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Types of Check

Types of Check

Check is the printed matter that can be used instead of cash and gold which can be used to pay off the debt continuously as long as the check isn’t cashed-in. It is very popular for businesses to use check and safe because carrying too much money could be really dangerous from being robbed. According to the Check Law, the person who sign the check will be directly involved in the transaction and with legal matter. When the check is due from the receiving bank, the holder can request for cash from the bank by him/herself or asking someone else who has written the name on the check to pay off the debt accordingly. Because check is the print matter that directly involved with the financial transactions with whatsoever for businesses.

The check users usually use check to pay off the debts and so it is necessary to understand the details in the check that will result in the security in using them. Also, it is imperative to know that there are 2 major types of check.

Bearer check – It is the type of check that the issuer has the authority to pay without having to state the name of the receiver on the check. This is the type that the issuer can just fill in the number, numeric, and the letters by handwriting and just this the check is completed. In transferring this type of check, the holder can just pass along the check to the other party, by this, transfer is considered completed.

Order Check – It is the check that will only be paid by the order or the authorized person. Name of the company or a person with first and last name must be addressed in the check otherwise it will be rejected by the bank. Transferring this type of check can be done by endorsing it at the back of the check and so it increases the level of security. Putting the 2 parallel lines on the front of the check for account payee only is another way to safely transfer the check for the other party.

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