Crossing Cheque : Types Of Crossing Cheque

Cheques are used as a cashless method for transactions for many years. If you compare a cheque from ancient times with a cheque of the present time, you will notice many changes.

Although today, we have many apps for digital transactions still people prefer cheques when the amount of transactions is high. Here, we are going to discuss the Crossing cheques and their benefits.

A cheque is like a document that orders a bank (where the drawer has an account )to pay the written amount. The amount is given to the person whose name is written on the cheque. There are many types of cheques. A cheque has many things written on it.

What is a Crossing Cheque ?

You might have heard about crossing cheques before. Well, a crossing cheque is a type of cheque which gives some instruction. One of the most commonly known instructions given by crossing cheques is to be deposited in the bank account when you go to redeem it. This means the cheque will not be cashed immediately, it will be deposited into the bank account.

It is one of the safest ways if you don’t want to get into any scam. Generally, all crossing cheques are similar but there might be some differences in wordings. 

If you look at a cheque, you will find various things written on it. The various parts of a cheque include drawer, payee, drawee, date of issue, amount and machine-readable information.

The drawer is the bank where the written cheque will be presented for withdrawal of money. This bank is where the person writing the cheque has a bank account having sufficient balance.

The payee is the person on whose name that cheque is issued. The payee will receive the written amount on a cheque from the drawer. Drawee is the person who writes the cheque. The date of issuing the cheque is also written. The amount that the drawee want to give to the payee is written on the cheque.

Apart from these, some other information is written on the cheques that can be read by machines. A crossing cheque has similar parts but as already mentioned, the wordings might differ from one country to another. 

You might have heard about the open cheque. An open cheque can be cashed at the counter. Crossed cheques are always a more safe way of the transaction as compared to open cheques. This is because a crossing cheque always follows some instructions and it cannot be cashed easily.

Open cheques don’t have to follow any of such instructions and therefore they can be cashed at the counter easily. The benefits of using crossing cheques aren’t just limited to this. There are many other benefits of using a crossing cheque instead of using an open cheque. There are many types of cheques which we are going to discuss in this article.

What is Cheque ? Types, Importance and Components of Cheque ?

What Are The Different Types Of Crossing Cheques ?

Cheques had been used as a cashless method of transaction since ancient times. Even today when we have so many methods available for online transactions, cheques are still used whenever the transaction amount is big.

Although the digital payment methods have made our life easier today as we don’t have to write a cheque or run to banks for small transactions. Generally, all cheques are similar. There might be some differences in wordings or design when we compare cheques from different countries.

We will discuss various types of cheques further in this article. Some of the types of cheques are bearer cheques, banker’s cheques, self cheques etc.

Here are some types of cheques :

•    Bearer’s cheque: A bearer is a person who carries the cheque to the bank. A bearer’s cheque can be explained as a cheque that can be cashed by the bearer himself/herself. For example, I give you a cheque and you carry it to the bank, you can get the amount written on the cheque. 

•    Order cheque: This type of cheque is explained as a cheque that can only be cashed by the person whose name is written on the cheque. For example, If your name is written on the cheque by the drawee, only you can get the written amount from the bank.

•    Crossed cheques: We have already discussed so many things related to crossed cheques. A crossed cheque has two parallel lines drawn on it. The cheque ensures that the amount written on the cheque must be given to the payee whose name is written on the cheque. 

•    Open cheque: These cheques can be easily cashed at any bank. These cheques don’t follow any particular instructions. The open cheques aren’t crossed and therefore you can easily cash them from any bank. The crossed cheques are a much safe way of the transaction when compared to open cheques.

•    Post dated cheque: As you can understand easily from the name, these cheques can only be cashed after or on the date written on the cheque. The person writing the cheque writes a later date of encashing the cheque. If you go to the bank to encasing the cheque before the mentioned date, you will not get any money.

•    Stale cheque: This type of cheque isn’t much popular among people. A stale cheque is the type of cheque which crosses the validity of the cheque.  In simple words, it can be said that a cheque that crosses three months after the cheque was written is known as a stale cheque. 

•    Traveller’s cheque: As the name says, these cheques are used by persons travelling from one country to another. It is always easy to carry a cheque instead of large amounts of cash. These cheques are given by a bank to the traveller and he or she can convert it to currency in the bank located in the country they travel. 

•    Self cheque: These cheques are written by the drawee for himself herself. You can easily identify these cheques as they have self-written in the column of payee. This type of cheque is only issued at the drawee’s bank.