Last week we covered a few different forms of business checks, including certified checks, cashier’s checks, and traveler’s checks. Today we have a few more useful checks to add to that list!
Personal Checks: A personal check is the check that you are probably the most familiar with. Personal checks are only payable to the individual who is named on the check. The account holder who wrote out the check is responsible for the overall amount. These are usually the types of checks you would receive for graduation presents or during the holidays from relatives or close friends.
Bearer Checks: These forms of checks are made payable to anyone who presents the check. Bearer checks are often marked “cash” and do not name anyone in particular for the overall amount. The person with the check can essentially cash it in at any bank without having to place the money in their own personal account.
Money Order Checks: A money order check is similar to a certified check in that the check must be paid for in advance. These checks can be purchased at any US Post Office or financial institution. In order for a money order check to go through, it needs to be prepaid with cash, a debit card, or a traveler’s check. Also, you do not need to have an account with the financial institution in order to purchase a money order check.
