Cheques

Cheques

• There ar two main types of cheques viz:
• Bearer’s cheques.
• Order cheques.

Bearer’s cheques

An assortment of RBZ issued bearer’s cheques. Image credit sokwanele.com

• These are have the words “Pay the Bearer on demand” written across their face.
• They are payable to anyone who present the cheques to the counter of the drawee.
• The cheque does not have the name of the bearer written on it.
• Bearer cheques are not safe as they can be cashed by anyone presenting them.
• The have expiry dates.

Order Cheques

• They have an instruction which reads,” Pay … or Order” written across their face.
• The payee’s name is expressly stated.
• The named person can obtain cash from the bank upon producing a valid ID.
• The named payee can transfer the cheque to someone else by endorsing it at the back.
• Order cheques may be open or crossed.

Open cheque

• Does not have parallel lines on the its face.
• Can be cashed over the counter.
• Anyone in possession of it becomes the owner.
• It is not safe as it can essentially be cashed by anyone.
• The payee sings at the back of the cheque.
• Usually used to pay a payee who does not have an account.

Blank Cheque

• May be an open or crossed cheque.
• Is signed by the draw without details on the cheque.
• Is issued to the drawer’s trusted people so that the payee can fill in the details.
• It is not safe.

Crossed cheques

• A cheque may have a general or special crossing on its face.

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