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Encyclopedia > Cheque
Example of a Canadian cheque.
Example of a Canadian cheque.
Example of a U.S. dollar cheque issued by a Canadian bank.
Example of a U.S. dollar cheque issued by a Canadian bank.
Example of a British cheque. The cheque is crossed, which means that it can only be paid into a bank account, not to cash. Cheques issued in other Commonwealth countries are similar.
Example of a British cheque. The cheque is crossed, which means that it can only be paid into a bank account, not to cash. Cheques issued in other Commonwealth countries are similar.
Example of a South Korean cheque, where the payee and signature are on the reverse side
Example of a South Korean cheque, where the payee and signature are on the reverse side

A cheque (also spelled check - see Etymology and spelling) is a negotiable instrument[1] instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in the maker/depositor's name with that institution. Both the maker and payee may be natural persons or legal entities. Image File history File links CanadianChequeSample. ... Image File history File links CanadianChequeSample. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Image File history File links BritishCheque. ... Image File history File links BritishCheque. ... The Commonwealth of Nations as of 2006 Headquarters Marlborough House, London, UK Official languages English Membership 53 sovereign states Leaders  -  Queen Elizabeth II  -  Secretary-General Don McKinnon (since 1 April 2000) Establishment  -  Balfour Declaration 18 November 1926   -  Statute of Westminster 11 December 1931   -  London Declaration 28 April 1949  Area  -  Total... Image File history File links Sample_South_Korean_cheque. ... Image File history File links Sample_South_Korean_cheque. ... For the history of Korea, see Korea. ... A negotiable instrument is a specialised type of contract for the payment of money which is unconditional and capable of transfer by negotiation. ... In financial economics, a financial institution acts as an agent that provides financial services for its clients. ... It has been suggested that this article or section be merged with Current account (banking). ... In jurisprudence, a natural person is a human being perceptible through the senses and subject to physical laws, as opposed to an artificial person, i. ... A juristic person is a legal fiction through which the law allows a group of natural persons to act as if it were a single composite individual for certain purposes. ...

Contents

Etymology and spelling

The English word cheque or check is one of many meanings that derive ultimately from the action of putting a king in check in the game of chess[2]; derived from the Persian Shah (king). When the king is in check, his choices are limited. The term was originally used in its financial sense in the late 1600s in reference to the counterfoil of a draft that was used to "check" (prevent, forestall) forgery and alterations. The word has been used in its modern sense since the late 1700s. The Arabic term sakk has been used to refer to promissory notes in the Middle East since the 4th century. In games such as chess, shogi and xiangqi, a check is an immediate threat to capture the king. ... “Farsi” redirects here. ...


The most common spellings of the word (in all its senses) were check, checque, and cheque from the 1600s through the 1900s.[3] Since the 1800s, the spelling cheque has become standard for the financial sense of the word in British English (across the Commonwealth countries), while only check is retained in its other senses, thus distinguishing the two senses in writing.[4] On the other hand, check, remains in use for the financial sense in American English. British English (BrE, BE, en-GB) is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere in the Anglophone world. ... For other uses, see American English (disambiguation). ...


History

The ancient Romans are believed[5] to have used an early form of cheque known as praescriptiones in the first century BC. During the 3rd century AD, banks in Persia and other territories in the Persian Empire under the Sassanid Empire also issued letters of credit known as Sakks. // Overview Events 212: Constitutio Antoniniana grants citizenship to all free Roman men 212-216: Baths of Caracalla 230-232: Sassanid dynasty of Persia launches a war to reconquer lost lands in the Roman east 235-284: Crisis of the Third Century shakes Roman Empire 250-538: Kofun era, the first... Motto Esteqlāl, āzādÄ«, jomhÅ«rÄ«-ye eslāmÄ« 1(Persian) Independence, freedom, Islamic Republic (introduced 1979) Anthem SorÅ«d-e MellÄ«-e Īrān Â² Capital (and largest city) Tehran Official languages Persian Demonym Iranian Government Islamic Republic  -  Supreme Leader  -  President Unification  -  Unified by Cyrus the Great 559 BCE... The Persian Empire was a series of historical empires that ruled over the Iranian plateau, the old Persian homeland, and beyond in Western Asia, Central Asia and the Caucasus. ... After Islamic Conquest  Modern SSR = Soviet Socialist Republic Afghanistan  Azerbaijan  Bahrain  Iran  Iraq  Tajikistan  Uzbekistan  This box:      The Sassanid Empire or Sassanian Dynasty (Persian: []) is the name used for the fourth Iranian dynasty, and the second Persian Empire (226–651). ... After a contract is concluded between buyer and seller, buyers bank supplies a letter of credit to seller. ...


