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Cheque
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== Variations on regular cheques == In addition to regular cheques, a number of variations were developed to address specific needs or address issues when using a regular cheque. === Cashier's cheques and bank drafts === {{Main|Cashier's check}} [[Cashier's check|Cashier's cheques]] and [[banker's draft]]s, also known as '''bank cheques''', '''banker's cheques''' or '''treasurer's cheques''', are cheques issued against the funds of a financial institution rather than an individual account holder. Typically, the term ''cashier's check'' is used in the US and ''banker's draft'' is used in the UK and most of the Commonwealth. The mechanism differs slightly from country to country but in general the bank issuing the cheque or draft will allocate the funds at the point the cheque is drawn. This provides a guarantee, save for a failure of the bank, that it will be honoured. Cashier's cheques are perceived to be as good as cash but they are still a cheque, a misconception sometimes exploited by scam artists. A lost or stolen cheque can still be stopped like any other cheque, so payment is not completely guaranteed. === Certified cheque === {{Main|Certified cheque}} When a [[certified check|certified cheque]] is drawn, the bank operating the account verifies there are currently sufficient funds in the drawer's account to honour the cheque. Those funds are then set aside in the bank's internal account until the cheque is cashed or returned by the payee. Thus, a certified cheque cannot "bounce", and its liquidity is similar to cash, absent failure of the bank. The bank indicates this fact by making a notation on the face of the cheque (technically called an ''acceptance''). === Payroll cheque === {{Main|Paycheck}} A cheque used to pay wages may be referred to as a [[Paycheck|payroll cheque]]. Even when the use of cheques for [[payroll|paying wages]] and salaries became rare, the vocabulary "pay cheque" still remained commonly used to describe the payment of wages and salaries. Payroll cheques issued by the military to soldiers, or by some other government entities to their employees, beneficiants, and creditors, are referred to as [[Warrant of payment|''warrants'']]. === Warrants === {{Main|Warrant of payment}} '''Warrants''' look like cheques and clear through the banking system like cheques, but are not drawn against cleared funds in a [[deposit account]]. A cheque differs from a warrant in that the warrant is not necessarily payable on demand and may not be negotiable.<ref>{{cite web |title=Cheque |url=http://a-z-dictionaries.com/glossaries/Accounting_Glossary.html#check |work=Glossary of Accounting terms |publisher=A-Z-Dictionaries.com |year=2005 |access-date=26 May 2009 |archive-url=https://web.archive.org/web/20090307233656/http://a-z-dictionaries.com/glossaries/Accounting_Glossary.html#check |archive-date=7 March 2009 |url-status=dead}}</ref> They are often issued by government entities such as the military to pay wages or suppliers. In this case they are an instruction to the entity's treasurer department to pay the warrant holder on demand or after a specified maturity date. === Traveller's cheque === {{Main|Traveller's cheque}} A [[traveller's cheque]] is designed to allow the person signing it to make an unconditional payment to someone else as a result of paying the issuer for that privilege. Traveller's cheques can usually be replaced if lost or stolen, and people frequently used them on holiday instead of cash as many businesses used to accept traveller's cheques as currency. The use of [[credit card|credit]] or [[debit card]]s has begun to replace the traveller's cheque as the standard for vacation money due to their convenience and additional security for the retailer. As a result, many businesses no longer accept traveller's cheques. === Money or postal order === {{Main|Money order|Postal order}} A cheque sold by a post office, bank, or merchant such as a grocery store for payment in favour of a third party is referred to as a [[money order]] or [[postal order]]. These are paid for in advance when the order is drawn and are guaranteed by the institution that issues them and can only be paid to the named third party. This was a common way to send low value payments to third parties, avoiding the risks associated with sending cash by post, prior to the advent of electronic payment methods. === Oversized cheques === [[File:Ansari X-Prize Check.jpg|thumb|Presentation of the [[Ansari X Prize]] $10 million award]] '''Oversized cheques''', also commonly referred to as '''novelty cheques''', are often used in public events such as donating money to charity, announcing government grants,<ref>{{cite web|url=https://www.theguardian.com/australia-news/2020/mar/10/six-grants-worth-a-total-of-260k-approved-in-marginal-seat-of-longman-before-election|title=Six grants worth a total of $260k approved in marginal seat of Longman before election|first1=Paul|last1=Karp|first2=Amy|last2=Remeikis|work=[[The Guardian]]|date=9 March 2020|access-date=9 November 2023}}</ref> or giving out prizes such as those from lotteries or [[Publishers Clearing House]] sweepstakes. The cheques are commonly {{convert|18|x|36|in|cm}} in size;<ref name="Big">{{cite web |title=Big Cheques |url=http://www.megaprint.com/large-checks.php |publisher=Megaprint Inc |access-date=26 May 2009}}</ref> however, according to the ''[[Guinness World Records|Guinness Book of World Records]]'', the largest ever is {{convert|12|x|25|m}}.<ref>{{cite web |title=GWR Day - Kuwait: A Really Big cheque |url=http://www.guinnessworldrecords.com/gwrday/ar_kuwait_bigcheque.aspx |publisher=Guinness World Records |year=2009 |access-date=26 May 2009 |archive-url=https://web.archive.org/web/20090106150051/http://www.guinnessworldrecords.com/gwrday/ar_kuwait_bigcheque.aspx |archive-date=6 January 2009 |url-status=dead}}</ref> Until recently,{{when|date=August 2020}}{{citation needed|date=April 2021}} regardless of the size, such cheques could still be redeemed for their cash value as long as they would have the same parts as a normal cheque, although usually the oversized cheque is kept as a souvenir and a normal cheque is provided.<ref name="Lewis">{{cite web |first=Lewis |last=Holden |title=A cheque is a cheque -- whatever it is printed on |url=http://www.bankrate.com/brm/news/chk/20010320a.asp?prodtype=bank |publisher=Bankrate, Inc. |year=2009 |access-date=26 May 2009 |archive-url=https://web.archive.org/web/20100914081300/http://www.bankrate.com/brm/news/chk/20010320a.asp?prodtype=bank |archive-date=14 September 2010 |url-status=dead <!-- different article -->}}</ref> Any bank could levy additional charges for clearing an oversized cheque. Most banks need to have the machine-readable information on the bottom of cheques read electronically, so only very limited dimensions can be allowed due to standardised equipment. === Payment vouchers === In the US some [[Welfare (financial aid)|public assistance]] programmes such as the [[Special Supplemental Nutrition Program for Women, Infants and Children]], or [[Aid to Families with Dependent Children]] make ''vouchers'' available to their beneficiaries, which are good up to a certain monetary amount for purchase of grocery items deemed eligible under the particular programme. The voucher can be deposited like any other cheque by a participating supermarket or other approved business.
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