Check

A check is a traditional form of payment that functions as a written, dated, and signed instrument that directs a bank to pay a specific sum of money from the check writer's account to the person or entity named on the check. This payment method is categorized as a bill of exchange and involves a direct order from the check issuer to their bank, instructing the withdrawal of funds that have been previously deposited in their account.

Checks are used in a variety of financial transactions, from personal payments to business dealings. They provide a paper trail and documented evidence of payment, which can be crucial for accounting and tax purposes. Upon receipt, the payee can cash the check or deposit it into a bank account. The processing of the check goes through several stages, including verification of the signature and sufficient funds in the issuer's account, before the funds are transferred.

Despite the rise of electronic payments, checks remain a viable payment method, especially in situations where digital transactions are not feasible or preferred. However, users should be mindful of the potential for fraud, such as forged signatures or bounced checks due to insufficient funds, and take precautions to secure and monitor their use.