Between 1118 and 1307, it is believed that the Knights Templar introduced a cheque system for pilgrims travelling to the Holy Land or across Europe.[6] The pilgrims would deposit funds at one chapter house, then withdraw it from another chapter at their destination by showing a draft of their claim. These drafts would written in a very complicated code that only the Templars could decipher. Events Knights Templar founded Baldwin of Le Bourg succeeds his cousin Baldwin I as king of Jerusalem John II Comnenus succeeds Alexius I as Byzantine emperor Gelasius II succeeds Paschal II as pope Births November 28 - Manuel I Comnenus, Byzantine Emperor (died 1180) Andronicus I Comnenus, Byzantine Emperor (died 1185... January 18 - German king Albrecht I makes his son Rudolf king of Bohemia. ... The Poor Fellow-Soldiers of Christ and of the Temple of Solomon (Latin: Pauperes commilitones Christi Templique Solomonici), popularly known as the Knights Templar or the Order of the Temple, were among the most famous of the Christian military orders. ... It has been suggested that this article or section be merged with Holy Land (Biblical). ...


The cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, to pay money to identified payees. Such an order was referred to as a bill of exchange. The use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency (e.g. gold) to purchase goods and services. A draft is a bill of exchange which is not payable on demand of the payee. (However, draft in the U.S. Uniform Commercial Code today means any bill of exchange, whether payable on demand or at a later date; if payable on demand it is a "demand draft", or if drawn on a financial institution, a cheque.) The Uniform Commercial Code (UCC or the Code) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in 49 states (all except Louisiana) within the United States of America. ... A demand draft, also known as a remotely created check or a tele-check, is a check created by a seller with a buyers checking account number on it, but without the buyers signature. ...


Indeed, fragments found in the Cairo Geniza indicate that in the 12th century cheques remarkably similar to our own were in use, only smaller to save costs on the paper. They contain a sum to be paid and then the order "May so and so pay the bearer such and such an amount". The date and name of the issuer are also apparent. The Cairo Geniza is an accumulation of Jewish manuscripts written from about 870 to as late as 1880 CE, that were found in the geniza of the synagogue of Fustat (Old Cairo), Egypt (built 882), the Busatin cemetery east of Old Cairo, and a number of old documents that were...


In the 9th century, a Muslim businessman could cash an early form of the cheque in China drawn on sources in Baghdad,[7] a tradition that was significantly strengthened in the 13th and 14th centuries, during the Mongol Empire. Baghdad (Arabic: ) is the capital of Iraq and of Baghdad Governorate. ... Expansion of the Mongol Empire Historical map of the Mongol Empire The Mongol Empire (Mongolian: , Mongolyn Ezent Güren; 1206–1405) was the largest contiguous empire in history, covering over 33 million km²[1] (12 million square miles) at its zenith, with an estimated population of over 100 million people. ...


Parts of a cheque

Numismatics
Terminology
Currency
Coins, Banknotes,
Forgery

Circulating currencies
Community currencies Image File history File linksMetadata Size of this preview: 800 × 600 pixelsFull resolution (2816 × 2112 pixel, file size: 2. ... Numismatics is the scientific study of currency and its history in all its varied forms. ... This article is an attempt to combine and condense Numismatic and coin collecting terms into concise, informative explainations for the beginner or professional. ... This article is about monetary coins. ... A £20 Bank of England banknote. ... This list of circulating currencies contains the 194 current official or de facto currencies of the 192 United Nations member states, one UN observer state, three partially recognized sovereign states, six unrecognized countries, and 33 dependencies. ... In economics, a local currency, in its common usage, is a currency not backed by a national government (and not legal tender), and intended to trade only in a small area. ...

Company scrip, LETS,
Time dollars

Fictional currencies Company scrip is currency issued in certain industries to pay workers. ... This article or section does not cite its references or sources. ... The Ithaca Hour is an example of time-based currency. ... Fictional currency is currency in works of fiction. ...

