What is a check?
The check is a payment order to a bank. It allows the person who receives it to collect the amount of money indicated on the document. At the time of cashing the money, it must be available in the bank account of the person who issued the check. The check is used as a means of payment, as an alternative to the use of cash.
The types of checks involved in electronic clearing are:
- – Common checks in pesos
- – Deferred payment checks in pesos
- – Certified checks in pesos
- – Financial paychecks in pesos
Deferred payment checks (CPD)
These are checks that can be issued with a deferred date for payment up to a period not exceeding 360 days.
The DPCs have two different cycles: the registration cycle and the payment cycle.
– The registration cycle is not contemplated in the clearing system, since it is an exchange of documents between entities, without settlement of money.
– The payment cycle starts when the DPC expires. This cycle is similar to clearing a check and the same rules and instructions apply as for regular checks.
Certified Checks
Banks may, in use of the powers conferred by Articles 48 and 49 of the Cheques Act, certify a cheque at the request of the drawer or bearer. This certification implies that the bank drawn debits and reserves the amounts of the corresponding account for an agreed time that cannot exceed 5 banking days.
The advantage of this type of check is that it allows the person who deposits the check to ensure its collection, in exchange the entities charge fees to carry out the certification process.
In the procedure, the entities must record the term for which it is extended. In addition, certification must be accredited by the extension of a “certification formula.”
The certification form must be delivered to the drawer or bearer of the check, stating the identification data of the check, date of issue, amount and period for which it is issued.
The certified check expired as such subsists with all the effects of the check (the funds are no longer reserved).
Financial paychecks.
Banks and financial institutions offer their customers or the general public this type of check.
Its implementation is based on the need to provide an alternative for people who are not customers of entities or do not have current accounts or credit cards, thus having the possibility of accessing this means of payment.
It is a common check, issued by banks and financial institutions with the modalities admitted for this type of check. The amount of the check can be paid by cash (cashier) by the applicant, by transfer in favor of the issuing entity or through account debit in the case of a customer of the entity.
The holder may deposit it in any entity, in which case it may be processed by clearing house against the bank or financial institution account drawn.
Learn more
Frequently asked questions about checking accounts and Declined Check Center.
Checks | Reasons for rejection.
Checks | Truncation.