Check, one of the indispensable elements of business life is a tool that facilitates payment transactions with the facilities it provides. In this article, we are talking about the rules you need to follow during editing in order for the check to be valid. In our article where we answer questions such as what is a check, how to use a check, how to write a check, and how to fill a check, we explain what needs to be done to be considered valid.
WHAT IS A CHECK?
Check is a valuable document that is arranged by the account holder, namely the drawer, against a counterpart, that is, the bank, that contains an instruction to pay a certain amount written on it to the person whose name is written on the check, that is, the beneficiary.
A check is a payment tool that can be used instead of cash. In this sense, a check is a valuable document containing an instruction given to the bank to pay a certain amount in the bank account to the person whose name is written on it.
Checkbook includes check sheets that are specially printed by the bank in accordance with the required rules. Mandatory information such as the name of the branch where the account is located and the account number is placed on each check leaf.
Rules to be followed for the check to be valid
For a check to be valid, it must be issued according to established rules.
- The word “check” must be written on it, and if the word check is written in a foreign language, the equivalent of this word in the relevant language must be “check”.
- On the check sheet, the name of the bank to which the account belongs, the name of the branch where the account is located and the account number of the person issuing the check must be included.
- There should not be any conditions or conditions on the check that may prevent the payment of the specified amount.
How is the check drawn up?
- The date on which the check was issued must be indicated, which must be clearly stated without abbreviation.
- The signature of the person issuing the check, the drawer, must be handwritten. Checks signed with a signature stamp, seal, or fingerprint are not considered valid.
- The tax identification number of the person making the check must be on the check sheet.
- The name of the person to whom the check will be paid must be specified. If you issue the check to the holder, any person holding the check can collect it. If this field is left blank, the check will be processed as the bearer.
Correction of Check
If the correction is required on the check, this correction can only be made by the person who issued the check. Changes made to the check must be signed by the drawer to approve the correction alongside or below the change.
Please note that if any of these elements is missing, the issued check will not be valid. Likewise, when receiving a check, you should check whether the check complies with these rules in order to avoid any problems during collection. If any corrections have been made on the check, control if the issuer’s signature is present next to the correction. In addition, the written check must be approved by the bank to which it belongs.
What is an electronic check?
An electronic check is the electronic world equivalent of a paper check used in the real world.
Just like the use of paper checks, e-checks must be defined into the system of the bank before they can be used. In the electronic check system, payments are made by entering the required bank account information on the e-commerce site. In a sense, the user pays to the e-commerce site by issuing a check. The use of e-checks is very safe because it is bank controlled.