Ancient currencies
Greek, Roman,
Byzantine

Medieval currencies
Modern currencies

Africa, The Americas,
Europe, Asia, Oceania
Production
Mint, Designers
Exonumia

Notaphily A mint is a facility which manufactures coins for currency. ... Coining is a form of precision stamping. ... The term milled coinage is used to describe coins which are produced by some form of machine, rather than by manually hammering coin blanks between two dies (hammered coinage) or casting coins from dies. ... Hammered coinage describes the commonest form of coins produced since the invention of coins in the first millennium BC until the early modern period of ca. ... Exonumia is the study of coin-like objects such as token coins and medals, and other items used in place of legal currency or for commemoration. ... Look up credit card in Wiktionary, the free dictionary. ... A medal is a small metal object, usually engraved with insignia, that is awarded to a person for athletic, military, scientific, academic or some other kind of achievement. ... A rare and historic Bechuanaland Border Police canteen token. ... Notaphily is the study of paper money or banknotes. ...

Scripophily A £20 Bank of England banknote. ... Scripophily is the study and collection of stocks and Bonds. ...

Cheques generally contain: This article does not cite any references or sources. ... For alternative meanings, see bond (a disambiguation page). ...

  1. place of issue
  2. cheque number
  3. date of issue
  4. payee
  5. amount of currency
  6. signature of the drawer
  7. routing / account number in MICR format - in the U.S., the routing number is a nine-digit number in which the first 4 digits identifies the U.S. Federal Reserve Bank's cheque-processing center. This is followed by digits 5 through 8, identifying the specific bank served by that cheque-processing center. Digit 9 is a verification digit, computed using a complex algorithm of the previous 8 digits. The account number is assigned independently by the various banks.[8]
  8. fractional routing number (U.S. only) - also known as the transit number, consists of a denominator mirroring the first 4 digits of the routing number. And a hyphenated numerator, also known as the ABA number, in which the first part is a city code (1-49), if the account is in one of 49 specific cities, or a state code (50-99) if it is not in one of those specific cities; the second part of the hyphenated numerator mirrors the 5th through 8th digits of the routing number with leading zeros removed.[9]

A cheque is generally valid indefinitely or for six months after the date of issue unless otherwise indicated; this varies depending on where the cheque is drawn[citation needed]. In Australia, for example, it is fifteen months [10]. Legal amount (amount in words) is also highly recommended but not strictly required. Magnetic Ink Character Recognition, or MICR, is a special kind of optical character recognition technology that was adopted mainly by the U.S. banking industry to facilitate the processing of checks. ...


In the USA and some other countries, cheques contain a memo line where the purpose of the cheque can be indicated as a convenience without affecting the official parts of the cheque. This is not used in Britain.


Types of cheques in the United States

In the United States, cheques are governed by Article 3 of the Uniform Commercial Code. The Uniform Commercial Code (UCC or the Code) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in 49 states (all except Louisiana) within the United States of America. ...

  • An order check – the most common form in the United States – is payable only to the named payee or his or her endorsee, as it usually contains the language "Pay to the order of (name)."
  • A bearer check is payable to anyone who is in possession of the document: this would be the case if the cheque does not state a payee, or is payable to "bearer" or to "cash" or "to the order of cash", or if the cheque is payable to someone who is not a person or legal entity, e.g. if the payee line is marked "Happy Birthday".
  • A counter check is a bank cheque given to customers who have run out of cheques or whose cheques are not yet available. It is often left blank, and is used for purposes of withdrawal.

In the United States, the terminology for a cheque historically varied with the type of financial institution on which it is drawn. In the case of a savings and loan association it was a negotiable order of withdrawal; if a credit union it was a share draft. Check as such were associated with chartered commercial banks. However, common usage has increasingly conformed to more recent versions of Article 3, where check means any or all of these negotiable instruments. Look up Possession in Wiktionary, the free dictionary. ... A savings and loan association is a financial institution which specializes in accepting savings deposits and making mortgage loans. ... A credit union is a cooperative financial institution that is owned and controlled by its members. ... For other uses, see Bank (disambiguation). ...


Usage

Parties to regular cheques generally include a maker or drawer, the depositor writing a cheque; a drawee, the financial institution where the cheque can be presented for payment; and a payee, the entity to whom the maker issues the cheque. The drawer drafts or draws a cheque, which is also called cutting a cheque, especially in the United States.


Ultimately, there is also at least one endorsee which would typically be the financial institution servicing the payee's account, or in some circumstances may be a third party to whom the payee owes or wishes to give money. In a two-party system a third party is a party other than the two dominant ones. ...


