Cheque

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check or tick (American English; see spelling difference) is a document that instructs the bank to pay a certain amount of money from one's account to the person whose check has been issued. People who write checks, known as drawers , have transaction banking accounts (often called current, check, checking, or gyro account) where their money is kept. The drawer writes various details including the amount of money, the date, and the payee on the check, and signs it, ordering their bank, known as drawee , to pay the person or company the amount of money mentioned.

Checks are a kind of bill of exchange and developed as a way to make payments without the need to carry large amounts of money. Paper money evolved from promissory notes, other forms of negotiable instruments that are similar to checks because they are basically written orders to pay the amount given to anyone who has it (the "carrier").

Checks are negotiable instruments that instruct a financial institution to pay a specified amount of a particular currency from a particular transaction account that is stored in the drawer's name with the agency. Both the drawer and the payee may be a natural person or a legal entity. Checks are order instruments , and are not generally paid only to the carrier as a carrier instrument, but must be paid to the payee. In some countries, such as the US, payees can support the checks, which allows them to specify a third party to pay.

Although these forms of examination have been in use since ancient times and since at least the 9th century, during the 20th century examinations became a very popular non-cash method for making payments and the use of checks peaked. In the second half of the 20th century, when the checking process became automatic, billions of checks were issued each year; these volumes culminated in or around the early 1990s. Since then the usage check has dropped, partly replaced by the electronic payment system. In increasing the number of state checks has become a marginal payment system or has been completely removed.

Video Cheque

Spelling and etymology

Spellings check , checque , and check are used interchangeably from the 17th century to the 20th century. However, since the 19th century, spelling tick (from French chÃÆ'¨que ) has become the standard for financial instruments in Commonwealth and Ireland, while check i> is only used for other meanings, thus distinguishing two definitions in writing.

In American English, the common spelling for both is check .

The Etimological Dictionary connects the financial meanings derived from "examination of counterfeiting", using "checks" to mean "control" derived from checks of chess, a term that goes into English through French, Latin, Arabic and finally from Persian word " shah "or" king ".

Maps Cheque

History

The check comes from the old banking system, where bankers will issue an order at their customer's request, to pay money to the identified payee. Such an order is referred to as the bill of exchange . The use of exchange bills facilitates trade by eliminating the need for traders to carry large amounts of currency (eg, gold) to buy goods and services.

Initial years

The ancient Romans were believed to have used an early form of examination known as pre-descriptions in the 1st century BC.

Muslim traders are known to have used checks or? akk system since the time of Harun al-Rashid (9th century) of the Abbasid Caliphate. Carrying paper sakk is safer than transporting money. In the 9th century, a trader in country A could cash the saqq withdrawn at his bank in country B.

In the 13th century in Venice, bill of bills were developed as a legal tool to enable international trade without the need to bring in large quantities of gold and silver. Their use then spread to other European countries.

In the early 1500s in the Republic of the Netherlands, to protect the accumulation of large cash, people began to deposit their money with "cashier". These cashiers hold money for a fee. Competition encourages cashiers to offer additional services including paying money to anyone who carries written orders from depositors to do so. They keep the records as proof of payment. This concept then spread to the UK and elsewhere.

Modern era

In the 17th century, exchange bills were used for domestic payments in the UK. Checks, a kind of bill of exchange, then start growing. Initially they are called retrieved notes , because they allow the customer to withdraw funds he has in his account with the bank and require immediate payments. This is handwritten, and one of the earliest known is still there taken from Messrs Morris and Clayton, scriveners and bankers based in the City of London, and dated 16 February 1659.

In 1717, the Bank of England pioneered the first use of pre-printed forms. These forms are printed on "check paper" to prevent fraud, and the customer must attend personally and get the numbered form from the cashier. Once written, the check is brought back to the bank for completion. The suppression of paper money in Britain in the 18th century further encouraged the use of checks.

Until about 1770, unofficial check exchanges took place among London banks. The clerk of each bank visits all other banks to redeem checks, while keeping a balance count among them until they are satisfied with each other. Daily clearing checks started around 1770 when bank employees met at Five Bells, a tavern on Lombard Street in the City of London, to exchange their checks in one place and settle the balance in cash. This is the first banker's clearing house.

In America, the Bank of New York, once founded by Alexander Hamilton in 1784, began issuing checks. The oldest surviving example of a complete American checkbook from the 1790s was discovered by a family in New Jersey.

It is thought that the Scottish Commercial Bank was the first bank to personalize its customer checks, in 1811, by printing the account holder's name vertically along the left bank. In 1830 the Bank of England introduced books containing 50, 100, and 200 forms and integers, bound or stitched. This checkbook becomes a common format for check distribution to bank customers.

At the end of the 19th century, some countries formulated a law on examination. Britain passed the Bills of Exchange Act in 1882, and India passed the Negotiable Instruments Act (NI Act) 1881; both of which include examination.

