According to whether the payment method is guaranteed, checks can be divided into ordinary checks, crossed checks and certified checks.
1) Ordinary checks
An ordinary check (uncrossed check) refers to a check that can be used to withdraw cash or bank transfers. In my country, an ordinary check refers to a check that does not have the words “cash” or “transfer” printed on it. Ordinary checks do not have special guarantees for payment.
2) Crossed checks
A crossed check (crossed cheque), also known as a parallel line check or a horizontal line check, refers to a check in which the drawer, endorser or holder draws two parallel lines across the face of the check, or writes the name of a bank or other content in the two parallel lines. The payee only pays the check amount to the bank. This type of check can only be used for bank transfers and cannot be used to withdraw cash to prevent the check from being lost and misappropriated.
3) Certified/accepted check
A certified/accepted check means that since a check is a payment instrument, it cannot be guaranteed to be cashed. In order to avoid the drawer from issuing a bad check, the drawer or payee may require the payee to write “pay as required” or “guaranteed payment” or other similar words on the check and sign, indicating that the check will definitely be paid when presented.
After the check is guaranteed by the payee, the payee shall bear the absolute payment responsibility, and the drawer and endorser are exempted from their responsibilities, that is, the payee becomes the principal debtor. The reliability of the check is thus improved and more conducive to its circulation. However, the provisions of various countries on the guarantee liability are not exactly the same. According to the laws of the United States and Taiwan, the drawer and endorser of a certified check are exempted from debt. However, the Japanese “Check Law” stipulates that the drawer and endorser of a certified check cannot be exempted from their debts, but should be jointly responsible with the guarantor. The “Bills of Exchange Law” in mainland my country does not have any provisions on this.