There are multiple types of cheques, each of which satisfies a different area of finance. Open cheques are payable at the counter of the drawee bank, as long as there is presentation of the cheque. Secondly, there's the cross cheque. This cheque is payable only through a collecting banker, and is not directly cashed at the counter of the bank. The process of crossing ensures the security of the holder of the cheque, as only the banker collecting the cheque actually credits the proceeds to the account of the payee of the cheque. Another form of cheque is a Bearer cheque. This cheque is payable to anyone who possesses the document, if it is named to someone. For example, this would be the case if the cheque does not state a payee (person to be paid), or is payable to "bearer" or to "cash" or "to the order of cash", or if the cheque is payable to someone who is not a person or legal entity, specifically if the cheque is to signify an event, like a present of money for a birthday. This check might be transferred by delivery and needs no approval. An Order cheque is payable only to the named payee or his or her endorsee, as it usually contains the language "Pay to the order of (name). Other types of cheques include: Self cheques, Banker's cheques, Local cheques, Outstation cheques, Post-dated cheques and Drafts.
