Despite digital payments, cheques remain common in business. Knowing the types of cheques and what 'crossing' means helps you use them safely.
This guide explains cheque types and crossing.
What is Types of Cheques and Cheque Crossing explained?
Cheques can be bearer (payable to whoever holds it), order (payable to a named person), crossed (payable only into a bank account, not over the counter), post-dated or stale (too old to be honoured).
Crossing a cheque — two parallel lines across it — ensures the money goes into an account, adding security.
| Bearer cheque | Payable to the holder |
|---|---|
| Order cheque | Payable to the named payee |
| Crossed cheque | Payable only into a bank account |
| Account payee | Restricts to the named payee's account |
Frequently asked questions
What does crossing a cheque do?
It ensures the cheque is deposited into a bank account rather than paid in cash over the counter, improving security.
What is a stale cheque?
A cheque presented after its validity period (typically three months), which the bank will not honour.