Today, such a thing as a check is becoming more and more popular. With it, you can not only pay bills, but also make payments for goods and services. We will tell in more detail about what types of checks are, as well as the principle of their work, in this publication.
The general concept of checks and books
It is wonderful to watch from a TV screen when a wealthy foreign citizen pays for a hotel room or other services with a check from a beautiful book. Another thing is that few people know about this concept. In particular, many are confused by the details of the design of this operation. For our part, we will try to shed light.
So, let’s take a closer look at the concept, types of checks and the general characteristics of this calculation system. The check form implies the use of certain securities held by the payer.
Moreover, all checks are stored in a special book. With its help, the check holder can make a payment in favor of the check recipient for the amount indicated in it. It is noteworthy that only the financial institution in which the drawer has previously opened an account can act as the sender’s bank. It is from him in the future that funds will be debited, but exactly for the amount indicated on the check.
What information should the check contain?
Considering the types of checks in more detail, one cannot but say about the information that they must necessarily contain. So, they indicate the following information:
- name of the document (type of check);
- amount payable;
- information about the payer indicating his account number (it is from him that the payment will be made in the future);
- currency for payment;
- the place where the check was drawn up and the date of its completion;
- signature of the drawer.
It is noteworthy that in the absence of at least one of the necessary items, the check loses its original value. We will tell you more about what types of bank checks are.
What are checks?
In total, the types of checks can be divided into two large groups: transferable (order) and registered. As a rule, on the registered checks the name of the check holder is indicated. Transfer or order - in turn, can be written out in favor of another person. Moreover, if the amount on the check will be paid in cash, then such securities are called cash or cash.
If in one of the columns of the document there is a note “settlement”, then it cannot be received in cash. However, this amount can be written off by bank transfer. This procedure is performed from the account of the owner of the book. But to transfer money really exclusively to the bearer's account. Such operations are called settlement. Moreover, if a specific account number was indicated when filling out the document, the check recipient has the right to transfer funds only to it.
In addition, checks are carried out by checks (types of checks and a general concept about them can be found in our article) on the recipient. Unlike previous types of securities, these are written out without indicating the recipient. Later, when the owner of the book decides to pay for any services or goods provided by a private person, he indicates the intended recipient in his payment sheet.
What are these cross, bearer and order checks?
In turn, the types of bank checks can be divided into cross, bearer and order. Crossed security translates to crossed out. It can be represented by a slash (one or two) or an inscription can be present. However, there are cases when both the line and the inscription are used. This crossover can be done by both checkers and recipients.
Crossing is special and general. In the first case, the name of the financial institution responsible for issuing the booklet is indicated on such securities. This means that the cashing or payment of such a check is done exactly by the bank that was indicated when crossing. In the second case, the name of the credit institution is also mentioned, but an additional note is introduced - “bank”. However, these types of settlement checks are not cashed. The amount indicated on them can only be transferred to the recipient's account. Of course, then they can be exchanged for domestic currency, but this will take time.
Do not confuse several identical concepts
In addition to securities, other information carriers that are similar only in name take part in the calculations. So, for example, in retail outlets there are cashier's checks. They are a special receipt, printed on paper.
The most common types of checks in the store, supermarket and other points of sale of goods and services. As a rule, they are printed on a special ribbon coming from the cash register.
The following information shall be indicated on such media:
- name of shop;
- address of organization or branch;
- the price of the purchased product or service;
- legal form of organization;
- check number;
- TIN of the cashier or seller;
- the amount, taking into account taxes and fees (often the amount received and the amount of change issued are also signed);
- operation time;
- organization email address or website;
- thanks (Thanks for the purchase!).
However, these types of cashier checks are issued upon receipt of cash from a customer or payment by card. Sometimes they must be presented to receive the goods already paid.
Varieties of cash receipts: what are they?
Depending on their purpose, as well as the variety of goods and services, types of cash receipts are conventionally divided into: paper and electronic. In the first case, the client receives a check printed on paper, and in the second - only its electronic version.
By the way, upon receipt of an electronic form, it can always be smoothly transferred to an alternative paper version. But for this it must first be printed. It is realistic to receive a check in electronic form after payment by card or when using virtual currency in online stores.
What is a sales receipt?
In addition to the above, there are other types of sales checks. In particular, these include paper media that private entrepreneurs use for reporting. In this case, we have in mind the form of a sales receipt, which is an excellent addition to the previously received cash document (receipt). Usually it does not apply to standard forms of strict reporting because it performs an auxiliary function. Nevertheless, it contains the following information:
- name and type of document;
- contact details of the entrepreneur;
- TIN;
- date of receipt;
- form number;
- full list of goods and services;
- Amount
- Signature and full details of the person issuing the check.
It is noteworthy that information on each of the purchased goods and services (taking into account its cost and weight) is recorded in such a document. For greater convenience, various types of operations with checks are recorded in the appropriate notebook or cash book.
What can be done with checks?
If we talk about standard securities placed in a book, then with their help you can pay for goods and services. Thanks to paper media, you can get the product or service itself, but only after they have been paid in full. In addition, it’s cash register that will help to resolve a conflict situation, for example, if you purchased a defective product or a low-quality item. Or there was some confusion with the price. And commodity checks help keep track of the amount of goods sold and count the final amount.