In 1931 efforts were made to simplify the use of international examinations by the Geneva Conventions on the Unification of Laws Relating to Checks. Many countries of Europe and South America and Japan joined the convention. However, countries including the US and British Commonwealth members do not participate so it remains very difficult to check for cross-border use.

In 1959 the standard for machine-readable characters (MICR) was agreed and patented in the US for use with inspection. This opens the way for the first automatic read/sorter engine to clear the check. As automation increases, subsequent years see dramatic changes in the way checks are handled and processed. The volume check continues to grow; at the end of the 20th century, checks were the most popular non-cash method to make payments, with billions of them processed each year. Most countries saw check volumes in the late 1980s or early 1990s, after which electronic payment methods became more popular and use of checks declined.

In 1969 check warrant cards were introduced in several countries, allowing retailers to confirm that checks will be honored when used at the point of sale. The drawer will sign a check in front of the retailer, who will compare the signature with the signature on the card and then write the security check-card number on the back of the check. Such cards are generally removed and replaced with debit cards, beginning in the mid-1990s.

From the mid-1990s, many countries enacted legislation to allow for checks cuts, in which physical examinations were converted into electronic forms for transmission to bank payments or home-clearing. This eliminates complex physical presentations and saves processing time and costs.

In 2002, the Eurocheque system was removed and replaced by a domestic clearing system. Old Eurocheques can still be used, but are now processed by a national clearing system. At that time, a number of countries took the opportunity to stop using checks altogether. In 2010, many countries have stopped using checks altogether or signaled that they will do so in the future.

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Parts of check

The four main items on the check are

• Drawer , the person or entity that created the check
• Payment recipient , beneficiary
• Puller , bank or other financial institution where checks may be issued for payment
• Amount , amount of currency

As the use of checks increased during the 19th and 20th centuries, additional items were added to improve security or to facilitate the processing of banks or financial institutions. A signature from a drawer is required to authorize a check and this is the primary way to authenticate checks. Secondly, it becomes customary to write sums in words as well as numbers to avoid mistakes and make it more difficult to deceive changing amounts after a check has been written. It is not a legal requirement to write the amount in words, although some banks will refuse to accept checks that have no amounts either in numbers or words.

The date of issue has been added, and the check may be invalid within a certain time period after it is issued. In the U.S. and Canada, checks are usually valid for six months after the date of publication, after which are date-out, but this depends on where the check is withdrawn; in Australia this is usually fifteen months. A check that has a future issue date, checking after the date, may not be able to be presented until such date elapsed, writing check post dates may be ignored or illegal in some countries. Instead, antedated checks have a publishing date in the past.

Check numbers are added and check the book issued so that the check numbers are in order. This allows for some basic fraud detection by the bank and ensures one check is not presented twice.

In some countries such as the US, checks contain scraps that the purpose of the examination can be demonstrated as a convenience without affecting the official part of the check. In the UK this is not available and such records are sometimes written on the back side of the check.

In the US, at the top (when examined vertically oriented) from the reverse side of the check, there is usually one or more blank lines labeled something like "Endorse here".

Starting in the 1960s a readable routing engine and account information was added to the bottom of the check in MICR format. This allows automatic sorting and routing inter bank checkups and leads to an automatic clearing center facility. The information provided at the bottom of the check is country specific and is encouraged by the check clearing system of each country. This means that the payee no longer has to go to the bank issuing the check, otherwise they can deposit it in their own bank or other bank and the check will be transferred back to the original bank and the funds transferred to their own bank account..

In the US, the bottom 5/8 "of the check is the distant zone reserved for MICR characters alone which should not be disturbed by handwriting.We should be careful of lowercase descendants when filling in signatures and frequent memo lines at the bottom of the check in close proximity It is advisable to treat signatures and memo lines as borders rather than baselines and marks above them.Intrusion to the MICR area can cause problems when a check runs through the clearinghouse, requiring someone to print a check strip of MICR check and glue it to check Many ATMs the new does not use a deposit envelope and actually scans the checks at the time it is stored and will refuse the check because the handwritten handwriting that interferes with reading the MICR causes considerable inconvenience because the depositor may have to wait for days for the bank to open and may have trouble getting to to the bank even when they are open; this may delay the availability of y from the section deposits that their bank provides immediately as well as the balance of the deposit. Terms of service for many mobile phone deposits (camera phone) also require MICR parts to be read. Not all MICR characters have been printed when you fill the check manually because additional characters will be printed later to encode the number; so your careless signature can obscure characters that you do not realize will be printed there. Since MICR characters are no longer printed with magnetic ink and will be scanned with optics rather than magnetic means, the reader will not be able to distinguish pen ink from pre-printed magnetic inks; this change allows checks to be printed on ordinary home and office printers without requiring pre-printed check forms, enabling the taking of ATM deposits, enabling movable deposits, and facilitating electronic check copies.

