What is a Check Cashing Service?

Cheque cashing is a bill entrusted by a bank or other financial institution that handles the deposit business and pays a certain amount to the payee or bearer unconditionally when it sees the check.

Check cashing

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Cheque cashing is entrusted

The characteristics of check cashing and settlement are generally simple, flexible, fast and reliable. The so-called simplicity means that the checkout procedure is simple and convenient, as long as the payer has sufficient funds in the bank.

(1) The holder directly presents the check to the paying bank.

In other words, after receiving the transfer check, you have to present the check to the payer (financial institution). Once the check is presented, the payer pays the amount recorded on the check to the holder from the invoicer account of the presented check.

(2) Entrust your company's correspondent bank to carry out the transfer on your behalf. (Commonly used)

Entrust your company's correspondent bank to exchange the check for cash on your behalf. The bank will take the check to the clearing house for exchange and the bank will process it. At this time, when the deposit balance of the paying bank's invoicer is insufficient, this check becomes a refusal check and will be returned with a note that cannot be paid.