A payee that accepts a cheque will typically deposit it in an account at the payee's bank, and have the bank process the cheque. In some cases, the payee will take the cheque to a branch of the drawee bank, and cash the cheque there. If a cheque is refused at the drawee bank (or the drawee bank returns the cheque to the bank that it was deposited at) because there are insufficient funds for the cheque to clear, it is said that the cheque has bounced. Once a cheque is approved and all appropriate accounts involved have been credited, the cheque is stamped with some kind of cancellation mark, such as a "paid" stamp. The cheque is now a cancelled cheque. Cancelled cheques are placed in the account holder's file. The account holder can request a copy of a cancelled cheque as proof of a payment. This article does not cite any references or sources. ... The term non-sufficient funds (NSF) is used in the banking industry to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the account on which the instrument was drawn. ...


This is known as the cheque clearing cycle. Cheques are losing favour, as they can be lost or go astray within the cycle, or be delayed if further verification is needed in the case of suspected fraud. A cheque may thus bounce some time after it has been deposited. Following a report by a working group of the Office of Fair Trading in 2006 [11] maximum times for the cheque clearing cycle for most banks will be introduced from November 2007.[12] The date the credit appears on the recipient's account (usually the day of deposit) will be designated 'T'. At 'T + 2' (2 business days afterwards) the value will count for calculation of credit interest or overdraft interest on the recipient's account. At 'T + 4' one will be able to withdraw funds (though this will often happen earlier, at the bank's discretion). 'T + 6' is the last day that a cheque can bounce without the recipient's permission - this is known as 'certainty of fate'. Before the introduction of this standard, the only way to know the 'fate' of a cheque has been 'Special Presentation', which would probably involve a fee, where the drawee bank contacts the payee bank to see if the payee has that money at that time. 'Special Presentation' needs to be stated at the time of depositing in the cheque.


When a maker directs the maker's bank to deduct the funds for the amount of a cheque from the maker's account, thus guaranteeing funds will be available for the cheque to clear, and the bank indicates this fact by making a notation on the face of the cheque (technically called an acceptance), the instrument is then referred to as a certified cheque. This page is a candidate for speedy deletion, because: it contains no useful content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ...


In Europe, in the few countries where cheques are still being used, and in the past also in other European countries, (but this has stopped some 20 years ago), a drawer could present a cheque guarantee card with the cheque when paying a retailer. If the retailer wrote the card number on the back of the cheque, the cheque was signed in the retailer's presence, and the retailer verifies the signature on the cheque against the signature on the card, then the cheque cannot be cancelled and payment cannot be refused. Those guarantee cards are out of use in Central Europe for about 15 years. A cheque guarantee card is essentially an abbreviated letter of credit granted by a bank to a qualified depositor, providing that when he is paying a business by cheque and the retailer writes the card number on the back of the cheque, the cheque was signed in the retailers...


A cheque used to pay wages due is referred to as a payroll cheque. Payroll cheques issued by the military to soldiers, or by some other government entities to their employees, beneficiants, and creditors, are referred to as warrants. Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ... For other uses of the term Warrant, see Warrant (disambiguation) A warrant is a security that entitles the holder to buy or sell a certain additional quantity of an underlying security. ...


A traveller's cheque is designed to allow the person signing it to make an unconditional payment to someone else as a result of paying the account holder for that privilege. Traveller's cheques can usually be replaced if lost or stolen, they are often used by people on vacation instead of cash. The use of credit or debit cards has, however, begun to replace the traveller's cheque as the standard for vacation money, with an increase in usage by spenders due to ease of use, and an increase of businesses preferring transfers of this kind over traveller's cheques. This has resulted in some businesses to no longer accepting traveller's cheques as currency. A travelers cheque is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer (usually a bank) for that privilege. ... Look up credit card in Wiktionary, the free dictionary. ... Look up debit card in Wiktionary, the free dictionary. ...


A cheque sold by a post office or merchant such as a grocery for payment by a third party for a customer is referred to as a money order or postal order. Small-town post office and town hall in Lockhart, Alabama A post office is a facility (in most countries, a government one) where the public can purchase postage stamps for mailing correspondence or merchandise, and also drop off or pick up packages or other special-delivery items. ... A money order is a payment order for a pre-specified amount of money. ... A postal order is used for sending money through the postal system. ...


A cheque issued by a bank on its own account for a customer for payment to a third party is called a cashier's cheque, a treasurer's cheque, a bank cheque, or a bank draft. A cheque issued by a bank but drawn on an account with another bank is a teller's cheque.


