Of the various payment methods available to consumers, checks are rarely used nowadays. However, they remain relevant in some entities that continue to allow consumers to use checks to settle certain expenses alongside new forms of payment.
In some cases, payment by check is used to signal a particular transaction, for example in the real estate sector, where checks are sometimes accepted as a form of payment.
In transactions where checks are used as a form of payment, it is usual to use a bank check or a certified check for this purpose. However, do you know what distinguishes them and in which cases they are used?
A
bank check is usually issued by a banking institution, through an account at the bank itself, to favor a third party at the request of the customer of the banking institution where the check will be issued.
Bank checks are characterized by having a balance guarantee and must be nominative in form, i.e., the beneficiary must be clearly and transparently defined.
A
certified check, on the other hand, is a type of check issued by a bank customer, where the bank ensures that the account from which the amount will be debited has sufficient funds to cover the payment. In this situation, the check does not have to be nominative.
How can a check be canceled?
In terms of cancellation, a bank check can be canceled, and the amount retained in the bank account is returned to the account from which it originated. However, the bank may charge a cancellation fee.
As for how certified checks work, they are actually very simple to use:
- as a way of ensuring payment to the recipient, the bank retains the amount specified on the check, usually in the account from which it was issued, for a maximum period of eight days; to validate this operation, the bank stamps the check at the time it is inspected, thus providing a security feature for the recipient of the certified check.
- It should be noted that the check, as a payment instrument, is considered a credit instrument, that is, a means of settling a certain amount by issuing a given order to debit the account.
The check should not be understood in itself as a form of immediate payment for goods and services, such as banknotes and coins, but rather as a kind of ticket that allows the authorization of settlement of amounts by another party with the guarantee that such an act can be carried out.
Source: https://www.doutorfinancas.pt/
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