For additional protection, checks may be crossed, limiting the use of checks so that funds must be paid into bank accounts. Formats and words vary from one country to another, but generally two parallel lines can be placed vertically across the check or in the upper left corner. In addition the words 'or carrier' should not be used, or if the pre-printed checks must be crossed out on the payer's line. If a check is crossed with the words 'Account Payee' or similar, then the check can only be paid to the bank account of the person originally referred to as the payee, so it can not be backed up to a different payee.

Attached document

Checks sometimes include additional documents. The pages in the checkbook can consist of both the check itself and the stub or counterfoil - when the check is written, only the check itself is detached, and the stub is stored in a checkbook as a check record. Or, checks can be recorded with carbon paper behind each check, on a ledger between check or behind a checkbook, or in a completely separate list of transactions equipped with a checkbook.

When a check is sent, a separate letter or "shipping suggestion" can be attached to inform the recipient of the objective of the check - formally, which receivables to credit the funds to. This is often done formally using the slip provided when paying bills, or informally by mail when sending an ad hoc check.

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Usage

The parties who perform routine checks generally include a drawer , the depositors write checks; a drawee, a financial institution where a check may be filed for payment; and a payee, entity to whom the drawer issued a check. Drawer draft or interesting check marks, also called cutting checks , especially in the US. There may also be beneficiaries - for example, in depositing checks with broker account guards, the payee will be a guardian, but checks may be marked "F/B/O" ("for benefit") of beneficiaries.

In the end, there is also at least one endorsee usually a financial institution that serves the payee's account, or in some circumstances a third party may be to whom the payee is indebted or wants to give you money.

A payee receiving a check will usually keep it in the account at the payee's bank, and ask the bank to process the check. In some cases, the payee will take a check to the drawee bank branch, and cash the check there. If a check is rejected in a drawee bank (or a drawee bank returns a check to a bank that has been deposited) because there is not enough funds for the check to be removed, it is said that the check has been rejected . Once the check is approved and all the corresponding accounts have been credited, the checks are stamped with some sort of cancellation mark, such as a "paid" stamp. The check now is cancel check . The canceled check is placed in the account holder file. The account holder may request a copy of the canceled check as proof of payment. This is known as the check clearing cycle.

Checks may be lost or lost in the cycle, or delayed if further verification is required in the case of fraudulent allegations. As such, checks may bounce off momentarily after being saved.

Following concerns about the amount of time the Credit Check and Credit Clearing Company required to clear the checks, the Royal Fair Trade Office established a working group in 2006 to look at the check clearing cycle. Their report says that clearing time can be increased, but the costs associated with accelerating the check clearing cycle can not be justified given the use of a declining check. However, they conclude the biggest problem is the unlimited time that banks can take to defraud checks. To overcome this, the changes are implemented so that the maximum time after check is deposited that it can be rejected six days, known as the "fate certainty" principle.

The advantage for drawers using checks rather than debit card transactions, is they know the drawer bank will not spend money until a few days later. Paying by check and making a deposit before clearing the drawer bank is called "kiting" or "floating" and is generally illegal in the US, but rarely enforced unless the drawer uses multiple accounts with multiple institutions to increase delays or steal funds.

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Decrease usage

Checking usage has been declining for several years, both for point of sale transactions (which credit cards and debit cards are favored) and for third party payments (for example, bill payments), where declines have been accelerated by the emergence of telephone banking and online banking. Because of paper-based, expensive checks for banks to process are compared with electronic payments, so banks in many countries now do not recommend the use of checks, either by charging checks or by making the alternatives more attractive to customers. Especially handling money transfers requires more effort and time consuming. Checks must be submitted in person or sent by mail. The emergence of an automated teller machine (ATM) means that a small amount of cash is often easily accessible, so sometimes there is no need to write a check for that amount.

Alternative to check

Alternative payment systems include:

1. Cash
2. Debit card payment
3. Credit card payment
4. Direct debit (initiated by payee)
5. Direct credit (initiated by payers), ACH in the US, current accounts in Europe, Direct Entries in Australia
6. Wire transfer (local and international) such as Western Union and MoneyGram
7. Electronic bill payment using internet banking
8. Online payment services, e.g. PayPal, Integrated Payment Interface, PhonePe, Paytm, and Worldpay
9. Money orders

Europe

In most European countries, checks are now rarely used, even for third-party payments. In these countries, it is standard practice for businesses to publish their bank details on invoices, to facilitate the receipt of payments with demand deposits. Even before the introduction of online banking, it is possible in some countries to make payments to third parties using ATMs, which can accurately and quickly capture the amount of invoices, due dates and bank details of payees through barcode readers to reduce lockouts. In some countries, entering a bank account number causes the bank to disclose the payee name as additional protection against fraud. In using checks, the responsibility is on the payee to initiate a payment, whereas with a giro transfer, the responsibility is on the payer to influence the payment (The paper check writer pushes the rope: he can not force money out of his or her own account and into the destination account. writing a paper check, he handed the end of the rope to the receiver, which will draw his own time.In contrast, demand deposits are more similar to wire transfers, in which the payer pushes his money toward the payee). The process is also procedurally simpler, since no checks are posted, can claim to have been posted, or require banking or permission.

