We call check to the document used as a means of payment by which a person orders an entity to pay a certain amount to another (person or company).
We find checks of different types:
- Personal check: issued against a person's checking account. The holders of these accounts will be given a personalized check book to use as a means of payment.
- Conformed check: it is another form of personal check in which the entity ensures the existence of funds to execute the payment.
- Bank check: it is issued by the bank that must pay it.
- Check against the account of the Bank of Spain: this check will be paid by the Bank of Spain, so, as with the check made, they reinforce the payment guarantees.
- Counter or cashier's check: issued by the bank. It is not a means of payment, it is a document that the client signs as proof that they have received cash from their account.
- Traveller's check: it can be exchanged for cash and used as a means of payment almost anywhere in the world.
Discover it difference between check, promissory note and bill of exchange to know which one you may need in each situation.
visit our accounting glossary for more information on all accounting terms.