A cheque book showing a cheque. Image credit blogspot.com

A cheque book showing a cheque. Image credit blogspot.com

ZIMSEC O Level Commerce Notes: Money and Banking: 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

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.

To access more topics go to the Commerce Notes page.