66-493: (Redirected from Checks ) [REDACTED] Look up check , Check , A check , or cheque in Wiktionary, the free dictionary. Check or cheque , may refer to: Places [ edit ] Check, Virginia Arts, entertainment, and media [ edit ] Check (film) , a 2021 Indian Telugu-language film "The Check" ( The Amazing World of Gumball ) ,
132-449: A payee, the entity to whom the drawer issues the cheque. The drawer drafts or draws a cheque, which is also called cutting a cheque , especially in the US. There may also be a beneficiary —for example, in depositing a cheque with a custodian of a brokerage account, the payee will be the custodian, but the cheque may be marked "F/B/O" ("for the benefit of") the beneficiary. Ultimately, there
198-465: A "paid" stamp. The cheque is now a cancelled cheque . Cancelled cheques are placed in the account holder's file. The account holder can request a copy of a cancelled cheque as proof of a payment. This is known as the cheque clearing cycle. Cheques can be lost or go astray within the cycle, or be delayed if further verification is needed in the case of suspected fraud. A cheque may thus bounce some time after it has been deposited. Following concerns about
264-463: A 2015 episode of The Amazing World of Gumball The Checks (episode), a 1996 TV episode of Seinfeld Games and sports [ edit ] Check (chess) , a threat to capture the king or general Check (poker) , declining to bet Checking (ice hockey) , several techniques Poker chip , less commonly referred to as a check Music [ edit ] "Check" (Meek Mill song) , 2015 "Check" (Young Thug song) , 2015 "Check",
330-426: A 2021 Indian Telugu-language film "The Check" ( The Amazing World of Gumball ) , a 2015 episode of The Amazing World of Gumball The Checks (episode), a 1996 TV episode of Seinfeld Games and sports [ edit ] Check (chess) , a threat to capture the king or general Check (poker) , declining to bet Checking (ice hockey) , several techniques Poker chip , less commonly referred to as
396-464: A banker desiring him to pay the money of the note to a third person. The ancient Romans are believed to have used an early form of cheque known as praescriptiones in the 1st century BC. Beginning in the third century AD, banks in Persian territory began to issue letters of credit. These letters were termed čak , meaning "document" or "contract". The čak became the sakk later used by traders in
462-429: A check Music [ edit ] "Check" (Meek Mill song) , 2015 "Check" (Young Thug song) , 2015 "Check", a song by Chris Janson from the album Real Friends "Check", a song by E-40 from the album The D-Boy Diary: Book 1 "Check", a song by Kojo Funds "Check", a song by Lil Durk from the album Lil Durk 2X "Check", a song by Max Webster from the album Universal Juveniles "Check",
528-438: A checked pattern in fabric and weaving Other uses [ edit ] Check mark , a symbol used to indicate completion, verification, or selection Checked baggage , luggage or parcels placed by an airline or train for transportation in the hold or baggage car Cheque ("check" in U.S. English), an order for transfer of money Rain check, an idiom from baseball meaning a deferral Check, an invoice presented to
594-412: A cheque can be crossed , which restricts the use of the cheque so that the funds must be paid into a bank account. The format and wording varies from country to country, but generally two parallel lines may be placed either vertically across the cheque or in the top left hand corner. In addition the words 'or bearer' must not be used, or if pre-printed on the cheque must be crossed out on the payee line. If
660-464: A cheque for such amounts instead. A number of countries have announced or have already completed the end of cheques as a means of payment. In October 2023, the average American wrote just over one check, according to the Federal Reserve Bank of Atlanta . The average value of these checks was $ 504, suggesting that most checks were used for larger purchases. This marks a significant decline from
726-597: A cheque, the onus is on the payee to initiate the payment, whereas with a giro transfer, the onus is on the payer to effect the payment. In the United Kingdom, France and Ireland cheques continued to be used as cheque payments were free for the consumer. However these countries have also seen significant declines since 2000. Since 2001, businesses in the United Kingdom made more electronic payments than cheque payments. The UK Payments Council announced in 2011 that cheques would continue as long as customers needed them reversing
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#1732855009812792-595: A customer to draw on the funds that he or she had in the account with a bank and required immediate payment. These were handwritten, and one of the earliest known still to be in existence was drawn on 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 a pre-printed form. These forms were printed on "cheque paper" to prevent fraud, and customers had to attend in person and obtain
858-614: A diner at the end of a meal See also [ edit ] [REDACTED] Search for "check" or "cheque" on Misplaced Pages. Checklist Check sheet Checker (disambiguation) Checkers (disambiguation) Checkmate (disambiguation) Cross check (disambiguation) Chek (disambiguation) Czech (disambiguation) All pages with titles beginning with Cheque All pages with titles beginning with Check All pages with titles containing cheque All pages with titles containing check Test (disambiguation) Topics referred to by
924-427: A marginal payment system or have been completely phased out. A cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer's name with that institution. Both the drawer and payee may be natural persons or legal entities . Cheques are order instruments , and are not in general payable simply to
