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a Check

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Check is a document signed by the owner of an account in a bank that enables the recipient to have a certain amount of money ( account debit ) on a bank account.

Its main purpose is to issue a payment without the need to transport cash, and giving the beneficiary more freedom to choose the time and place of cash payment.

Components of a check

Although there are many checks, most meet specific characteristics, such as carrying the name and contact of the drawer or person writing the check, carrying the name of the financial institution that issues it. For a check to be valid it must be signed by the drawer. Sometimes you can also write the name of the person who will collect it, according to this a check can be written in several ways:

- In the name of a specific person: In which case only the holder can collect it.
- To the bearer: Having this possibility any person who comes to the bank with the check.
- To order: The beneficiary can collect it or use it as a means of payment.

Types of check

In addition the checks according to the form of issuance can be of several types:

- Crossed: If the bank must charge the amount of another bank.
- To pay in account: It's impossible to collect cash.
- Formed: Where there is certainty that the issuer of the check has sufficient funds in his account.
- The traveler's check: It works as a payment document issued by entities and financial intermediaries, and allows payments in different currencies to be made in most countries of the world.
- Cashier's or bank check: It's issued by a credit institution to be cashed in its own branches.
- Deferred payment: Issued on a date but to be charged at a later date.

Checks are often used in a wide variety of situations, such as salary payments, purchases between individuals or donations to non-profit entities. Its existence is accompanied by other means of payment alternative to cash, such as credit and debit cards.

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