What Is A Bearer Cheque?


2 Answers

Elizabeth Leake Profile
Elizabeth Leake answered
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.

  • Bearer cheques vs Cross cheques
The difference between a bearer cheque and a cross cheque is that a bearer cheque can be cashed over the counter straight away so that the bearer can get the money from it instantly.

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.
Nathan Corrie Profile
Nathan Corrie answered
My understanding is that unlike a personal cheque, where it must be paid into the bank account of the payee, a bearer cheque is 'open' and may be cashed at the bank on which it is drawn by whosoever has possession of it ie, the bearer.
thanked the writer.
Anonymous commented
What it is neccessory to making a bearer cheque person must have account on that bank?

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