There are several varieties of cheques, the most common of which are open cheques, crossed cheques, pay yourself cheques and post dated cheques. Each type of cheque has its own functionality, allowing the issuer to transfer money to themselves and others via inter-bank accounting systems.
- Open cheques- Cheques issued with no payee specified, payable to the bearer by the issuing bank.
- Crossed cheques- Cheques with a specified payee, who can cash the cheque at his own bank.
- Pay yourself cheques- Cheques written to instruct the payee to deduct a relevant amount, used commercially and in repayment of debt.
- Post dated cheques- Cheques written for a future date, as security for payment of a debt or other future obligation.