The check is a word that is used within the banking field to refer to a commercial type document which can be accepted as a payment method and as a signature by a person, so that in this way a transaction can be canceled. amount of money determined. There are several types of checks, on this occasion, we will refer to the crossed check .
A crossed check is a type of check in which the amount can only be deposited into an account determined by the beneficiary who is registered with the bank. It is a type of check that does not admit any type of cash collection .
- Cross Check Features
- What is a cross check for?
- Can it be endorsed?
- How to charge
- Importance of the cross check
Cross Check Features
Among its main characteristics, the following can be mentioned:
- In order to make a crossed check , the issuer of the check must make two slightly inclined parallel lines , which must also cross the entire main face of the check vertically.
- This type of check is negotiable , in other words, your property can become endorsed in a third person.
- They are nominative .
- When a check is crossed, it can no longer be deleted or modified .
- They are checks that can be endorsed .
- It can only be collected through a bank so that it is the one who collects it.
There are two types of crossed checks, which are:
- General cross checks : this type of cross check is characterized by the fact that the figure where the payment should be made does not appear in the document. In the middle of the lines that must be placed on the check, only the word ” bank ” will appear or the word ” company ” may also appear .
- Special crossed checks : in the special check, in the middle of the crossed lines , the name of a specific financial institution must appear for this reason, this type of check can only be paid at the bank that is established in the document.
What is a cross check for?
Crossed checks are commercial documents that serve as a means of payment so that a financial entity has the ability to make a certain payment or amount, which must be reflected in the check to another person or beneficiary, as long as there are sufficient funds on the account.
Can it be endorsed?
In order to endorse a cross check the procedure is relatively simple. First, two lines must be drawn in a parallel and oblique manner, which must also cross the entire document. This action is the one endorsed by the c heque and they are globally recognized banking brands . It is important when endorsing the check that the person who will receive the check is correctly identified in order to avoid theft or loss.
How to charge
In order to collect an endorsed check , you must visit a bank so that this entity is in charge of collecting the money from the person who issued said check. When the beneficiary of the check is the customer , then the bank has the option of being able to collect the money in cash , but, when the phrase ” pay into account ” is written in the lines that indicate that the check is crossed , then the only way to be able to cash the check will be through a bank account in the name of the holder of the check.
Among its main advantages are the following:
- One of its main advantages is the security it provides to the client related to theft or loss.
- They can be easily cashed in any type of banking institution.
- They can be issued at any time which makes it possible for all commercial operations to be carried out more quickly and easily.
- It is widely used by companies because it implies cost and time savings .
- It is one of the safest payment methods .
Cross checks also have some disadvantages or disadvantages, among them we mention:
- One of its main disadvantages that it can only be charged in the entity that has been established between the parallel lines .
- There is always the danger of theft or loss .
- It can only be deposited in the beneficiary’s own account at the bank, so it cannot be deposited in alternate or second-person accounts.
- In this type of check , no type of modification can be made and it cannot be eliminated .
Importance of the cross check
The main importance of crossed checks is that with them it is possible to accurately identify the person who will be in charge of cashing the check and with this it is possible to increase the customer’s banking security in a very important way, since these checks will not be able to be collected whose name is not that of the person in charge.