Broad Association: BMO Financial Group
Narrow Association: BMO Bank of Montreal
Is a company: no
Is a proper noun: no
Notes: Bank account transaction code.
- instructions to pay
- written order
- promise of payment
Definition of Cheque
- A blank form that is used as a written order directing a bank or banker to pay money as therein stated. Cheques can be personalized or non-personalized.
Related Terms and Acronyms
- Settlement Points — Definition,
- Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.
- Passbook — Definition,
- A book used to record all banking transactions for a designated account.
- Certified Cheque (CC) — Acronym,
➥ Bank account transaction code.
- A cheque that a bank guarantees will clear.
- Cheques Returned with Statement — Definition,
- Cheques that are cancelled are returned to the account holder in a monthly statement.
- Payor — Definition,
- One who makes a payment to another party.
- Blank Cheque — Definition,
- A cheque that does not have a dollar amount written on it.
- Insufficient Funds (ISF) — Acronym,
- When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
- 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."
- Debit — Definition,
- Another name for withdrawal of funds from your account.
- Letter of Credit (L/C) — Acronym,
- A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
- Payee — Definition,
- The name of the person to whom the money in a cheque is to go.
- Personalized Cheque — Definition,
- A cheque which has your name and account number printed on it.
- Foreign Exchange (FOREX, FX, FE, F/X) — Acronym,
➥ Bank account transaction code.
- Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
- Cheque Book — Definition,
- A book with blank cheques. The cheques may be personalized or non-personalized.
- Endorse — Definition,
- To sign the back of a cheque in order to cash it.
- Cheque Register — Definition,
- A book or log where you can record the details of every transaction made in your chequing account.
- E-cheque — Definition,
- An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account.
- Travellers' Cheques — Definition,
- These are a safe way to carry large amounts of money if you are going on a trip. They are considered to be the same as cash, but can be replaced if they are lost or stolen. You can buy them at your bank for a small fee. If you have a special service package, you may not have to pay this fee.
- Void Cheque — Definition,
- A check with the word "VOID" written on the face that cannot be cashed.
- Chequing Account — Definition,
- A bank account that allows quick access to the money in the account.
- Cheque Hold — Definition,
- The length of time that a financial institution can legally hold a cheque before crediting a customer's account balance and allowing the customer to use the funds.