Q:

What is a check payment?

A:

Quick Answer

A check payment is a mode of payment drawn against deposited funds in a bank account. It orders the bank to pay a specific amount of money on demand to an entity whose name appears on the check.

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What is a check payment?
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Full Answer

A check payment system involves three parties: the drawer who writes the check, the payee who receives the check, and the bank that manages the drawer's checking account. After receiving the check, the payee may negotiate by endorsing and transferring it to another person, who then becomes the new holder. The payee routes the check through a depository bank, which then submits it for collection through the check clearing system.

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