Cheques (or check in American English )

1. Cheques (or check in American English ) Simona Popelková

2. Whatischeque? • A cheque (or check in American English ) is a document that orders a payment of money from a bank account. • Chequesare a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money.

3. Entitiesof a cheque The four main items on a chequeare: • Drawer, the person or entity who makes the cheque • Payee, the recipient of the money • Drawee, the bank or other financial institution where the cheque can be presented for payment • Amount, the currency amount

5. Name of person / company to which one is paying from ones account. The person named in the cheque, to whom money would be paid, is called the 'payee'. • Date of issue is the date from which the cheque becomes valid. Usually cheque is valid for six months from the date of issue. • Amount is the amount of money one is promising to pay in numbers or figures. • Amount is the amount of money one is promising to pay in words. This is for safety, so that no one can change the amount one is promising to pay. • Name and address of bank where one has an account. • Signature of the account holder. A cheque becomes valid only when the account holder signs it. The maker of a cheque is called the 'drawer'. • Cheque Number is a 6 digit number which is to help one keep track of who one paid the cheque to. • Routing / account number is a nine-digit number which identifies postal code/city and state of the origin of the cheque. • Account Number gives the bank the information on which account to use for this particular transaction. This number tells the bank whose money to use to pay the check.

6. Eurocheque • Eurocheque was a type of cheque used in Europe that was accepted across national borders and which could be written in a variety of currencies. • Eurocheques were originally introduced in 1969 as an alternative to the traveler's cheque and for international payments for goods and services. • the practice of issuing Eurocheques ceased on 1 January 2002

7. A traveler'scheque • A traveler's chequeis a preprinted, fixed-amount chequedesigned • They were generally used by people on vacation instead of cash as many businesses used to accept traveller'scheques as currency. • Their use has been in decline since the 1990s as alternatives, such as credit cards , debit cards and ATM became more widely available and were easier and more convenient for travelers.

8. A blankcheque • A blank check is the same as checks, except that it is not the amount, but is already signed. • If created accidentally, a blank cheque can be extremely dangerous for its owner, because whoever obtains the cheque could write in any amount of money , and would be able to cash it 

9. The advantages and disadvantages of using cheque • The advantages of using a cheque:- More Security- Youdonthave to carrylargeamountof cash withyou - Itminimize a risk oflossThe disadvantages of using a cheque:- Must wait for bank to open- Higher cost than payment cards - Many placesdo not accept checks.

10. Topics • Ifthereis a differentbetweenanamountwritten in numbersand in words, whichofinformationisvalid? • Whatkindof a chequeshould not have to fillamount? • Are chequessecurities?