You can complete such recommendations by mentioning the endorsee’s name on the cheque and providing your signature on the reverse side of the cheque. The drawee is the financial institution to which you are writing the cheque. The drawer is supposed to leave an instruction to the drawee to deduct a sum from their bank account.
- Nevertheless, in this type of cheque, the payee can give the approval or authorisation for the third party, and further, the third person can recommend it to somebody else.
- A primary benefit of account payee cheques is that they might be the safest variant of cheques.
- It is two parallel lines on the upper-left edge of a basic cheque.
- In conclusion, an account payee cheque is a secure and convenient way to make payments, providing added security and peace of mind.
- When you want to issue an Account Payee Cheque, first write the cheque.
The transmission of a cheque between one individual to the following individual and this process you can refer to as an endorsement. As previously indicated, you could only sign the crossed cheque. Whenever the recipient of a cross cheque has to make a payment, he\she can shift the cheque to his\her creditor. He\she must enter the endorsing guidelines on the reverse of the cross cheque to accomplish this.
If the cheque’s payee is unable to visit the bank, he may choose any other individual to receive the money. In this instance, the person receiving money through a cheque has the option of transferring that money to any other account as well. The advantage of this cheque is that it helps people receive money in their account even if they are not able to visit the bank.
The amount will be credited only to the bank account of the payee and cannot be encashed in the bank directly. Banking terminologies that one must be aware of as part of the cheque issuance process are Drawer, Drawee, and Payee. Account payee cheques are a type of cheque specifically designed to be deposited into the account of the person or entity to which the cheque is made. After you deposit the cheque, the banker completes the process and delivers the amount to the payee. A clearing facility receives and processes information and pictures of cheques electronically from banks, and it passes the procedure over to the other bank. As a result, it serves as an intermediate between the banking institutions for cheque clearance.
Meaning of a/c payee (only) in English
The money will be credited to the account of the person or entity mentioned on the cheque. You won’t be able to endorse this cheque because it isn’t a cross cheque. After receiving the payment through this cheque, the payee can’t endorse the account payee cheque to anyone else.
The “account payee only” instruction is essential to prevent fraud and ensure the funds are paid to the intended recipient. Account payee cheques are a valuable tool in the world of banking and financial transactions, offering an added layer of security and precision. Designed to safeguard against fraud and unauthorised use, these cheques can only be deposited into the specified payee’s account, providing peace of mind for both parties involved. Words printed between two vertical lines in the centre of a UK cheque that, in accordance with the Cheque Act 1992, make the cheque non-transferable. In spite of this most cheques are now overprinted ‘account payee only’ or ‘A/C payee’ and the words ‘not negotiable’ are sometimes added.
More meanings of a/c payee (only)
By making an endorsement the endorser promises that in case of dishonor, he / she provides a guarantee to compensate the holder. General Crossing – cheque bears across its face an addition of two parallel transverse lines. Special Crossing – cheque bears https://1investing.in/ across its face an addition of the banker’s name. Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee. It is two parallel lines on the upper-left edge of a basic cheque.
The account payee cheque secures your transfer as the payment can only be deposited in the payee’s account. His name will be mentioned on cheque, so he is an authorized person to receive cash. So if drawer himself need to withdraw cash from his account using cheque then he need to write as SELF in the payable field of the cheque. A crossed Cheque is issued when the person makes two parallel lines on the cheque’s top
What Is the Significance of an Account Payee Cheque?
Regarding the signature, an account payee cheque differs from a crossover cheque and the order cheque, but it is opposed to holder verification. A holder cheque is perhaps the most prone to fraud, but an APC is a very safe document. It is essential to understand the various methods of drawing the line on cheques to fulfil the proper task. So drawer is giving instruction to drawee to pay an amount mentioned on the checque to the person named or to the bearer of the checque.
Within some days, the bank will transfer the money to your account. Crossed cheque
A crossed cheque is also called an account payee cheque. It is a bearer’s cheque which has the words ”account payee” written on the top left-hand corner enclosed in two parallel lines. It is the safest cheque to issue because only the name written on the cheque will have the money transferred to their account. There are several advantages to using an account payee cheque.
Please keep in mind that you must write the savings account and contact detail on the reverse side of the cheque. Bank will deposit the amount in the proper account even if, in any case, the deposit form misses. The primary factor for the popularity of drafting an account payee cheque is that this is the safer type of cheque.
When you want to issue an Account Payee Cheque, first write the cheque. Then draw two parallel crossing lines at the top of the left corner of the cheque. In addition to, write ‘A/C Payee Only’ between these two lines. A crossing or direction on a BILL OF EXCHANGE that the drawee should credit funds only to the bank account of the payee.
In case of a crossed cheque, the payee is free to make further endorsements. 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. One can mention ” account payee ” between the two lines on the upper left side of the cheque.
Whether used for unfamiliar transactions or in online marketplaces, account payee cheques provide peace of mind and ensure that payments reach their intended recipients. Whenever you get an APC, keep in mind that you cannot cash it at the countertop. You must deposit it into your savings account using the cheque deposit form. To begin, complete the cheque deposit form with all of your information. Clip that to the cheque and hand it over to the customer service agent or place it inside the cheque deposit box.