What is check?
A check is called those payment instruments that allow a person to tell the bank to pay a third party a certain amount of money. In this way, a person can withdraw money from the bank authorized by another who should not be present at the time. Common types of check are Cashier’s check, Bank check, Certified Check, Electronic check, Giant check.
What are the main Types of Checks?
There are different kinds of checks:
Common: in these, the payment day cannot exceed 30 days from the date of issue.
Deferred payment: these are a released payment order that has a term of between 1 to 360 days, from its issuance. This indicates that they cannot be collected the same day they were issued, like the common ones.
Bearer: do not contain a specification on who should collect it. What this allows is that whoever owns it is authorized to collect it, hence its name.
To order: they can only be charged by the person for whom the payment order was made, so this is specified in the document.
Not to order: it can only be charged by the person to whom the order was issued, in this way, it cannot be endorsed to other people or companies.
Crossed: they contain on the back two parallel and diagonal straight lines, this indicates that they can only be deposited in an account and not be collected in cash.
Certificates: these types of checks have been certified by the bank, guaranteeing that they contain funds and that these will be kept until the day the payment order is collected.
Traveler: these checks are those issued by a bank and your beneficiary can cash it at one of its branches, whether inside or outside the country.
Cash: are those that a credit institution issues and that can only be collected at its branches.
To credit account: they can only be deposited in an account, they cannot be collected in cash.
Cancellation: these payment orders are equivalent to payment in cash.