Cheque has been used by almost everyone at one time or the other. Whenever payment is made by cheque, the name of the recipient, the amount to be transferred along with bank details are given and signed.
Apart from this, two lines are drawn on the corner of the cheque. These lines mean account payee only. Do you know what is the meaning of A/C Payee and Cheque Endorsement. What is the difference between these two Cheques? When are they used? Let us tell you.
While cutting any type of cheque, along with the name of the person in whose name the money is to be transferred, the bank account number should also be entered. In this case the money will not be credited to any other account other than the mentioned bank account.
A/C Payee
The two lines drawn on the left hand corner of the Cheque mean account payee only, that is, the amount filled in the account should be received only by the person in whose name the Cheque has been drawn. Many times people also write Account Payee or A/C Payee in between these lines drawn on the cheque. Account payee Cheque cannot be cashed by any other person. The amount filled in the Cheque will be transferred only to the account of the person in whose name the Cheque has been drawn. The biggest advantage of this is that in case of loss of cheque, a fraudster cannot take cash in return by pretending to be the target person.
Cheque Endorsement
If A/C Payee is not written in between the lines drawn at the corners of the cheque, then this Cheque is called a crossed cheque. The help of Cheque Endorsing can be taken by signing on the reverse of the crossed cheque. But the Cheque cannot be endorsed after writing account payee.
when it is needed
In fact, if the payee of the Cheque is not in a position to go to the bank, he can authorize any other person to receive the money. This process is called Cheque Endorsement and this Cheque is called endorsed cheque. When a Cheque is endorsed, it is necessary to sign the back of it. In this situation, the person receiving money with the help of Cheque can get that money transferred to any other account as well.
