Paying or collecting via cheque is still a commonly used payment method. However, within the types of cheques that exist there is the so-called crossed cheque. Do you know what a crossed cheque is and how it is collected?
If you have ever encountered this type of payment or charge, but you have not known whether to use it or not, below we give you all the keys to take it into account, especially if you are a business owner or self-employed. Shall we begin?
What is a crossed check?
The first thing to understand is what a crossed check is. This is like a normal check, that is, it is a document that is accepted as a means of payment and that a person issues and signs. This person is called the issuer. And it gives the right to a financial institution, that is, a bank, to pay the amount reflected in that document to another person, who would be the beneficiary.
Now, The difference is that the crossed check can only be deposited into a bank account.
To make it clearer: imagine that you have done a job and you are paid with a crossed check. You go to the bank to get paid and you want the money in hand. Well, since it is a crossed check, that means that the bank is authorized to pay you the amount, but, at the same time, it is obliged to not give that amount to you in cash, nor to put it in a bank account where you are not the account holder. In other words, it will only go to an account that is in your name.
Among the latests Moravia's compositions Features that you can find on the crossed check are:
- Ability to be collected by third parties.
- It is not easily lost, because the person who enters it can be identified and, therefore, could be found in case of loss or theft.
- Once crossed, they cannot be removed or transformed into normal checks.
How to cross a check
Now that you have a better understanding of what a crossed check is, it's time to learn how a check is crossed. And the process is actually relatively easy. For starters, any check can be crossed.
To do it, The person issuing this check must draw two parallel oblique lines that cover the entire length of the check. This identifies this document as a crossed one, and from there the banks will realize that the money that must be paid must always go as a deposit into an account.
In many cases, check crossings carry important information. Sometimes the bank to which the check is to be cashed may be left blank, or it may mention an entity to which the check is to be paid (which may be different from the bank that issued the check).
Now, According to the Bank of Spain, a crossed check would also be one that has two parallel bars. (without specifying whether they are oblique or not) on the front of the check. In addition, it specifies that it can be crossed by both the issuer (the person who issues the check) and the person who is going to cash it (the beneficiary or holder). And, in the event that If you are a client of the entity that has to make the payment, you could collect it in cash, not as income on account.
Types of crossed checks
Within the Crusaders, you can find two types:
- General, when the crossed lines are accompanied by the word bank or they do not have any phrase. In that case, you can cash them at any bank.
- specials, When the name of a specific bank appears between the parallel lines, this indicates that you can only cash out your money at this bank.
How to cash a crossed check
Finally, we want to talk to you about how to cash this type of check. The normal situation is that, as the beneficiary, you go to the bank with the check, either to any bank or to a specific one. Before doing so, you must verify that your name and the amount are correct, and in case there is any error, you must speak to the person who issued the check so that they can correct or cancel it and give you another one.
At the bank, the worker will ask you for documentation to register the operation. And if you are the beneficiary or a third party, there must be a record of who received the money. This way, fraud or legal problems can be avoided, especially if the amounts are very high.
Once you do that check, the last thing left would be pay the amount that appears on the check, but depositing the money into the bank account.
Only if you have an account at that bank, you could do it in cash (according to the Bank of Spain).
Is it now clear to you what a crossed check is and how it is collected?