Cheques are important in our personal lives and business. However, if you take time to learn about cheques you will realize there are many different types of cheques. In order to be financially smart in today’s times it’s just not sufficient to learn about basic trivia like cvv full form. You can visit Khatabook to learn more about CVV and other card related details. Hence to take your education in finance and accounting one step further we have made a quick guide on different types of cheques so that the next time you come across a unique type cheque you would know its purpose:
Stale cheques are cheques that were issued and have already passed their validity date. They will be rejected by the bank when they are presented for payment. You can avoid this by looking at the “Valid Until” field on the cheque carefully before you write it, or by keeping a close eye on your bank statement and your cheque book so that you can find any written checks that have been completed but not yet paid.
Stale cheques are cheques that were issued and have already passed their validity date. They will be rejected by the bank when they are presented for payment. You can avoid this by looking at the “Valid Until” field on the cheque carefully before you write it, or by keeping a close eye on your bank statement and your cheque book so that you can find any written checks that have been completed but not yet paid. It is also known as “pay myself” or “cash my cheque”. To write a self-cheque, you need to know your bank account number, the name of your bank and your full name.
Blank cheques are used to pay bills or make other payments and have an amount written on them. Although a blank cheque is a legal document, once the money is withdrawn it becomes simply that: a piece of paper with nothing left behind but the signature. The only way you can recover the money withdrawn from the account is through a court process, which can be lengthy and costly.
Banker’s cheques are similar to blank cheques in that they are payment orders drawn from your bank account and signed by you, but they have security features to protect against fraud and forgery. A banker’s cheque has two parts: one part is retained by you and acts as a record of payment; the other part is sent through the bank’s clearing system to the recipient. The date of expiry is printed on the cheque so that it cannot be cashed after that date. In addition, the cheque must be cleared within a certain period; if not, it will bounce back. This means that even if someone steals your cheque, they still cannot cash it unless they have access to your bank account.
Another type is a traveller’s cheque. These look very similar to ordinary checks, but they are pre-printed and have security features to prevent them from being altered or counterfeited. They are also replaced much easier than regular checks, as they cannot be cancelled once they’re written.
A post-dated or pdc cheque is a type of cheque that bears a date later than the date on which it is written. This means that the cheque is payable after the date on which it was written. For example, if you write a cheque today and make it payable one week from now, it’s a post-dated cheque. What can you do with post-dated cheques? You can use them to arrange automatic payments to be made in the future. For example, if your electricity bill becomes due each month on the 15th, but you don’t receive your bank statement until after the 15th, you could arrange for automatic payment of your electricity bill by writing a post-dated cheque for the amount of your electricity bill and handing it over to your energy provider.