CERTIFIED CHEQUES Meaning and
Definition
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Certified cheques, also known as certified checks or cashier's cheques, refer to a type of payment instrument provided by a bank or financial institution. It is a guarantee by the bank that the funds required to cover the cheque will be available when it is presented for payment.
To obtain a certified cheque, the purchaser first writes a cheque requesting a specific amount to be paid to a designated payee. Next, they approach their bank, pay the amount required, and the bank then "certifies" the cheque. The bank verifies that the funds are available in the account and sets them aside to guarantee payment. Once certified, the bank marks the cheque accordingly, typically by stamping or endorsing it, indicating that the funds are secured.
Certified cheques are commonly used for large transactions where the recipient requires assurance of payment. They are considered a more secure form of payment because, unlike a personal cheque, there is a guarantee that the funds will be available. As a result, the recipient can be confident that the certified cheque will be honored and can deposit or cash it without concerns about insufficient funds.
This type of cheque is also useful when a person or business does not have a checking account. They can obtain a certified cheque by visiting a bank or credit union, paying the required amount in cash, and having the bank certify it. Once certified, it can be used just like any other cheque for payment or deposit.
Common Misspellings for CERTIFIED CHEQUES
- xertified cheques
- vertified cheques
- fertified cheques
- dertified cheques
- cwrtified cheques
- csrtified cheques
- cdrtified cheques
- crrtified cheques
- c4rtified cheques
- c3rtified cheques
- ceetified cheques
- cedtified cheques
- ceftified cheques
- cettified cheques
- ce5tified cheques
- ce4tified cheques
- cerrified cheques
- cerfified cheques
- cergified cheques
- ceryified cheques
Etymology of CERTIFIED CHEQUES
The word "certified" in "certified cheques" comes from the Latin word "certificare", which means "to make certain" or "to assure".
The term "cheques" is derived from the word "check", which originated from the Arabic word "sakk" during the medieval Islamic world. Sakk referred to a written document or order directing a bank to pay a specific amount of money to a specified person. This concept was later adopted and transformed by European banking systems, leading to the use of the word "check" in English.
When combined, "certified cheques" refers to a type of check that guarantees the payment as it is issued by a bank. The bank certifies that the funds are available in the account of the person issuing the check, ensuring its validity and secure payment.
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