What is a cross-check
A crossed cheque or a cheque crossed with two parallel lines, either across the whole cheque or through the top left corner of the check. This symbol means that the check can only be deposited directly into a Bank account and cannot be immediately cashed at the Bank or any other credit institution.
Breaking down the ‘crossed check’
By using crossed checks, check writers, you can simply but effectively protect the checks they write. Crossed checks are predominantly used in Europe and Asia, as well as in Mexico and Australia. Crossed cheques are rarely used in the United States, anyone trying to make crossed check in the USA may have problems.
Crossing of a check contains specific instructions for financial institutions on how the funds can be processed. Most often it is used to provide the Bank deposits only funds to the Bank account and not immediately cashing it upon initial receipt. This provides a level of security for the payer as it requires funds is carried out via a collecting banker.
The symbol of the crossed check
Although the exact format and wording may vary between countries, the most common of the symbolic market involves two parallel lines. These lines can be located opposite the registration center listed in the upper left corner, and may or may not contain the words “& Co.” or “not negotiable”, noting changes in condition. Otherwise, the phrase “account payee” can also be written on the check, and performs the same function crossing it.
If a cheque is crossed, there is no way for the recipient to straighten to check. In addition, the receipt is non-transferable; it cannot be transferred to a third party. The only allowed action for the recipient the account in the account that he holds in his own name.
The payer can stretch the check by writing “transfer cancelled” on the face of the check. However, it is generally not recommended; it eliminates the protection for the payer original in place.
If the beneficiary’s Bank does not perform intersection, it may be considered as a breach of contract between the Agency and the client who wrote the check. If the recipient does not have funds to cover cashing the check, the Bank may be liable for any resulting damages.
Open enrollment, also known as a bearer check or a check that is not crossed. Open cheques can be cashed at the cashier, the funds are provided directly to the recipient.