In addition to issuing cashier's and teller's cheques, banks often sell money orders, and traveller's cheques are usually purchased from banks.


Some public assistance programs such as the Special Supplemental Nutrition Program for Women, Infants and Children, or Aid to Families with Dependent Children make vouchers available to their beneficiaries, which are good up to a certain monetary amount for purchase of grocery items deemed eligible under the particular programme. The voucher can be deposited like any other cheque by a participating supermarket or other approved business. Welfare is financial assistance paid by taxpayers to groups of people who are unable to support themselves, and determined to be able to function more effectively with financial assistance. ... The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is a program of the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA) for healthcare and nutrition of low-income mothers and children under the age of five. ... Aid to Families with Dependent Children (AFDC) was the name of a federal assistance program in effect from August 14, 1935 to June 30, 1997, which was administered by the United States Department of Health and Human Services. ... Supermarket produce section A supermarket is a store that sells a wide variety of goods including food and alcohol, medicine, clothes, and other household products that are consumed regularly. ... Exterior of a typical British supermarket (a Tesco Extra) Exterior of typical North American supermarket (a Safeway) This Flagship Randalls store in Houston, Texas is an example of an upscale supermarket. ...


Paper cheques have a major advantage to the maker over debit card transactions in that the maker's bank will release the money several days later. Paying with a cheque and making a deposit before it clears the maker's bank is called "kiting" or "floating" and is generally illegal in the United States, but rarely enforced unless the maker uses multiple chequing accounts with multiple institutions to increase the delay or to steal the funds. Look up debit card in Wiktionary, the free dictionary. ... Check kiting is any sort of fraud that involves drawing out money from one bank account that does not have sufficient funds to cover the check. ...


The future of cheques

Cheques have been in decline for many years, both for point of sale transactions (for which credit cards and debit cards are increasingly preferred) and for third party payments (e.g. bill payments), where the decline has been accelerated by the emergence of telephone banking and online banking. Being paper-based, cheques are costly for banks to process in comparison to electronic payments, so banks in many countries now discourage the use of cheques, either by charging for cheques or by making the alternatives more attractive to customers. The rise of automated teller machines (ATMs) has also led to an era of easy access to cash, which made the necessity of writing a cheque to someone because the banks were closed a thing of the past. The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ... Look up credit card in Wiktionary, the free dictionary. ... Look up debit card in Wiktionary, the free dictionary. ... Online banking (or Internet banking) is a term used for performing transactions, payments etc. ... “Cash machine” redirects here. ...


In most European countries, cheques are now very rarely used, even for third party payments. In these countries, it is standard practice for businesses to publish their bank details on invoices in order to facilitate the receipt of payments. Even before the introduction of online banking, it has been possible in some countries to make payments to third parties using ATMs. One of the essential procedural differences is that with a cheque, the onus is on the payee to initiate the payment in the banking system, whereas with a bank transfer, the onus is on the payer to effect the payment. For other uses, see Europe (disambiguation). ... “Cash machine” redirects here. ...


In Germany and Austria, as well as in the Netherlands and Belgium, cheques have almost completely vanished in favour of direct bank transfer and electronic payment. Direct bank transfer using so-called Giro accounts (current accounts) has been standard procedure since the 1950s to send and receive regular payments like rent and wages, even mail-order invoices. In the Netherlands, all kinds of invoices are commonly accompanied by so-called acceptgiros, which are essentially standardised bank transfer orders preprinted with the payee's account details. Also, it is very common to allow the payee to automatically withdraw the requested amount from the payer's account (Lastschrifteinzug). Though similar to paying by cheque, the payee only needs the payer's bank and account number. Since the early 1990s this method of payment has also been available to merchants. Due to this, credit cards are rather uncommon in Germany and Austria and are mostly used for the credit function rather than for cashless payment. Acceptance of cheques has been further diminished since the late 1990s, because of the abolishment of the Eurocheque. Cashing a foreign bank cheque is possible, but usually very expensive. what is it thomas? A giro, also called a direct deposit, is a banking term for a method of payment. ... Direct debit is a payment method that allows an organisation to instruct their bank to collect varying amounts directly from customers accounts. ... The Eurocheque was a type of cheque used in Europe until the 1990s. ...