In Germany, Austria, the Netherlands, Belgium and Scandinavia, the checks are almost completely gone for direct bank transfers and electronic payments. Direct bank transfers, using giro transfers, have become standard procedures since 1950 to send and receive routine payments such as rent and wages and even mail-order invoices. In the Netherlands, Austria, and Germany, all types of invoices are usually accompanied by so-called acceptgiros (Dutch) or ÃÆ'Ã… "berweisungstrÃÆ'¤ger (German), which is basically a standardized form a pre-paid bank transfer order with the payee's account details and the amount to be paid. The payer fills out his account details and submits the form to the officer at his bank, who will then transfer the money. It is also very common to allow payees to automatically withdraw the requested amount from the payer's account ( Lastschrifteinzug (Germany) or Incasso (machtiging) (The Netherlands). Although similar to pay by check, the payee only needs the paying bank and account number. Since the early 1990s, this method of payment has also been available to merchants. Because of this, credit cards are somewhat rare in Germany, Austria and the Netherlands, and are mostly used to provide access to credit rather than as a payment mechanism. However, debit cards are widespread in these countries, as almost all banks in Austria, Germany, and the Netherlands issue debit cards, not simple ATM cards for use on current accounts. Acceptance checks have declined since the late 1990s, due to the removal of the Eurocheque. Diluting a foreign bank check is possible, but it is usually very expensive.

In Finland, banks stopped issuing private checks around 1993 to support the demand deposit system, which is now almost exclusively run electronically either via internet banking or payment machines located in banks and shopping centers. All Nordic countries have used interrelated international giro systems since the 1950s, and in Sweden, the examinations are now almost completely abandoned; in Denmark, all banks stop receiving checks from 1 January 2017. Debit cards are now preferred for direct store payments when not using cash. For large store payments, such as car purchases, similar checks, money orders (Sweden: postvÃÆ'¤xel) are still in use.

In Poland, checks were withdrawn from use in 2006, primarily due to a lack of popularity due to widespread adoption of credit and debit cards. Electronic payments in the EU are now fast and cheap - usually free for consumers.

In the UK, Ireland and France, checks are still popular, partly because checks remain free for private customers; However, interbank transfers are increasingly popular. Since 2001, businesses in the UK have made more electronic payments than check payments. Automatic payments increased from 753 million in 1995 to 1.1 billion in 2001 and checks decreased within the same time period from 1.14 to 1.1 billion payments. Most utilities in the United Kingdom charge lower prices to customers who pay by direct debit than other payment methods, including electronic methods. Most retailers in the UK and many in France have not received a check as a means of payment for several years, and check that the guarantee card is no longer issued. For example, Shell announced in September 2005 that he would no longer accept checks at his UK gas station. This was soon followed by other major fuel retailers, such as Texaco, BP, and Total. Asda announced in April 2006 that he would stop receiving checks, initially as an experiment in the London area, and Boots announced in September 2006 that he would stop receiving checks, initially as an experiment in Sussex and Surrey. Currys (and other stores in the DSGi group) and WH Smith also no longer accepts checks. Checks are now widely predicted to be a thing of the past, or at most, niche products used to pay private individuals or to a large number of small service providers who are unwilling to provide their bank details to customers to allow electronic payments made for them or do not want to be encumbered by checking their bank accounts frequently and reconciling them with the amount to be paid (for example, music teachers, driving instructors, children's sporting lessons, small shops, schools). The UK Paying Board announced in December 2009 that the checks will be removed in October 2018, but only if an adequate alternative is developed. They intend to conduct an annual review of the progress of other payment systems and final review of the decision will be held in 2016. However, concerns expressed by charities and parents, who are still heavy check users, and replacement plans are criticized for being open to fraud. It was therefore announced by the UK Paying Board in July 2011 that the checks will not be deleted. 432 million inter bank checks and credit items worth £ 472 billion were processed in the UK by 2016 under British Payments. By 2017, 405 million checks worth  £ 356 billion are used for payments and cash, averaging 1.2 million checks per day, with more than 10 million confirmed in Northern Ireland alone. The Credit Check and Clearing Company noted that checks continue to be highly valued to pay traders and electric bills, and play an important role in businesses, clubs and the public sector, with nine out of 10 businesses saying they receive or make payments by check on a monthly basis.

In June 2014, after a successful trials in Britain by Barclays, the British government gave the go-ahead for a photo inspection plan that allowed people to pay in checks by taking the photo, rather than physically depositing bank checks on the bank. North America (Canada and the United States)

The US is still heavily dependent on checks, as it provides payers, and in the absence of high volume systems for low-value electronic payments.

In the US, about 18.3 billion checks are paid in 2012, valued at $ 25.9 trillion.

