Check

Characteristics

The banking check is a document written, valid between 6 months and 1 year and 8 days according to the laws of the country of the transmitter, by which

the “gunner” (the signatory = that which endorses a check)
gives the order to the drawn (the debtor, that which issues the check) via its Banque (the third holder), in which it has a deposit account, sometimes said account check, having the provision . The provision is a credit balance available, or failing this an authorization of flow, sufficient amount to output the amount of the check)
to pay on presentation and without delay ( payment at sight )
a amount given
to the profit (i.e the creditor , makes some via its own bank which will make of it the cashing ).

It is subject to very diverse rules from one country to another. This absence of international legal standardization on its characteristics and its use makes that it is badly accepted abroad. Certain banks to compensate for this problem grant the right to emit accounts - checks with agreement of compensation in a currency other than their national currency. In such a case, the check famous is issued by the bank present in the country aimed by the agreement. Obtaining such accounts - checks can be refused with customers by the bank on the basis of of national law of the foreign bank as regards fight anti-terrorist and money launderings.

Circuit of cashing

To be made credit, the recipient gives the check to his own bank (operation of given to the cashing). This bank (the bank presenter) is given the responsability to present it to the drawn bank.

In practice inside the same country, there exists a system of Compensation of the accounts - checks between the various banks. It makes it possible each one to give to the others in block all the accounts - drawn checks on those and being credited n the other hand.

Certain countries use a process of compensation per imagery check. A digital image of the check is transmitted to the place of the check paper between the banks. Canada work on the establishment of such a system.

Provision

In France, to issue a rubber check can result in to become prohibited banking for 5 years, for lack of regularization.

In addition to the bank charges, are added a tax penalty unless the incident of payment is not regularized within two month as from the incident and if it is about the first rubber check issued in the last 12 months. In the other cases, the tax penalty is, by check, of 22 € per not funded section of 150 € (brought back to 5 € for the fractions lower than 50 €).

This penalty is doubled as from the 4th incident in the 12 months.

>> More infos with the/key ones of the bank

To leave the banking interdict thanks to the European right visit the site

Particular types of accounts - checks

the bank draft is a check where the gunner is the drawn bank itself. Of this fact the payment is guaranteed by it.

the travellers' check is a particular bank draft, for a pre-printed standard sum, that the customer buys at a bank. According to the countries, it is accepted easily or not, either in payment with tradesmen, or for withdrawal in banks.

the postal check is a check issued by the Poste S. Voir the Postal bank.

the check certified is a check more used by the companies. When it is emitted, the bank certifies that there is a provision. But the disadvantage is that it does not certify that the provision exists at the time of its cashing.

the ''' check melts of them U.S. with agreement of compensation ''' is a check drawn from a bank apart from the United States on in account in American currency whose transmitting bank has an agreement of compensation with an US bank. These accounts - checks have like characteristic to comprise a coding of American routing and not to involve additional times of treatment compared to an American account.

Invoicing of the cost of the check

In France, the law provided that the check forms was placed free at the disposal of the holder of an bank account or postal (Article L.131-71 of the monetary Code and financier, anc. Article 65-1 of Décr. - Law of Oct. 30, 1935).

However, this provision does not mean that it is interdict to invoice the recourse to the service of the payment by check. Indeed, the check requires a treatment which, like all the means of payment, has a Coût. It is thus perceived by the operators, i.e. primarily the Banque S and other financial institutions, a commission known as of interchange, on the transactions carried out by check.

It remains that if a company - banks or other - decides to invoice a service of payment, it must do it in all independence. Banks, which would decide by mutual agreement to invoice the payment by check, are exposed to being condemned for Illicit agreement on the base of the Droit of competition. The Conseil of competition inquired into the question of the single Prix of the treatment of the accounts - checks which the banks set up at the time of the computerization of the system in 2001. The instruction was in hand in 2007.

Statistics on the check

Accounts - checks in France account for 29% of the operations of payment exchanged into interbank in 2004, whereas the European average is of 11% (UE25). However, the French use it also less and less: with 3,7 billion accounts - checks issued by the French in 2006, the number of accounts - checks dropped by 4,1% compared to 2005.

See the statistics of the check in France and Europe in the file " accounts - checks " on www.fbf.fr

In Quebec, and in certain places of Canada, the personal check is used little, because he is refused in the majority of the trade. He is used for nevertheless to pay rents, certain official organizations (those which accept it), or to pay an invoice of a monthly service. Typically, only the large corporations accept the accounts - personal checks.

History

1742, when the bank of England had the monopoly of the banknotes, the bankers which could not issue tickets any more invented another representative money: the check.
1826, first accounts - checks issued by BdF under the name of “ white mandates ”
1865, the check is introduced in France
1931, standardization of the law on the check in Geneva - in France, law of October 30th, 1935

Features in France

Law of the 12/29/1978 (art 85), the banks must deliver accounts - pre-barred and nonendorsable checks. Crossing obliges the recipient of the check to only box it only in one banking institution. Nevertheless and under certain conditions, there remains possible to ask its bank to deliver accounts - uncrossed checks.
It is possible to specify between the bars the name of the bank only authorized to be made present the check, although this practice is rare apart from the Banque de France.
accounts - checks are governed by technical standard NF K11-111. A line CMC7 is reserved for the impression of magnetic characters comprising 3 series of figures: 7 for the number of the check, 12 for the interbank codes and 12 for the account number.
In France, any check of an amount lower or equal to 15 € must be paid, qu" there is or not the provision necessary on the drawn account.
the times of presentation of a check is of 8 days in France (20 J in Europe and 70 J in-outside Europe). It is the period during which the recipient of the check has recourse in the event of not-provision of the drawn account.
the time of validity is the time beyond from which the bank drawn can refuse to pay the check. In France, this time is of 1 year after the time of presentation.
When a bank certifies a check, it is committed blocking on the drawn account, assembling it indicated on the check, and this throughout presentation of the check. It is this kind of check which one presents for example in front of notary for the purchase of an apartment or with the customs to pay VAT of a new car bought out of France.

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