Before deciding on the types of cheques you are willing to deal with, understanding how this works in crucial. While a cheque makes it easy to transfer large sums of cash to others, it is important that you know exactly what you are dealing with. With the many types of cheques available in the banks the last thing you want is to send a wrong one. Writing a cheque is not only convenient but also easy when dealing with other people. It especially works perfectly for business people.
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Types of crossing cheque
This is a cheque paid through the collecting banker as opposed to having it done directly in the bank's counter. This kind of a cheque prevents fraud and wrong payments, and both bearer and order cheques can be crossed for it protects the drawer and payee of a cheque. Here are types of cheques with pictures;
1. Specific bank
A crossing line has the specific banker and it adds lines in between the lines with the name of the banker. The specific bank which is the beneficiary can add an extra crossing to the cheque to allow another bank which is their agent to be paid the cheque on their behalf.
- Accountable payee- this type of a crossing cheque is payable in the account with an exact similar name as is on payee or cheque line. This increases the security in the sense that it cannot be cashed at a bank counter, and an additional a crossing to a cheque.
- Not negotiable- the transferor cannot become a holder in due course. The result of this kind of crossing is the elimination of crucial traits of the negotiable document.
- General crossing- this type of cheque bears the words not negotiable between its two parallel lines.
2. Special and restrictive crossing
This type of a crossed cheque has a specific bank name written on it and the result of special crossing is that the bank makes payment only to the banker whose name is written in the crossing. The payment of such cheque is not made unless the bank named in crossing is presenting the cheque.
Types of cheques in Ghana
In Ghana a cheque is a written document that orders a financial institution or bank to pay a particular amount of money to the payee from the signer of the check. And there are different types of cheques in Ghana and most of people would be asking how many types of cheques are there, and here we will list them down one by one;
1. Certified cheques
Here you can request for a certified cheques when you not sure if a person has enough fund in his account to avoid the cheque bounce. A certified check guarantees that the writer of the check has enough funds in his account to transfer when the check is submitted by the payee.
2. Traveler cheques
This type of cheque is much safer than carrying cash with you while in a foreign country. It can be replaceable within 24 hrs in case of misplacement
3. Cashier cheque
A bank representative signs the check and makes it payable to a payee. a customer pays a bank the face value of the check along with a service charge and that’s how you can obtain a cashier cheque.
4. Bounced cheque
This type of a cheque the bank cannot process due to insufficient funds in the account. The bank returns the cheque and some money will be charged from the person’s account.
Types of travellers cheques
Traveler cheques are generally used by people on vacation in foreign countries instead of cash, the advantage of this cheque is that the cheque's issuer will unconditionally guarantee payment of the face amount even if the cheque was fraudulently issued, stolen, or lost. Travelers cheques is among the types of bank cheques and it is categorized in;
1. Deposit and settlement
This will be stamped or signed and listed the cheque and its amount on the deposit slip. And a payee receiving a traveler's cheque would follow its normal procedures for depositing cheques into its bank account.
2. Cashing cheques
The purchaser would purchase in the presence of the payee, date and countersign the cheque in the indicated space.
3. Denomination and change
Unused cheques can be kept by the purchaser to spend at any time they would want for the traveler's cheques do not expire.
Purchasing cheques for later use
Traveler’s cheques can be bought from the banks or agencies and they can be used anytime. Other than where they carry the cheques the purchaser are give a receipt and some other documentation that should be kept in a safe place this has the serial number that can be used if the purchaser misplaces the cheque.
Types of cheque endorsements
Endorsement cheque is a document with the signature of the holder made with object of transferring the document. The signature and message is written at the back of a cheque to either cash it, deposit it or to handover the rights of the cheque to someone else. The endorsement cheques have different types of cheque payments which are;
1. Restrictive endorsement
When the cheque has been given a specific name and the endorsee cannot endorse it document any further.
2. Conditional endorsement
Here the paying bank is not in a position to verify and to fulfill the condition for it is between the endorser and endorsee only.
3. Blank endorsement
If this document is blank and it has only the endorser’s name only with no other additional name or direction then it is said to be a blank cheque.
4. Partial endorsement
This kind of a document should not be paid since it’s a negotiation cheque between the endorsee and endorser hence it’s not a valid endorsement.
5. Full endorsement
This is a document signed to by the endorser to the endorsee and specifically writes the endorsee’s name.
6. Forged endorsement
This an endorsed document signed by someone else and not the holder of the account, and no title should be derived from the document.
7. Facultative endorsement
This endorsement is when the endorser signals the condition of notice of dishonor.
8. Sans recourse endorsement
This is when the endorser orders by adding some words “order without recourse to me” this is a caution to endorsee from the endorser when he excludes his liabilities.
As we have stated there are different types of cheques and how each of the document has its own rule. If you would like someone to describe various types of cheques in Ghana, here we have described them all and still we have highlighted ways on which to issue the cheques. The endorser should be know before issuing the cheques which type of cheque he or she should issue to the endorsee.