1. Classification by the recording method of the payee
According to the different recording methods of the payee, checks can be divided into registered checks, order checks and bearer checks. This distinction is exactly the same as the classification standards and actual functions of bills of exchange and promissory notes, so I will not repeat it here. In my country, although bearer bills of exchange and promissory notes are not allowed to be issued, bearer checks can be issued, and according to Article 87 of my country’s “Bills of Exchange Law”, if the name of the payee is not recorded on the check, it can be supplemented with the authorization of the drawer.
2. Classification by the qualifications of the parties to the check
According to the qualifications of the parties to the check, checks can be divided into self-checks, order checks and payee checks. Usually, there are three parties to a check, but in special circumstances, any two of the three parties may have overlapping qualifications, that is, one party acts as two parties, thus generating three variant checks.
1) Self-check
Self-checks are also called self-paid checks, which refer to checks issued by the drawer with himself as the payee. The drawer and payee of this type of check are the same person. Since the payee of a check is a bank or other legal financial institution, a payee check can only be issued by a bank or other financial institution. Other units or individuals cannot issue this type of check.
2) Self-drawn check
A self-drawn check is also called a paid check. It is a check issued by the drawer with himself as the payee. This type of check is similar to a self-drawn bill of exchange. Anyone who opens a check deposit account in a bank or other financial institution can issue this check without any restrictions. Article 87 of my country’s “Bills of Exchange Law” also stipulates that the drawer can record himself as the payee on the check.
3) Payee check
A payee check is a check issued by the drawer with the payee as the payee, that is, the payee is also the payee. Since the payee of a check is limited to financial institutions, the payee of this type of check can only be a financial institution.