Crossed checks only be redeemed at cover.
Crossed checks were popular means of payment at least in earlier times. There they are indeed still today. However, they are largely gone out of fashion. Today you pay by credit card or use the services of a payment service provider to complete. However, you should know what is a personal check. It could tell you yes but still a deal.
What is a personal check?
Cheques are a means of cashless payment. The issuer of the checks instructs his bank to pay out to the payee upon presentation of the check, the designated check sum. The Bank is the "related". The check will be based on the bank.
- A normal check is a personal check. The payee may submit it to the drawee bank and demand the immediate payment of the check amount in cash. A crossed check by contrast, bears the mention that he only "to offset" is (Art. 39 check law). The cash payment of the check amount is excluded.
- You can make any personal check to a crossed check, by usually enter the words to set off, in the upper left corner. However, the banks are also prefabricated crossed checks.
- The advantage over a transfer is that you gain time. The check is in fact due and payable only upon presentation to the drawee bank. also sending your check in the mail, it takes time. Since the check is also transferable, it may take some time until the last recipient actually redeems him.
- The downside is the lack of acceptance. If you order online goods, crossed checks are virtually no longer accepted. Here include credit cards, instant bank transfers, direct debits or paying via payment providers like PayPal.
Cheques are transferable
The advantage of checks is that they are transferable. There are the order check and the owner check. When OrderCheck reads the check in the name of a particular person. When owner Check the check is only to the owner or to a particular payee by the words "or bearer".
- Would you like to pass on the personal check in the form of the order paper to another person, you sign on the back with your name and surname. This process is referred to as the endorsement.
- When bearer security, it is sufficient if you transfer the check certificate. An endorsement is not critical, but to facilitate the payment modalities. You should not delete the bearer clause here. Brush the clause, the bank does not cash the check.
- You can issue the check of a domestic bank abroad. The recipients abroad handing him his bank for redemption at a German bank.
Arrangements for check cashing
- You can issue the personal check with any sum. Since the settlement, however, associated fees, it makes little sense to pay minimum amounts by crossed check. Then it may be cheaper to send by post stamps as payment or a bill.
- Each check is "at sight" payable. Given place before the crossed check your bank to check collection. Your bank accepts it, to cash the check at the drawee bank and credit it to your account. Please give your bank a collection order for payment. The credit can take up to 14 days to complete. Foreign checks are often weeks at a time.
- A crossed check you need, starting from its date of issue, provide for payment within eight days (Art. 29 check law). Thereafter, the drawee bank is no longer obliged to pay the check.
- Does the account of the check issuer for lack of funds no cover on, the drawee bank not honor the check. He goes to protest. must that the check issuer but for the payment of the check amount just personal opinion, goes without saying.
- Protested checks you can sue in the "documentary evidence". In summary proceedings the court decides particularly rapidly by reference solely to the check certificate. This facilitates the titling and enables fast execution because of the requirement. In that regard, you can post the receipt of a check as an advantage. You quickly come to a title.
Pay attention to these risks when Verrechnungsscheck
- Send a check issuer to check the mail, you bear the risk of shipment. If the check is not to the receiver for some reason, your payment was not made. Raises the receiver to check a, he has received the check obvious.
- If your owner check cashed by a stranger, he was traveling maybe stolen. You can then search through your bank, which person has the check to which account redeemed. Perhaps the payee has the check also passed (endorsed). Then the subsequent, you might unknown payee pays the check.
- In private car trade is partly worked with crossed checks. Be extremely cautious. Leave your car and the buyer accept a personal check, enter the coverage risk. Experience shows crossed checks are rarely covered in transactions of this kind. The check collection is to gamble.
Crossed checks are always fraught with risks. Given modern payment options you should refrain from the use of negotiable checks more. They are truly gone out of fashion and no longer timely.