Check to bearer


A bearer check is a check that can be cashed by anyone who presents it at the corresponding bank or financial institution.

A bearer check is a payment document where the name of the beneficiary is not indicated, so anyone who has it in their possession and presents it to the Bank may collect it.

Characteristics of the bearer check

Here are the essential features of a check to bearer:

  • The beneficiary is not indicated.
  • It can be collected by anyone who carries it, that is, who has it in their possession and presents it to the bank.
  • It is generally used for the payment of small amounts of money or when it is not well known who should go to collect it

Agents involved in the bearer check

Three agents intervene in the preparation and collection of the bearer check:

  • The drawer: He is the one who takes charge of the amount to be paid established in the check. The drawer is the one who gives the payment order, sets the amount to collect and signs the check.
  • The Librado: It is the financial entity where the drawer has an account. The drawee is the intermediary who delivers the money to the bearer of the check.
  • The holder: It is the person who has the check in his possession and presents it to the bank to cash it.

Advantages and disadvantages of the bearer check

The great advantage is that it allows flexibility so that anyone can go and collect it. This can be useful in some cases, such as when a company has several employees with different time availability and you can freely choose who to send to collect the check.

The downside is your risk of loss or theft. When the check falls into someone else's hands, the person who owns it cannot be prevented from collecting it.

Tags:  banks bag finance 

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