Wednesday, March 11, 2009

cheques (1)

acheque is defined as an instruction in writing to abanker ordering him to pay athird party the amount stated . (see next chapter for adetailed look at this definition .) cheques have been apopular method of payment , particularly if used in conjunction with acheque guarantee card . for very small amounts they are not acceptable and , many shops will not eccept them for $5 or less.the reason for this unwillingness to eccept cheques for small-value transaction is that the traders may have to pay bank charges of between 8p and 65p for each cheque paid into their bank. this compares with 50p per $100 for cash handling .
for anybody who accepts acheque there can be problems .first , has the person enough funds in the account or will the cheque be returned unpaid for lack of funds ? second , is the person offering it the true owner of the cheque or will it be returned unpaid ,marked 'signature differs ' or 'orders not to pay ' or 'no acount '? third , is the cheque correctly drawn or will it be raturned marker 'out of data ' or 'words and figures differ'?

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