- A cheque that is guaranteed to clear by the issuing bank. The issuing bank sets aside the sum being transferred so that the cheque will clear. Certified cheques are commonly used when the recipient is unsure if the one writing the cheque is creditworthy and does not want to risk a bounced cheque. Banks will typically charge a fee in order to certify a cheque. Also known as a "certified check."
Bank account transaction code.
Related Terms and Acronyms
- Blank Cheque — Definition,
- A cheque that does not have a dollar amount written on it.
- Cheque (CK) — Acronym,
➥ Bank account transaction code.
- A written order for payment of a certain amount of money.
- Cheque Clearing — Definition,
- When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
- NSF Cheque — Definition,
- If a cheque is returned for this reason, it means that there was not enough money in your bank account to cover the amount of the cheque. There is a fee to you if this situation occurs.
- Void Cheque — Definition,
- A check with the word "VOID" written on the face that cannot be cashed.