What is a Cross Cheque? – Meaning & Types

Do you worry about your bank cheque ending up in the wrong hands? With a cross cheque, you do not have to anymore. It adds an extra layer of security to your payments, making sure the money goes only to the intended recipient. Unlike regular cheques that can be cashed at the bank counter, a cross cheque must be deposited directly into a bank account. This simple step helps prevent fraud and ensures safer transactions. 

Read on to know what it is, how cross cheques work and what its benefits are.

What is Cross Cheque?

A cross cheque has two parallel lines drawn across its face, usually in the top left corner or across the middle. These lines limit how the cheque is handled. It cannot be cashed directly at the counter but must be deposited into a bank account.

Simply put, crossed cheque meaning ensuring payments are safely transferred to a bank account rather than cashed at the counter. This makes it a preferred choice for individuals and businesses.

How Does a Cross Cheque Work?

Here’s how a cross cheque functions:

• Drawing the Cross Lines – While writing a cross cheque, draw two parallel lines on the top left corner or across the cheque.
• Deposit Instead of Cashing – The receiver cannot cash a cross cheque at the counter but must deposit it in their bank account.
• Secure Payment – Once the cross cheque is deposited, the bank transfers the money to the recipient’s account, ensuring a safe transaction.

Also Read: How To Fill a Cheque

Types of Cheque Crossing

Listed below are the 2 main types of cheque crossing:

• General Cross Cheque

A general cross cheque is a type of cross cheque that has two parallel lines drawn across its face, usually in the top left corner or across the middle. This cheque cannot be cashed at the bank counter; instead, it must be deposited into a bank account. 

• Special Crossed Cheque

A special crossed cheque includes additional instructions like ‘Account Payee ’ or ‘A/C Payee Only’ between the lines. This makes the cross cheque even more secure by ensuring that only the specified account holder can receive the payment.

Benefits of Using a Cross Cheque

Cross cheques are widely used because of their security and reliability. The crossed cheque meaning also extends to better tracking of payments, which is useful for businesses and individuals handling large transactions.

Here’s why many prefer using one:

1. Increased Security – The money from a cross cheque is credited only to the account mentioned on the cheque, reducing the risk of fraud or theft.
2. No Cash Withdrawal at the Counter – Since a cross cheque must be deposited into an account, it prevents unauthorized cash withdrawals.
3. Legal Protection – If any dispute arises, the bank has a clear record of the cross cheque payment, making resolution easier.

When Should You Use a Cross Cheque?

• When making payments to a vendor or supplier using a cross cheque.
• When giving money to someone you don’t know well, a cross cheque ensures safe transactions.
• When making large payments for goods or services, a cross cheque is the best choice.

A cross cheque keeps your money safe by ensuring it goes straight to the right bank account. Whether for personal or business use, it’s a smart way to secure your payments.

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