In Finland, banks stopped issuing personal cheques in about 1993. All Nordic countries have used an interconnected international Giro system since the 1950s, and in Sweden cheques are now totally abandoned. Also electronic payments across the European Union are now fast and low-cost, and in effect much more efficient than payments within the United States.[citation needed] Political map of the Nordic countries and associated territories. ...


In Australia and New Zealand, use of cheques has plummeted since the introduction of EFTPOS in the 1980s and the widespread availability of ATMs, as well as internet and phone banking services that allow quick and easy money transfer. Many Australasian banks no longer offer free cheque facilities except for business customers [citation needed]. Bank Cheques though, are still used as a reliable and safe form of monetary transfer for large sums of money or transactions involving legal transfer of goods such as real estate or vehicles. Many businesses may refuse to accept personal cheques, and those that do take them generally use sophisticated electronic authentication systems. In any case, the significant majority of people will use cash or EFTPOS for POS financial transactions. EFTPOS (Electronic Funds Transfer at Point of Sale) is a device by which sales transactions can be directly debited to the customers bank account at the point of sale, through the use of a debit card (sometimes the same card used with Automatic Teller Machines). ... Australasia is the area that includes Australia, New Zealand, New Guinea, and the many smaller islands in the vicinity, most of which are the eastern part of Indonesia. ... In economics, a business is a legally-recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers, usually in an effort to generate profit. ... A cashiers check (also known as a bank check, official check, tellers check, or treasurers check) is a check issued by a bank on its own account for the amount paid to the bank by the purchaser with a named payee, and stating the name of the... This article is about law in society. ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ...


In the United Kingdom, Ireland and France, there is still a heavy reliance on cheques by some sectors of the population, partly because cheques remain free of charge to personal customers, but bank-to-bank transfers are increasing in popularity. Since 2001, businesses in the United Kingdom have made more electronic payments than cheque payments [3]. In a bid to discourage cheques, most utilities in the United Kingdom charge higher prices to customers who choose to pay by a means other than direct debit, even if the customer pays by another electronic method. Direct debit is a payment method that allows an organisation to instruct their bank to collect varying amounts directly from customers accounts. ...


Many shops in France no longer accept cheques as a means of payment, and Shell announced in September 2005 that it would no longer accept cheques in its UK petrol stations [13]. More recently this has been followed by other major fuel retailers such as Texaco, BP, and Total. ASDA announced in April 2006 that it would stop accepting cheques, initially as a trial in the London area [14], and Boots announced in September 2006 that it would stop accepting cheques, initially as a trial in Sussex and Surrey [15]. The department store Debenhams, Currys (and other stores in the DSGI group) and WH Smith also no longer accept cheques. Cheques are now widely predicted to become a thing of the past in the United Kingdom, or at most a niche product used to pay friends, relatives, private individuals or the few businesses that don't or can't easily accept electronic payment (e.g. very small shops, child's football lessons, piano teacher, driving instructor, etc.). [16]. Royal Dutch Shell plc is a multinational oil company of British and Dutch origins. ... Texaco is the name of an American oil company that was merged into Chevron Corporation in 2001. ... This article is about the corporation named BP. For other uses, see BP (disambiguation). ... Look up Total on Wiktionary, the free dictionary A total is a sum. ... ASDA is a chain of supermarkets in the United Kingdom offering food, clothing and general merchandise products. ... This article is about a former British company which has now merged to form Alliance Boots, as a result, information on this page may be out of date. ... Sussex is a historic county in South East England corresponding roughly in area to the ancient Kingdom of Sussex. ... This article is about the English county. ... Debenhams plc (LSE: DEB) is a retailer with a chain of department stores based in the United Kingdom. ... Currys is an electrical retailer in the UK and Republic of Ireland, and is owned by DSG International plc. ... This article is about the bookshop chain; for the businessman and politician of that name, see William Henry Smith. ...


The United States still relies heavily on cheques, caused by the absence of a high volume system for low value electronic payments. When sending a payment by online banking in the United States at some banks, the sending bank mails a cheque to the payee's bank rather than sending the funds electronically. Many larger banks, such as Citibank, and Bank of America offer an electronic payment to many large payees. Certain companies with whom a person pays with a cheque will turn that cheque into an ACH or electronic transaction. Banks try to save time processing cheques by sending them electronically between banks. Many utilities and most credit cards will also allow customers to pay by providing bank information and having the payee draw payment from the customer's account (direct debit). Automated Clearing House (ACH) is the name of an electronic network for financial transactions in the United States. ... Direct debit is a payment method that allows an organisation to instruct their bank to collect varying amounts directly from customers accounts. ...


Canada's usage of cheques is slightly less than that of the United States. The Interac system, which allows instant fund transfers via magnetic strip and PIN, is widely used by merchants to the point that very few brick and mortar merchants accept cheques anymore. The system appears to have far lower fees than credit cards for merchants and therefore many merchants accept Interac debit payments but not credit card payments, even though most Interac terminals can support credit card payments. Banks also facilitate transfers between accounts within their own institutions, or for a ~$1.50 fee between any two bank customers via the Interac system, however, neither feature has really caught on. Cheques are still widely used for government cheques, payroll, rent and utility bill payments, though direct account deposits and online/telephone bill payments are catching on. Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ... CR80 ISO standard card, 2-3 stripes. ... Look up pin in Wiktionary, the free dictionary. ...


Alternatives to cheques

  1. Wire/bank transfer (local and international)
  2. EU payment
  3. Direct debit (initiated by payee)
  4. Direct credit (initiated by payer), ACH in the USA
  5. Online card payment
  6. Third party online payment services (for example PayPal)
  7. Postal payments (different names in different countries)
  8. Cash (at the counter)
  9. POS payments (at the counter)

Fraud (identity theft) via cheques

Since cheques include significant personal information (name, account number, signature and in some countries the address of the account holder), they can be used for fraud, specifically identity theft. Identity theft is a term first appearing in U.S. literature in the 1990s, leading to the drafting of the Identity Theft and Assumption Deterrence Act. ...


Oversized cheques

Oversized cheques are often used in public events such as donating money to charity or giving out prizes such as Publisher's Clearing House. The cheques are commonly 18" x 36" in size,[17], however, according to the Guinness Book of World Records, the largest ever is 12 m by 25 m.[18] Regardless of the size, such cheques can still be redeemed for their cash value as long as they have the same parts as a normal cheque, although usually the oversized cheque is kept as a souvenir and a normal cheque is provided.[19] Publishers Clearing House (or PCH) is a multi-channel direct marketing company, that offers discounted magazine subscriptions and household merchandise to consumers with the chance to enter to win one of many ongoing sweepstakes. ... The Guinness Book of Records (or in recent editions Guinness World Records, and in previous US editions Guinness Book of World Records) is a book published annually, containing an internationally recognized collection of superlatives: both in terms of human achievement and the extrema of the natural world. ...


Bounced cheque

A bounced cheque is a cheque that is returned to the depositing bank because the owner of the account in the issuing bank has insufficient funds to cover its value. In the United States, usually the cheque writer's bank and the other bank charge the cheque writer a penalty for the transaction, and in some instances the writer can be charged with a criminal action. The term non sufficient funds (NSF) is used in the banking industry to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the account on which the instrument was drawn. ...


Cashier's cheque

A cashier's cheque is a cheque issued by a bank cashier or head teller or by a well known company. Payees may require cashier's cheques and reject personal cheques so that they can be certain that sufficient funds will continue to be available for payment to the payee. A cashiers check (also known as a bank check, official check, tellers check, or treasurers check) is a check issued by a bank on its own account for the amount paid to the bank by the purchaser with a named payee, and stating the name of the...


Certified cheque

A certified cheque is a personal or company cheque that is certified as a valid cheque by the bank on which it is drawn. It can be a personal cheque, in which case the bank transfers the payable amount from the payer's account to a separate account so that there is certainty of sufficient funds. A hole is punched through the MICR numbers so the certified cheque will not process as an ordinary cheque when it is received for payment by the bank on which it is drawn. Bank officials must sign the face of the cheque. Although the face of the cheque is crowded, the back of the cheque is blank and the cheque can be deposited and routed through the banking system like an ordinary cheque. This page is a candidate for speedy deletion, because: it contains no useful content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ...


Warrants

Warrants look like cheques and clear through the banking system like cheques, but are not drawn against cleared funds in a deposit account. Instead they are drawn against "available funds" so that the issuer can collect interest on the float. In the US, warrants are issued by government entities such as the military and state and county governments. Warrants are issued for payroll to individuals and for accounts payable to vendors. A cheque differs from a warrant in that the warrant is not necessarily payable on demand and may not be negotiable.[20] Deposited warrants are routed to a collecting bank which processes them as collection items like maturing treasury bills and presents the warrants to the government entity's Treasury Department for payment each business day. This article does not cite any references or sources. ...


See also

A blank check (carte blanche) is a check that has no numerical value written in, but is still signed. ... A cashiers check (also known as a bank check, official check, tellers check, or treasurers check) is a check issued by a bank on its own account for the amount paid to the bank by the purchaser with a named payee, and stating the name of the... This page is a candidate for speedy deletion, because: it contains no useful content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ... The Check Clearing for the 21st Century Act (or Check 21 Act) is a United States federal law (public Law 108-100) enacted into law October 28, 2003 by the 108th Congress. ... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... An e-Check is an electronic transfer of funds in which the money is taken from a bank account, typically a checking account. ... Labour vouchers (also known as labour cheques, labour certificates, and labour-time vouchers) are a device proposed to govern demand for goods in socialism, much as money does under capitalism. ... Patrick Combs is a United States writer and professional speaker. ... Magnetic Ink Character Recognition, or MICR, is a special kind of optical character recognition technology that was adopted mainly by the U.S. banking industry to facilitate the processing of checks. ... The Negotiable cow is the common name of a fictitous legal case known as Inland Revenue v Haddock (heard jointly with R v Haddock) written by the humourist A. P. Herbert for Punch magazine as part of his series of Misleading Cases in the Common Law. ... A substitute check, according to the US Federal Reserve, is a special paper copy of the front and back of an original check. Not all copies of the original check are substitute checks, and copies of multiple checks on one page (image statements) are not substitute checks either. ... The examples and perspective in this article or section may not represent a worldwide view. ...

External links

  • Bank and account identifiers on U.S. cheques: ABA / Routing / Transit
  • Cheques found in the Cairo Geniza from the 12th century
  • Information on cheques in the UK from APACS
  • FTC.gov's suggestion to "shred your...checks"

The Association for Payment Clearing Services (APACS) is the UK trade association for payment systems provided by financial institutions. ...

Footnotes

  1. ^ Although cheques are regulated in most countries as negotiable instruments, in many countries they are not actually negotiable, viz., the payee cannot endorse the cheque in favour of a third party. Payers could usually designate a cheque as being payable to a named payee only by "crossing" the cheque, thereby designating it as account payee only, but in an effort to combat financial crime, many countries have provided by a combination of law and regulation that all cheques should be treated as crossed, or account payee only, and are not negotiable.
  2. ^ Check and Cheque, check, Oxford English Dictionary Online, 2007
  3. ^ Oxford English Dictionary Online, 2007. According to Holden, the spelling check survived in some English text-books into the 1920s (M J Holden, History of Negotiable Instruments in English Law, 1955, University of London Press, London).
  4. ^ James William Gilbart in 1828 (A practical treatise on banking, 2nd ed, 1828, Effingham Wilson, London) explains in a footnote 'Most writers spell it check. I have adopted the above form because it is free from ambiguity and is analogous to the ex-chequer, the royal treasury. It is also used by the Bank of England "Cheque Office"'.
  5. ^ Caesar And Christ, Will Durrent, Simon and Schuster, 1944
  6. ^ The Holy Blood and the Holy Grail, Michael Baigent, Richard Leigh & Henry Lincoln, 1982 & 1996
  7. ^ Paul Vallely, [1] How Islamic Inventors Changed the World], The Independent, 11 March 2006.
  8. ^ http://supersat-tech.livejournal.com/3727.html
  9. ^ http://supersat-tech.livejournal.com/3727.html
  10. ^ Legal Issues Guide for Small Business - cheques.
  11. ^ http://www.oft.gov.uk/shared_oft/reports/financial_products/oft868.pdf
  12. ^ See Royal Bank of Scotland: Cheque Clearing Changes [2] (information in Wikipedia article actually taken from RBS leaflet Important Information: Personal Current and Savings Accounts Sept 2007)
  13. ^ http://news.bbc.co.uk/1/hi/programmes/moneybox/4233002.stm
  14. ^ http://business.guardian.co.uk/story/0,,1745853,00.html
  15. ^ http://news.bbc.co.uk/1/hi/england/southern_counties/5339522.stm
  16. ^ http://news.bbc.co.uk/1/hi/magazine/3242776.stm
  17. ^ Megaprint Inc. - oversized cheque printing services
  18. ^ Guinness Book of World Records - GWR Day - Kuwait - A Really Big Cheque
  19. ^ Bankrate.com - Paper or seersucker? It can still be a valid check
  20. ^ Glossary of Accounting Terms

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