Checks are cashless means of payment methods that are usually used to transfer money between two bank accounts. Invented in Great Britain in 1742, the check is also one of the oldest means of payment in the world. However, it is still regularly used in Europe.
Checks are written documents that are valid for a full year and allow funds to be transferred from one bank account to another. Payment is therefore made through a financial or banking institution that ensures the security of the transaction. In legal terms, the check payment process involves three parties, each of which plays an important role. Thus, the drawer (person who writes the cashier’s check) orders the drawee (the bank) to pay a sum mentioned in writing to a beneficiary (the one for whom the money is intended).
If the check represents today one of the only manual means of payment, it remains nonetheless secure. While there is a tendency to believe that payments made by wire transfer or credit cards are subject to regular checks, bank checks are also duly monitored. The numerous checks carried out by banks on checks make them an expensive means of payment for users and financial institutions.
As mentioned above, the life of a check is important. Indeed, a check is valid exactly one year and eight days after its date of issue. Completed and signed by the holder of the bank account, a check can also be written by a person having a power of attorney on the account of the holder. In the event that the person holding a power of attorney wishes to make a payment by check to any beneficiary, the payment process remains the same: the bank will record the amount of the payment to the credit of the beneficiary, recover the amount credited from the bank of the ‘transmitter. The account of the issuer will then be immediately debited with the amount written on the check.
Among the other advantages of the check, it should be noted that this means of payment is accepted everywhere in the world and that it allows you to pay and cash very large sums. In return, a check can easily be stolen, stolen, or forged. Some checks may be made out in foreign currencies, but not all of them, because the characteristics of the checks vary between banks and especially the regulations in force in the countries. In the end, payment by check can also waste time: it is almost never debited the same day and it requires the beneficiary to come to his bank to be able to deposit it.