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What is check How payments made with cheques Explain with example?
Wiki User
∙ 10y ago
A check is a paper, issued by a bank to the account owner. The account owner signs the check and places the amount that he needs to pay on the space provided for it and gives it as payment.
Check payments are usually made for big purchases. This is to avoid the danger of carrying a large amount of cash in your purse, aside from the reason that it is more handy.
For instance, you are going to buy a set of furniture for the office. You can issue a check, indicate the amount of money to be paid to whom or to what company, then sign it as proof. The company owner then brings it to the bank, deposits it and the bank transacts with your bank in transferring the amount of money from your account to the furniture company owner's account.
Wiki User
∙ 10y ago
Anonymous
VAIBHAV RAWAT
VAIBHAV RAWAT
VAIBHAV RAWAT
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What is bank check book?
A check/cheque book is a collection of cheque's. These cheques can be used to make payments to anyone. They are as good as cash (Provided there is cash in the cheque drawers account)
Why to use check?
You use cheques as a a substitute for cash when you don't have enough cash in hand. You can use cheques at banks, shops etc. Cheques are negotiable instruments that can be treated at par with cash.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
Collection and payment of check?
When you deposit a cheque into your bank account the series of steps mentioned below follow... Assuming the cheque you deposited is from Bank A and your bank is Bank B. 1. Bank B collects all the cheques that are issued by customers of Bank A. 2. They would send all these to Bank A for validation, who in turn would send cheques of Bank B deposited with them 3. In Bank A, all the cheques will be validated for their originality and also for funds in the accounts. If so, those cheques would be passed. 4. In the meantime Bank B would have validated its cheques that were given by Bank A 5. Bank A and Bank B would have some calculations and adjust the payments to be made for the cheques issued by its customers. 6. All this happens in 2-3 working days and you would realize the payment.
What is inward check?
Inward clearing means the cheques received by the bank from other banks.These - Inward clearing - cheques are the cheques drawn by the bank/branchcustomerson their account in favour of other parties. On receipt of the inward clearing, the cheques arepostedto the various accounts on which they are drawn - meaning the accounts of the cheque issuer or drawer with the bank is debited tothe accountand the payment is made to the bankpresentingthe cheque.
What is bank check book?
A check/cheque book is a collection of cheque's. These cheques can be used to make payments to anyone. They are as good as cash (Provided there is cash in the cheque drawers account)
Why to use check?
You use cheques as a a substitute for cash when you don't have enough cash in hand. You can use cheques at banks, shops etc. Cheques are negotiable instruments that can be treated at par with cash.
What is at par check?
at par checks are treated as local cheques
What does cheques tu emailo mean?
Check your e-mail
Can you write a casino a personal check an get cash back?
This is becoming rare and you have to by chips and redeem the chips. Most Casinos no longer accept cheques with the exception of Payroll Cheques, and they have to real company cheques, not hand written.
How long is a personal check good for?
Most banks will accept them up to 6 months past the date on the cheque. Governemnt cheques, cashiers cheques, and certified cheques do not staledate, unless the cheque specificly states otherwise.
Who is a paying banker in relation to cheques?
The paying bank is the bank on which the check is written.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
Why do you need a travel check?
Travelers cheques are a safe alternative to carrying cash. By paying a small premium, you are protected if your cheques are lost or stolen. The bank that issued the cheques guarantee the merchant will get paid, even if they are fraudulently cashed, and the bank will reimburse you if they are lost or stolen.
Collection and payment of check?
When you deposit a cheque into your bank account the series of steps mentioned below follow... Assuming the cheque you deposited is from Bank A and your bank is Bank B. 1. Bank B collects all the cheques that are issued by customers of Bank A. 2. They would send all these to Bank A for validation, who in turn would send cheques of Bank B deposited with them 3. In Bank A, all the cheques will be validated for their originality and also for funds in the accounts. If so, those cheques would be passed. 4. In the meantime Bank B would have validated its cheques that were given by Bank A 5. Bank A and Bank B would have some calculations and adjust the payments to be made for the cheques issued by its customers. 6. All this happens in 2-3 working days and you would realize the payment.
What is the Difference between Travellers check and cashiers check?
A traveler's cheque is used as replacement for cash, particularly by those who are traveling. People use traveler's cheques instead of cash because traveler's cheques can be replaced if lost or stolen, whereas cash would simply be gone. Traveler's cheques can be made out to anyone. A cashier's check is a check made out to a specific individual or organization for a specific amount and is usually used to make a specific purchase or make a large payment. Both cashier's checks and traveler's cheques are considered "guaranteed funds" because the money for them has been secured by the issuing bank in advance and placed in a holding account until the check is cashed.
How do I check my past payments?
MAILED DUPLICATE PAYMENTS OF $654,00..DATED 4/14/2024...OVER PAYMENT ON ONE...WHAT SHOULD I DO???
