Why is identification required to pay a Check?

How to Sign a Check Over to Someone Else? - Checkissuing.com

The identity verification constitutes a safeguard for those who use this means of payment.Banks are legally obliged to verify the identity of people who cash checks by cashier, by requiring them to show the respective identity card.

The purpose of the measure is to leave the bank or third parties in a position to pursue the responsibilities that may arise from the falsification, loss, theft or theft of the document.

If you are interested in writing checks charged to a bank account or these are cheap checks online, you must make sure that this right is included in the contract, which appears in most documents for checking accounts, but not for savings accounts.

Check payment location

The check must state the place of payment. If it does not appear, it will be understood that the place designated in the check next to the name of the drawee is his place of payment, so that no branch other than the one indicated, has the obligation to pay the check.

Paying a check at the counter at an office other than the one where the signer has the account open involves a risk, since it cannot be verified that his signature matches that of the account holder, a necessary security measure to avoid payments of documents to an illegitimate holder or that have not been regularly issued.

The drawee who has funds at the disposal of his client, the drawer, is obliged to pay, in whole or in part, the amount of the check, which if it is a check issued and payable in Spain must be presented for payment within a period of fifteen days.

Commission for issuing checks

Even if your account is exempt from commissions, the entity can charge a commission for the writing of a check. It is advisable to check in advance how much you are going to charge.

Once you have the check you can deliver it (if it is to the bearer) or endorse it (if it is nominative) to another person.

The entity will debit you on account the day that the bank in which it has been entered presents it to your entity, or the same day of its entry or payment at the window if it is presented directly by the client at the released office.

The bank, regardless of how it is issued and what its amount is, can request identification from the holder of a check with the duty of confidentiality on that information.

Ways to issue checks

A check can be written:

To the bearer: Anyone who presents this type of check has the right to cash it. Be very careful: if you lose it and anyone collects it, you will not be able to claim anything.

Nominative: In this case, only the person or company whose name appears on the check will be able to cash it.

However, there is the possibility of transferring the collection right to a third party through what is called the “endorsement”. To endorse a check, the payee writes the name of another person, who becomes the new payee, and signs it. Nominative checks may include the clause “to order”, which expressly allows their endorsement or the clause “not to order” that prevents their transmission by endorsement.

Check “to pay into account”: If a check has the expression “pay into account” written, it means that the money cannot be withdrawn in cash, but will have to be deposited into a bank account. This is done to reduce the risk in the event of loss or theft.Crossed checks and checks to be credited to account make it easy to identify who is cashing them.