| Personal checks have always been one of the | | | | certain information such as: account number, |
| most popular forms of payment whether as | | | | check number,place of issue, date of issue, |
| third partypayments or for transactions | | | | payee, amount of currency (in words and |
| involving point-of-sales. They are | | | | figures) and also the signatureof the drawer. |
| convenient, easy to use andproducing one is | | | | |
| quick and fast. However, with changes and | | | | The Parties Involved |
| improvements in technology, thismethod of | | | | |
| paying is slowly becoming unpopular. Find | | | | The drawer or maker is the depositor or |
| out why. | | | | person who is writing the check. The payee |
| | | | is the person orentity tos which the amount |
| What is a Check Anyway? | | | | of money specified on the personal check is |
| | | | to be paid. The drawee isthe financial |
| Generally speaking, a check is a depositor's | | | | institution or bank where the check can be |
| written order to his or her bank, directing | | | | handed over for payment. |
| it to makefunds available to a person or | | | | |
| entity who is either specified on the check | | | | The Disadvantage of Personal Checks |
| or who physically bears it. Acheck is | | | | |
| basically an order from a bank to pay a | | | | Unlike other types of checks, a personal |
| certain amount of money to a specified person | | | | check is more often discouraged not only by |
| orentity. | | | | legal entitiesbut even by individual payees. |
| | | | Other kinds of checks have an unquestioned |
| It is considered a negotiable instrument in | | | | validity and are morepreferred since the |
| that it can be used to pay an individual, a | | | | funds backing these checks are more likely |
| group or a legalentity. Only a depositor | | | | sufficient. |
| with a checking account may use checks as a | | | | |
| means to purchase goods orservices. It is | | | | What the Future Holds for Personal Checks |
| variously spelled as check, cheque or | | | | |
| checque. The U.S. uses 'check' while | | | | Personal checks as instruments of exchange |
| | | | are gradually losing their popularity as a |
| Commonwealth countries and Britain uses | | | | means withwhich to pay for goods and |
| 'cheque'. | | | | services. The decline is merely a result of |
| | | | better and more convenientalternative means, |
| A personal check is check drawn from the | | | | such as debit or credit card payments, online |
| personal funds of a depositor or account | | | | and telephone payments andbanking. ATMs are |
| holder. Eachtime an account holder writes a | | | | also the more preferred method of getting |
| personal check, he guarantees that he has | | | | cash. Unlike checks, machines aremore |
| sufficient funds in hisbank in order to pay | | | | available and accessible regardless of day |
| the amount specified on his check. If the | | | | and time. |
| payee withdraws the amount from thedrawee | | | | |
| bank or deposits it in his own account and | | | | Another reason is that checks are simply |
| the depositor's funds are insufficient, his | | | | costly to process for financial institutions |
| checkwill bounce and he will be subject to | | | | and banks, sincethey entail transactions to |
| certain penalties and fees, depending on his | | | | be done with paper. Compared to other |
| drawee bank. | | | | methods of payment ortransactions such as |
| | | | electronic payments, checks are slower to |
| An advantage of personal checks or any type | | | | process and use more resources |
| of check for that matter is that they are | | | | |
| convenient touse and protected the bearer | | | | (paper, ink, manpower). |
| against theft. They also function as | | | | |
| receipts after they have beenprocessed by the | | | | Personal checks are also more likely to be |
| drawee banks and returned to the depositor or | | | | used in fraud and even identity theft, since |
| drawer. | | | | they ofteninclude personal information such |
| | | | as the depositor's name, account number and |
| What's in a Personal Check? | | | | signature. In somecountries, personal checks |
| | | | even include the account holder's address. |
| Typically, a personal check will contain | | | | |