A check is a type of economic document that fulfills the function of being a written payment order that makes it possible for the person who receives it to go to a banking institution to collect a certain amount of money which has been previously stipulated. in the document. There are several types of checks, one of them is known as a bearer check .
A check payable to the bearer is a type of payment document in which is indicated the name of the person or beneficiary to collect the money, therefore, the check can be cashed by anyone who has the document in its possession .
- Bearer check characteristics
- What is it for
- How to charge
- Bearer check expiration
- Importance of the bearer check
Bearer check characteristics
Among its most representative characteristics are the following:
- The check does not have a specific name to collect the money so it can be exchanged or cashed by anyone.
- It is used to pay small sums of money.
- It consists of three different parts : the drawer, who refers to the person who gives the payment order and who also places the sum of money and signs the document; the drawee refers to the financial institution in which the drawer owns his savings account and finally the holder , who is the person who will have the check in his hands and who will go to the bank to collect the money.
- Phrases on the check that refer to ” to the order of ” or ” to the bearer ” are not crossed out as they are on other types of checks.
- It does not need to be endorsed in order to be charged.
- The identity of the person who cashes the check must be accredited by means of the identity document.
- This type of check can also be crossed and with this, it must then be deposited in a current account so that payment can then be made.
- It is the most common type of check.
- The amount of money to be paid must be written twice , first in letters and then in numbers , this so that the document has greater security and so that no one has the option of changing the figures.
- All bearer checks must be previously signed .
What is it for
The bearer check is a document that serves so that a certain amount of money can be exchanged or deposited in a banking institution . It is very useful when you need to make payments of small amounts of money and it turns out to be effective in those situations in which the issuer of the document is not sure who will be the person who will be in charge of cashing the check.
How to charge
The bearer check is a document that can be cashed very easily. The only thing that the person needs to do is go to the bank , appear at the window and request that the money be delivered, presenting their identity document . This type of check can also be deposited into a savings account easily.
At the time of cashing it, it may be that the check is crossed , in other words that it has two diagonal stripes in its front part, in this case, the document can also be cashed by anyone with the difference that it will not be able to cash the money in the bank window, but will have to collect the amount established through compensation in a bank account that is in the name of the person who has gone to change the document.
Bearer check expiration
Generally, bearer checks have certain terms that may vary depending on the banking institution. These deadlines are.
- Fifteen calendar days when the check is paid in the same place where it was issued.
- One month of time when the check is paid at a different location.
- Three months of time when the check will be paid within the national territory but it was issued abroad.
Checks can have several advantages, the most important of which are the following:
- It allows greater flexibility since anyone can assist the bank to collect the money, which is beneficial mainly for companies, when there is little time availability.
- With the check to the bearer to collect in cash, it can be presented at the bank branch that appears as drafted in this way, you will not have to pay any type of commission.
Among its main disadvantages we can mention the following:
- Its most important disadvantage is that this document can be lost , and, since it does not have a specific name or is not endorsed , anyone who finds the document can go to a bank and exchange it for money without any problem.
- When the checks have been signed and lost , it can become a bigger problem since the person who found the check will only have to put in the amount of money they want and then cash it.
- Most banks set a maximum amount that can be changed, for this reason, this type of check is only used to change small sums of money.
Importance of the bearer check
Checks payable to the bearer is important because it makes business relations more simple by using a rapid form of payment. It is important for companies that need to save time and staff since it can be changed by anyone in the bank.