About 70 billion checks are written annually in the US in 2001, although some 17 million American adults have no bank account at all. Certain companies that someone pays by check will turn them into Automated Clearing House (ACH) or electronic transactions. Banks try to save check processing time by sending them electronically between banks. Clearing checks are usually done through electronic checking brokers, such as The Clearing House, Viewpointe LLC or the Federal Reserve Bank. Copies of checks are held in a bank or broker, for a period of up to 99 years, and this is why some check archives have grown to 20 petabytes. Access to these archives is now worldwide, as most bank programs are now conducted overseas. Many utilities and most credit cards will also allow customers to pay by providing bank information and withdraw payments from the customer's account (direct debit). Many people in the US still use paper money to pay bills or transfer money which is a unique kind of inspection. They have more security than sending money, and do not need access to a bank account.

The use of Canadian checks is less than the US and is declining rapidly due to the insistence of the Canadian Banking Association. The Canadian government claims the price is 6.5 â € <â €

Checks are still used for government payments, wage payments, rent, and utility bill payments, although direct and payments on phone or online bills are wider and more widely used.

The Government of Canada began to remove all government checks from April 2016.

Asia

In many Asian countries, checks are never widely used and are generally only used by wealthy people, with cash being used for most payments. Where the checks used they have declined rapidly, in 2009 there was the use of consumer checks being ignored in Japan, South Korea and Taiwan. This downward trend is accelerated by these advanced markets, an advanced financial services infrastructure. Many developing countries in Asia have experienced an increase in the use of electronic payment systems, 'skipping' cheats of less efficient systems at all.

India is one of the few countries in Asia that has significant use of checks. It has a long tradition of using checks and passing laws formalizing the use of checks as early as 1881. In 2009 checks were still widely used as a means of payment in trading, as well as by individuals to pay others or utility bills. One reason is that banks usually give free checks to their respective account holders. However, checks are now rarely accepted at point of sale at retail stores where cash and cards are the preferred method of payment. Electronic payment transfers continue to gain popularity in India and like other countries this causes the subsequent reduction in the volume of checks issued each year. In 2009, the Reserve Bank of India reported a five percent drop in checks compared to the previous year.

Oceania

In Australia, following the global trend, the use of checks continues to decline. In 1994, the daily check transaction value was A $ 25 billion; in 2004 it has dropped to just A $ 5 billion, almost all for B2B transactions. The use of a personal check is practically non-existent due to the use of the old EFTPOS system, BPAY, electronic transfers, and debit cards.

In New Zealand, check payments have fallen since the mid-1990s in favor of electronic payment methods. In 1993, checks accounted for more than half of transactions through the national banking system, with an annual average of 130 per capita checks. In 2006, checks lagged far behind EFTPOS (debit card) and electronic credit transactions, accounting for only nine percent of transactions, an annual average of 41 per capita transaction checks. Most retail stores no longer receive checks; those who often require government-issued identification or a "check identification card" issued in the store before they can be accepted as payment.

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Variations on regular check

In addition to routine checks, a number of variations are developed to address specific needs or to address problems while using routine checks.

Check and draft of the cashier bank

Cashiers checks and bank drafts, also known as bank checks, bank checks or bribes checks, are checks issued against funds of financial institutions rather than holders individual accounts. Typically, the term cashier check is used in the US and draft bankers are used in the UK and most of the Commonwealth. This mechanism is slightly different from country to country but in general banks that issue checks or concepts will allocate funds when checks are withdrawn. It provides a guarantee, except bank failure, that it will be respected. Checks Cashiers are considered as good as cash but they are still checks, misunderstandings that are sometimes exploited by scam artists. Checks that are lost or stolen can still be stopped like any other check, so payment is not fully guaranteed.

Certified checks

When a certified check is taken, the bank that operates the account verifies that there is currently sufficient funds in the account of the drawer to honor the check. The funds are then set aside in the bank's internal account until the check is cashed or refunded by the payee. Thus, a certified examination can not "bounce", and its liquidity is similar to cash, there is no bank failure. The bank shows this fact by making a notation in advance of the check (technically called acceptance ).

Payroll check

The check used to pay wages can be called a paycheck. Even when the use of checks to pay wages and salaries is rare, the vocabulary of "check payments" is still commonly used to describe wage and salary payments. Payroll inspections issued by the military to the army, or by some other government entity to their employees, beneficiaries, and creditors, are referred to as warrants.

Warrants

Warrants look like checks and clear through the banking system such as checks, but not withdrawn against funds vacated in deposit accounts. A check differs from a warrant that the warrant does not have to be paid on demand and may not be negotiable. They are often issued by government entities such as the military to pay wages or suppliers. In this case they are instructions to the treasurer department of the entity to pay warrants on demand or after the specified due date.

Tourists check

Travel checks are designed to allow signatories to make unconditional payments to others as a result of paying the publisher for that privilege. Traveler checks can usually be changed if lost or stolen, and people often use them on holidays rather than cash because many businesses are used to receive travelers checks as currency. The use of a credit or debit card has begun to replace travelers' checks as a standard for holiday money due to their convenience and additional security for resellers. As a result, many businesses no longer accept travelers checks.

