Can I cross out or bearer on cheque?

Your pre-printed cheque forms have the words ‘or bearer’ after the space where you write the name of the person to whom you are paying the cheque. The cheque is a ‘bearer’ cheque. If you cross out the words ‘or bearer’ and do not add the words ‘or order’, the cheque is still a bearer cheque.

Can you cash a cheque cross bearer?

Note: If the cheque is crossed with only two parallel lines but without cancelling “or bearer”, it can be deposited into anyone’s bank account. For a cash cheque: Don’t cross your cheque. Don’t delete the words “or bearer” on the cheque.

Can crossed Cheques be cashed?

If you cross a cheque (by drawing two parallel lines from top to bottom across the front of the cheque), you are telling NAB not to cash it over the counter. The cheque therefore must be paid to a bank (e.g. into a customer’s account).

Who can encash a crossed Cheque?

Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

What happens if we cut bearer on cheque?

How is a Bearer Cheque different from an Order Cheque? The order cheque is the one wherein the word bearer is canceled on the cheque. As the word bearer gets canceled the cheque automatically becomes an order cheque. An order cheque is paid to the payee across the bank’s account.

Why are cheques crossed?

Most commonly, crossed checks ensure that a bank strictly deposits the funds into an actual bank account. This provides a level of security to the payer because it requires that the funds be handled through a collecting banker.

What will happen if a crossed Cheque is presented for payment?

Once a check is crossed, it’s impossible for the payee to uncross it. Furthermore, such crossed checks are considered non-transferable, meaning they cannot be signed over to a third party. The only action permitted is for the payee to deposit the check in an account that the payee holds in their own name.

How do you clear a crossed cheque?

When you present a crossed check at the bank, the procedure to cash it is very similar to cashing a regular check. Sign the back of the crossed check, in the presence of a teller, and hand it over to her. You will also have to show proof of your identify using a government-issued identification card.

How do you clear a crossed Cheque?