Cheques

Credit cheques allow the customers to cash cheques directly to their account. The cheque has originated in the ancient banking system where the bankers used to order at their customers request to pay money to identified individual.

Parts Of A Cheque

The cheques have following parts:

1. Place of issue
2. Cheque number
3. Date of issue
4. Payee
5. Amount f currency
6. Signature of the payer
7. Account/routing number independently assigned by various banks.

Unless otherwise indicated a cheque is valid for six months. In some countries, cheques have a memo line used to write the purpose of cheque without affecting its official parts. This is not used in many countries where such notes are written on the reverse side. Usually banks get their cheques printed from specialized companies so as to ensure against cheque fraud.

Steps For Writing A Cheque

When writing a cheque these steps should be followed:

1. Do not forget to fill the date column.
2. Then fill in the amount in words and figures
3. And put your signature at the bottom of the cheque
4. If you want anybody to get the cheque encashed write cash in front of the pay line, it is called an open cheque.
5. But if you want money to be credited directly to somebody’s account than you have to write his name in front of pay line and you have to draw two parallel slanting lines at the top left corner of you cheque. This is called a cross cheque.

Cheque book is a series of cheques of containing consecutive serial numbers enabling the account holder to withdraw money from his account. When you open an account with a bank and you are over a certain age you are provided with a cheque book. Cheques allow you to make a payment without handing over the cash. You must have enough amounts in your account to cover the value you are writing in order to write a cheque. It is illegal to write a cheque of amount that is not available in your account. When a cheque is presented in a bank it means that you have given your written consent to the bank to withdraw written amount from your account and either paid desired amount to the payee or credit amount to payee’s account. Always write a cheque with a pen to prevent alterations to the cheque. When you have made a mistake while writing a cheque, you can either throw it away and write a new cheque or correct it and put your initials alongside. Banks may be ordered to stop payments of certain people; it charges an amount for stopping this payment. Blank cheque is a cheque in which none of the columns are filled.

Types Of Cheques

Cheques are of following types:

1. Order cheque
2. Bearer cheque:
3. Counter cheque:

As many credit card companies face cut throat competition so credit card cheques are very popular these days. Even if the customer as not ordered credit card cheque they are sent to them with a monthly statement. Current cheques are of a standard size, top tear, and offered in single or duplicate style. Personal bank cheques could be bought online. You can order you cheques in mail if you have run out of cheques. It is safe as well as economical to order your cheques in mail.