Money or mail order

Checks sold by post offices, banks, or merchants such as a grocery store for payments in favor of third parties are referred to as postal or postal money orders. This is prepaid when an order is collected and is secured by the issuing institution and can only be paid to the mentioned third party. This is a common way to send low value payments to third parties, avoiding the risks associated with sending money in the mail, before the advent of electronic payment methods.

Oversize check

Oversized checks are often used in public events such as donating money for charity or distributing gifts such as Clearing Publishers. The examination is generally 18 x 36 inches (46 cm) in size; However, according to the Guinness Book of World Records, the biggest record ever was 12 times 25 meters (39Ã, ft ÃÆ'â € "Ã, 82Ã, ft). Until now, regardless of size, these checks can still be redeemed for their cash value as long as they will have the same portion as the normal check, although usually large checks are kept as souvenirs and normal checks are provided. Each bank can charge additional fees for cleaning large checks. Most banks must have machine-readable information at the bottom of checks that are read electronically, so only very limited dimensions can be allowed due to standard equipment.

Voucer payment

In the US some public assistance programs such as the Special Supplemental Nutrition Program for Women, Infants and Children, or Aid for Families with Dependent Children make vouchers available to their beneficiaries, in accordance with certain financial policies. the number of purchases of daily necessities considered eligible under a certain program. Vouchers can be stored like any other checks by participating supermarkets or other approved businesses.

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Check around the world

Australia

The Checks Act 1986 is a legal entity governing the issuance of checks and payment orders in Australia. The procedural and practical issues governing the clearance of checks and payment orders are handled by the Australian Clearing House Association (APCA).

In 1999, the bank adopted a system to enable faster check checks by sending information about electronic checks, this took the time permission down from five to three days. Prior to that check should be transported physically to the payment bank before processing begins. If the check is rejected, it is physically returned.

All licensed banks in Australia may issue checks on their own behalf. Non-banks are not allowed to issue checks on their own behalf but can issue, and withdraw, payment orders (which are functionally no different from checks).

Canada

In Canada, check the size and type, MICR support and tolerance requirements overseen by Canadian Payments.

• Canadian checks can be legally written in English, French or Inuktitut.
• Tele-check is a paper payment item that resembles a check except that it is not made or signed by the payer - but is made (and can be signed) by a third party on behalf of the payer. Under this CPA Rules prohibited in the clearing system is valid January 1, 2004.

India

Checks were introduced in India by Hindustan Bank, the first joint-stock bank established in 1770. In 1881, the Negotiated Instrument Instrument (UI NI) was enacted in India, formalizing the use and characteristics of instruments such as checks, exchange bills, and promissory notes. The NI Act provides a legal framework for non-cash paper payment instruments in India. In 1938, the Calcutta Bank Clearing Association, which was the largest banker association at the time, adopted a clearing house.

Until April 1, 2012, checks in India are valid for a period of six months from the date of its issuance, before the Reserve Bank of India issues a notice that reduces its validity to three months from the date of issue.

Japanese

In Japan, the check is called Kogitte ( ??? ) , and is governed by Kogitte Law.

The bounce test is called Fuwatari Kogitte ( ?????? ) . If the account owner bounces two checks in six months, the bank will suspend the account for two years. If an account belongs to a public company, their stock will also be suspended from trading on the stock exchange, which could lead to bankruptcy.

New Zealand

The instrument-specific law includes the 1960 Check Act, part of the 1908 Bills Exchange Act, which codifies aspects related to check payment instruments, in particular procedures for approval, presenting and checking payments. A 1995 amendment was provided for electronic check checks and cleared prior terms to provide physical checks to paying banks, paving the way for cutting checks and imaging. Cutting allows the transmission of electronic images of all or part of a check to a paying bank branch, rather than representing a complex physical. This reduces the total check time and eliminates the cost of physically moving the check.

Banks registered under the supervision of the Reserve Bank of New Zealand provide a check payment service. After the turn, the checks are processed electronically along with other retail payment instruments. Homeguard v Kiwi Packaging is often cited by law cases concerning check banks that are tendered as a full settlement of disputed accounts.

United Kingdom

In the UK, all inspections must comply with industry standard layout and font standards and ("Standard & Standard Credit Standards (C & amp; CCC) 3"), printed on specific paper weights (CBS1), and contain the security specified in explicit features.

Since 1995, all checkprinters must be members of the Check Printer Accreditation Scheme (CPAS). The scheme is managed by the Credit Check and Clearing Company and requires all checks to be used in the UK clearing process manufactured by accredited printers that have adopted strict security standards.

