With online banking, large ATM networks and credit cards, checks are less in use than they used to be. Anyone who still wants to issue a check or redeem, will find the necessary information here.
Checks are subject to the German Check Act (ScheckG). On them must be noted, among other things, the date of issue, the instruction to pay a certain amount of money and the credit institution of the exhibitor. In addition, the check must be signed by the exhibitor. The banks issue the forms required by law. These contain not only this information, but also the commercial components.
Redeem check only with form
If you want to redeem a check, you have to go to your bank with the appropriate check and a check deposit form and present the check there. Sometimes the ID card must be presented when redeeming. The check can also be sent by mail to the banks. This will be necessary especially for direct banks.
On the web pages of the direct banks you will find the check deposit form for download. However, the form is not needed at every bank. This should be checked before submitting the check, otherwise fees may apply for a non-form fee. The redemption of the checks is usually free of charge via the house bank. For foreign checks and traveler’s checks but charges.
The bank posts the money within a few days to the account of the recipient. At this time but only with the remark “check entrance reserved”. Here, the bank checks whether the account of the exhibitor is covered and the information on the check is correct. If this is not the case, the redeemer must repay the money to the bank. The blocking period between value date and availability depends on the respective bank and usually lasts between five and seven days. The actual deposit of foreign checks takes longer.
Check fraud and check barrier
If the settlement fails because the issuer does not have a covered account, this can be check fraud. That depends on whether the check was issued with the knowledge that there is not enough money in the account. However, the issuer may also suspend the check in order to prevent a withdrawal.
For example, the payout of a stolen personal check can be stopped. Such a check should always be requested when a check disappears. For this you need the check number of the lost check. Therefore, you should make a note of them before handing over each check. The lock may incur fees. It can also be temporary. If this is the case and there is still suspicion of abuse, the check should be blocked again.
Redeemers can enforce their claims with, among other things, a check reminder and a check process. If a check can not be cashed, the redeemers should ensure that the bank returns the check with the words “Not paid” to them. Because this protest is considered proof of procedure. If the check can not be cashed, the beneficiary must also inform the issuer within four days.
Checks in Germany are subject to a notice period of eight days. For European checks, it is 20 days, for checks from other countries a deadline of 70 days applies. If the check is later submitted to a bank, the redeemer no longer has recourse claims. The credit institutions are only entitled to redeem the check, not obliged. The bourgeois-legal claims, so the main demand on the money, remain. But these too can become statute-barred.
Of course, not only can you redeem checks, you can also issue them. This requires a covered account and a check form. The banks send their customers the empty checks to fill in upon request.
Checks and crossed checks
Check is not the same as check. This way a cashier’s check can be cashed. However, this is only possible with the issuing bank. If the check is redeemed at another bank, it will be credited to the creditor’s bank account.
There is also the settlement check. It is marked, for example, by the remark “Only for clearing”. This note can also be put on a personal check, so that this is the Verrechnscheck. This transformation can not be undone.
Redeeming a crossed check is only possible if the holder of the check has an account. Because the money is always credited to the account, the money is not paid in cash. This settlement may take a few days, depending on the bank.
Checks and crossed checks are so-called Inhaberschecks. This means that everyone can redeem these checks. The banks do not have to check permissions. However, the clearing check is considered safer. Here at least can be tracked on which account the money is received. With the check there is no trace back possible.
However, the crossed check can also be issued as an order check. Here, the exhibitor can name the person entitled to the check by name on the check. The check will be issued “With Order”. As a result, the check can only be redeemed by this person. Both the issuer and the claimant must sign the check. Order checks can be recognized by the red line with the text “Order Check” on the right side of the check.
The credit institution must verify the eligibility of the redeemer and the chain of endorsement when passing on the order check. This is a full endorsement. Through the chain of endorsements you can see how often and to whom the check has been passed. Because with each passing on the next owner is noted. Each signature provider assumes liability for the check for the presentation period, if the issuer is insolvent.
There is also a blank industament. Here, no name is noted on the check, so the bank can redeem the check for each submitter. He is an owner paper. In the case of blank indentation, one can only recognize the exhibitor.
Tip: Redeem checks quickly
If you want to cash a check, you should always check what kind of check it is. Besides, he should not let too much time pass before redeeming him.