Different Types of Checks

Checks may have similar use and that is for payment but they come in different types. If you are not familiar with them, you may find it difficult what to use or order. For travelers, checks are more preferable since this means that they don’t need to bring cash. This is also very helpful if you intend to send money to someone through a postal service.

Among the types of personal checks are as follows:

Personal Check

This check can only be claimed by the person whose name appears on the check. It is the responsibility of the account holder to make sure that one’s checking account has the available funds that will pay for the amount stipulated on the check. This is the most common type of check used in U.S.

Certified Check

This can only be issued by your bank after they have checked that you have enough funds in your checking account that will cover the needed amount. The bank is responsible to check is funded and if it has the genuine signature as it appears on the owner’s account. Withdrawal from the owner’s account will also be made by the bank and it will also hold the amount to ensure paying out of the check.

BearerCheck

This type can be paid to any person who has the check. This can be marked as “cash”. Meaning, no name may be reflected on it. Hence, whosoever holds this check can encash it from the bank. They don’t need to deposit this to their own bank account as well.

Cashier’s Check

This is sometimes called as the “manager’s check”. Unlike other types of checks, it is the bank who guarantees payment of the amount stipulated on the check and not the concerned individual who is using the check. The bank in return will debit the amount from your bank. However, you may opt to pay them in cash instead. This is signed by the manager or the institution’s cashier.

Money Order You can buy this type of check from a financial institution or US Post Office. Usually, a money order is prepared with debit card, cash or traveller’s check. This type will not require you to open an account to avail of this check.

Traveler’s check

This is for travelers and is acquired prepaid. This is available in all currencies and in any denomination. They also work as cash and often paid to hotels and merchants. They also come with an insurance against damage, loss and destruction. So, if you are planning to order checks for your business, do not forge to check out Checkomatic business checks.

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