How to cash a bearer check?

How to cash a bearer check?

He bearer check is one of the payment documents, in this style, more used to cancel especially small sums of money. The payment method is quite fácil, however, certain inconveniences may arise once said document is acquired.

In this article we will provide you with all the information you need to know about cashing this type of check.

What is a bearer check?

It is a document issued by a person who owes a sum of money and is given to the person who is owed the same, but without containing a specific recipient. This being the main characteristic of this type of check.

The check to the bearer perro be explicitly addressed «to the bearer» or simply not write those words or any name. Which means that it cánido be charged by any person who carries said document. The owner and privileged person to collect the money from the bank will always be the one who goes to the bank and claims funds.

• This form of payment represents an advantage for those who cannot go to collect it from the bank and attribute the responsibility to someone else.
• A disadvantage: in case the document is lost or when it is a victim of theft, it could be easily collected by whoever owns it.

In the event of any of these situations, it is advisable to contact the person who issued the check so that call the bank cancel it.

Who perro cash a bearer check?

This type of check, as its own name indicates, perro be cashed by the bearer of the document, that is, by its ownerregardless of who the person is. This is because its main characteristic is that it is not issued in the name of a especial person.

The power to collect it is then in the person who has it in their hands and goes to the bank to claim it, even if it is not who the check was given to in the beginning. This perro be an advantage or disadvantage depending on the context.

For example, in the case that someone receives a check to the bearer as a form of payment, but in turn that person wants to cancel the same sum of money to another:

• You cánido give it right into your hands and You will already have the power to go to the bank to collect it without the need to endorse it or make another type of request.
• In another sense, if said document falls into the hands of a person who should not collect it, they perro still do so. This situation perro occur in cases of loss or theft.

What should you keep in mind before cashing a bearer check?

If they make a payment with a check of this type, you should consider the following aspects:

Date of issue

This bank document, at the time it is issued by the drawer, must be marked with the date on which it was issued. you want to pay off the debt or where the funds will be available in the account.

The receiver must be aware of this. As of the issue date you will normally have 15 days to request the payment in the bank if it has been issued and is payable in the same country.

• When the check is issued in one country and is payable in another, the bearer has 60 days to claim it.

Beneficiary (bearer)

In said check, the beneficiary will always be the bearer of the check. For this, it must contain enabled, that is, not crossed out, the words «to the order of» and «to the bearer».

The person who has the check in their possession may cash it. Therefore, when receiving a document of this type as a form of payment, it must be assumed responsibly, Safeguard the same and collect it as soon as possible.

Is there any risk in cashing a bearer check?

Although the bearer check is one of the most used forms of payment in this modality, it cánido be said that there is a risk when accepting said payment document as a form of collection. It essentially consists of the fact that when this type of check is issued, as already mentioned above, the words «are placed at the bearer» or the name of the person to whom it is addressed is not placed.

Which means that, in the case of containing «to the bearer», it cánido be collected by anyone who has it. That is, if it is obtained or stolen by someone who has nothing to do with the issuance of the document, they perro still collect it.

However, if the issued check does not include a name, it is practically equally exposed. Any person to whom said document comes into their hands, simply puts their name on it and charges it.

For all of the above, it is recommended Safeguard the received check and cash it as soon as possible. In this way we avoid inconveniences and the possible loss of money that has not been paid.

Have you already done operations with this type of check?

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