990-539: A mobile banking application CHECK Scheme , a penetration testing certification run by CESG Checkbox , a type of widget in computing Patterns [ edit ] Check (pattern) (or "Chequered"), a pattern of squares such as that used on chess boards, fabrics Tartan , a checked pattern in fabric and weaving Other uses [ edit ] Check mark , a symbol used to indicate completion, verification, or selection Checked baggage , luggage or parcels placed by an airline or train for transportation in
1056-485: A numbered form from the cashier. Once written, the cheque was brought back to the bank for settlement. The suppression of banknotes in eighteenth-century England further promoted the use of cheques. Until about 1770, an informal exchange of cheques took place between London banks. Clerks of each bank visited all the other banks to exchange cheques while keeping a tally of balances between them until they settled with each other. Daily cheque clearing began around 1770 when
1122-461: A song by Chris Janson from the album Real Friends "Check", a song by E-40 from the album The D-Boy Diary: Book 1 "Check", a song by Kojo Funds "Check", a song by Lil Durk from the album Lil Durk 2X "Check", a song by Max Webster from the album Universal Juveniles "Check", a song by Nas and Rick Ross from the soundtrack to Creed II "Check", a song by Quin NFN "Check",
1188-453: A song by Nas and Rick Ross from the soundtrack to Creed II "Check", a song by Quin NFN "Check", a song by Qveen Herby from the 2020 EP 8 "Check", a song by Rustic Overtones from the album Rooms by the Hour "Check", a song by U.S.D.A. from the album Cold Summer "Check", a song by Zebrahead from the album Waste of Mind "Check (Let's Ride)", a song by Lil' Flip from
1254-431: A song by Qveen Herby from the 2020 EP 8 "Check", a song by Rustic Overtones from the album Rooms by the Hour "Check", a song by U.S.D.A. from the album Cold Summer "Check", a song by Zebrahead from the album Waste of Mind "Check (Let's Ride)", a song by Lil' Flip from the album U Gotta Feel Me The Checks (band) , a New Zealand band Computing [ edit ] Check (mobile app) ,
1320-524: A written order to pay the given amount to whoever had it in their possession (the " bearer "). Check is the original spelling in the English language . The newer spelling, cheque (from the French ), is believed to have come into use around 1828, when the switch was made by James William Gilbart in his Practical Treatise on Banking . The spellings check , checque , and cheque were used interchangeably from
1386-401: Is also at least one endorsee which would typically be the financial institution servicing the payee's account, or in some circumstances may be a third party to whom the payee owes or wishes to give money. A payee that accepts a cheque will typically deposit it in an account at the payee's bank, and have the bank process the cheque. In some cases, the payee will take the cheque to a branch of
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#17328550098121452-399: Is detached, and the stub is retained in the chequebook as a record of the cheque. Alternatively, cheques may be recorded with carbon paper behind each cheque, in ledger sheets between cheques or at the back of a chequebook, or in a completely separate transaction register that comes with a chequebook. When a cheque is mailed, a separate letter or " remittance advice " may be attached to inform
1518-440: Is different from Wikidata All article disambiguation pages All disambiguation pages check [REDACTED] Look up check , Check , A check , or cheque in Wiktionary, the free dictionary. Check or cheque , may refer to: Places [ edit ] Check, Virginia Arts, entertainment, and media [ edit ] Check (film) ,
1584-476: Is different from Wikidata All article disambiguation pages All disambiguation pages Cheque A cheque (or check in American English ; see spelling differences ) is a document that orders a bank , building society (or credit union ) to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as
1650-463: Is thought that the Commercial Bank of Scotland was the first bank to personalize its customers' cheques, in 1811, by printing the name of the account holder vertically along the left-hand edge. In 1830 the Bank of England introduced books of 50, 100, and 200 forms and counterparts, bound or stitched. These cheque books became a common format for the distribution of cheques to bank customers. In
1716-445: The drawer , has a transaction banking account (often called a current, cheque, chequing, checking, or share draft account) where the money is held. The drawer writes various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee , to pay the amount of money stated to the payee. Although forms of cheques have been in use since ancient times and at least since
1782-524: The Abbasid Caliphate and other Arab-ruled lands. Transporting a paper sakk was more secure than transporting money. In the ninth century, a merchant in one country could cash a sakk drawn on his bank in another country. The Persian poet, Ferdowsi, used the term "cheque" several times in his famous book, Shahnameh, when referring to the Sasanid dynasty. Ibn Hawqal , living in the 10th century, records
1848-520: The 17th century until the 20th century. However, since the 19th century, in the Commonwealth and Ireland, the spelling cheque (from the French word chèque ) has become standard for the financial instrument, while check is used only for other meanings, thus distinguishing the two definitions in writing. In American English , the usual spelling for both is check . Etymological dictionaries attribute
