We call check to the document used as a means of payment by which a person orders an entity to pay a certain amount to another (person or company).
We find checks of different types:
- Personal check: issued against a person's checking account. The holders of these accounts will be given a personalized check book to use as a means of payment.
- Conformed check: it is another form of personal check in which the entity ensures the existence of funds to execute the payment.
- Bank check: it is issued by the bank that must pay it.
- Check against the account of the Bank of Spain: this check will be paid by the Bank of Spain, so, as with the check made, they reinforce the payment guarantees.
- Counter or cashier's check: issued by the bank. It is not a means of payment, it is a document that the client signs as proof that they have received cash from their account.
- Traveller's check: it can be exchanged for cash and used as a means of payment almost anywhere in the world.
Discover it difference between check, promissory note and bill of exchange to know which one you may need in each situation.