According to my country’s “Bills of Exchange Law”, checks can be divided into cash checks and transfer checks. Whether it is used to withdraw cash or transfer money, it should be indicated on the front of the check. Cash checks can only be used to withdraw cash; transfer checks can only be used for transfer settlement through banks or other financial institutions. However, in some countries (regions), cash withdrawal or transfer can usually be chosen by the holder or the payee. But once it is crossed, it can only be transferred through a bank, and cash cannot be withdrawn directly. Therefore, there are “crossed checks” and “uncrossed checks”. Crossed checks usually have two parallel lines drawn on their upper left corner. As needed, checks can be crossed by the drawer, or by the payee or the collecting bank. For uncrossed checks, the payee can either collect the money from the paying bank through his own bank and deposit it into his own account, or go directly to the paying bank to withdraw cash. However, if it is a crossed check, or it was originally an uncrossed check, after crossing it yourself, the payee can only collect the money and enter it into the account through the bank on his behalf.
According to the bills of exchange laws of various countries, a check can become a certified check by having the paying bank add the words “certified to pay” and sign it. After the paying bank guarantees it, it must pay. After the check is guaranteed, its value increases, which is conducive to circulation.
The use of checks has a certain validity period. Since checks are immediate payment tools that replace cash, their validity period is relatively short. According to the provisions of my country’s “Bills of Exchange Law”, the holder of a check must present it for payment within 10 days from the date of issue; for checks used in other places, the deadline for presenting it for payment shall be separately stipulated by the People’s Bank of China. If the deadline for presenting it for payment is exceeded, the payee may refuse to pay; if the payee refuses to pay, the issuer shall still bear the bill liability to the holder.