The check is a widespread payment instrument that allows you to regulate the transfer of money between two people, without it having to take place materially (considered, in fact, that the bearer of the check can claim the ownership of this credit instrument to be collect the same amount of money – within certain limits – or deposit it on your current account).
Of course, the check we are talking about today is purely to be understood and qualified as a ” bank check “, and not as a ” bank draft “. A difference not without consequences: let’s see which, in a brief synthetic introduction.
The bank check is issued by the holder of a current account (or by a person with appropriate faculties) to apply to the funds present in the current account. It follows that a person can issue a check, even for amounts higher than those that are actually present in the account (overdraft), exposing – naturally – to the consequences of the case. It also follows that the one who receives the check and tries to collect it, could have the unpleasant surprise of facing an incapable credit. It is for this reason that bank checks are paid and negotiated “subject to collection”: the credit institution reserves a few days to try to understand whether the check is covered or not, debiting the same amount in the contrary hypothesis .
Very different is the case of the bank draft, which is issued on funds that are made available by the bank, at the customer’s request. In other words, when the bank draft is issued and delivered, the related funds will have already been acquired and debited. The result is a remarkable certainty of the title, compared to the banking one.
Having introduced the above, we remind you first of all that in order to correctly fill out a check it is necessary to indicate:
The bank check is cashable or negotiable through the “endorsement”, or by affixing its signature on the back of the security, with consequent delivery to the bank that will deal with the collection (in the event that you wish to convert it into money – within the limits allowed by the law or by the institute’s regulations – handing it over to the issuer’s bank, in the event that you wish to deposit it in your account, it will be sufficient to hand it over to your bank).
At that point, considering the negotiation of the debts (subject to collection), it will be necessary to wait for the technical currency availability days before actually spending the sums present. Using the sums prior to this availability, there is therefore the risk of suffering a currency overdraft, with debit interest being charged.
To be able to find out more, we advise you of course to read carefully the current account contract that you have signed, and the transparency information sheets in force (find all these details in the documentation that was delivered to you at the opening, and on the website of your reference credit institution). Inside, you will also find specific indication of the days of economic and technical currency, and consequently you will be able to obtain useful information in order to guide you in managing the financial resources acquired through the receipt of a bank check.