Question

what is the difference between bearer cheque and order cheque? Explain any five types of cheque on the basis of making​

Answer 1

Answer:

1. Bearer Cheque

A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque. These cheques are transferable by delivery, that is, if you are carrying the cheque to the bank, you can be issued the payment to. The banks need no other authorisation from the issuer to be allowed to make the payment.  

How can you identify a bearer cheque? You know it is a bearer cheque when you see the words ‘or bearer’ printed on them.

2.  Order Cheque                                              

In these cheques, the words ‘or bearer’ is cancelled. Such cheques can only be issued to the person whose name is mentioned on the cheque, and the bank will do its background check to authenticate the cheque bearer’s identity before releasing the payment.  

Explanation: