All You Need To Know About Checks
A check is not a new term to most of the people out there. Unlike in the past, these negotiable instruments are usually in circulation more frequently. A check can be defined as a documentation that is usually presented to the lending institution by the person to whom it was issued for the amount specified. The documentation is usually legal. There are three main parties involved in this kind of transaction;
The drawer: This is the person issuing the check. He is the one who fills in the details and signs it.
The drawer: This is the financial or the lending institution from which the amount specified in the check is going to be withdrawn from.
The payee: This is the person to whom the check is issued. The payee is the one who cashes in the check.
Another very important term is the amount. This is the currency.
It was in the first century when checks were first used. The first people to use a check are believed to be the ancient Romans who referred to them as prescriptions. As time progressed by, more and more nations started to use the bills of exchange in their banking systems. The Indians also had a name for their checks and they referred to them as adesha. The checks were slowly becoming a favorite for the many across the world. In Venice, they did away with the need to lug huge amounts of silver and gold to any kind of trade especially for the international trades.
The drawer: This is the person issuing the check. He is the one who fills in the details and signs it.
The drawer: This is the financial or the lending institution from which the amount specified in the check is going to be withdrawn from.
The payee: This is the person to whom the check is issued. The payee is the one who cashes in the check.
Another very important term is the amount. This is the currency.
It was in the first century when checks were first used. The first people to use a check are believed to be the ancient Romans who referred to them as prescriptions. As time progressed by, more and more nations started to use the bills of exchange in their banking systems. The Indians also had a name for their checks and they referred to them as adesha. The checks were slowly becoming a favorite for the many across the world. In Venice, they did away with the need to lug huge amounts of silver and gold to any kind of trade especially for the international trades.
As the 17th century drew closer, yet another improvement to the outlook of the checks was discovered. Bills of exchange were now transformed from the written papers to the now pre- printed checks. In other parts of the world like in England, checks were already being used to make the different domestic payments. By the year 1811, the bank of Scotland became the first bank ever to print out personal checks for its clients. The personalized checks were custom designed just for the client and the clients name added at the bottom left corner of the check. By the year 1959, US created a machine that would help in the clearing of the checks. This machine- readable characters (MICR) machine electronically completed the transaction.
A check has different parts. If you are a regular for checks, you will understand what that means. If you are not here is something to help you understand. Statistics have proven that the number of people using checks has been seen to increase with each passing day. This has led to the need for security on the checks. For this reason, space was allocated for the drawer’s signature which served as an authorization for the check. Aside from that, the amount on the check would now have to be written both in words and in numbers to avoid the cases of someone changing the amount or any kind of confusion during the transactions.
Moreover, the check has a date of issue. It is tradition that a check will only be valid for six months and is thereafter regarded as stale and useless. This is however not common in all countries. Other checks are usually issued for the future and or the past dates. For the future dates, the check can only be cashed in when the date of issue is due while for.
Another most important part of a check is the check number. Check numbers are there to eradicate all the basic fraudulent cases since the check cannot be presented more than once. Sometimes, in some cases, the checks come with memo lines. To ensure that the check numbers are consistent, the check book is usually designed in such a way that it made of the check itself and a stub. When the check is plugged out, the stub remains attached to the check book as evidence of the existence of a certain check. Content that is machine readable are routed into the checks for quick and efficient processing.
A check has different parts. If you are a regular for checks, you will understand what that means. If you are not here is something to help you understand. Statistics have proven that the number of people using checks has been seen to increase with each passing day. This has led to the need for security on the checks. For this reason, space was allocated for the drawer’s signature which served as an authorization for the check. Aside from that, the amount on the check would now have to be written both in words and in numbers to avoid the cases of someone changing the amount or any kind of confusion during the transactions.
Moreover, the check has a date of issue. It is tradition that a check will only be valid for six months and is thereafter regarded as stale and useless. This is however not common in all countries. Other checks are usually issued for the future and or the past dates. For the future dates, the check can only be cashed in when the date of issue is due while for.
Another most important part of a check is the check number. Check numbers are there to eradicate all the basic fraudulent cases since the check cannot be presented more than once. Sometimes, in some cases, the checks come with memo lines. To ensure that the check numbers are consistent, the check book is usually designed in such a way that it made of the check itself and a stub. When the check is plugged out, the stub remains attached to the check book as evidence of the existence of a certain check. Content that is machine readable are routed into the checks for quick and efficient processing.
Using a check is very simple. As the drawer, all you need to do is carefully fill in the check with the accurate and correct information after which you sign and hand it over to the payee. For the payee, all you have to do is go to the drawer which is the lending institution and cash in the check. The drawer processes the check and hands over the cash to you. In some cases, a check may be declined for different reasons say, lack of sufficient funds. Such checks are marked by huge stamps and are referred to as cancelled checks. Others may delay and even bounce even after they have been deposited. In most cases, such delays which eventually lead to the check bouncing are due to fraudulent cases.
Check books are not hard to get. The different financial institutions will offer check books to their clients. Nevertheless, you can still be able to get your own custom designed check book from the many online stores. Different stores have their own unique style. Depending on your taste you will be able to get that one store that caters for your every need. Besides, the procedure is simple. All you need to do is to order checks online, specify your preference and leave and address and the checkbook will be delivered to you right at your door step.
What is more, the stores are open for twenty four hours a day meaning you can be able to order for your check book at any time of the day or the night. In addition it is a lot safer this way since there are no risks of theft cases.Also, the prices for the checkbooks are pocket friendly and affordable for everyone. With the quality of the work on your check book, you will not regret the money you spent on it. If you were thinking of getting your own personal check book, then it is best that you go buy them from the online stores.
Check books are not hard to get. The different financial institutions will offer check books to their clients. Nevertheless, you can still be able to get your own custom designed check book from the many online stores. Different stores have their own unique style. Depending on your taste you will be able to get that one store that caters for your every need. Besides, the procedure is simple. All you need to do is to order checks online, specify your preference and leave and address and the checkbook will be delivered to you right at your door step.
What is more, the stores are open for twenty four hours a day meaning you can be able to order for your check book at any time of the day or the night. In addition it is a lot safer this way since there are no risks of theft cases.Also, the prices for the checkbooks are pocket friendly and affordable for everyone. With the quality of the work on your check book, you will not regret the money you spent on it. If you were thinking of getting your own personal check book, then it is best that you go buy them from the online stores.