A check or two checks on WhatsApp

The pros and cons of the check

What is a check

Generally speaking, this is a small piece of writing that reveals the legal requirements of a deed. It is therefore an embodied explanation of thoughts. With it, the consumer instructs his bank to hand over or transfer a certain amount to the person who submits the check.

The paper thus changes hands twice: First the buyer hands it over to the seller, who then passes it on to his bank. Only then is the process complete and the actual goal - namely the payment of the outstanding sum - can be carried out.

Insurance, in particular, is still one of that large industry today that very often pays with checks. On the other hand, this option is increasingly disappearing from everyday life.

Types of checks

Checks can be differentiated from one another according to different criteria. For one thing, there is Differentiation according to the form of transmission; which includes:

  • The order check: the transfer takes place explicitly; The check sum may only be paid to the payee named on the check or to the person to whom the check has been transferred with an endorsement (endorsement) - the name of the beneficiary is noted on a line of the form.

    It is not a common form of check. The order check is recommended as a security measure when shipping by post.

  • The bearer's check: this check is always transferable. It is an order paper which, through the bearer clause, takes on the function of a bearer check or becomes this.

    This means that the credit institution does not have to check the submitter's authorization, in contrast to the strict endorsement check. This form of check is the most commonly used.

  • The name check: This type of check can only be transferred explicitly and to a very limited extent. The name check is addressed to a specific person; however, it is rarely used in practice.

The Differentiation according to the form of payment refers to the following checks:

  • Cash checks: are paid out in cash to the holder or the recipient named in the order. A cashier's check becomes a crossed check with the note "Only for settlement", as does two parallel lines running diagonally on the top left of the check (international check).

    Payment is usually only made to the bank named in the check. The account holder's check is also assigned the function of a receipt.

  • Crossed checks: may not be paid out in cash by the bank to the holder; it is generally collected via a current account. The check may only be cashed as a credit note.

There is also the Differentiation according to the security of payment transactions, to which

  • Bank checks (mainly used in international payments)
  • Certified checks; Bundesbank checks (in contrast to normal checks, the bank issues the check and debits the customer's account immediately)
  • Euro checks (meanwhile have the function of normal checks without a payment guarantee)


The benefits of the check

As a cashless form of payment, the possibility of exchanging the certificate has been able to assert itself positively. After all, the consumer does not run the risk of losing his money. Relatively quickly and therefore usually within one to two working days after submission the money transfer can also be completed.

That too Send by post is possible: If you do not want to hand over the check in person, but want to forego other forms of payment, you can settle the bill in this way. There is even the opportunity to have the check blocked even after it has been sent, i.e. to prevent payment if there are valid reasons for this.

The cons of the check

Basically, however only a few providers left find who operate with this form of payment. Indeed, some dangers outweigh this.

For the recipient is particular it is not possible to tell whether the check has any funds at all. If the signatory's account does not show the full amount stated on the document, the transfer cannot be made.

But the risks are not only lurking for the addressee. The person who delivers the check is also at risk.

It is difficult to estimate in advance when the certificate will be redeemed. A few weeks can pass during which the amount due should always be available in the account. For both parties, the money transfer is not difficult at all, but it is uncomfortable.

Tips on handling the check

Nowadays, there are some options that can be found to make a transfer more secure than a check can. Anyone who is able to do so should avoid this form of payment now. In any case, the future of the check is uncertain - it is very likely that it will disappear completely from everyday life in the foreseeable future.

However, if insurers or other service providers make a payment with it, the document becomes forwarded to your own bank as quickly as possibleto avoid delays in transferring funds. If the check bursts, a tough bureaucratic process threatens.

To the necessary components counting a check:

  • its designation as a check
  • the instruction to pay a sum
  • the name of the drawee
  • the place of payment
  • Place and day of the exhibition
  • the signature of the exhibitor

In addition to these prescribed components, there are also those that are legally possible or have become commercially available. These include:

  • the sum of money in digits
  • the name of the payee
  • a bearer clause
  • a check number
  • the purpose of usage
  • the bank code
  • the issuer's account number

A check contract between the check issuer and his bank is a prerequisite for payment by check. In addition, only forms obtained from this institute may be used to issue the check.

The presentation period in the Check Act stipulates that after its expiry the checks no longer have to be paid by the drawee; the aim is to prevent checks from being found in the cash cycle as a substitute currency for cash. This period begins on the day of issue and runs for eight days in Germany.