the cheques whose payments cannot be received directly and at once but has to be credited to the holders account.
In a crossed cheque two parallel lines across the face of the cheque indicate that it must be paid into a bank account and not cashed over the counter
If the cheque has been stolen, it is easily traced by locating the account it was deposited into.
There are two groups of crossing.
General Crossed Cheque: Is where a cheque bears across its face, an addition of the words; ‘& Co.’ or any abbreviation thereof.  Sometimes  there might be either with or without the words ‘not negotiable’, Payee’s A/C, etc. Not negotiable restricts transferability. The effect of general crossing is that it gives a direction to the paying banker.
Special Crossed Cheque: Is when between the two parallel lines there is the name of a bank and branch. Payments can be made through the bank and branch named between the crossings.
Open Cheques: These are payable across the counter and the person whose name appears on the cheque can write the name of another person on it, and the money will be paid to them.
There exist the following types:
Bearer Cheque: This is a cheque where there is no payee named and this can be cashed to anybody who presents it to the counter.
Order cheque: This is the cheque where the name of a payee is shown. An order cheque is payable to the person named on its face to his order, that is to anybody else who such a payee may name.
Banker’s Draft:  A banker's draft (also called a bank cheque or, in the US, a cashier's check) is a cheque issued directly from the financial institution (a Bank) rather than the individual drawer's account.  It is arranged by the buyer who asks their bank to raise a draft on its corresponding bank in the exporter's country. It provides additional security to a buyer's cheque, but they can be costly to arrange and they do run the risk of getting lost in transit.
Standing Orders: Is an instruction a bank account holder gives to his bank to pay a set amount at regular intervals to another account. The instruction is sometimes known as a banker's order. They are typically used to pay rent, mortgage or other fixed regular payments. Because the amounts paid are fixed, a standing order is not usually suitable for paying variable bills such as credit card, or gas and electricity bills.
Credit Transfers: It is a method of payment in which an amount of money (credit) is transferred directly from one account to another, in the same or different bank. It is also called a wire transfer. Where the payer makes regular payments to a large number of creditors he may use the credit transfer.
Travelers' Cheque: It is a check that is issued by a financial institution which can be used as a form of payment. They are commonly used at the international level. The holder buys the travelers cheques by paying their values and a small service charge. The bank then issues him with the cheque leaves and asks him to sign them in the presence of a bank officer. The signature is one of the security features of travelers’ cheques as the user will be required to countersign the check at the point of redemption. If the signatures do not match, the cheque will not be accepted.








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