Types of checks at Sberbank
There are settlement checks in Sberbank. Here, monetary documents are used that certify the right to receive a certain amount (usually it varies between 10-100,000 rubles). They are issued in the name of the client, but only after they deposit money into the account. It is noteworthy that no more than one check can be issued per name in a banking organization. If desired, this document can be rewritten in the name of another client. But in this case, the new owner receives all rights to it.
These types of checks can:
- pay in cash in favor of individuals;
- used as payment for a product or service;
- applied to confirm payment for a product or service.
The so-called traveler's checks previously worked at Sberbanks. We talk about them below.
What are travel or travel securities?
Another type of payment document is traveller's checks. These securities are usually issued by travel agencies, banks, international monetary systems and other financial organizations. In fact, they are a kind of settlement documents that allow you to buy a particular service, product. The owner of such a payment medium may be any individuals. Moreover, at the time of purchase, the future holder of such a document must put his signature on it.
The situation with payment in Russia and abroad
Unlike most foreign countries, these types of payments are not common in the Russian Federation. However, they are still involved in some financial organizations, for example, earlier it was Sberbank of Russia. At the moment, you can exchange and buy such payment documents at Svyaz-Bank, VTB Bank of Moscow and Bank Uralsib. It is noteworthy that some of them even arrange peculiar promotions with prizes, the purpose of which is to draw attention to a relatively new type of payment.
Securities banks can purchase American Express payment instruments. At the same time, the value of such checks ranges from 50 to 500 US dollars and euros. The amount of the commission for their purchase in this organization is charged within 0.5%. As an exchange currency, domestic rubles or foreign banknotes are usually used.
Here, lovers of these types of documents are entitled to pay them. In this case, the necessary amount is debited from the check holder’s account. True, you can pay in this way unless in duty-free shops (duty-free). The rest of the documents can be exchanged for domestic or foreign currency at the current exchange rate of the bank.
Such checks are very popular in America. Here with their help you can buy any goods and services. Therefore, going on a trip to the USA, boldly stock up with payment documents equivalent to the local currency.
How to find banks for exchange and purchase?
In order to find a suitable organization where you can buy or exchange your traveller's checks, you must go to the official Russian-language resource American Express aetclocator.com. Here you should set the appropriate parameters, according to the results of which you can find the nearest branch of a financial organization. For example, choosing the country of Russia and the city of Moscow, you can get a list of seven branches of Svyaz-Bank.
Similar information can be found on the website americanexpress.com, after selecting the country and preferred interface language.
Varieties and features of road tools
The following types of traveller's checks are currently known:
- American Express and Visa Interpayment.
- CitiCorp.
- Thomas Cook Mastercard.
The most popular are American Express. They belong to the most famous company to the issuer, and is issued for the following type of foreign currency:
- Australian and American dollars;
- Saudi real;
- pound sterling;
- RMB;
- Canadian dollar
- Euro;
- Japanese Yen etc.
Currently, only dollar-denominated securities and euros are valid in Russia. The rest are practically not popular. For the same reason, they are very few in circulation.
How to purchase and is it difficult?
In order to purchase traveller's checks, you must come to the selected bank branch, clarify the course and order documents of suitable denomination. In this case, from the documents you will need an internal or foreign passport. After receiving them, you must put your signature in the upper left corner. This action will help to avoid the troubles associated with the loss or theft of your payment instruments. In other words, no one will use them except you. As a rule, a receipt is issued to confirm your purchase. It describes the essence of the acquisition, face value, amount spent and your contact details.
What are the benefits of travel tools?
The use of traveller's checks has several advantages. For example, these documents do not have a validity period. For this reason, they are often not only kept for years, but can even be inherited.
The second advantage of using checks is the ability to withdraw a large amount of money abroad. In this case, no restrictions are intended. This is especially convenient when the ultimate goal of your trip is to buy a property or vehicle. However, if the amount exceeds $ 10,000, then it will be necessary to enter it in the customs declaration.
Moreover, checks are perfectly converted abroad. By exchanging them for local currency, you can seriously save. In addition, the amount of the commission for the exchange of one security often does not exceed one dollar.
Is it safe to use?
Using traveller's checks is absolutely safe. Even if you lose at least one, you will be able to solve the problem at the nearest representative office of your bank. To return payment documents you only need to present a receipt for payment or indicate the numbers of lost payment orders. And, of course, all travel documents are registered. Therefore, besides you, no one can use them.
Negative use points
Among the negative aspects of using traveller's checks, one can single out the fact that in any case you have to deal with cash. You will receive them as a change after your purchase. And the presence of cash abroad is always associated with certain risks, for example, loss or theft. And, of course, if you need to exchange your documents for local currency, you will have to look for banks that perform such operations.
Speaking generally about checks, their convenience is obvious. They allow you to simplify the process of obtaining a product or service, but at the same time they are associated with certain nuances. In particular, in Russia you still have to run around in search of outlets accepting them. The situation is different with credit cards. They are everywhere accepted, cashed and exchanged.