Quick Answer: What Is The Difference Between Crossed Cheque And Account Payee Cheque?

What is account payee only Cheque?

What is an Account Payee Cheque.

An Account Payee Cheque is a highly secured type of cheque as the amount can only be deposited in the account of the payee.

The payee cannot endorse this cheque to anyone else..

What are the advantages of account payee crossing of a Cheque?

The benefits of a crossed cheque is as follows: Crossing of a cheque makes it difficult for a wrong person to get payment of the cheque. This is because, crossing is a direction to the paying banker to pay the amount mentioned in the cheque to the account of the payee and not across the counter.

How do I cash a payee only Cheque?

If it’s not an a/c payee only cheque, you might be able to cash it over the counter at the branch it’s drawn on. Best to enquire first to avoid a wasted trip. Notice the A/C Payee printed between the vertical lines. That means you can only pay it into a bank account of some kind.

How do I pay a Cheque into another person?

Cheque writing basicsWrite the name of the person or organisation you’re paying.Draw a line through any blank spaces on the cheque so people can’t add extra numbers or names.Add details (such as a reference or account number) to the payee line. … Keep the cheque stub that contains the details and reference.More items…

What is meant by cross Cheque?

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.

What are the advantages of a Cheque?

Advantages of making payments by chequeIt is more convenient than carrying cash around.Payments can be stopped if necessary.Cheques are safer if crossed.One does not have to count notes and risk making counting mistakes.A cheque can be drawn up anytime.More items…•

What are the two types of crossing a Cheque?

Types of Cross ChequeGeneral Crossing. According to Section 123, the common crossing of cheques means including some words in connecting the two lines drawn which signifies a crossed cheque. … Special or Restricted Crossing. … Not negotiable crossing (Section 130) … Amount Payee Crossing.

What are the types of crossing of Cheque?

Here are different types of cheque crossings and their effects;General Cheque Crossing. Under general cheque crossing, the crossing is done by drawing two parallel transverse lines across the cheque. … Special Cheque Crossing. … Restrictive Crossing or Account Payee’s Crossing. … Not Negotiable Crossing.

How do I cash a payee Cheque?

Clearing of A/C Payee ChequePayee deposit the cheque in the bank.Payee’s bank will process the cheque and send a request to the drawer’s bank for payment. … Drawer’s bank will check the signature and process the payment. … Now, payee’s bank will process the payment and credit it in his account.

How many types of Cheque are there?

1) Bearer Cheque He brought a cheque from his chequebook to the HDFC bank branch where he has an account. He can present the cheque to the bank and withdraw money from his account. This type of cheque is known as Bearer Cheque.

How do I withdraw money from crossed Cheque?

Once you cross the cheque and mention the payee name (in above example, it is my name) then I can only encash this cheque by depositing to my Bank Account. However, do remember that in crossed cheque payee is free to make a further endorsement. For example, in the above example payee name is mine.

Can I change the payee name on a Cheque?

Your bank might overlook a minor misspelling or variation in the payee name if it is still recognizable as your name. … If the payee is another person entirely, they can endorse the check over to you specifically by writing on it “Pay to the order of [your name].”

Is it necessary to write account payee on Cheque?

Ideally, you should also write “account payee” or “A/C payee” between the two parallel lines. If you want the bearer or payee to encash the cheque over the counter in any branch of your bank, do not draw the lines or write the words “account payee” or “A/C payee” on the cheque.

Can I cash a Cheque with account payee only on it?

A cheque which has no crossing at all is called an open cheque. … The legislation means that a cheque which bears the ‘A/C Payee’ or ‘A/C Payee Only’ crossing can only be paid into an account in the name of the receiver of the cheque exactly as it appears on the cheque.

Can someone else cash my Cheque?

Some banks allow cheques to be cashed by someone other than the person named on the front of the cheque if it is counter-signed. … You can then endorse the back of the cheque and deposit it into your account.