Cheques are one of the most traditional methods of making a payment transaction. They are a favored and popular method of offline payment amongst retailers worldwide as they are considered to be a safe payment technique. Cheques only allow the named recipient to cash the cheque at a bank or financial institution.
The Scope of Cheques
Cheques are largely considered to be a traditional form as payment, however they are still widely used in today’s marketplace. They allow account holders to conduct payments for goods and services. In order to accept cheques as a payment method, companies need to acquire a bank account thus enabling customers to employ this offline solution.
Paper cheques contain specific information on their physical form. This includes the date, amount, payee name and signature of account holder. The majority of companies require the ID or phone number of the account holder when they use a cheque to pay for goods and services.
There are a number of types of cheque, these are listed below;
- Bearer cheque
- Order cheque
- Uncrossed cheque
- Cross cheque
- Anti dated cheque
- Post dated cheque
- Stale cheque
A cheque can take up to several working days to process, unlike e-checks which are an immediate form of payment transaction. Accepting cheques allows companies to target a much larger market as this traditional form of payment is favored by customers due to the high level of security that it offers. The popularity of electronic checks has hindered the issuance of paper cheques; however they are still accepted by most retailers worldwide.