The rules of cross check are set out in Part 1 of the 1992 Checks Act and prevent checks from being cashed or paid into third party accounts. In cross checks, the word "payee only" (or similar) is printed between two parallel vertical lines in the middle of the check. This makes the check non-transferable and to avoid any checks backed up and paid to an account other than the named payee. Cross-checking basically ensures that the money is paid to the intended beneficiary account.

Following concerns about the amount of time it takes the bank to remove the checks, the Royal Office of Extraordinary Trade established a working group in 2006 to look at the check clearing cycle. They produced a report recommending the maximum time for clearing inspections introduced in the UK starting November 2007. In the report, the credit date appears in the beneficiary account (usually the day of deposit) is set to "T". On "T 2" (two business days thereafter), the value will be calculated for the credit interest calculation or the overdraft interest on the recipient's account. In "T 4" the client will be able to withdraw funds on a checking account or at "T 6" in a savings account (though this will often happen before, at the discretion of the bank). "T 6" is the last day that a check can bounce without the recipient's permission - this is known as "fate certainty". Before the introduction of this standard (also known as 2-4-6 for demand deposits and 2-6-6 for savings accounts), the only way to know the "destiny" of a check is "Special Presentation", which will typically involve costs, at where the drawee bank contacts the payee bank to see if the recipient has the money at that time. "Special Presentation" has been stated at the time of deposit.

Check volume peaked in 1990 when four billion check payments were made. Of this amount, 2.5 billion is cleared through interbank clearing managed by C & amp; CCC, the remaining 1.5 billion are in-house checks paid to branches where they are withdrawn or processed intra-bank without going through the opening. As volume begins to fall, the challenges faced by clearing banks then have different properties: how to benefit from technological improvements in a declining business environment.

Although Britain did not adopt the euro as its national currency when other European countries in 1999, many banks began offering euro currency accounts with checkbooks, especially for business customers. Checks can be used to pay for certain goods and services in the UK. In the same year, C & amp; CCC sets up a euro check clearing system to process euro currency checks separately from sterling checks in the United Kingdom.

The UK Paying Board started June 30, 2011 withdrawing the existing UK Guarantee Card Scheme. This service allows checks to be guaranteed at point of sale up to a certain value, usually Ã, Â £ 50 or Ã, Â £ 100, when signed in front of the retailer with an additional check surety card. This is after a long period of declining use for debit cards.

The Paying Board proposes to close centralized clearance checks altogether in the UK and has set a target date of October 31, 2018. However, on 12 July 2011, the Paying Board announced that after opposition from MPs, charities and public opinion, the examination will remain in use and there will be another reason to look for alternative payouts starting with paper.

United States

In the United States, checks are referred to as checks and governed by Section 3 of the Uniform Commercial Code, under the rubble of negotiable instruments.

• The order check - the most common form in the US - is only paid to named payers or endorsee , as it usually contains the language "Pay in the order (name). "
• Carrier checks are paid to anyone with the document: this will be the case if the check does not mention the payee's name, or is paid to "carrier" or "cash" or "to cash order", or if the check is paid to someone who is not a person or legal entity, for example if the payer line is marked "Happy Birthday".
• A checkback is a bank check provided to a customer who has run out of checks or whose check is not yet available. Often left empty - so sometimes called "blank checks", although this term has other uses - and is used for withdrawal purposes.

In the US, the terminology for checks historically varies with the type of financial institution it withdraws. In the case of savings and loan associations, it is a negotiable order of withdrawal (compare the Negotiable Order of Withdrawal account); if the credit union is a stock chart. "Checks" are associated with rented commercial banks. However, general use is increasingly in line with the newer version of Article 3, where check means any or all of these negotiable instruments. Certain types of checks drawn on government agencies, especially payroll checks, can be termed as payroll .

At the bottom of each check there is a routing/account number in MICR format. The ABA route transit number is a nine digit number in which the first four digits identify the US Federal Reserve Bank check processing center. This is followed by 5 to 8, identifying the special bank served by the check-processing center. Digit 9 is the verification check digit, calculated using the complex algorithm of the previous eight digits.

• Normally the routing number is followed by a group of eight or nine MICR digits indicating a specific bank account number in that bank. Account numbers are granted independently by various banks.
• Normally the account number is followed by a group of three or four MICR digits indicating the specific check number of the account.
• The directional number - also known as the transit number, consists of a denominator that reflects the first four digits of the routing number, and the hyphenator is also known as the ABA number, where the first part is the city code (1-49) if accounts in any of 49 specific cities, or country codes (50-99) if not in one particular city; the second part of the hyphenated counter will reflect the digits 5 to 8 of the leading zero routing numbers removed.

A draft in the US Uniform Commercial Book is any form of exchange, either paid on demand or in the future. If paid on demand, it is a "demand draft", or if withdrawn at a financial institution, a check.

Electronic checks or replacement checks were officially adopted in the US in 2004 with the issuance of "Clearing the Check for 21st Century Act" (or Check 21 Act). This enables the creation of electronic checks and translations (deductions) from paper checks into electronic replacements, reducing processing costs and processing time.

