ORDER CHEQUE Meaning and
Definition
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An order cheque is a type of negotiable instrument that instructs a financial institution to pay a specified amount of money to a particular person or entity. It is a written document issued by an account holder known as the drawer, who authorizes the bank to transfer funds from their account to the payee.
The order cheque must contain the name of the payee, who is the intended recipient of the funds, as well as the exact amount to be paid. It also requires the drawer's signature as a verification and authorization for the transaction. Order cheques are typically used for secure and convenient payment purposes, such as settling bills, making purchases, or transferring funds to another party.
To cash or deposit an order cheque, the payee must endorse the cheque on the back by signing their name, and then present it to their own bank or financial institution. The bank will then verify the authenticity of the cheque and the payee's identification before processing the payment.
Order cheques are usually used in business transactions, as they provide a reliable and traceable method of payment. They offer a sense of security as the funds are only payable to the named payee. In addition, they provide a clear record of financial transactions and can be useful for budgeting and accounting purposes.
Overall, an order cheque is a written authorization for a bank to transfer funds from one account to another, payable to a specified person or entity. It ensures organized and controlled monetary transactions while providing a level of security and efficiency.
Common Misspellings for ORDER CHEQUE
- irder cheque
- krder cheque
- lrder cheque
- prder cheque
- 0rder cheque
- 9rder cheque
- oeder cheque
- odder cheque
- ofder cheque
- otder cheque
- o5der cheque
- o4der cheque
- orser cheque
- orxer cheque
- orcer cheque
- orfer cheque
- orrer cheque
- oreer cheque
- ordwr cheque
- ordsr cheque
Etymology of ORDER CHEQUE
The word "order cheque" has a straightforward etymology.
The term "cheque" originated from the Middle English word "checque" and the Old French word "eschequier", meaning "a chessboard" or "a checkered pattern". It referred to a written document that resembled the square pattern of a chessboard.
The word "order" in "order cheque" refers to the fact that the cheque is drawn on a bank account and authorizes the bank to pay a specific amount to the person or organization designated as the recipient (or payee) of the funds. So, "order" indicates that the cheque is to be paid upon the order or request of the account holder.
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