In this article we will see together what are the differences between a bank check and a cashier's check. When you make a proposal for the purchase of the house, a sum is usually requested as a deposit to guarantee the offer made and the buyer (often) has never even filled out a check in his life! All the new generations (from millennials onwards) are little used to this method of payment …
In reality, the only reason why a check is written, in the years of digital currencies and online transactions, is precisely the check. A tool that allows you to "leave a sum on deposit" in the name of a third party, in the hands of an intermediary. This sum serves to demonstrate the seriousness of the expression of interest and to bind (possibly) the parties in case of acceptance of the same.
We see below the two types of checks, bank and circular.
Why are there 2 types of checks?
Checks are "credit instruments" or documents that allow the circulation of money without necessarily where to exchange banknotes or currency in general.
The substantial difference lies in the subject that issues the security. The account holder of a bank, when it comes to bank check or directly the credit institution when it comes to circular. While for bank checks, the account holder can issue it at any time by filling it in autonomously with pen, the second can only be issued by the bank where the account holder has the availability of the money, and specifically requests the credit institution issue of the title itself.
How to fill out a bank check:
With the issuance of a BANK CHECK, a person holding a current account on a credit institution issues a security with which he "orders" the bank to pay a certain amount that must be available on his current account.
Characteristics of a bank check.
As you can see in the image shown here, the wording in the document is "At sight Pay for this bank check, a substantial difference compared to what we will see later in the cashier's check.
In addition to the place and date of issue, it is mandatory to specify the amount of money to be transferred, first in numbers (top right) then in letters (in the center), the recipient of the sum must also be specified and then the signature of the issuer must be signed. 'check.
What is a cashier's check
The CIRCULAR CHECK, on the other hand, is a security issued directly by the credit institution which, in order to be able to issue it, has already verified and withdrawn from the current account of the person who requested it, the sum equal to what is requested to be transferred. with cashier's check.
As you can see in the image, the wording has changed, in fact it says "You will pay on sight for this check" understood that the bank, the issuer is obliged to pay that sum to the recipient. the other difference between cashier's check and bank draft is that the former are printed by the bank, with a particular card and the information is not written by hand but by typing. moreover, the check is delivered with a strip of paper to tear on delivery which acts as a "receipt" and summary of the document issued.
Validity of a check:
To be valid, a check must contain certain characteristics such as:
- Date and place of issue
- Amount in figures and in words of the sum to be transferred
- References of the bank where the current account from which the payment is issued is located
- Name of the creditor who will collect the check
- Check number
As regards BANK CHECKS, there is no term for which the security "expires";
However, attention must be paid to the right of revocation that is granted to the person who issued the document. It is important to know that the person who issued the check has the right to revoke it once the following terms have elapsed:
- 8 days, if the check were cashed in the same municipality of issue
- 15 days, if the check were to be cashed in a municipality other than the one of issue
I'll explain. Tizio gives Gaius a bank check for € 1000 issued in the municipality of Verona. After 10 days of payment, Tizio goes to the bank and asks to revoke that payment order. If Caio's bank is in Verona and he has collected it before 8 days, Tizio's bank will not be able to revoke that payment. If, on the other hand, Gaius has not yet cashed the check, he can forget the € 1000. If, on the other hand, Gaius was in another municipality and cashed the check after 13 days of issue, he would still see his sum paid even if on the eighth day Tizio revoked the payment. If Tizio does not revoke the payment and there are funds in the account, that check can be cashed even after months and months of issue.
Unlike the above, for the CIRCULAR CHECK there is no revocability (with the exception of the return of the title to the bank and the cancellation of the document) this in fact remains valid for up to 3 years from issue. After this deadline, the beneficiary will no longer be able to collect the sum.
In everyday practice, bank checks are used as a "guarantee" of payment, even their issue is not always covered by corresponding funds in the current account of the issuer of the security (which absolutely could not be done). a check you must be sure that you have funds to cover your account in order to avoid the collection involving a REPORT.
What happens if I write a check without having the money in the bank.
If you were to issue a bank check without having verified the actual availability of funds in your bank, you could face the so-called “bank protest”.
Once the check has been issued, your creditor goes to the bank to collect it. His bank contacts yours and tells him:
"Hey! Your account holder told mine that you have to give me a fantastic € uro. Will you send them to me please? "
Your bank will then respond:
"My client has a balance of 15 cents in his account, wait for me to give him a phone call"
Before raising a fuss, the bank contacts you and tells you:
“Listen a little uncle scrooge! How do you go around spending and spreading if you don't have a penny from me? "
You can then go and deposit your fantastic € trillion that you kept in Switzerland and everyone is happy and happy or, you can run away to Mexico and your bank will have to notify your creditor's bank that there may be a "slight" problem with payment.
In the latter case, the bank where you tried to cash the check will call your creditor giving him a nice two of spades and telling him that the amount you promised him will not be paid. It is at this moment that your creditor (rightly displeased) will act in the manner prescribed by law to protect his reasons.
First of all, it will be necessary to legally clarify that you go around issuing uncovered checks, this is done at the protest office, where a public official will verify and certify your default. The latter will then officially order you to fulfill the payment, if also this time you decide not to pay then the public official will report your cialtronaggine in special public registers that can be consulted by all, so that people before accepting payments from you have the possibility to check if you actually pay or not …
Reporting in the register will have several consequences for you:
first of all you may have restrictions in your banking relationships (revocation of checkbooks, credit lines, etc.), then forget about having access to loans or financing (even just to get a mobile phone). This type of notification is not eternal, it can be canceled by following procedures after a certain time interval … but better not to enter it!