ZIMSEC O Level Commerce Notes: Money and Banking: Advantages and Disadvantages of cheques
- Making payments by cheque has several advantages and disadvantages
Advantages of making payments by cheque
- It is more convenient than carrying cash around.
- Payments can be stopped if necessary.
- Cheques are safer if crossed.
- One does not have to count notes and risk making counting mistakes.
- A cheque can be drawn up anytime.
- Some are negotiable and can be endorsed in favour of a third party.
- They can be post-dated.
- They can be traced if lost.
- Can be posted more cheaply.
- A customer is send a statement at the end of each month.
Disadvantages of cheques
- Cheques are not legal tender and other creditors may refuse to accept them.
- They may be valueless if the drawer has no funds in his/her account.
- Depositing cheques into an account is time consuming.
- Cheques are not suitable for small amounts.
- People without bank accounts will be inconvenienced by crossed cheques.
- Banks charges are levied on cheque books and dishonoured cheques.
To access more topics go to the Commerce Notes page.
Quick NetOne, Telecel, Africom, And Econet Airtime Recharge
If anything goes wrong, click here to enter your query.