1914-450: The 1990s, both for point of sale transactions (for which credit cards , debit cards or mobile payment apps are increasingly preferred) and for third party payments (for example, bill payments), where the emergence of telephone banking has accelerated the decline, online banking , and mobile banking . Being paper-based, cheques are costly for banks to process in comparison to electronic payments, so banks in many countries now discourage
1980-499: The 9th century, they became a highly popular non- cash method for making payments during the 20th century and usage of cheques peaked. By the second half of the 20th century, as cheque processing became automated, billions of cheques were issued annually; these volumes peaked in or around the early 1990s. Since then cheque usage has fallen, being replaced by electronic payment systems, such as debit cards and credit cards . In an increasing number of countries cheques have either become
2046-516: The Bank of New York began issuing cheques after its establishment by Alexander Hamilton in 1784. The oldest surviving example of a complete American chequebook from the 1790s was discovered by a family in New Jersey. The documents are in some ways similar to modern-day cheques, with some data pre-printed on sheets of paper alongside blank spaces for where other information could be hand-written as needed. It
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2112-423: The album U Gotta Feel Me The Checks (band) , a New Zealand band Computing [ edit ] Check (mobile app) , a mobile banking application CHECK Scheme , a penetration testing certification run by CESG Checkbox , a type of widget in computing Patterns [ edit ] Check (pattern) (or "Chequered"), a pattern of squares such as that used on chess boards, fabrics Tartan ,
2178-433: The amount in both numbers and words. An issue date was added, and cheques may become invalid a certain amount of time after issue. In the US and Canada, a cheque is typically valid for six months after the date of issue, after which it is a stale-dated cheque , but this depends on where the cheque is drawn. In Australia, a cheque is typically valid for fifteen months of the cheque date. A cheque that has an issue date in
2244-534: The amount of time it took the Cheque and Credit Clearing Company to clear cheques, the United Kingdom Office of Fair Trading set up a working group in 2006 to look at the cheque clearing cycle. Their report said that clearing times could be improved, but that the costs associated with speeding up the cheque clearing cycle could not be justified considering the use of cheques was declining. However, they concluded
2310-734: The bank clerks met at the Five Bells, a tavern in Lombard Street in the City of London, to exchange all their cheques in one place and settle the balances in cash. This was the first bankers' clearing house . Provincial clearinghouses were established in major cities throughout the UK to facilitate the clearing of cheques on banks in the same town. Birmingham, Bradford, Bristol, Hull, Leeds, Leicester, Liverpool, Manchester, Newcastle, Nottingham, Sheffield, and Southampton all had their own clearinghouses. In America,
2376-448: The bank to be open and may have difficulty getting to the bank even when they are open; this can delay the availability of the portion of a deposit which their bank makes available immediately as well as the balance of the deposit. Terms of service for many mobile (cell phone camera) deposits also require the MICR section to be readable. Not all of the MICR characters have been printed at the time
2442-477: The bearer as bearer instruments are, but must be paid to the payee. In some countries, such as the US, the payee may endorse the cheque, allowing them to specify a third party to whom it should be paid. Cheques are a type of bill of exchange that were developed as a way to make payments without the need to carry large amounts of money. Paper money evolved from promissory notes , another form of negotiable instrument similar to cheques in that they were originally
2508-411: The biggest problem was the unlimited time a bank could take to dishonour a cheque. To address this, changes were implemented so that the maximum time after a cheque was deposited that it could be dishonoured was six days, what was known as the "certainty of fate" principle. An advantage to the drawer of using cheques instead of debit card transactions is that they know the drawer's bank will not release
2574-412: The cheque is crossed with the words 'Account Payee' or similar then the cheque can only be paid into the bank account of the person initially named as the payee, thus it cannot be endorsed to a different payee. Cheques sometimes include additional documents. A page in a chequebook may consist of both the cheque itself and a stub or counterfoil – when the cheque is written, only the cheque itself
2640-635: The cheque is written, as additional characters will be printed later to encode the amount; thus a sloppy signature could obscure characters that will later be printed there. Since MICR characters are no longer necessarily printed in magnetic ink and will be scanned by optical rather than magnetic means, the readers will be unable to distinguish pen ink from pre-printed magnetic ink; these changes allow cheques to be printed on ordinary home and office printers without requiring pre-printed cheque forms, allow ATM deposit capture, allow mobile deposits , and facilitate electronic copies of cheques. For additional protection,
