what is a cash cheque?

[tiffanytu]

Dear experts

what is a cash cheque?

is it true if u lost a cash cheque, anyone can pick up and get the money?

thanks!

 

[BBCWatcher]

what is a cash cheque?

It’s a cheque (or check) with the word “Cash” written on the Pay line, not crossed, and without the Bearer word crossed out.

is it true if u lost a cash cheque, anyone can pick up and get the money?

Yes, it has all the perils of cash, with two possible exceptions:

1. If the check has not cleared yet, you can ask your bank (for a fee) to stop payment.

2. Check settlement is traceable through the financial system, so the police might be able to help in certain cases — for example, if somebody robbed your house, stole a cash check, and deposited that check. Of course the police are going to ask why you wrote a cash check in the first place (just as they would ask why you’re keeping cash lying about), but hypothetically you could get some help from the police (and courts) if merited. That doesn’t necessarily mean they’ll be successful in recovering your funds.

There aren’t too many sensible reasons why you would write a cash check, but you can if you insist.

One reason why a payee might ask for a cash check is because that payee will then hand the cash check to somebody else, to settle his/her own payment/debt. That redirection could be for illegal purposes. If you have knowledge of an illegal act and cooperate in that act (by writing a cash check, for example), you may be guilty of a criminal conspiracy. At the very least you could be asked some awkward questions. If you have any doubts about the payee’s intentions, please don’t write a cash check (or pay in cash for that matter). Let the banking system help protect you.

 

[Shion]

Payee name "CASH" and not crossed, so anyone can take money as long as he/she has the cheque

 

[tiffanytu]

thanks bros for replying

what if Payee name "CASH" and crossed.. is it still a cash cheque? can anyone still take money as long as he has the cheque?

thanks

 

[BBCWatcher]

what if Payee name "CASH" and crossed.. is it still a cash cheque?

Technically not. (Why do you ask?)

can anyone still take money as long as he has the cheque?

Maybe. It’ll be up to the receiving bank how to interpret that bizarre check and whether to accept it. If the depositor happens to be named “Cash,” that should work.

Whoever is writing a check can do all sorts of silly things, like draw pictures of Mickey Mouse on them. Or put “Blond, Short, Middle Aged Woman with a Freckle on Her Nose” in the payee line, for example. If you’re the payee, it’d be unwise to accept an improperly written check. Banks are under no obligation to accept defective checks.

 

[tiffanytu]

just curious la bro

i dont understand what is the purpose of crossing a cheque

 

[BBCWatcher]

i dont understand what is the purpose of crossing a cheque

MoneySENSE explains it all.

Per MoneySENSE, it appears that a crossed check made payable to “Cash” is a valid check. It’s not technically a cash check, however.

What payment objectives are you trying to accomplish?

 

[dexboi]

A picture prints a thousand words.

In Singapore, a "crossed" cheque made by most people is simply 2 lines drawn at the top left corner edge. Perhaps ppl are lazy to write, but the official meaning of "crossing" is No. 6 depicted in the picture below.

A crossed-out cheque is suppose to mean that the cheque is only valid for the named person written on the cheque and not negotiable or whatsoever.

When i was younger, I always wondered why ppl draw 2 lines on their cheque. Like no purpose at all. haha

 

[BBCWatcher]

A picture prints a thousand words.

A thousand words in Hindi, perhaps. I’m not sure that an unsigned (!) Indian check is the best example, but at least it’s in the same universe.

 

[henrylbh]

Dear experts

what is a cash cheque?

is it true if u lost a cash cheque, anyone can pick up and get the money?

thanks!

Yes a cash cheque is as good as cash. Gone if you lose it. But in local practice, the bank will ask you to produce ic and write it down at the back of the cheque before handing over the cash. You can cross the cash cheque and the holder can only bank in but not cash the cheque.

 

[Yachtmaster]

A cash cheque is for people like me who is lazy to go ATM to withdraw cash

to put inside ANG PAOS

bigger amounts of course, eg wedding dinner

 

[cscs3]

Yes a cash cheque is as good as cash. Gone if you lose it. But in local practice, the bank will ask you to produce ic and write it down at the back of the cheque before handing over the cash. You can cross the cash cheque and the holder can only bank in but not cash the cheque.

Thats correct, cross cheque always means account payee only. You have to bank in then withdrawn after it is "cleared".

A cash cheque without cross means you can withdrawn cash immediately. This only applicable if you go to the same bank of cheque issuer (different branch is ok).