Different Types of Check and their Usefulness

Even though it can seem like paper checks are outdated, they are still a vital form of payment. Users can access the funds in their bank account using a variety of checks. It’s beneficial to know the differences between checks and when to use them. With the growing financial burdens, people started looking for stability, peace of mind, and assurance with their money handling. Using a check binder to keep all the checks in one place is essential. This article will focus on eight types of checks, each with benefits such as security, convenience, and no fees.

1.   Personal Check

A personal check comes printed with the user’s routing and account numbers from the bank. The check is blank and must be filled up by the payer. Once the check is deposited, the funds are transferred to the recipient by the payer.

2.   Certified Check

A certified check confirms that there are sufficient funds in the drawer’s account to honor the check’s amount. This guarantees that the check won’t bounce due to a lack of funds. The check can be certified by the bank from where it was drawn.

3.   Cashier’s Check

These checks come with a bank guarantee. When a cashier signs the check, the bank is held accountable for the money. Large transactions, such as purchasing a car or home, typically call for a cashier’s check. For cashier’s checks, most credit unions and banks usually levy a check fee.

4.   Payroll Check

Another type of check is a payroll check, which an employer gives to reimburse an employee for their services. Using a check binder is a great way to keep all the payroll checks organized.

5.   Bounced Check

As said before, if a check is not certified by a bank, it can bounce. This means that the payor issued a check for a sum more than the amount in their account. The action to overdraw the account will probably result in a fine since the payor has non-sufficient funds (NSF).

6.   Money Order

A money order, which denotes a sum of money, is a safe way to pay. When payers buy the check, they will pay the whole amount plus a modest fee. They come in handy if payors don’t want to use a personal check with personal information.

7.   Electronic checks

Using an online check, an electronic check, or “eCheck,” transfers money from the payer’s account to the payee’s account. Because it’s done online and doesn’t require any paper checks, this process is typically faster than the processing for other types of checks. eChecks typically have lower processing costs than credit card transactions; in fact, some eChecks have no charges at all.


Asking the bank, credit unions, and other financial institutions about the types of checks they offer can be a brilliant idea. By doing this, anyone can be ready to choose the best suits their requirements and situation.