Types of checks and guidelines for their use

According to my country’s “Bills Law” and relevant legal provisions, checks can be divided according to different classification standards, including by payment method and usage scenario. The following is a detailed introduction to the main types of checks and how to use them.

Basic types of checks

1. Ordinary check

An uncrossed check refers to a check that does not indicate “cash” or “transfer” and allows the holder to withdraw cash or make bank transfers. In our country, ordinary checks do not have special guarantees for payment, so there are certain risks.

2. Crossed check

A crossed check, also known as a parallel line check, is when the drawer, endorser or holder draws two parallel lines on the front of the check, or records the name of a bank. Crossed checks can only be used for bank transfers and cannot be withdrawn in cash to prevent theft or counterfeiting. This kind of check usually has two parallel lines drawn in the upper left corner. It is up to the drawer or payee to decide whether to draw the lines.

3. Certified Check

Certified/accepted check means that the drawee or payee requires the payee to record the words “accepted” or “accepted” on the check and sign it, so as to ensure that payment will be made when the check is presented. . After the payer guarantees payment, the reliability of the check is improved, which is more conducive to its circulation. The legal liability of this type of check differs in different countries. For example, in the United States and Taiwan, the drawer and endorser of a certified check are exempt from liability, but the law in Japan is different.

Regulations on the use of checks

According to the Negotiable Instruments Law, checks can be divided into cash checks and transfer checks. Cashier’s checks are used for direct cash withdrawals, while transfer checks are used for bank transfers. In some countries, the holder or payee can usually choose to withdraw cash or transfer money through a bank. If the check is crossed, it can only be transferred via bank transfer and cannot be withdrawn directly in cash.

In addition, the timing regulations for checks are also relatively strict. According to the Negotiable Instruments Law, the holder must present payment within 10 days from the date of issue. If the time limit is exceeded, the payee may refuse to pay. For checks used in other places, the time limit for presentation for payment shall be separately stipulated by the People’s Bank of China. If the drawee fails to pay, the drawer remains liable for the instrument to the holder.

To sum up, the type and use of checks are crucial to preventing potential financial risks and ensuring the smooth progress of transactions. Understanding this basic information will help individuals and businesses use checks more effectively in their daily transactions.