2706-408: The cheque runs through the clearinghouse, requiring someone to print an MICR cheque correction strip and glue it to the cheque. Many new ATMs do not use deposit envelopes and actually scan the cheque at the time it is deposited and will reject cheques due to handwriting incursion which interferes with reading the MICR. This can cause considerable inconvenience as the depositor may have to wait days for
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2772-538: The cheque, there are usually one or more blank lines labelled something like "Endorse here". Starting in the 1960s, machine-readable routing and account information was added to the bottom of cheques in MICR format, which allowed automated sorting and routing of cheques between banks and led to automated central clearing facilities. The information provided at the bottom of the cheque is country-specific and standards are set by each country's cheque clearing system. This means that
2838-494: The convention. However, countries including the US and members of the British Commonwealth did not participate and so it remained very difficult for cheques to be used across country borders. In 1959 a standard for machine-readable characters ( MICR ) was agreed upon and patented in the US for use with cheques. This opened the way for the first automated reader/sorting machines for clearing cheques. As automation increased,
2904-428: The drawee bank, and cash the cheque there. If a cheque is refused at the drawee bank (or the drawee bank returns the cheque to the bank that it was deposited at) because there are insufficient funds for the cheque to clear, it is said that the cheque has been dishonoured . Once a cheque is approved and all appropriate accounts involved have been credited, the cheque is stamped with some kind of cancellation mark, such as
2970-412: The drawer was required to authorize the cheque, and this is the main way to authenticate the cheque. Second, it became customary to write the amount in words as well as in numbers to avoid mistakes and make it harder to fraudulently alter the amount after the cheque had been written. It is not a legal requirement to write the amount in words, although some banks will refuse to accept cheques that do not have
3036-511: The financial meaning of check to come from "a check against forgery", with the use of "check" to mean "control" stemming from the check used in chess , a term which came into English through French, Latin, Arabic, and ultimately from the Persian word shah , or " king ". The cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, to pay money to identified payees. Such an order
3102-405: The following years saw a dramatic change in the way in which cheques were handled and processed. Cheque volumes continued to grow; in the late 20th century, cheques were the most popular non- cash method for making payments, with billions of them processed each year. Most countries saw cheque volumes peak in the late 1980s or early 1990s, after which electronic payment methods became more popular and
3168-421: The future, a post-dated cheque , may not be able to be presented until that date has passed. In some countries writing a post dated cheque may simply be ignored or is illegal. Conversely, an antedated cheque has an issue date in the past. A cheque number was added and cheque books were issued so that cheque numbers were sequential. This allowed for some basic fraud detection by banks and made sure one cheque
3234-803: The hold or baggage car Cheque ("check" in U.S. English), an order for transfer of money Rain check, an idiom from baseball meaning a deferral Check, an invoice presented to a diner at the end of a meal See also [ edit ] [REDACTED] Search for "check" or "cheque" on Misplaced Pages. Checklist Check sheet Checker (disambiguation) Checkers (disambiguation) Checkmate (disambiguation) Cross check (disambiguation) Chek (disambiguation) Czech (disambiguation) All pages with titles beginning with Cheque All pages with titles beginning with Check All pages with titles containing cheque All pages with titles containing check Test (disambiguation) Topics referred to by
3300-712: The late 19th century, several countries formalized laws regarding cheques. The UK passed the Bills of Exchange Act 1882 , and India passed the Negotiable Instruments Act, 1881 ; which both covered cheques. In 1931, an attempt was made to simplify the international use of cheques by the Geneva Convention on the Unification of the Law Relating to Cheques. Many European and South American states, as well as Japan, joined
3366-584: The mid-1990s. From the mid-1990s, many countries enacted laws to allow for cheque truncation , in which a physical cheque is converted into electronic form for transmission to the paying bank or clearing-house. This eliminates the cumbersome physical presentation and saves time and processing costs. In 2002, the Eurocheque system was phased out and replaced with domestic clearing systems. Old Eurocheques could still be used, but they were now processed by national clearing systems. At that time, several countries took
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#17328550098123432-526: The money for a fee. Competition drove cashiers to offer additional services including paying money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment. This concept went on to spread to England and elsewhere. By the 17th century, bills of exchange were being used for domestic payments in England. Cheques, a type of bill of exchange, then began to evolve. Initially, they were called drawn notes , because they enabled
