What Are The Various Types Of Checks That Banks Issued To Customers?

what are the various types of checks that banks issued to customers?

Due to the advancement in technology, the  rate of checks utilization has been reduced. This is as a result of the invention of online banking,  ATMs, virtual credit and debit cards. However, there are still many financial institutions and businesses that collect checks.

A check is a written, dated, and signed document  that directs a bank to pay a specific sum of money that is mentioned on it in digits, as well as in words to the check's bearer.

Checks are written by payor or drawer to Payee (person to whom the check is written). The bank on which the check is drawn is known as the drawee.

This article will guide you on the various types of checks issued by banks to their customers, features of a check and also how a check works.

Checks may be cashed or deposited. When the payee presents a check to a bank or any financial institution to  negotiate, the funds are drawn from the payor's bank account to the payee or the payee's account. 

Checks are generally written against a checking account, and can also be use to negotiate funds from a savings account.

Before collecting a check, ensure that the check is real. The article will guide you.

What Are The Different Types Of Checks Issued By Banks? 

Banks issue different types of checks, having different features to their customers. Some of these checks are;

1. Certified Check/Bearer Check:

A certified check is a type of check that guarantees the payee of the fact that the drawer's account has enough funds to honor the amount in the check. These checks are transferable by delivery it to the bank it is written  for it to issue payment.

To certify a check, it must be presented to the bank on which it is drawn, and at the time which the bank will ascertain its authenticity with the payor.

A bearer check can be identify by the word "or bearer" printed on it.

2. Cashier's/Banker's Check:

A cashier's check is one guaranteed by the banking institution and signed by a bank cashier, which means the bank is responsible for the funds. The bank issues these check on behalf of an account holder to make a remittance to another person in the same city. Here the specified amount is debited from the customer account, and then the check issued by the bank.

Banker checks are non-negotiable and instruments as there is no room for banks to dishonor these checks. These checks are valid for up to three months but could be revalidated provided specific conditions are met.

This type of check is often required in large transactions, such as buying of houses, land etc.

3. Crossed Check:

A crossed checks has two sloping parallel lines with the words 'a/c payee' written on the top left side. 

The lines ensures that irrespective of who presents the check, the payment will only be made to the individual whose name is written on the check, in other words, the a/c payee along with his/her account number. these checks are relatively safe because they can be cashed only at the drawee's bank.

4. Payroll Check:

A payroll check or paycheck, is a type of check which an employer issues to compensate an employee for their work. 

In recent years physical paychecks have given way to direct deposit systems and other forms of electronic transfer.

5. Traveler's Check:

Another type of check issued by banks to their clients is a traveler's check.

Foreigners on vacations carry traveler's check instead of carrying hard cash, which can be cumbersome. These checks are issued to them by one bank and can be cashed in the form of currency at a bank located in another location or country.

Traveler's check do not expire and can be used for future trips.

6. Stale Check:

When a check has past its validity three months after the date of being issued, it is called a stale check.

7. Bounced Checks:

When a person writes a check for a sum more than what is in their checking account, the check cannot be negotiated. This is referred to as a "bounced check". 

The check bounces because it cannot be processed, as there are insufficient or non-sufficient(NSF) in the account. A bounced check usually results in a penalty fee being charged to the payor. In some cases the payee is also charged a fee.

8. Post-Dated Check:

Post-dated checks are types of checks that a bank can issued to a customer.

These checks have a later date of redemption. Even if the bearer presents this check to the bank immediately after getting it, the bank will only process the payment on the date mentioned in the check.

This is valid after the mentioned date but not before the valid date.

Features of a Valid Check?

After seeing the different various types of checks issued by banks to their customers,  we will now be looking at the features of a check.

Although not all checks look alike, they generally share  the same key parts: 

  • The name and contact information of the person writing the check. Located at the top left-hand side.
  • The name of the drawer's account appears on the check as well.
  • The date is placed in the top right-hand corner of the check on a line.
  • The payee's name appears on the first line of the check, in the middle. This is indicated by the phrase "Pay to the order of"
  • The amount of to the paid in figures is filled out in the box next to the payee's name.
  • The amount is written in words on the line beneath the payee's name.
  • The payor signs the check on the line in the lower right hand corner.

If a check has all the above features then it most be consider valid. 

There is also  a memo line on the bottom left hand corner of the check underneath the drawing bank's information. It can be use by the payor to fill any important information such as reference number, or any other reason for writing the check.

The bank identification code number is written beneath the memo line and payer's signature line. At the back of the check, there is an endorsement line for the payee's signature when the check is negotiated.

What Is The Difference Between A Cashier's Check and A Certified Check?

A cashier's check and a certified check are both official bank checks that can be used to make large purchases or transfer large amounts of money. They are both considered to be more secure than personal checks, but there are some key differences between the two.

Cashier's check:

A cashier's check is drawn on the bank's own funds, meaning that the bank guarantees that the check will clear.

To purchase a cashier's check, you must visit a bank branch and present the amount of the check in cash or by debit card.

The bank will then issue the cashier's check, which will be signed by a bank representative.

Cashier's checks typically have more security features than certified checks, such as watermarks and special paper.

Certified check:

A certified check is a personal check that has been guaranteed by the bank.

To obtain a certified check, you must write a personal check and present it to a bank teller.

The bank will then verify that you have sufficient funds in your account to cover the check and will place a hold on those funds.

The bank will then stamp the check with the word "certified" and sign it.

Certified checks are less secure than cashier's checks because they are drawn on your personal account, not the bank's.

Which one should you choose?

Cashier's checks are generally considered to be the more secure form of payment because the bank guarantees them. Certified checks are still a more secure option than personal checks, but they are not as secure as cashier's checks.

If you are making a large purchase or transferring a large amount of money, you should choose a cashier's check. Cashier's checks are also a good option if you are paying someone you don't know well.

Certified checks may be a good option if you need to make a large purchase quickly and don't have time to get a cashier's check. They may also be a good option if you are paying someone you know well and trust.


Banks typically charge a fee to purchase a cashier's check or certify a check. The fee may vary depending on the bank and the amount of the check.

Cashier's checks and certified checks are both secure ways to make large payments. However, cashier's checks are generally considered to be the more secure option because the bank guarantees them. If you are unsure which type of check to use, you should consult with your bank.

How Does a Check Works?

Various types of checks have the same purpose which is to collect money. A check is a document that guarantees a certain amount of money. It is printed by the drawing bank and given to an account holder to  use. The payor writes the check and presents it to the payee, who the takes it to their bank or financial institution to negotiate for cash or to deposit it into an account.

Checks are important because they allows two parties to make monetary transactions without the need of actually exchanging physical currencies.

Checks can be used to pay bills, make gifts, or transfer money between two persons or entities. They are generally seen as a more secure way of transferring money than cash, especially when there are large sums involved. It is advantageous in the sense that a third party can not use it in cases of theft or lost.

Final Thought on Various Types of Bank Checks

A check is a written, dated, and signed document  that directs a bank to pay a specific sum of money that is mentioned on it in digits as well as in words to the check's bearer. A check is a document that guarantees a certain amount of money.

Checks can be use to make bill payments, as gifts, or to transfer money between two people or entities. Some types of checks are: cashier's check, traveler's check, post-dated check etc.