A cross cheque is a type of cheque that is cast as an extra security layer during transactions. Such cheques are unlike regular cheques, which can be almost very easily encashed over the counter at the bank, for a cross cheque is encashed only at the individual account of the respected name mentioned on it. This guarantees that the money does not fall into the wrong hands.
A crossed cheque meaning is that a cheque having two parallel lines drawn across its face. These lines are usually placed on the upper left corner or across the middle of the cheque and are intended to restrict how the cheque is to be handled. A crossed cheque cannot be cashed at the bank counter but must be deposited directly into a bank account.
Let’s break down the process of using a cross cheque:
Also Read : How To Fill a Cheque
There are two types of cheque crossing: general cross cheques and special cross cheques. Now, we shall look at these two kinds in detail.
In the general crossed cheque meaning, it is the most popular cross cheque. It is in such a way that two similar lines are inscribed on the cheque without any indication between the two lines.
A special crossed cheque meaning is in the form of a special in the general cross cheque. In addition to having the two similar lines, it also contained a standard phrase like “Account Payee” or “A/C Payee Only” between the two lines. This, however, makes it much safer because it limits the payment to a specific person or account.
Cross-cheques are the preferred mode of payment among many people and businesses for several reasons. Some of the benefits are:
The foremost benefit of a cross-cheque is security. An amount against a cross cheque will be credited only to an account of the person or organization whose name is inscribed on the cheque. The risk of theft or fraud is reduced completely, thus providing a more secure mode of payment.
A cross cheque can be deposited only into an account, and nobody at the bank counter can cash it. This makes it safe for both the issue and the payee. Even if the cheque is lost or stolen, the thief cannot easily cash it.
Cross cheque also gives legal protection in case of disputes. If there has been a problem with a payment or transaction, the bank has the details of the cheque and can assist in sorting out the matter. These cross-cheques add another layer of accountability due to the created paper trail.
Use a cross-cheque, especially when making payments to a vendor or a supplier. It could also be used when giving money to someone you don’t know, like a gift or payment. Large amounts usually paid for much-needed services or goods can be directed into the recipient’s account by just issuing a cross-cheque.
Cross-cheques are a good way to ensure the money is safely paid. By simply drawing two parallel lines and using, in the case of a special cross-cheque, additional instructions like “Account Payee Only,” a cheque protects against fraud and misuse. Whether you want to make a big payment, spend on services, or simply pass money on to someone, a cross-cheque is a secure and reliable option.