3498-466: The money until several days later. Paying with a cheque without adequate funds backing it and later making a deposit to the account on which the cheque is drawn in order to cover the cheque amount is called " kiting " or "floating" and is generally illegal in the US, but applicable laws are rarely enforced unless the drawer uses multiple chequing accounts with multiple institutions to increase the delay or to steal funds. Cheque usage has been declining since
3564-415: The opportunity to phase out the use of cheques altogether. As of 2010, many countries have either phased out the use of cheques altogether or signaled that they would do so in the future. The four main items on a cheque are: As cheque usage increased during the 19th and 20th centuries, additional items were added to increase security or to make processing easier for the financial institution. A signature of
3630-403: The payee no longer has to go to the bank that issued the cheque, they can instead deposit it at their own bank or any other bank and the cheque would be routed back to the originating bank, and funds transferred to their own bank account. In the US, the bottom 5 ⁄ 8 -inch (16 mm) of the cheque is reserved for MICR characters only. Intrusion into the MICR area can cause problems when
3696-421: The recipient of the purpose of the cheque – formally, which account receivable to credit the funds to. This is frequently done formally using a provided slip when paying a bill, or informally via a letter when sending an ad hoc cheque. Parties to regular cheques generally include a drawer , the depositor writing a cheque; a drawee, the financial institution where the cheque can be presented for payment; and
3762-407: The same term [REDACTED] This disambiguation page lists articles associated with the title Check . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Check&oldid=1240354409 " Category : Disambiguation pages Hidden categories: Short description
3828-407: The same term [REDACTED] This disambiguation page lists articles associated with the title Check . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Check&oldid=1240354409 " Category : Disambiguation pages Hidden categories: Short description
3894-632: The use of a cheque written in Aoudaghost which was worth 42,000 dinars . In the 13th century the bill of exchange was developed in Venice as a legal device to allow international trade without the need to carry large amounts of gold and silver. Their use subsequently spread to other European countries. In the early 1500s, to protect large accumulations of cash, people in the Dutch Republic began depositing their money with "cashiers". These cashiers held
3960-470: The use of cheques declined. In 1969 cheque guarantee cards were introduced in several countries, allowing a retailer to confirm that a cheque would be honored when used at a point of sale . The drawer would sign the cheque in front of the retailer, who would compare the signature to the signature on the card and then write the cheque-guarantee-card number on the back of the cheque. Such cards were generally phased out and replaced by debit cards , starting in
4026-420: The use of cheques, either by charging for cheques or by making the alternatives more attractive to customers. In particular, the handling of money transfers requires more effort and is time-consuming. The cheque has to be handed over in person or sent through mail. The rise of automated teller machines (ATMs) means that small amounts of cash are often easily accessible, so that it is sometimes unnecessary to write
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#17328550098124092-485: The year 2000 when Americans wrote an average of 60 checks annually. In many Asian countries, cheques were never widely used and generally only used by the wealthy, with cash being used for the majority of payments except for India, where cheque usage was prevalent. Where cheques were used they have been declining rapidly, by 2009 there was negligible consumer cheque usage in Japan, South Korea and Taiwan . This declining trend
4158-513: Was accelerated by these developed markets advanced financial services infrastructure. Many of the developing countries in Asia have seen an increasing use of electronic payment systems, 'leap-frogging' the less efficient chequing system altogether. In most European countries, cheques are now rarely used or have been completely phased out, even for third party payments except for the United Kingdom, France and Ireland. In most western European countries, it
4224-408: Was not presented twice. In some countries, such as the US, cheques may contain a memo line where the purpose of the cheque can be indicated as a convenience without affecting the official parts of the cheque. In the United Kingdom a memo line is not available and such notes may be written on the reverse side of the cheque. In the US, at the top (when cheque oriented vertically) of the reverse side of
4290-460: Was referred to as a bill of exchange . The use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency (for example, gold) to purchase goods and services. There is early evidence of using bill of exchange. In India, during the Maurya Empire (from 321 to 185 BC), a commercial instrument called the adesha was in use, which was an order on
4356-402: Was standard practice for businesses to publish their bank details on invoices, to facilitate the receipt of payments by giro . Even before the introduction of online banking, it has been possible in some countries to make payments to third parties using ATMs, which may accurately and rapidly capture invoice amounts, due dates, and payee bank details via a bar code reader to reduce keying. In using
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