Why the check is important.

The importance of the check is that it facilitates business relationships by being a payment vehicle that offers security and confidence.

When doing a high-value business it is not practical or safe to have a large amount of cash, which is solved with a check, which represents the value that is consigned.

In addition, the check offers beneficial modalities such as the crossed, managerial and post-dated check, useful for certain circumstances.

Nowadays the use of the check has decreased due to virtual or electronic money transfers, which facilitate payments and, incidentally, business, and improve security, but the check continues to have some and importance especially for its quality of security. Now that you can also order checks online thus usage can be flexible.

Let us remember that the check, being a security, lends executive merit, which offers one more guarantee of compliance.

What is a cashier’s check?

The cashier’s check is a document (security) that a bank issues against the resources that an account holder has in the bank, such as a savings account or a checking account.

Why use cashier’s checks.

The manager’s check is a security that generates security and trust, since whoever receives it as payment has the assurance that it is a check that will be paid by the bank, since when issuing it, it has made the necessary provision of resources to guarantee its payment, and those who request it can do business with large amounts of money without risk, since they should not transfer cash, and it is a check that can be drawn to be cashed exclusively by a certain person, so that even if it is stolen, it will not it may be collected by a person other than the person who appears on the check as beneficiary.

What is a cross check?

The cross check is a special type of check that limits the bank you can cash in order to do so in order to make it more secure.

The crossing of a check can be special and general, it is special when the name of the bank is written on the crossed lines, and it is general when the name of the bank that should cash it does not appear on the lines, in this case the check may be cashed by any bank, while the special check can only be cashed by the bank noted between the lines.

Cross Check Implications.

The crossed check implies that it can only be cashed by a bank, in the bank that appears between the drawn lines.

In addition, the crossed check must generally be consigned or credited to an account, not cashed, and for more security, it can be written to the first payee.

Cross check negotiation.

The crossed check is negotiable, since the fact of crossing it does not prevent it from being endorsed or negotiated.

What the crossover limits is the bank authorized to collect it, not its negotiation.

Now, if in addition to the crossing, the drawer has limited his payment to the first beneficiary, then it cannot be endorsed, but that is not a characteristic of the crossed check.