Specifications for US checks are provided by ANSI committee X9 Technical Report 2.

Turkish

In Turkey, checks are typically used for commercial transactions only, and use checks after the date is allowed by law.

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Check out fraud

Checks have been a lucrative target for criminals to steal money or goods from a drawer, payee or bank. A number of steps have been introduced to combat fraud over the years. This ranges from things like writing a check so it's difficult to change after being withdrawn, for a mechanism such as crossing a check so that it can only be paid to another bank account that provides some traceability. However, the inherent security flaws in the examination as a payment method, such as having only a signature as a primary authentication method and not knowing whether the funds will be accepted until the cleaning cycle is over, have made them vulnerable to a number of different types of fraud.

Embezzlement

Take advantage of the float period (check kiting) to delay notification of missing funds. This often involves attempts to convince traders or other recipients, hoping the recipient will not suspect that the check will not be clear, allowing the con artist time to disappear.

Counterfeit

Sometimes, fraud is the preferred method of deceiving the bank. One form of fraud involves using a victim's legitimate examination, which has been stolen and then thawed, or altering a check that has been legally written for the offender, by adding a word or number to inflame the amount.

Identity theft

Because the checks include significant personal information (name, account number, signature and in some countries SIM number, address or phone number of the account holder), they can be used for identity theft. The practice was stopped because identity theft became widespread.

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Uncritical checking

Unacceptable checks can not be redeemed for value and worthless; they are also known as RDI (return deposits), or check NSF (insufficient funds). Checks are usually rejected because the drawer account has been frozen or limited, or because there is not enough funds in the drawer account when a check is redeemed. Checks drawn on accounts with insufficient funds are said to have bounced and can be called rubber check . Banks will usually charge customers for issuing dishonest checks, and in some jurisdictions such actions are criminal. Drawers may also issue a stop at checks, instructing financial institutions to disrespect certain checks.

In England and Wales, they are usually re-marked "View Drawers" - an instruction to contact the person who issued the check for an explanation of why the check was not honored. These words were brought after the bank was successfully prosecuted for defamation after returning the check with the phrase "Inadequate Funds" after making a mistake - the court ruled that because there was sufficient funds, the statement proved wrong and damaged the reputation of the person who issued the check. Despite the use of this revised phrase, the libel lawsuits filed against the bank by individuals remain the same for similar errors.

In Scotland, the check acts as an assignment of the amount of money to the payee. Thus, if a check is denied in Scotland, any funds in the bank account are "attached" and frozen, until enough funds are credited to the account to pay checks, the drawer returns the check and deposits it into the bank, or the drawer obtains a letter from the payee stating that they are no longer interested in checks.

Checks can also be rejected for being stale or not cashed in "void after date". Many checks have explicit notices printed on checks that are not valid after a few days. In the US, banks are not required by the Uniform Commercial Code to honor date-stale-check dates , which are checks presented six months after that date.

Consumer reporting

In the United States, some consumer reporting agencies such as ChexSystems, Early Warning Services, and TeleCheck have provided a check verification service that tracks how people manage their checking accounts. The bank uses the agency to check the checking account applicants. Those who have a low debit value are denied checking the account because the bank is unable to pay the account to be revoked.

In the UK, similar to other items such as Direct Debit or fixed orders, dishonest checks may be reported on customer credit files, although not individually and this does not happen universally among banks. Payments not listed from a checking account can be marked in the same way as a missed payment on a customer's credit report.

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Lockbox

Usually when a customer pays a bill with a check (such as a gas or water bill), the letter will go to the "lock box" at the post office. There the bank will collect all mail, sort it, open it, pick up checks and payment advice, process it all through an electronic machine, and send the funds to the right account. In modern systems, by utilizing Check 21 Act, as in the US, many checks are converted into electronic objects and paper is destroyed.

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See also

• Allonge - the paper slip attaches to the check used to support it when there is not enough space.
• Empty check - check where the remaining amount is empty.
• Certified inspection - guaranteed by the bank.
• E-check - electronic funds transfer.
• Hundi - checks historic Indians like instruments.
• Labor checks - the political concept of distributing goods for employee benefits.
• Cattle nego - an urban legend in which a cow is used as a check.
• Remote - check scanning and transmitting to bank electronically.
• Replacement check - a paper check check and turn it into electronic payments.
• Travel check - a prepaid check that you can use to make a payment at the store.
• Check for railway payments - identification used to collect train workers pay packages.

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Note

Checks (in the UK) are the cornerstone of small businesses and clubs (sports etc.) who do not have credit card facilities and do not want to deal with cash.

Foot Records

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External links

• Check found in Cairo Geniza from the 12th century
• Information about checks in the UK from the UK Payment Administration
• Malaysia Introduces New Check Clearing System
• Bills of Exchange Act 1882
• Check Act 1957
• Check the Act of 1992
• Instrument Negotiation Instrument, 1881, India

Source of the article : Wikipedia