A bearer cheque is a cheque that can be paid into the bank by anyone and not just the person named on the cheque. So, this cheque can be paid to anyone who presents it to the bank for encashment.
However, a cross cheque has to be deposited into an account and cannot be cashed straight away.
A cross cheque also has two parallel lines across the cheque with the words "payee a/c" or words of similar meaning. A cross cheque cannot be paid in cash over the counter.
A bearer cheque can be transferred in name merely by encashing it at the bank. However, if you were to find a bearer cheque lying in the street then you may be liable for wrong payment and could get in trouble if found out.
However, a cross cheque is made out to a specific person thus is a safer cheque to write out unless the recipient needs the funds straight away in which case a bearer cheque is a better idea.
- Bearer cheques vs Cross cheques
However, a cross cheque has to be deposited into an account and cannot be cashed straight away.
A cross cheque also has two parallel lines across the cheque with the words "payee a/c" or words of similar meaning. A cross cheque cannot be paid in cash over the counter.
A bearer cheque can be transferred in name merely by encashing it at the bank. However, if you were to find a bearer cheque lying in the street then you may be liable for wrong payment and could get in trouble if found out.
However, a cross cheque is made out to a specific person thus is a safer cheque to write out unless the recipient needs the funds straight away in which case a bearer cheque is a better idea.
