| A bank check is a negotiable instrument issued by a | | | | and it usually contains orders such as "pay cash." A |
| bank to pay a specified sum of money to a person | | | | certified check is a personal check whose payment is |
| upon demand. It is in the form of a written order and | | | | guaranteed by the bank on which it is drawn. |
| is drawn against funds deposited in the bank. Bank | | | | Crossed checks carry across its face two parallel lines |
| checks are also known by different names such as a | | | | with instructions such as "not negotiable" or "account |
| cashier's check, teller's check, and treasurer's check. | | | | payee only" between them. Such checks can only be |
| They are primarily used to send monetary gifts, | | | | paid into a bank account and cannot be paid over the |
| settle subscriptions, and make payments for goods | | | | counter. An order check is paid to a person whose |
| bought. | | | | name is written on the check. |
| Bank checks generally contain information such as the | | | | One of the prime features of a bank check is that it |
| name of issuing bank, name of payee, date of issue, | | | | can be transferred to a person other than the payee |
| signature of drawer, and amount of money. The | | | | specified in the check, through a process known as |
| amount should be specified both in numeric and | | | | endorsement. It is done by putting a signature on the |
| written format. In addition, bank checks include check | | | | back of the check, thereby legally transferring the |
| number known as bank routing number. Also called | | | | ownership of the check to some other person. |
| ABA number, a bank routing number usually has nine | | | | Sometimes, a bank check is returned or dishonored |
| digits and is printed on the MICR line, across the | | | | due to reasons such as incomplete information, a |
| bottom of the check. | | | | discrepancy in amount, and a difference in signature. |
| Bearer checks, certified checks, crossed checks, and | | | | Also, if there isn't sufficient money in the bank |
| order checks are among the different types of bank | | | | account, bank checks are returned. Such bank checks |
| checks. The key feature of a bearer check is that it | | | | are called "bounced checks," and you have to pay a |
| is paid to the bearer or the person holding the check, | | | | penalty for the returned check. |